<SEC-DOCUMENT>0001144204-14-013634.txt : 20140306
<SEC-HEADER>0001144204-14-013634.hdr.sgml : 20140306
<ACCEPTANCE-DATETIME>20140306073856
ACCESSION NUMBER:		0001144204-14-013634
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20140303
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Material Modifications to Rights of Security Holders
ITEM INFORMATION:		Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140306
DATE AS OF CHANGE:		20140306

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TRANSGENOMIC INC
		CENTRAL INDEX KEY:			0001043961
		STANDARD INDUSTRIAL CLASSIFICATION:	LABORATORY ANALYTICAL INSTRUMENTS [3826]
		IRS NUMBER:				911789357
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-30975
		FILM NUMBER:		14671422

	BUSINESS ADDRESS:	
		STREET 1:		12325 EMMET ST
		CITY:			OMAHA
		STATE:			NE
		ZIP:			68164
		BUSINESS PHONE:		4027385480

	MAIL ADDRESS:	
		STREET 1:		12325 EMMET STREET
		CITY:			OMAHA
		STATE:			NE
		ZIP:			68164
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v370740_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">UNITED STATES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">FORM 8-K</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CURRENT REPORT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Pursuant to Section 13 or 15(d) of<BR>
the Securities Exchange Act of 1934</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported): March 3, 2014</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">TRANSGENOMIC, INC.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified
in its charter)</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; text-align: center"><B>Delaware</B><BR>
(State or other jurisdiction of incorporation)</TD>
    <TD STYLE="width: 34%">&nbsp;</TD>
    <TD STYLE="width: 33%; text-align: center"><B>000-30975</B><BR>
(Commission File Number)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><B>91-1789357</B><BR>
(IRS Employer Identification Number)</TD>
    <TD STYLE="text-align: center"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><B>12325 Emmet Street</B><BR>
<B>Omaha, NE</B><BR>
(Address of principal executive offices)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><B>68164</B><BR>
(Zip Code)</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>(402) 452-5400</B><BR> (Registrant&rsquo;s telephone number, including area code)</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Not applicable</B><BR> (Former name or former address, if changed since last report)</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e(c))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 1.01. Entry into a Material Definitive Agreement.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Amendment to Loan and Security Agreement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March 3, 2014, Transgenomic, Inc. (&ldquo;Transgenomic&rdquo;
or the &ldquo;Company&rdquo;) entered into an amendment (the &ldquo;Amendment&rdquo;) to its Loan and Security Agreement, dated
March 13, 2013, with Third Security, LLC and its affiliates for a revolving line of credit and a term loan (the &ldquo;Loan Agreement&rdquo;).
The Amendment provides that Transgenomic will not be required to make any principal or interest payments under the term loan for
the period from March 1, 2014 through March 31, 2015. Accordingly, pursuant to the amended Loan Agreement, the next principal and
interest payment under the term loan will be due on April 1, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The foregoing description of the Amendment does not purport
to be a complete description of all terms of the Amendment and is qualified in its entirety by reference to the full text of the
Amendment, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Series B Preferred Stock Financing</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 5, 2014, Transgenomic entered
into a Series B Convertible Preferred Stock Purchase Agreement (the &ldquo;Purchase Agreement&rdquo;) with certain accredited investors
and/or their affiliates (collectively, the &ldquo;Investors&rdquo;), pursuant to which Transgenomic, in a private placement, sold
and issued to the Investors an aggregate of 1,443,297 shares of the Company&rsquo;s Series B Convertible Preferred Stock, par value
$0.01 per share (the &ldquo;Series B Preferred Stock&rdquo;), at a price per share of $4.85 (the &ldquo;Shares&rdquo;) for an aggregate
purchase price of approximately $7,000,000 (the &ldquo;Private Placement&rdquo;). Each share of Series B Preferred Stock issuable
pursuant to the Purchase Agreement is initially convertible into shares of the Company&rsquo;s common stock, par value $0.01 per
share (the &ldquo;Common Stock&rdquo;), at a rate of 1-for-1, which conversion rate is subject to further adjustment as set forth
in the Certificate of Designation of Series B Convertible Preferred Stock (as defined below under Item 5.03). Certain additional
terms of the Series B Preferred Stock are described under Item 5.03 below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Private Placement,
the Company also entered into a Registration Rights Agreement, dated March 5, 2014, with the Investors (the &ldquo;Registration
Rights Agreement&rdquo;), pursuant to which the Company granted the Investors certain demand, &ldquo;piggy-back&rdquo; and S-3
registrations rights covering the resale of the shares of Common Stock underlying the Series B Preferred Stock issued pursuant
to the Purchase Agreement and all shares of Common Stock issuable upon any dividend or other distribution with respect thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Third Security, LLC and its affiliates
(collectively, &ldquo;Third Security&rdquo;), which holds more than 10% of the outstanding voting stock of the Company, participated
in the Private Placement. Additionally, Doit L. Koppler II and Robert M. Patzig, directors of the Company, are affiliated with
Third Security.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing descriptions of the Purchase
Agreement and the Registration Rights Agreement do not purport to be complete and each is qualified in its entirety by reference
to the full text of the Purchase Agreement and the Registration Rights Agreement, which are filed as Exhibit 10.2 and Exhibit 4.1,
respectively, to this Current Report on Form 8-K and incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The representations, warranties and covenants
contained in the Purchase Agreement and the Registration Rights Agreement were made solely for the benefit of the parties to the
Purchase Agreement and the Registration Rights Agreement, and may be subject to limitations agreed upon by the contracting parties.
Accordingly, the Purchase Agreement and the Registration Rights Agreement are incorporated herein by reference only to provide
investors with information regarding the terms of the Purchase Agreement and the Registration Rights Agreement, and not to provide
investors with any other factual information regarding the Company or its business, and should be read in conjunction with the
disclosures in the Company&rsquo;s periodic reports and other filings with the Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 2.03. Creation of a Direct Financial Obligation or
an Obligation under an Off-Balance Sheet Arrangement of a Registrant.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The information disclosed in Item 1.01 above regarding the Amendment
is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 3.02. Unregistered Sales of Equity Securities.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Private Placement described
in Item 1.01 of this Current Report on Form 8-K, which description is incorporated by reference into this Item 3.02 in its entirety,
on March 5, 2014, the Company sold the Shares to &ldquo;accredited investors,&rdquo; as such term is defined in the Securities
Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), and in reliance on the exemption from registration afforded by Section
4(2) and Rule 506 of Regulation D under the Securities Act and corresponding provisions of state securities or &ldquo;blue sky&rdquo;
laws. Each of the Investors represented that it was acquiring the Shares for investment only and not with a view towards, or for
resale in connection with, the public sale or distribution thereof. Accordingly, the Shares have not been registered under the
Securities Act and such securities may not be offered or sold in the United States absent registration or an exemption from registration
under the Securities Act and any applicable state securities laws. Neither this Current Report on Form 8-K nor any exhibit attached
hereto is an offer to sell or the solicitation of an offer to buy shares of Common Stock or other securities of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 3.03. Material Modification to
Rights of Security Holders. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Private Placement,
the Company filed the Amended Series A Certificate of Designation (as defined in Item 5.03) with the Secretary of State of the
State of Delaware on March 5, 2014 to, among other things, define the rights and qualifications of the Company&rsquo;s Series A
Preferred Stock, par value $0.01 per share (the &ldquo;Series A Preferred Stock&rdquo;) relative to those of the Series B Preferred
Stock. The information disclosed under Item 5.03 of this Current Report on Form 8-K describing the amendments made to the Amended
Series A Certificate of Designation is incorporated by reference into this Item 3.03 in its entirety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 5.03. Amendments to Articles of
Incorporation or Bylaws; Change in Fiscal Year. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 5, 2014, in connection with the
Private Placement, the Company filed a Certificate of Amendment of Certificate of Designation of Series A Convertible Preferred
Stock (the &ldquo;Amended Series A Certificate of Designation&rdquo;) to, among other things, provide that (1) the holders of the
Series A Preferred Stock (together with the Series B Preferred Stock, the &ldquo;Preferred Stock&rdquo;), are to vote together
as a single voting group with the holders of the Common Stock and the holders of the Series B Preferred Stock, (2) the Company
may not take certain actions without the prior written consent of the holders of at least two-thirds of the outstanding shares
of Preferred Stock, voting together as a single class on an as-converted to Common Stock basis, (3) the holders of Preferred Stock
are entitled, as a separate voting group, to elect two directors to the Company&rsquo;s Board of Directors, (4) the holders of
Series B Preferred Stock are entitled to receive dividends as set forth in the Series B Certificate of Designation prior and in
preference to any payment of dividends to the holders of Series A Preferred Stock, and (5) upon a Change in Control (as defined
in the Amended Series A Certificate of Designation) or any liquidation, dissolution or winding up of the Company, the holders of
Series B Preferred Stock are entitled to receive and to be paid out of the assets or surplus funds of the Company, prior and in
preference to any payments to be made to the holders of Series A Preferred Stock and the holders of Common Stock. The information
disclosed under Item 3.03 of this Current Report on Form 8-K describing the Amended Series A Certificate of Designation is incorporated
by reference into this Item 5.03 in its entirety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Private Placement,
the Company also filed the Series B Certificate of Designation with the Secretary of State of the State of Delaware on March 5,
2014, designating 1,443,297 shares of the Company&rsquo;s Preferred Stock as Series B Preferred Stock, and establishing the rights,
preferences and privileges of the Series B Preferred Stock. Generally, the holders of the Series B Preferred Stock are entitled
to vote as a single voting group with the holders of the Series A Preferred Stock and the holders of the Common Stock, and the
holders of the Series B Preferred Stock are generally entitled to that number of votes equal to the whole number of shares of Common
Stock into which the Series B Preferred Stock may be converted. Initially, each share of Series B Preferred Stock is convertible
into one share of Common Stock. The holders of the Series A Preferred Stock and the holders of the Series B Preferred Stock are
entitled to elect, as a separate voting group, two directors of the Company. Additionally, so long as any shares of Preferred Stock
are outstanding, the Company is restricted from taking certain actions without the prior written consent of the holders of at least
two-thirds of the outstanding Preferred Stock, voting together as a single class on an as-converted to Common Stock basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain rights of the Series B Preferred
Stock are senior to the rights of the holders of Series A Preferred Stock and of the holders of Common Stock. Cumulative dividends
accrue at a rate of six percent, compounded annually, on the Series B Preferred Stock. The Series B Preferred Stock has a liquidation
preference equal to its initial price per share, as adjusted for any stock dividends, combinations or splits, plus all accrued
but unpaid dividends. The Series B Certificate of Designation also contains an optional redemption provision whereby the holders
of a majority of the then issued and outstanding Series B Preferred Stock may, after the fifth anniversary of the closing of the
Private Placement, require the Company to redeem all of the then issued and outstanding shares of Series B Preferred Stock at the
initial price per share of the Series B Preferred Stock, as adjusted for any stock dividends, combinations or splits, plus all
accrued but unpaid dividends. The holders of the Series B Preferred Stock have certain optional conversion rights, and the Series
B Preferred Stock conversion rate is subject to adjustment upon the occurrence of certain events, such as certain stock splits,
stock dividends, mergers, consolidations, reorganizations, reclassifications and certain dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing descriptions of the Amended
Series A Certificate of Designation and the Series B Certificate of Designation do not purport to be complete and each is qualified
in its entirety by reference to the full text of the Amended Series A Certificate of Designation and the Series B Certificate of
Designation, which are filed as Exhibit 3.1 and Exhibit 3.2, respectively, to this Current Report on Form 8-K and incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 9.01. Financial Statements and Exhibits.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>Exhibits.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%; text-align: center">3.1</TD>
    <TD STYLE="width: 85%">Certificate of Amendment of Certificate of Designation of Series A Convertible Preferred Stock of Transgenomic, Inc., as filed with the Secretary of State of the State of Delaware on March 5, 2014.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">3.2</TD>
    <TD>Certificate of Designation of Series B Convertible Preferred Stock of Transgenomic, Inc., as filed with the Secretary of State of the State of Delaware on March 5, 2014.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">4.1</TD>
    <TD>Registration Rights Agreement, dated as of March 5, 2014, by and among Transgenomic, Inc., Third Security Senior Staff 2008 LLC, Third Security Staff 2014 LLC and Third Security Incentive 2010 LLC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.1</TD>
    <TD>Fourth Amendment to Loan and Security Agreement among Transgenomic, Inc., Third Security Senior Staff 2008 LLC, as administrative agent and a lender, and the other lenders party thereto, dated March 3, 2014</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.2</TD>
    <TD>Series B Convertible Preferred Stock Purchase Agreement, dated as of March 5, 2014, by and among Transgenomic, Inc. and Third Security Senior Staff 2008 LLC, Third Security Staff 2014 LLC and Third Security Incentive 2010 LLC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">99.1</TD>
    <TD>Press release issued by the Company on March 6, 2014.</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SIGNATURES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">TRANSGENOMIC, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 49%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>March 6, 2014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP>By&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Mark P. Colonnese</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Mark P. &nbsp;Colonnese</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Executive Vice President and Chief Financial Officer</TD></TR>
</TABLE>


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<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>2
<FILENAME>v370740_ex3-1.htm
<DESCRIPTION>EXHIBIT 3.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">Certificate
of Amendment of </FONT><BR>
<FONT STYLE="text-transform: uppercase">CERTIFICATE OF DESIGNATION OF</FONT><BR>
<FONT STYLE="text-transform: uppercase">SERIES A CONVERTIBLE PREFERRED STOCK</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">OF</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">TRANSGENOMIC,
INC.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Pursuant to Section 151 of the</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">General Corporation Law of the</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">State of Delaware</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">This Certificate of
Amendment (this &ldquo;<U>Amendment</U>&rdquo;) of Certificate of Designation of Series A Convertible Preferred Stock (as previously
amended pursuant to that Certificate of Amendment filed with the Secretary of State of the State of Delaware on May 25, 2012, the
&ldquo;<U>Certificate of Designation</U>&rdquo;) of Transgenomic, Inc., a corporation organized and existing under the General
Corporation Law of the State of Delaware (the &ldquo;<U>Corporation</U>&rdquo;), was duly approved by the Board of Directors of
the Corporation (the &ldquo;<U>Board</U>&rdquo;) and the holders of a majority of the outstanding shares of the Corporation&rsquo;s
Series A Convertible Preferred Stock, par value $0.01 per share (the &ldquo;<U>Series A Preferred</U>&rdquo;), voting as a separate
class, effective as of March 5, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="text-transform: uppercase">Now,
therefore</FONT>, the Certificate of Designation is hereby amended and restated in its entirety as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series A Preferred
shall have the following voting powers, designations, preferences and relative, participating, optional or other special rights
and qualifications, limitations or restrictions thereof, in addition to those set forth in the Certificate of Incorporation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 1.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Designation and Amount of Series A Preferred</U>. Three Million Eight Hundred Seventy-Nine Thousand Three Hundred and
Seven (3,879,307) shares of the Preferred Stock shall be a series designated as Series A Convertible Preferred Stock of the Corporation.
Shares of Series A Preferred shall have an initial value of $2.32 per share (the &ldquo;<U>Series A Stated Value</U>&rdquo;) and
par value per share of $0.01.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 2.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Voting Rights</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify"><U>General</U>. Except as set forth in <U>Sections&nbsp;2(b)</U> and <U>2(b)(xiv)</U> herein and
as otherwise required by law, the holders of the Series A Preferred shall be entitled to that number of votes equal to the number
of whole shares of the Corporation&rsquo;s common stock, par value $0.01 per share (&ldquo;<U>Common Stock</U>&rdquo;) into which
the Series A Preferred may be converted as of the record date of such vote or consent. Except as otherwise provided herein or as
required by law, the holders of the Series A Preferred shall vote together as a single voting group with the holders of the Common
Stock and the holders of the Corporation&rsquo;s Series B Convertible Preferred Stock, par value $0.01 per share (&ldquo;<U>Series
B Preferred</U>&rdquo; and, together with the Series A Preferred, the &ldquo;<U>Preferred</U>&rdquo;) on all matters submitted
to a vote of the Corporation&rsquo;s stockholders. Fractional votes shall not be permitted. Whenever any matter is required to
be approved by the holders of the Series A Preferred as a separate group, such consent shall require the approval of the holders
of greater than fifty percent (50%) of the then outstanding shares of Series A Preferred. The approval from the holders of the
Preferred required by <U>Section 2(b)</U> below is not intended to create a separate class voting right or require a stockholder
vote, but rather constitutes a requirement of approval (which does not have to be obtained or given in the manner required for
stockholder votes) necessary for certain actions in addition to any stockholder approval otherwise required under the Certificate
of Incorporation or by law.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify"><U>Negative Covenants</U>. So long as any shares of Preferred are outstanding, the Corporation
shall not, without the prior written consent of the holders of at least two-thirds of the outstanding shares of Preferred, voting
together as a single class on an as-converted to Common Stock basis:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">Authorize, create or issue (by reclassification or otherwise) any other class or series of capital
stock having rights, preferences or privileges senior to or in parity with the Preferred;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">Alter or change the rights, preferences or privileges of the Preferred or increase or decrease
the authorized number of shares of Preferred, Series A Preferred or Series B Preferred;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">Authorize the declaration of dividends on the Common Shares (as hereinafter defined in <U>Section
4(e)(v)</U>) or any other shares of capital stock other than the Preferred, other than dividends payable solely in Common Shares;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify">Authorize any offering of equity securities of the Corporation representing (on a pro forma basis
after giving effect to the issuance of such equity securities) the right to receive not less than ten percent (10%) of any amounts
or funds that would, as of immediately following such issuance, be legally available for distribution in connection with a Liquidation
Event (as defined in <U>Section 6</U>);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(v)</TD><TD STYLE="text-align: justify">Redeem any shares of capital stock (other than pursuant to employee agreements or the terms of
the capital stock);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(vi)</TD><TD STYLE="text-align: justify">Increase or decrease the authorized number of members of the Board;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(vii)</TD><TD STYLE="text-align: justify">Enter into any binding agreement with any director, employee or any affiliate of the Corporation,
excluding employment-related and equity award agreements;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(viii)</TD><TD STYLE="text-align: justify">Materially change the nature of the Corporation&rsquo;s business, enter into new lines of business
or exit the current line of business or invest in any person or entity engaged in a business that is not substantially similar
to the Corporation&rsquo;s business, or change the location of any permanent location of any part of the Corporation&rsquo;s business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">(ix)</TD><TD STYLE="text-align: justify">Make any loans or advances, individually or in the aggregate
in excess of $1,000,000, to, or own any stock or other securities of, any subsidiary or other corporation, partnership or other
entity unless it is wholly owned by the Corporation;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(x)</TD><TD STYLE="text-align: justify">Make any loan or advance to any natural person, including, without limitation, any employee or
director of the Corporation, except advances and similar expenditures in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xi)</TD><TD STYLE="text-align: justify">Guarantee, directly or indirectly, any indebtedness except for trade accounts of the Corporation
arising in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xii)</TD><TD STYLE="text-align: justify">Sell or otherwise dispose of any assets of the Corporation with a value, individually or collectively,
in excess of $500,000 other than in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xiii)</TD><TD STYLE="text-align: justify">Liquidate, dissolve or wind-up the business and affairs of the Corporation or effect a Change in
Control (as defined below) or any other Liquidation Event. For purposes hereof, a &ldquo;<U>Change in Control</U>&rdquo; means
(x) a merger, consolidation, recapitalization, sale of capital stock, share exchange or other transaction involving the Corporation
or any of its subsidiaries or the stockholders of the Corporation; (y) the sale or transfer of a number of shares of voting capital
stock of the Corporation or any securities convertible into or exchangeable for voting capital stock in any one (1) year period
that, pursuant to either (x) or (y), results in one person or entity or an affiliated group of persons or entities, other than
the stockholders of the Corporation immediately preceding the consummation of such transaction(s) either (i) owning in excess of
fifty percent (50%) of the total voting capital stock of the Corporation taking into account issued and outstanding shares of such
stock and any other shares of such capital stock that would be issued and outstanding assuming conversion or exchange of any and
all other securities of the Corporation so convertible or exchangeable or (ii) being able to elect a majority of the Board; or
(z) the sale, lease, abandonment, transfer or other disposition by the Corporation or any of its subsidiaries of all or substantially
all the assets of the Corporation and its subsidiaries taken as a whole, excluding the grant of a security interest by the Corporation
in all or substantially all of its assets to a bank pursuant to a <I>bona fide</I> financing arrangement approved by the Board,
which approval includes the approval of all of the Preferred Directors (as defined below). Only for purposes of (y) hereof, (i)
transfers due to the death of a stockholder or (ii) transfers to a member of a stockholder&rsquo;s immediate family, family limited
partnership, family limited liability company or a trust of which the beneficiary is such immediate family member shall not be
considered as transfers for purposes of determining whether a Change in Control has occurred;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xiv)</TD><TD STYLE="text-align: justify">Incur any indebtedness in excess of $1,000,000 in the aggregate other than trade credit incurred
in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xv)</TD><TD STYLE="text-align: justify">Expend funds in excess of $500,000 in the aggregate per year for capital improvements or other
infrastructure of the Corporation, other than any such expenditure that is consistent with a budget approved by the Board, including
the Preferred Directors (as defined below);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xvi)</TD><TD STYLE="text-align: justify">Obligate the Corporation, by contract or otherwise, to make aggregate annual payments in excess
of $500,000 or sell, transfer, pledge or license any material technology or intellectual property of the Corporation other than
a non-exclusive license in the ordinary course of business; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xvii)</TD><TD STYLE="text-align: justify">Increase the number of shares reserved and issuable under any of the Corporation&rsquo;s equity
or option incentive compensation plans.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify"><U>Election of Directors</U>. The holders of Preferred shall be entitled, as a separate voting
group, at each annual or special election of directors, to elect two (2) directors (&ldquo;<U>Preferred Directors</U>&rdquo;).
The holders of the Common Shares shall be entitled, as a separate voting group, at each annual or special election of directors,
to elect all remaining directors. In the case of a vacancy in the office of any Preferred Director, the holders of the outstanding
Preferred, voting exclusively as a separate class in person or by proxy, shall elect a successor to hold office for the unexpired
term of such Preferred Director whose place shall be vacant, by the affirmative vote of the holders of a majority of the outstanding
shares of Preferred, voting in person or by proxy, voting as a separate voting group, at a special meeting called for that purpose
at which a quorum is present or pursuant to a written consent of the holders of not less than a majority of the outstanding shares
of the Preferred. In the event all the shares of Preferred are converted or redeemed pursuant to the terms hereof, then the holders
of the Common Shares shall be entitled to elect all directors of the Corporation.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 3.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Dividends</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify">Prior and in preference to any payment of dividends to the holders of the Series A Preferred pursuant
to <U>Section 3(b)</U>, the holders of the Series B Preferred shall be entitled to receive from any funds legally available therefor
dividends if and as set forth in the Certificate of Designation of Series B Convertible Preferred Stock, as the same may be amended
from time to time (the &ldquo;<U>Series B Certificate of Designation</U>&rdquo;).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">After the payment of the dividends to the holders of the Series B Preferred as set forth in Section&nbsp;3(a)
above, the holders of the Series A Preferred shall be entitled to receive dividends from any funds legally available therefor equal
to the greater of (i) the rate of ten percent (10%) of the Series A Stated Value per annum, which shall accrue from the date of
issuance whether or not declared, shall compound annually and shall be cumulative, and (ii) the amount the Series A Preferred would
be entitled to receive on an as-if-converted basis with respect to dividends paid on the Common Stock (the greater of the foregoing
(i) and (ii) the &ldquo;<U>Dividend</U>&rdquo;). To the extent that the Corporation has positive Distributable Cash Flow (as defined
below) in any calendar quarter, the Corporation shall be required to pay the Dividend in cash to the holders of the Series A Preferred
from any funds legally available therefor in the amount equal to the lesser of (i) 50% of such positive Distributable Cash Flow
or (ii) the aggregate amount of dividends accrued on the Series A Preferred. For purposes hereof, &ldquo;<U>Distributable Cash
Flow</U>&rdquo; shall mean as of the end of each calendar quarter the Corporation&rsquo;s earnings before interest expense, income
taxes, depreciation and amortization but after required interest payments on any of the Corporation&rsquo;s debt to third parties
for borrowed money or to finance the acquisition of assets. Such dividend shall be due and payable on March&nbsp;15, June&nbsp;15,
September&nbsp;15 and December&nbsp;15 of each year (each such date or the next business date if such date is not a business day,
a &ldquo;<U>Dividend Payment Date</U>&rdquo;) with the first Dividend Payment Date March 15, 2011. No dividend shall be paid on
Common Shares (i) at a rate greater than the rate at which dividends are paid on the Series A Preferred and (ii) until all accrued
dividends on the Series A Preferred have been paid in full.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify">In no event, so long as any shares of Series A Preferred shall remain outstanding, shall any dividend
whatsoever be declared or paid upon, nor shall any distribution be made upon, any other capital stock of the Corporation excluding
the Preferred (such other capital stock excluding the Preferred, the &ldquo;<U>Junior Securities</U>&rdquo;), nor shall any Junior
Securities be purchased or redeemed by the Corporation, nor shall any monies be paid to or made available for a sinking fund for
the purchase or redemption of any Junior Securities, unless in each instance dividends on all outstanding shares of the Series
A Preferred for all Dividend Payment Dates shall have been accrued and paid in full and the full dividend on all outstanding shares
of the Series A Preferred for the then-current dividend payment due shall have been accrued and paid in full or declared and sufficient
funds for the payment thereof set apart.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 4.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT>Conversion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify"><U>Optional Conversion Prior to a Liquidation or Redemption</U>. Each holder of shares of Series
A Preferred shall have the right at any time and from time to time on or prior to the date of a Liquidation Event (as defined in
<U>Section 6</U>), as set forth in the Liquidation Notice (as defined in <U>Section 6</U>), at such holder&rsquo;s option, to convert
any or all of the shares of Series A Preferred held by such holder into the number of fully paid and non-assessable shares of Common
Stock obtained by multiplying the number of shares of Series A Preferred to be converted by the &ldquo;<U>Series A Preferred Conversion
Rate</U>&rdquo;, as determined from time to time pursuant to this <U>Section 4</U>. The initial Series A Preferred Conversion Rate
shall be 4.0.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify"><U>Automatic Conversion</U>. All outstanding shares of Series A Preferred shall be automatically
converted into fully paid and non-assessable shares of Common Stock, at the then applicable Series A Preferred Conversion Rate,
at the election of the holders of a majority of the then outstanding shares of the Preferred, voting together as a single class
on an as-converted basis.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify"><U>Mechanics of Conversion</U>. Before any holder of shares of Series A Preferred converts any
such shares into shares of Common Stock, such holder shall surrender the certificate or certificates evidencing the shares to be
converted, duly endorsed, at the principal office of the Corporation and shall give written notice to the Corporation at such office
of the election to convert such shares into shares of Common Stock. The notice shall state the number of the shares of Series A
Preferred to be converted and the name in which the certificate(s) for shares of Common Stock are to be issued. The Corporation
shall, as soon as practicable thereafter, issue and deliver at such office to such holder, a certificate or certificates for the
number of full shares of Common Stock to which such holder is entitled. Any conversion shall be deemed to occur immediately prior
to the close of business on the date of surrender of the shares to be converted, and the person or persons entitled to receive
the shares of Common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such
shares of Common Stock on such date and shall no longer be entitled to any dividends paid or accrued thereafter on the Series A
Preferred. To the extent permitted by law, when shares of Series A Preferred are converted, all dividends accrued and unpaid on
the shares of Series A Preferred so converted on the date of conversion shall be immediately due and payable and must accompany
the shares of Common Stock issued upon such conversion.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD STYLE="text-align: justify"><U>No Fractional Shares</U>. No fractional shares of Common Stock or scrip shall be issued upon
conversion of the shares of Series A Preferred. If a holder surrenders for conversion more than one share of Series A Preferred
at any time, the number of full shares of Common Stock issuable upon conversion thereof shall be computed using the aggregate number
of shares of Series A Preferred so surrendered. Instead of issuing any fractional shares of Common Stock that would otherwise be
issuable upon conversion of any of the shares of Series A Preferred, the Corporation shall round down to the nearest whole number
of shares of Common Stock and pay to such holder cash equal to the fair market value of such fraction on the date of conversion
(as determined in good faith by the Board).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD STYLE="text-align: justify"><U>Adjustment of Conversion Rate</U>. The Series A Preferred Conversion Rate shall be subject to
adjustment from time to time as follows:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify"><U>Effect of &ldquo;Split-ups&rdquo; and &ldquo;Split-downs&rdquo;; Stock Dividends</U>. If at
any time or from time to time the Corporation shall subdivide as a whole, by reclassification, by the issuance of a stock dividend
on the shares of Common Stock payable in shares of Common Stock, or otherwise, the number of shares of Common Stock, with or without
par value, the Series A Preferred Conversion Rate shall be increased proportionately as of the effective or record date of such
action by multiplying the Series A Preferred Conversion Rate, respectively, by a fraction, the numerator of which shall be the
number of shares of Common Stock outstanding immediately prior to the applicable record date plus the additional number of shares
of Common Stock necessary to effect such reclassification, stock dividend or otherwise, and the denominator shall be the number
of shares of Common Stock outstanding immediately prior to the applicable record date. The issuance of such a stock dividend shall
be treated as a subdivision of the whole number of shares of Common Stock outstanding immediately before the record date for such
dividend into a number of shares equal to such whole number of shares so outstanding plus the number of shares issued as a stock
dividend. In case at any time or from time to time the Corporation shall combine as a whole, by reclassification or otherwise,
the number of shares of Common Stock then outstanding into a lesser number of shares of Common Stock, with or without par value,
the Series A Preferred Conversion Rate shall be reduced proportionately as of the effective date of such action by multiplying
the Series A Preferred Conversion Rate by a fraction, the numerator of which shall be the number of shares of Common Stock which
would be outstanding immediately after giving effect to such reclassification, stock dividend or otherwise without regard to this
Section, and the denominator shall be the number of shares of Common Stock outstanding immediately prior to the applicable record
date. Notwithstanding the foregoing, in the event that any record date for a subdivision or combination of shares of Common Stock
or for the issuance of a stock dividend is fixed but such subdivision, combination or issuance is not fully effected or made on
the date fixed therefor, the Series A Preferred Conversion Rate shall be recomputed accordingly as of the close of business on
such date and thereafter only adjusted to reflect the subsequent actual effect of such subdivision, combination or issuance.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify"><U>Effect of Certain Dividends</U>. If on any date the Corporation makes a distribution (other
than a distribution consisting only of Common Shares) to holders of its Common Shares but not the holders of Series A Preferred
(including any such distribution made in connection with a consolidation or merger in which the Corporation is the continuing corporation),
the holders of the Series A Preferred shall be entitled to receive a portion of such distribution equal to the amount each such
holder would have received if such holder had converted all of its shares of Series A Preferred into Common Shares immediately
prior to the record date for such distribution.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify"><U>Effect of Merger or Consolidation</U>. If the Corporation shall, while any shares of Series
A Preferred remain outstanding, enter into any consolidation with or merge into any other corporation wherein the Corporation is
not the continuing corporation, or wherein securities of a corporation other than the Corporation are distributable to holders
of Common Shares of the Corporation, or sell or convey its property as an entirety or substantially as an entirety (other than
any Liquidation Event), and in connection with such consolidation, merger, sale or conveyance, shares of stock or other securities
shall be issuable or deliverable in exchange for the shares of Common Stock of the Corporation, the holder of any shares of Series
A Preferred shall thereafter be entitled to obtain on account of such Series A Preferred (in lieu of the number of shares of Common
Stock that such holder would have been entitled to receive if such holder had converted its shares of Series A Preferred immediately
before the effective date of such consolidation, merger, sale or conveyance) the shares of stock or other securities to which such
number of shares of Common Stock would have been entitled if such shares of Series A Preferred had been converted immediately before
such consolidation, merger, sale or conveyance. In case of any such consolidation, merger, sale or conveyance, appropriate provision
(as determined by a resolution of the Board) shall be made with respect to the rights and interests thereafter of the holders of
Series A Preferred to the end that all the provisions of <U>Sections&nbsp;3</U>, <U>4</U>, and <U>5</U> hereof (including adjustment
provisions) shall thereafter be applicable as nearly as reasonably practicable, in relation to such stock or other securities.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify"><U>Reorganization and Reclassification</U>. In case of any capital reorganization or any reclassification
of the capital stock of the Corporation (except as provided in <U>Section 4(e)(i)</U> herein or pursuant to a Liquidation Event)
while any shares of Series A Preferred remain outstanding, the holder of any shares of Series A Preferred shall thereafter be entitled
to receive upon conversion of such Series A Preferred (in lieu of the number of shares of Common Stock that such holder would have
been entitled to receive if such holder had converted immediately before such reorganization or reclassification) the shares of
stock of any class or classes or other securities or property to which such number of shares of Common Stock would have been entitled
if such shares of Series A Preferred had been converted immediately before such reorganization or reclassification. In case of
any such reorganization or reclassification, appropriate provision (as determined by resolution of the Board) shall be made with
respect to the rights and interests thereafter of the holders of Series A Preferred, to the end that all the provisions of <U>Sections&nbsp;3</U>,
<U>4</U>, and <U>5</U> hereof (including adjustment provisions) shall thereafter be applicable, as nearly as reasonably practicable,
in relation to such stock or other securities or property.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(v)</TD><TD STYLE="text-align: justify"><U>Determination by the Board</U>. All determinations by the Board under the provisions of this
<U>Section 4(e)</U> shall be made in good faith with due regard to the interests of the holders of Series A Preferred and the other
holders of securities of the Corporation and in accordance with good financial practice, and all valuations made by the Board under
the terms of this <U>Section 4(e)</U> must be made with due regard to any market quotations of securities involved in, or related
to, the subject of such valuation.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">Unless the context otherwise
requires, the following terms have the following respective meanings:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&ldquo;<U>Common Shares</U>&rdquo;
means (i) shares of Common Stock, and (ii) shares of stock of the Corporation of any class hereafter authorized that ranks, or
is entitled to a participation, as to assets or dividends, substantially on a parity with Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&ldquo;<U>Convertible Securities</U>&rdquo;
shall mean any obligations or stock convertible into or exchangeable for Common Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&ldquo;<U>Current Conversion
Price</U>&rdquo; shall initially mean $0.58 and shall be adjusted each time there is an adjustment in the Series A Preferred Conversion
Rate to equal the product of the Current Conversion Price as in effect before such adjustment multiplied by a fraction in which
the numerator is equal to the pre-adjustment Series&nbsp;A Preferred Conversion Rate and the denominator is equal to the as-adjusted
Series&nbsp;A Preferred Conversion Rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&ldquo;<U>Excluded Securities</U>&rdquo;
means (i) warrants, options or rights granted to directors, officers, employees, consultants or service providers of the Corporation
or its subsidiaries pursuant to any of the Corporation&rsquo;s incentive compensation, option or benefit plans, as may be approved
by the Board, including the Preferred Directors, for officers, directors and employees of the Corporation (as the same may be adjusted
pursuant to anti-dilution provisions contained in such stock options or rights), (ii)&nbsp;shares issued pursuant to the exercise
of such warrants, options or rights granted pursuant to such plans or any other warrants, options or rights outstanding on the
Original Issue Date, (iii)&nbsp;securities issued or issuable upon conversion of the Series A Preferred or as a dividend on shares
of Series&nbsp;A Preferred or Common Shares, and (iv) securities issued or issuable in connection with mergers, consolidations,
acquisitions, joint ventures or similar business or strategic transaction approved by the Board, including the Preferred Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD STYLE="text-align: justify"><U>Notice to Holders</U>. In the event the Corporation shall propose to take any action of the
types described in <U>Section 4(e)(ii)</U> or <U>4(e)(iii)</U> herein, the Corporation shall give notice to each holder of Series
A Preferred, which notice shall specify the record date, if any, with respect to any such action and the date on which such action
is to take place. Such notice shall also set forth such facts with respect thereto as shall be reasonably necessary to indicate
the effect of such action (to the extent such effect may be known at the date of such notice) on the Series A Preferred Conversion
Rate and the number, kind or class of shares or other securities or property that shall be deliverable or purchasable upon the
occurrence of such action or deliverable upon conversion of the shares of Series A Preferred. In the case of any action that would
require the fixing of a record date, such notice shall be given at least ten (10) days prior to the date so fixed, and in case
of all other action, such notice shall be given at least ten (10) days prior to the taking of such proposed action.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(g)</TD><TD STYLE="text-align: justify"><U>Shares Free and Clear</U>. All shares of Common Stock issued in connection with the conversion
provisions set forth herein shall be, upon issuance by the Corporation, validly issued, fully paid and nonassessable and free from
all taxes, liens or charges with respect thereto created or imposed by the Corporation.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(h)</TD><TD STYLE="text-align: justify"><U>Certificate as to Adjustments</U>. Upon the occurrence of each adjustment of the Series A Preferred
Conversion Rate for any shares pursuant to <U>Section 4</U> hereof, the Corporation at its expense shall promptly compute such
adjustment in accordance with the terms hereof and furnish to each holder of Series A Preferred a certificate setting forth such
adjustment and showing in detail the facts upon which such adjustment is based. The Corporation shall, upon the written request
at any time of any holder of Series A Preferred, furnish or cause to be furnished to such holder a like certificate setting forth
(a) the Series A Preferred Conversion Rate at that time in effect and (b) the number of shares of Common Stock and the amount,
if any, of other property which at the time would be received upon the conversion of shares of Series A Preferred. The Corporation
shall file a like certificate among its permanent records and at all reasonable times during business hours shall permit inspection
of such certificate by any holder of Series A Preferred requesting such inspection.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify"><U>Common Stock Reserved</U>. The Corporation shall reserve and keep available out of its authorized
but unissued shares of Common Stock such number of shares of Common Stock as shall from time to time be sufficient to effect conversion
of the shares of Series&nbsp;A Preferred.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 5.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Miscellaneous</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify"><U>Registration of Transfer</U>. The Corporation shall keep at its principal office a register
for the registration of shares of Series A Preferred. Upon the surrender at its principal office of any certificate representing
shares of Series A Preferred, the Corporation shall, at the request of the record holder of such certificate, execute and deliver
(at the Corporation&rsquo;s expense) a new certificate or certificates in exchange therefor representing in the aggregate the number
of shares represented by the surrendered certificate. Each such new certificate will be registered in such name and will represent
such number of shares as is requested by the holder of the surrendered certificate (subject to the immediately preceding sentence)
and will be substantially identical in form to the surrendered certificate.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify"><U>Replacement</U>. Upon receipt of evidence, and an agreement to indemnify reasonably satisfactory
to the Corporation (an affidavit of the registered holder, without bond, will be satisfactory), of the ownership and the loss,
theft, destruction or mutilation of any certificate evidencing one or more shares of Series A Preferred, the Corporation will (at
its expense) execute and deliver in lieu of such certificate a new certificate representing the number of shares represented by
such lost, stolen, destroyed or mutilated certificate.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify"><U>Amendment and Waiver</U>. No amendment, modification or waiver of any of the terms of this <U>Section
5</U> will be binding or effective without the prior written consent of holders of a majority of the shares of Series A Preferred
at the time such action is taken.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD STYLE="text-align: justify"><U>Notices</U>. All notices referred to herein, except as otherwise provided, will be hand delivered
or made by registered or certified mail, return receipt requested, postage prepaid, or by overnight courier and will be deemed
to have been given when so hand delivered or mailed.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 6.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Liquidation Preference</U>. Upon the occurrence of a Liquidation Event (as defined herein), the Corporation shall first
make such payments to the holders of the Series B Preferred, and thereafter to the holders of the Series A Preferred, and thereafter
to the holders of the Series B Preferred, Series A Preferred and the Common Shares, all in accordance with this <U>Section 6</U>.
Upon a Change in Control or any liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary (in
each case, a &ldquo;<U>Liquidation Event</U>&rdquo;), all amounts and funds of the Corporation legally available for distribution
shall be distributed as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify"><U>First</U>. The holders of the Series B Preferred then outstanding shall be entitled to receive
and to be paid out of the assets or surplus funds of the Corporation available for distribution to its stockholders, prior to and
in preference to any payments to be made to the holders of the Series A Preferred and the Common Shares, any amounts to which they
are entitled pursuant to the Series B Certificate of Designation.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify"><U>Second</U>. The holders of the Series A Preferred then outstanding shall be entitled to receive
and to be paid out of the assets or surplus funds of the Corporation available for distribution to its stockholders, prior to and
in preference to any payments to be made to the holders of the Common Shares, an amount per share equal to the sum of (i) the Series
A Stated Value as adjusted for any stock dividends, combinations or splits with respect to such shares plus (ii) all accrued but
unpaid dividends through the Liquidation Event, as adjusted for any stock dividends, combinations or splits with respect to such
shares (the &ldquo;<U>Series A Liquidation Preference</U>&rdquo;).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify"><U>Third</U>. The holders of the Series B Preferred, the Series A Preferred, and the Common Shares
shall receive all remaining assets and funds of the Corporation legally available for distribution (after the payments to the holders
of the Series B Preferred described in <U>Section 6(a)</U> hereof and the payments to the holders of the Series A Preferred described
in <U>Section 6(b)</U> hereof) in proportion to the Common Shares held by each holder and the shares of Common Stock that each
holder of Preferred has the right to acquire upon conversion of the shares of Preferred held by such holder; <I>provided, however,</I>
that the holders of the Series B Preferred shall not be entitled to receive by operation of <U>Section 6(a)</U> and this <U>Section
6(c)</U> an amount per share of Series B Preferred in excess of four (4) times the Series B Stated Value (as defined in the Series
B Certificate of Designation) (as adjusted for any stock dividends, combinations or splits with respect to such shares).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If upon such Liquidation
Event, the assets of the Corporation are insufficient to pay the applicable preferential amount to the holders of shares of Series
A Preferred as described in <U>Section 6(b)</U> hereof, following payment of any amounts due to the holders of shares of Series
B Preferred pursuant to <U>Section 6(a)</U> hereof, the remaining assets of the Corporation will be distributed among the holders
of Series A Preferred on a <I>pro rata</I> basis according to the amounts each holder was entitled to receive under <U>Section
6(b)</U> hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Corporation will
mail written notice of such Liquidation Event, not less than ten (10) days prior to the payment date stated herein, to each record
holder of Series A Preferred. The purchase or redemption by the Corporation of stock of any class, in any manner permitted by law,
shall not for the purpose of this <U>Section 6</U> be regarded as a Liquidation Event of the Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">IN WITNESS WHEREOF,
Transgenomic, Inc. has caused this Certificate of Amendment to the Certificate of Designation to be executed by its duly authorized
officer on March 5, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">TRANSGENOMIC, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Paul Kinnon</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name:&nbsp;&nbsp;Paul Kinnon</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title:&nbsp;&nbsp;CEO and President</TD></TR>
</TABLE>


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<DOCUMENT>
<TYPE>EX-3.2
<SEQUENCE>3
<FILENAME>v370740_ex3-2.htm
<DESCRIPTION>EXHIBIT 3.2
<TEXT>
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<HEAD>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CERTIFICATE OF DESIGNATION OF<BR>
SERIES B CONVERTIBLE PREFERRED STOCK</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">OF</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">TRANSGENOMIC, INC.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Pursuant to Section 151 of the</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">General Corporation Law of the</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">State of Delaware</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Transgenomic, Inc.,
a corporation organized and existing under the General Corporation Law of the State of Delaware (the &ldquo;<U>Corporation</U>&rdquo;),
does hereby certify that, pursuant to the authority conferred upon the Board of Directors by the Third Restated Certificate of
Incorporation of the Corporation (as amended from time to time, the &ldquo;<U>Certificate of Incorporation</U>&rdquo;), and pursuant
to the provisions of Section 151 of the Delaware General Corporation Law, the Board of Directors of the Corporation (the &ldquo;<U>Board</U>&rdquo;)
duly adopted a resolution on March 4, 2014, providing for the issuance of up to an additional One Million Four Hundred Forty-Three
Thousand Two Hundred Ninety-Seven (1,443,297) shares of the Preferred Stock, which shall be a series designated as Series B Convertible
Preferred Stock, par value $0.01 per share (&ldquo;<U>Series B Preferred</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to such resolution
and the authority conferred upon the Board by the Certificate of Incorporation, there is hereby created the Series B Preferred,
which series shall have the following voting powers, designations, preferences and relative, participating, optional or other special
rights and qualifications, limitations or restrictions thereof, in addition to those set forth in the Certificate of Incorporation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 1.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Designation and Amount of Series B Preferred</U>. One Million Four Hundred Forty-Three Thousand Two Hundred Ninety-Seven
(1,443,297) shares of the Preferred Stock shall be a series designated as Series B Convertible Preferred Stock of the Corporation.
Shares of Series B Preferred shall have an initial value of $4.85 per share (the &ldquo;<U>Series B Stated Value</U>&rdquo;) and
par value per share of $0.01.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 2.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Voting Rights</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify"><U>General</U>. Except as set forth in <U>Sections&nbsp;2(b)</U> and <U>2(c)</U> herein and as
otherwise required by law, the holders of the Series B Preferred shall be entitled to that number of votes equal to the number
of whole shares of the Corporation&rsquo;s common stock, par value $0.01 per share (&ldquo;<U>Common Stock</U>&rdquo;) into which
the Series B Preferred may be converted as of the record date of such vote or consent. Except as otherwise provided herein or as
required by law, the holders of the Series B Preferred shall vote together as a single voting group with the holders of the Common
Stock and the holders of the Corporation&rsquo;s Series A Convertible Preferred Stock, par value $0.01 per share (&ldquo;<U>Series
A Preferred</U>&rdquo; and, together with the Series B Preferred, the &ldquo;<U>Preferred</U>&rdquo;) on all matters submitted
to a vote of the Corporation&rsquo;s stockholders. Fractional votes shall not be permitted. Whenever any matter is required to
be approved by the holders of the Series B Preferred as a separate group, such consent shall require the approval of the holders
of greater than fifty percent (50%) of the then outstanding shares of Series B Preferred. The approval from the holders of the
Preferred required by <U>Section 2(b)</U> below is not intended to create a separate class voting right or require a stockholder
vote, but rather constitutes a requirement of approval (which does not have to be obtained or given in the manner required for
stockholder votes) necessary for certain actions in addition to any stockholder approval otherwise required under the Certificate
of Incorporation or by law.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify"><U>Negative Covenants</U>. So long as any shares of Preferred are outstanding, the Corporation
shall not, without the prior written consent of the holders of at least two-thirds of the outstanding shares of Preferred, voting
together as a single class on an as-converted to Common Stock basis:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">Authorize, create or issue (by reclassification or otherwise) any other class or series of capital
stock having rights, preferences or privileges senior to or in parity with the Preferred;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">Alter or change the rights, preferences or privileges of the Preferred or increase or decrease
the authorized number of shares of Preferred, Series A Preferred or Series B Preferred;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">Authorize the declaration of dividends on the Common Shares (as hereinafter defined in <U>Section
4(e)(v)</U>) or any other shares of capital stock other than the Preferred, other than dividends payable solely in Common Shares;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify">Authorize any offering of equity securities of the Corporation representing (on a pro forma basis
after giving effect to the issuance of such equity securities) the right to receive not less than ten percent (10%) of any amounts
or funds that would, as of immediately following such issuance, be legally available for distribution in connection with a Liquidation
Event (as defined in <U>Section 7</U>);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(v)</TD><TD STYLE="text-align: justify">Redeem any shares of capital stock (other than pursuant to employee agreements or the terms of
the capital stock);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(vi)</TD><TD STYLE="text-align: justify">Increase or decrease the authorized number of members of the Board;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(vii)</TD><TD STYLE="text-align: justify">Enter into any binding agreement with any director, employee or any affiliate of the Corporation,
excluding employment-related and equity award agreements;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(viii)</TD><TD STYLE="text-align: justify">Materially change the nature of the Corporation&rsquo;s business, enter into new lines of business
or exit the current line of business or invest in any person or entity engaged in a business that is not substantially similar
to the Corporation&rsquo;s business, or change the location of any permanent location of any part of the Corporation&rsquo;s business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ix)</TD><TD STYLE="text-align: justify">Make any loans or advances, individually or in the aggregate in excess of $1,000,000, to, or own
any stock or other securities of, any subsidiary or other corporation, partnership or other entity unless it is wholly owned by
the Corporation;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(x)</TD><TD STYLE="text-align: justify">Make any loan or advance to any natural person, including, without limitation, any employee or
director of the Corporation, except advances and similar expenditures in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xi)</TD><TD STYLE="text-align: justify">Guarantee, directly or indirectly, any indebtedness except for trade accounts of the Corporation
arising in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xii)</TD><TD STYLE="text-align: justify">Sell or otherwise dispose of any assets of the Corporation with a value, individually or collectively,
in excess of $500,000 other than in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xiii)</TD><TD STYLE="text-align: justify">Liquidate, dissolve or wind-up the business and affairs of the Corporation or effect a Change in
Control (as defined below) or any other Liquidation Event. For purposes hereof, a &ldquo;<U>Change in Control</U>&rdquo; means
(x) a merger, consolidation, recapitalization, sale of capital stock, share exchange or other transaction involving the Corporation
or any of its subsidiaries or the stockholders of the Corporation; (y) the sale or transfer of a number of shares of voting capital
stock of the Corporation or any securities convertible into or exchangeable for voting capital stock in any one (1) year period
that, pursuant to either (x) or (y), results in one person or entity or an affiliated group of persons or entities, other than
the stockholders of the Corporation immediately preceding the consummation of such transaction(s) either (i) owning in excess of
fifty percent (50%) of the total voting capital stock of the Corporation taking into account issued and outstanding shares of such
stock and any other shares of such capital stock that would be issued and outstanding assuming conversion or exchange of any and
all other securities of the Corporation so convertible or exchangeable or (ii) being able to elect a majority of the Board; or
(z) the sale, lease, abandonment, transfer or other disposition by the Corporation or any of its subsidiaries of all or substantially
all the assets of the Corporation and its subsidiaries taken as a whole, excluding the grant of a security interest by the Corporation
in all or substantially all of its assets to a bank pursuant to a <I>bona fide</I> financing arrangement approved by the Board,
which approval includes the approval of all of the Preferred Directors (as defined below). Only for purposes of (y) hereof, (i)
transfers due to the death of a stockholder or (ii) transfers to a member of a stockholder&rsquo;s immediate family, family limited
partnership, family limited liability company or a trust of which the beneficiary is such immediate family member shall not be
considered as transfers for purposes of determining whether a Change in Control has occurred;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xiv)</TD><TD STYLE="text-align: justify">Incur any indebtedness in excess of $1,000,000 in the aggregate other than trade credit incurred
in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xv)</TD><TD STYLE="text-align: justify">Expend funds in excess of $500,000 in the aggregate per year for capital improvements or other
infrastructure of the Corporation, other than any such expenditure that is consistent with a budget approved by the Board, including
the Preferred Directors (as defined below);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xvi)</TD><TD STYLE="text-align: justify">Obligate the Corporation, by contract or otherwise, to make aggregate annual payments in excess
of $500,000 or sell, transfer, pledge or license any material technology or intellectual property of the Corporation other than
a non-exclusive license in the ordinary course of business; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xvii)</TD><TD STYLE="text-align: justify">Increase the number of shares reserved and issuable under any of the Corporation&rsquo;s equity
or option incentive compensation plans.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify"><U>Election of Directors</U>. The holders of Preferred shall be entitled, as a separate voting
group, at each annual or special election of directors, to elect two (2) directors (&ldquo;<U>Preferred Directors</U>&rdquo;).
The holders of the Common Shares shall be entitled, as a separate voting group, at each annual or special election of directors,
to elect all remaining directors. In the case of a vacancy in the office of any Preferred Director, the holders of the outstanding
Preferred, voting exclusively as a separate class in person or by proxy, shall elect a successor to hold office for the unexpired
term of such Preferred Director whose place shall be vacant, by the affirmative vote of the holders of a majority of the outstanding
shares of Preferred, voting in person or by proxy, voting as a separate voting group, at a special meeting called for that purpose
at which a quorum is present or pursuant to a written consent of the holders of not less than a majority of the outstanding shares
of the Preferred. In the event all the shares of Preferred are converted or redeemed pursuant to the terms hereof, then the holders
of the Common Shares shall be entitled to elect all directors of the Corporation.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 3.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Dividends</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify">Prior and in preference to any payment of dividends to the holders of the Series A Preferred or
the Common Shares, the holders of the Series B Preferred shall be entitled to receive dividends from any funds legally available
therefor equal to the greater of (i) the rate of ten percent (6%) of the Series B Stated Value per annum, which shall accrue from
the date of issuance whether or not declared, shall compound annually and shall be cumulative, and (ii) the amount the Series B
Preferred would be entitled to receive on an as-if-converted basis with respect to dividends paid on the Common Stock (the greater
of the foregoing (i) and (ii) the &ldquo;<U>Dividend</U>&rdquo;). To the extent that the Corporation has positive Distributable
Cash Flow (as defined below) in any calendar quarter, the Corporation shall be required to pay the Dividend in cash to the holders
of the Series B Preferred from any funds legally available therefor in the amount equal to the lesser of (i) 50% of such positive
Distributable Cash Flow or (ii) the aggregate amount of dividends accrued on the Series B Preferred. For purposes hereof, &ldquo;<U>Distributable
Cash Flow</U>&rdquo; shall mean as of the end of each calendar quarter the Corporation&rsquo;s earnings before interest expense,
income taxes, depreciation and amortization but after required interest payments on any of the Corporation&rsquo;s debt to third
parties for borrowed money or to finance the acquisition of assets. Such dividend shall be due and payable on March&nbsp;15, June&nbsp;15,
September&nbsp;15 and December&nbsp;15 of each year (each such date or the next business date if such date is not a business day,
a &ldquo;<U>Dividend Payment Date</U>&rdquo;) with the first Dividend Payment Date to be June 15, 2014. No dividend shall be paid
on Series A Preferred until all accrued dividends on the Series B Preferred have been paid in full. No dividend shall be paid on
Common Shares (i) at a rate greater than the rate at which dividends are paid on the Series B Preferred and (ii) until all accrued
dividends on the Series B Preferred have been paid in full.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">In no event, so long as any shares of Series B Preferred shall remain outstanding, shall any dividend
whatsoever be declared or paid upon, nor shall any distribution be made upon, any other capital stock of the Corporation, nor shall
any other capital stock of the Corporation be purchased or redeemed by the Corporation, nor shall any monies be paid to or made
available for a sinking fund for the purchase or redemption of any other capital stock of the Corporation, unless in each instance
dividends on all outstanding shares of the Series B Preferred for all Dividend Payment Dates shall have been accrued and paid in
full and the full dividend on all outstanding shares of the Series B Preferred for the then-current dividend payment due shall
have been accrued and paid in full or declared and sufficient funds for the payment thereof set apart.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 4.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT>Conversion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify"><U>Optional Conversion Prior to a Liquidation or Redemption</U>. Each holder of shares of Series
B Preferred shall have the right at any time and from time to time on or prior to the date of a Liquidation Event (as defined in
<U>Section 7</U>), as set forth in the Liquidation Notice (as defined in <U>Section 7</U>), at such holder&rsquo;s option, to convert
any or all of the shares of Series B Preferred held by such holder into the number of fully paid and non-assessable shares of Common
Stock obtained by multiplying the number of shares of Series B Preferred to be converted by the &ldquo;<U>Series B Preferred Conversion
Rate</U>&rdquo;, as determined from time to time pursuant to this <U>Section 4</U>. The initial Series B Preferred Conversion Rate
shall be 1.0.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify"><U>Automatic Conversion</U>. All outstanding shares of Series B Preferred shall be automatically
converted into fully paid and non-assessable shares of Common Stock, at the then applicable Series B Preferred Conversion Rate,
at the election of the holders of a majority of the then outstanding shares of the Preferred, voting together as a single class
on an as-converted basis.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify"><U>Mechanics of Conversion</U>. Before any holder of shares of Series B Preferred converts any
such shares into shares of Common Stock, such holder shall surrender the certificate or certificates evidencing the shares to be
converted, duly endorsed, at the principal office of the Corporation and shall give written notice to the Corporation at such office
of the election to convert such shares into shares of Common Stock. The notice shall state the number of the shares of Series B
Preferred to be converted and the name in which the certificate(s) for shares of Common Stock are to be issued. The Corporation
shall, as soon as practicable thereafter, issue and deliver at such office to such holder, a certificate or certificates for the
number of full shares of Common Stock to which such holder is entitled. Any conversion shall be deemed to occur immediately prior
to the close of business on the date of surrender of the shares to be converted, and the person or persons entitled to receive
the shares of Common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such
shares of Common Stock on such date and shall no longer be entitled to any dividends paid or accrued thereafter on the Series B
Preferred. To the extent permitted by law, when shares of Series B Preferred are converted, all dividends accrued and unpaid on
the shares of Series B Preferred so converted on the date of conversion shall be immediately due and payable and must accompany
the shares of Common Stock issued upon such conversion.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD STYLE="text-align: justify"><U>No Fractional Shares</U>. No fractional shares of Common Stock or scrip shall be issued upon
conversion of the shares of Series B Preferred. If a holder surrenders for conversion more than one share of Series B Preferred
at any time, the number of full shares of Common Stock issuable upon conversion thereof shall be computed using the aggregate number
of shares of Series B Preferred so surrendered. Instead of issuing any fractional shares of Common Stock that would otherwise be
issuable upon conversion of any of the shares of Series B Preferred, the Corporation shall round down to the nearest whole number
of shares of Common Stock and pay to such holder cash equal to the fair market value of such fraction on the date of conversion
(as determined in good faith by the Board).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD STYLE="text-align: justify"><U>Adjustment of Conversion Rate</U>. The Series B Preferred Conversion Rate shall be subject to
adjustment from time to time as follows:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify"><U>Effect of &ldquo;Split-ups&rdquo; and &ldquo;Split-downs&rdquo;; Stock Dividends</U>. If at
any time or from time to time the Corporation shall subdivide as a whole, by reclassification, by the issuance of a stock dividend
on the shares of Common Stock payable in shares of Common Stock, or otherwise, the number of shares of Common Stock, with or without
par value, the Series B Preferred Conversion Rate shall be increased proportionately as of the effective or record date of such
action by multiplying the Series B Preferred Conversion Rate, respectively, by a fraction, the numerator of which shall be the
number of shares of Common Stock outstanding immediately prior to the applicable record date plus the additional number of shares
of Common Stock necessary to effect such reclassification, stock dividend or otherwise, and the denominator shall be the number
of shares of Common Stock outstanding immediately prior to the applicable record date. The issuance of such a stock dividend shall
be treated as a subdivision of the whole number of shares of Common Stock outstanding immediately before the record date for such
dividend into a number of shares equal to such whole number of shares so outstanding plus the number of shares issued as a stock
dividend. In case at any time or from time to time the Corporation shall combine as a whole, by reclassification or otherwise,
the number of shares of Common Stock then outstanding into a lesser number of shares of Common Stock, with or without par value,
the Series B Preferred Conversion Rate shall be reduced proportionately as of the effective date of such action by multiplying
the Series B Preferred Conversion Rate by a fraction, the numerator of which shall be the number of shares of Common Stock which
would be outstanding immediately after giving effect to such reclassification, stock dividend or otherwise without regard to this
Section, and the denominator shall be the number of shares of Common Stock outstanding immediately prior to the applicable record
date. Notwithstanding the foregoing, in the event that any record date for a subdivision or combination of shares of Common Stock
or for the issuance of a stock dividend is fixed but such subdivision, combination or issuance is not fully effected or made on
the date fixed therefor, the Series B Preferred Conversion Rate shall be recomputed accordingly as of the close of business on
such date and thereafter only adjusted to reflect the subsequent actual effect of such subdivision, combination or issuance.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify"><U>Effect of Certain Dividends</U>. If on any date the Corporation makes a distribution (other
than a distribution consisting only of Common Shares) to holders of its Common Shares but not the holders of Series B Preferred
(including any such distribution made in connection with a consolidation or merger in which the Corporation is the continuing corporation),
the holders of the Series B Preferred shall be entitled to receive a portion of such distribution equal to the amount each such
holder would have received if such holder had converted all of its shares of Series B Preferred into Common Shares immediately
prior to the record date for such distribution.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify"><U>Effect of Merger or Consolidation</U>. If the Corporation shall, while any shares of Series
B Preferred remain outstanding, enter into any consolidation with or merge into any other corporation wherein the Corporation is
not the continuing corporation, or wherein securities of a corporation other than the Corporation are distributable to holders
of Common Shares of the Corporation, or sell or convey its property as an entirety or substantially as an entirety (other than
any Liquidation Event), and in connection with such consolidation, merger, sale or conveyance, shares of stock or other securities
shall be issuable or deliverable in exchange for the shares of Common Stock of the Corporation, the holder of any shares of Series
B Preferred shall thereafter be entitled to obtain on account of such Series B Preferred (in lieu of the number of shares of Common
Stock that such holder would have been entitled to receive if such holder had converted its shares of Series B Preferred immediately
before the effective date of such consolidation, merger, sale or conveyance) the shares of stock or other securities to which such
number of shares of Common Stock would have been entitled if such shares of Series B Preferred had been converted immediately before
such consolidation, merger, sale or conveyance. In case of any such consolidation, merger, sale or conveyance, appropriate provision
(as determined by a resolution of the Board) shall be made with respect to the rights and interests thereafter of the holders of
Series B Preferred to the end that all the provisions of <U>Sections&nbsp;3</U>, <U>4</U>, <U>5</U> and <U>6</U> hereof (including
adjustment provisions) shall thereafter be applicable as nearly as reasonably practicable, in relation to such stock or other securities.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify"><U>Reorganization and Reclassification</U>. In case of any capital reorganization or any reclassification
of the capital stock of the Corporation (except as provided in <U>Section 4(e)(i)</U> herein or pursuant to a Liquidation Event)
while any shares of Series B Preferred remain outstanding, the holder of any shares of Series B Preferred shall thereafter be entitled
to receive upon conversion of such Series B Preferred (in lieu of the number of shares of Common Stock that such holder would have
been entitled to receive if such holder had converted immediately before such reorganization or reclassification) the shares of
stock of any class or classes or other securities or property to which such number of shares of Common Stock would have been entitled
if such shares of Series B Preferred had been converted immediately before such reorganization or reclassification. In case of
any such reorganization or reclassification, appropriate provision (as determined by resolution of the Board) shall be made with
respect to the rights and interests thereafter of the holders of Series B Preferred, to the end that all the provisions of <U>Sections&nbsp;3</U>,
<U>4</U>, <U>5</U> and <U>6</U> hereof (including adjustment provisions) shall thereafter be applicable, as nearly as reasonably
practicable, in relation to such stock or other securities or property.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(v)</TD><TD STYLE="text-align: justify"><U>Determination by the Board</U>. All determinations by the Board under the provisions of this
<U>Section 4(e)</U> shall be made in good faith with due regard to the interests of the holders of Series B Preferred and the other
holders of securities of the Corporation and in accordance with good financial practice, and all valuations made by the Board under
the terms of this <U>Section 4(e)</U> must be made with due regard to any market quotations of securities involved in, or related
to, the subject of such valuation.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">Unless the context otherwise
requires, the following terms have the following respective meanings:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&ldquo;<U>Common Shares</U>&rdquo;
means (i) shares of Common Stock, and (ii) shares of stock of the Corporation of any class hereafter authorized that ranks, or
is entitled to a participation, as to assets or dividends, substantially on a parity with Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&ldquo;<U>Convertible Securities</U>&rdquo;
shall mean any obligations or stock convertible into or exchangeable for Common Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&ldquo;<U>Current Conversion
Price</U>&rdquo; shall initially mean $4.85 and shall be adjusted each time there is an adjustment in the Series B Preferred Conversion
Rate to equal the product of the Current Conversion Price as in effect before such adjustment multiplied by a fraction in which
the numerator is equal to the pre-adjustment Series B Preferred Conversion Rate and the denominator is equal to the as-adjusted
Series B Preferred Conversion Rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&ldquo;<U>Excluded Securities</U>&rdquo;
means (i) warrants, options or rights granted to directors, officers, employees, consultants or service providers of the Corporation
or its subsidiaries pursuant to any of the Corporation&rsquo;s incentive compensation, option or benefit plans, as may be approved
by the Board, including the Preferred Directors, for officers, directors and employees of the Corporation (as the same may be adjusted
pursuant to anti-dilution provisions contained in such stock options or rights), (ii)&nbsp;shares issued pursuant to the exercise
of such warrants, options or rights granted pursuant to such plans or any other warrants, options or rights outstanding on the
Original Issue Date, (iii)&nbsp;securities issued or issuable upon conversion of the Series B Preferred or as a dividend on shares
of Series B Preferred or Common Shares, and (iv) securities issued or issuable in connection with mergers, consolidations, acquisitions,
joint ventures or similar business or strategic transaction approved by the Board, including the Preferred Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD STYLE="text-align: justify"><U>Notice to Holders</U>. In the event the Corporation shall propose to take any action of the
types described in <U>Section 4(e)(ii)</U> or <U>4(e)(iii)</U> herein, the Corporation shall give notice to each holder of Series
B Preferred, which notice shall specify the record date, if any, with respect to any such action and the date on which such action
is to take place. Such notice shall also set forth such facts with respect thereto as shall be reasonably necessary to indicate
the effect of such action (to the extent such effect may be known at the date of such notice) on the Series B Preferred Conversion
Rate and the number, kind or class of shares or other securities or property that shall be deliverable or purchasable upon the
occurrence of such action or deliverable upon conversion of the shares of Series B Preferred. In the case of any action that would
require the fixing of a record date, such notice shall be given at least ten (10) days prior to the date so fixed, and in case
of all other action, such notice shall be given at least ten (10) days prior to the taking of such proposed action.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(g)</TD><TD STYLE="text-align: justify"><U>Shares Free and Clear</U>. All shares of Common Stock issued in connection with the conversion
provisions set forth herein shall be, upon issuance by the Corporation, validly issued, fully paid and nonassessable and free from
all taxes, liens or charges with respect thereto created or imposed by the Corporation.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(h)</TD><TD STYLE="text-align: justify"><U>Certificate as to Adjustments</U>. Upon the occurrence of each adjustment of the Series B Preferred
Conversion Rate for any shares pursuant to <U>Section 4</U> hereof, the Corporation at its expense shall promptly compute such
adjustment in accordance with the terms hereof and furnish to each holder of Series B Preferred a certificate setting forth such
adjustment and showing in detail the facts upon which such adjustment is based. The Corporation shall, upon the written request
at any time of any holder of Series B Preferred, furnish or cause to be furnished to such holder a like certificate setting forth
(a) the Series B Preferred Conversion Rate at that time in effect and (b) the number of shares of Common Stock and the amount,
if any, of other property which at the time would be received upon the conversion of shares of Series B Preferred. The Corporation
shall file a like certificate among its permanent records and at all reasonable times during business hours shall permit inspection
of such certificate by any holder of Series B Preferred requesting such inspection.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify"><U>Common Stock Reserved</U>. The Corporation shall reserve and keep available out of its authorized
but unissued shares of Common Stock such number of shares of Common Stock as shall from time to time be sufficient to effect conversion
of the shares of Series B Preferred.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 5.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Optional Redemption</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify">At any time and from time to time after the fifth anniversary of the Original Issue Date, the holders
of a majority of the then issued and outstanding shares of Series B Preferred, voting together as separate class, may require the
Corporation to redeem (to the extent that such redemption shall not violate any applicable provisions of the laws of the State
of Delaware), all of the then issued and outstanding shares of Series B Preferred at the Redemption Price per share (for purposes
of <U>Section 5</U>, the &ldquo;<U>Redemption Demand</U>&rdquo;); <U>provided</U>, <U>however</U>, that such redemption shall occur
in three equal annual installments, with the first of such installments due (subject to the last sentence of this <U>Section 5(a)</U>)
six (6) months following the Corporation&rsquo;s receipt of the Redemption Demand and the second and third such installments due
(subject to the last sentence of this <U>Section 5(a)</U>) on the first and second anniversaries, respectively, of the due date
for the first installment. The &ldquo;<U>Redemption Price</U>&rdquo; shall mean, with respect to each share of Series B Preferred,
an amount equal to the sum of (i) the Series B Preferred Stated Value thereof (subject to adjustment in the event of any stock
dividend, stock split, stock distribution or combination with respect to such shares), plus (ii)&nbsp;all accrued but unpaid dividends
thereon to the applicable Redemption Date (as defined below). If upon any Redemption Date, the Corporation is unable to redeem
any shares of Series B Preferred then required pursuant to this <U>Section 5 </U>to be redeemed because such redemption would violate
the applicable laws of the State of Delaware, then the Corporation shall redeem such shares as soon thereafter as redemption would
not violate such laws.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">Within five (5) days after the Corporation receives the Redemption Demand, written notice shall
be mailed, postage prepaid, to each holder of the Series B Preferred, at his or its post office address last shown on the records
of the Corporation, notifying such holder of the number of shares so to be redeemed, specifying the dates such shares are to be
redeemed (for purposes of <U>Section 5</U>, each such date being referred to as a &ldquo;<U>Redemption Date</U>&rdquo;) and calling
upon such holder to surrender to the Corporation, in the manner and at the place designated, his or its certificate or certificates
representing the shares of Series B Preferred to be redeemed (for purposes of <U>Section 5</U>, the &ldquo;<U>Redemption Notice</U>&rdquo;)
on each such Redemption Date. Upon surrender of such certificate or certificates to the Corporation, in the manner and at the place
designated in the Redemption Notice, the Corporation shall pay the Redemption Price of such shares of Series B Preferred being
redeemed immediately payable to the order of the person whose name appears on such certificate or certificates as the owner thereof
and each surrendered certificate shall be cancelled; <I>provided, however,</I> that each holder of Series B Preferred shall have
the rights, at any time prior to each Redemption Date (unless the Corporation defaults in the payment of the Redemption Price,
in which case such right shall not terminate at such time and date), to convert its shares of Series B Preferred into shares of
Common Stock as provided in <U>Section 5</U> hereof. From and after each Redemption Date, unless there shall have been a default
in payment of the applicable Redemption Price, all rights of the holders of Series B Preferred of the Corporation with respect
to the shares of Series B Preferred redeemed on such Redemption Date (except the right to receive the Redemption Price without
interest upon surrender of their certificate or certificates) shall cease, and such shares of Series B Preferred shall not thereafter
be transferred on the books of the Corporation or be deemed to be outstanding for any purpose whatsoever.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify">Except as provided in this <U>Section 5</U> the Corporation shall have no right to redeem the shares
of Series B Preferred. Any shares of Series B Preferred so redeemed shall be permanently retired, shall no longer be deemed outstanding
and shall not under any circumstances be reissued, and the Corporation may from time to time take such appropriate corporate action
as may be necessary to reduce the authorized number of Series B Preferred accordingly.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 6.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Miscellaneous</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify"><U>Registration of Transfer</U>. The Corporation shall keep at its principal office a register
for the registration of shares of Series B Preferred. Upon the surrender at its principal office of any certificate representing
shares of Series B Preferred, the Corporation shall, at the request of the record holder of such certificate, execute and deliver
(at the Corporation&rsquo;s expense) a new certificate or certificates in exchange therefor representing in the aggregate the number
of shares represented by the surrendered certificate. Each such new certificate will be registered in such name and will represent
such number of shares as is requested by the holder of the surrendered certificate (subject to the immediately preceding sentence)
and will be substantially identical in form to the surrendered certificate.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify"><U>Replacement</U>. Upon receipt of evidence, and an agreement to indemnify reasonably satisfactory
to the Corporation (an affidavit of the registered holder, without bond, will be satisfactory), of the ownership and the loss,
theft, destruction or mutilation of any certificate evidencing one or more shares of Series B Preferred, the Corporation will (at
its expense) execute and deliver in lieu of such certificate a new certificate representing the number of shares represented by
such lost, stolen, destroyed or mutilated certificate.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify"><U>Amendment and Waiver</U>. No amendment, modification or waiver of any of the terms of this <U>Section
6</U> will be binding or effective without the prior written consent of holders of a majority of the shares of Series B Preferred
at the time such action is taken.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD STYLE="text-align: justify"><U>Notices</U>. All notices referred to herein, except as otherwise provided, will be hand delivered
or made by registered or certified mail, return receipt requested, postage prepaid, or by overnight courier and will be deemed
to have been given when so hand delivered or mailed.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 7.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;
</FONT><U>Liquidation Preference</U>. Upon the occurrence of a Liquidation Event (as defined herein), the Corporation shall first
make such payments to the holders of the Series B Preferred, and thereafter to the holders of the Series A Preferred, and thereafter
to the holders of Preferred and the Common Shares, all in accordance with this <U>Section 7</U>. Upon a Change in Control or any
liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary (in each case, a &ldquo;<U>Liquidation
Event</U>&rdquo;), all amounts and funds of the Corporation legally available for distribution shall be distributed as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify"><U>First</U>. The holders of the Series B Preferred then outstanding shall be entitled to receive
and to be paid out of the assets or surplus funds of the Corporation available for distribution to its stockholders, prior to and
in preference to any payments to be made to the holders of the Common Shares, an amount per share equal to the sum of (i) the Series
B Stated Value as adjusted for any stock dividends, combinations or splits with respect to such shares plus (ii) all accrued but
unpaid dividends through the Liquidation Event, as adjusted for any stock dividends, combinations or splits with respect to such
shares (the &ldquo;<U>Series B Liquidation Preference</U>&rdquo;).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify"><U>Second</U>. The holders of the Series A Preferred then outstanding shall be entitled to receive
and to be paid out of the assets or surplus funds of the Corporation available for distribution to its stockholders any amounts
to which they are entitled pursuant to the Certificate of Designation of Series A Convertible Preferred Stock, as the same may
be further amended from time to time (the &ldquo;<U>Series A Certificate of Designation</U>&rdquo;).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify"><U>Third</U>. The holders of the Series B Preferred, the Series A Preferred, and the Common Shares
shall receive all remaining assets and funds of the Corporation legally available for distribution (after the payments to the holders
of the Series B Preferred described in <U>Section 7(a)</U> hereof and the payments to the holders of the Series A Preferred described
in <U>Section 7(b)</U> hereof) in proportion to the Common Shares held by each holder and the shares of Common Stock that each
holder of Preferred has the right to acquire upon conversion of the shares of Preferred held by such holder; <I>provided, however,</I>
that the holders of the Series B Preferred shall not be entitled to receive by operation of <U>Section 7(a)</U> and this <U>Section
7(c)</U> an amount per share of Series B Preferred in excess of four (4) times the Series B Stated Value (as adjusted for any stock
dividends, combinations or splits with respect to such shares).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If upon such Liquidation
Event, the assets of the Corporation are insufficient to pay the applicable preferential amount to the holders of shares of Series
B Preferred as described in <U>Section 7(a)</U> hereof, the assets of the Corporation will be distributed among the holders of
Series B Preferred on a <I>pro rata</I> basis according to the amounts each holder was entitled to receive under <U>Section 7(a)</U>
hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Corporation will
mail written notice of such Liquidation Event, not less than ten (10) days prior to the payment date stated herein, to each record
holder of Series B Preferred. The purchase or redemption by the Corporation of stock of any class, in any manner permitted by law,
shall not for the purpose of this <U>Section 7</U> be regarded as a Liquidation Event of the Corporation.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">IN WITNESS WHEREOF,
Transgenomic, Inc. has caused this Certificate of Designation to be executed by its duly authorized officer on March 5, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">TRANSGENOMIC, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Paul Kinnon</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name: Paul Kinnon</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title:&nbsp;&nbsp;CEO and President</TD></TR>
</TABLE>


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<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>4
<FILENAME>v370740_ex4-1.htm
<DESCRIPTION>EXHIBIT 4.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REGISTRATION RIGHTS AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">THIS REGISTRATION RIGHTS AGREEMENT (the
&ldquo;Agreement&rdquo;) is made as of this 5th day of March, 2014 among Transgenomic, Inc., a Delaware corporation (the &ldquo;Company&rdquo;),
Third Security Senior Staff 2008 LLC, a Virginia limited liability company (&ldquo;Senior Staff LLC&rdquo;), Third Security Staff
2014 LLC, a Virginia limited liability company (&ldquo;Staff LLC&rdquo;), and Third Security Incentive 2010 LLC, a Virginia limited
liability company (&ldquo;Incentive LLC&rdquo; and, together with Senior Staff LLC and Staff LLC, the &ldquo;Investors&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, the Investors and the Company are
parties to the Series B Convertible Preferred Stock Purchase Agreement, dated as of March 5, 2014 (the &ldquo;Purchase Agreement&rdquo;),
pursuant to which the Investors purchased from the Company shares of Series B Convertible Preferred Stock of the Company (the &ldquo;Series
B Preferred&rdquo;); and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, pursuant to the terms of the Purchase
Agreement, in order to induce the Investors to invest funds in the Company, the Company has agreed to enter into this Agreement
concurrently with the issuance of the Series B Preferred; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, the Investors and the Company agree
to enter into this Agreement to set forth the circumstances pursuant to which the Holders (as herein defined) can cause the Company
to register shares of the Common (as herein defined) issuable to the Holders as set forth herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">NOW, THEREFORE, the parties hereby agree
as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE I</B><BR>
<B>DEFINITIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">1.1.</TD><TD STYLE="text-align: justify"><U>Definitions</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">In addition to the terms defined elsewhere
herein, when used herein, the following terms shall have the meaning indicated hereunder for purposes of this Agreement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;1934 Act&rdquo; shall mean the Securities Exchange
Act of 1934, as amended, or any similar successor federal statute and the rules and regulations thereunder, as the same shall be
in effect from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Act&rdquo; means the Securities Act of 1933,
as amended, or any similar successor federal statute and the rules and regulations thereunder, as the same shall be in effect from
time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Affiliate&rdquo; shall mean, with respect to
any Person, any other Person who controls, is controlled by or is under common control with such Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Agreement&rdquo; means this Agreement as the
same may be amended, supplemented or modified in accordance with the terms hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Board&rdquo; means the Board of Directors of
the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Common&rdquo; means Common Stock, $0.01 par value
per share, of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Company&rdquo; has the meaning assigned to such
term in the recitals to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Form S-3&rdquo; means such form under the Act as in effect on the date hereof or any registration form under the Act subsequently
adopted by the SEC in lieu of Form S-3 that permits inclusion or incorporation of substantial information by reference to other
documents filed by the Company with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Holder&rdquo; means any Person who owns of record
Registrable Securities as of the date hereof (for and so long as such Person continues to own of record any Registrable Securities)
or any assignee or transferee thereof in accordance with <U>Section</U> <U>2.11</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Investors&rdquo; has the meaning assigned to
such term in the recitals to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Person&rdquo; means any individual or group of
individuals, firm, corporation, partnership, trust, incorporated or unincorporated association, joint venture, joint stock company,
limited liability company, governmental authority or other entity of any kind, and shall include any successor (by merger or otherwise)
of such entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Purchase Agreement&rdquo; has the meaning assigned
to such term in the recitals to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Register&rdquo;, &ldquo;Registered&rdquo;, and
&ldquo;Registration&rdquo; refer to a registration effected by preparing and filing a registration statement or similar document
in compliance with the Act, and the declaration or ordering of effectiveness of such registration statement or document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Registrable Securities&rdquo; means (i) the Common
issuable or issued upon conversion of the Series B Preferred owned or acquired after the date hereof by the Holders, and (ii) any
Common issued as (or issuable upon the conversion or exercise of any warrant, right or other security that is issued as) a dividend
or other distribution with respect to, or in exchange for or in replacement of the shares referenced in (i) above. For the purposes
of any determination under this Agreement, the number of shares of Registrable Securities shall be determined by the number of
shares of Common outstanding that are, and the number of shares of Common issuable pursuant to then exercisable or convertible
securities that are exercisable or convertible into, Registrable Securities. Registrable Securities issuable upon exercise of an
option to purchase equity securities of the Company or upon conversion of another security shall be deemed outstanding for the
purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;SEC&rdquo; shall mean the Securities and Exchange
Commission or any other federal agency at the time administering the Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Series A Preferred&rdquo; means Series A Convertible
Preferred Stock, $0.01 par value per share, of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Series B Preferred&rdquo; has the meaning assigned
to such term in the recitals to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Shares&rdquo; means any of the Common, Series
A Preferred, Series B Preferred, or any other class of capital stock of the Company or other securities convertible into or exercisable
for any shares of any class of capital stock of the Company or any combination thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&ldquo;Transaction Documents&rdquo; means collectively,
this Agreement and the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE II</B><BR>
<B>REGISTRATION RIGHTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.1</TD><TD STYLE="text-align: justify"><U>General; Securities Subject to this Agreement</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>The Company hereby grants registration rights to the Holders upon the terms and conditions set forth in this Agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>For the purposes of this Agreement, Registrable Securities will cease to be Registrable Securities when (i) a registration
statement covering such Registrable Securities has been declared effective under the Act by the SEC and such Registrable Securities
have been disposed of pursuant to such effective registration statement or (ii) the entire amount of Registrable Securities proposed
to be sold by a Holder, in the opinion of counsel satisfactory to the Company and the Holder, each in their reasonable judgment,
may be distributed to the public within any 90-day period pursuant to Rule 144 (or any successor provision then in effect) under
the Act.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">2.2</TD><TD><U>Demand Registration</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>If the Company shall receive at any time within five (5) years after the date hereof a written request from the Holders holding
at least a majority of the Registrable Securities held by all Holders (the &ldquo;Initiating Holders&rdquo;) that the Company register
(a &ldquo;Demand Registration&rdquo;) that number of Registrable Securities held by such Holders stated in such request (which
amount of Registrable Securities shall have a fair market value of at least $2,000,000 in the aggregate, based upon the last sales
price of the Common on a national exchange or over-the-counter market, as applicable, on the day immediately preceding the date
of such request), then the Company shall (i) within ten (10) days of receipt thereof, give written notice of such request to all
other Holders of such request for a Demand Registration and (ii) take such steps as are necessary to prepare for the registration
of the Registrable Securities and file as soon as practicable, and in any event within ninety (90) days of the receipt of such
request, a registration statement under the Act covering all Registrable Securities that the Holders request to be registered,
including any Registrable Securities requested to be included in such registration by Holders other than the Initiating Holders
via the delivery to the Company of written notice of such request no later than ten (10) days following the Company&rsquo;s delivery
of written notice of the Demand Registration, subject to the limitations contained herein. Notwithstanding the foregoing, the Company
shall not be obligated to effect more than two (2) Demand Registrations pursuant to this <U>Section 2.2</U> nor shall the Company
be obligated to effect more than one (1) Demand Registration within any period of twelve (12) consecutive months. If at the time
of any request to register Registrable Securities pursuant to this <U>Section 2.2</U>, the Company is engaged in any other activity
that, in the good faith determination of the Board, would make it materially detrimental to the Company and its stockholders for
such Demand Registration to be effected at such time, then the Company may, at its option, direct that such request be delayed
for a reasonable period not in excess of one hundred twenty (120) days from the date of such request, such right to delay a request
to be exercised by the Company not more than once in any twelve (12) month period. In addition, the Company shall not be required
to effect any registration within ninety (90) days after the effective date of any other registration statement of the Company
(other than a registration statement on Form S-4 or S-8 or any successor thereto). Each request for a Demand Registration by the
Holders shall specify the number of Registrable Securities proposed to be registered and sold in connection with such Demand Registration
and the intended method of disposition thereof.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting,
they shall so advise the Company as a part of their request made pursuant to <U>Section 2.2(a)</U>. The underwriter or underwriters
shall be selected by the Company and shall be reasonably acceptable to the Initiating Holders. All Holders proposing to distribute
their securities through such underwriting shall (together with the Company as provided in <U>Section 2.6(e))</U> enter into an
underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting. Notwithstanding any
other provision of this <U>Section 2.2</U>, if the underwriter advises the Holders in writing that market factors require a limitation
of the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities that
would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the
underwriting shall be allocated among the Holders in proportion to the amount of Registrable Securities owned by each such Holder;
<I>provided</I>, <I>however</I>, that the number of shares of Registrable Securities to be included in such underwriting shall
not be reduced unless all other securities are first entirely excluded from the underwriting. If any Holder that has requested
inclusion in such registration in accordance with the terms hereof does not agree to the terms of any such underwriting agreed
to by the Company, the underwriter and the Initiating Holders, such Holder shall be excluded therefrom by written notice from the
Company, the underwriter or the Initiating Holders and the Registrable Securities held by such Holder will be withdrawn from the
registration. If shares are so withdrawn from the registration and if the number of shares to be included in such registration
was previously reduced as a result of marketing factors pursuant to this <U>Section 2.2(b)</U>, then the Company shall offer to
all Holders who have retained the right to include Registrable Securities in the registration the right to include additional securities
in the registration in an amount equal to the number of shares so withdrawn, with such shares to be allocated in proportion to
the amount of Registrable Securities owned by each Holder.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>The Company shall use its reasonable best efforts to cause any Demand Registration to become and remain effective as soon as
practicable. A registration shall not constitute a Demand Registration until it has become effective and remains continuously effective
for the lesser of (i) the period during which all Registrable Securities registered in the Demand Registration are sold or (ii)
one hundred eighty (180) days; <I>provided</I>, <I>however</I>, that a registration shall not constitute a Demand Registration
if (x) after such Demand Registration has become effective, such registration or the related offer, sale or distribution of Registrable
Securities thereunder is prevented by any stop order, injunction or other order or requirement of the SEC or other governmental
agency or court for any reason not attributable to the Holders and such interference is not thereafter eliminated in a reasonable
period of time, (y) the conditions to closing specified in the underwriting agreement, if any, entered into in connection with
such Demand Registration are not satisfied or waived, other than by reason of a failure by the Holders or (z) if the request for
such Demand Registration is withdrawn by the Holders and such Holders reimburse the Company for any expenses incurred in relation
thereto.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.3</TD><TD STYLE="text-align: justify"><U>Company Registration</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">If (but without any obligation to do so) the Company
proposes to register any of its Common under the Act in connection with an underwritten offering of such Common for its own account
(other than a registration statement on Form S-4 or S-8 or any successor thereto), then the Company shall give written notice of
such proposed filing to the Holders at least ten (10) days before the anticipated filing date, and such notice shall describe the
proposed registration and distribution and offer such Holders the opportunity to register the number of Registrable Securities
as the Holders may request. Upon the written request of any Holder given within twenty (20) days after mailing of such notice by
the Company in accordance with <U>Section 3.5</U>, the Company shall, subject to the terms of this Agreement, cause to be registered
under the Act all of the Registrable Securities that the Holders requested to be registered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">2.4</TD><TD><U>Form S-3 Registration</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>In case the Company shall receive from any Holder or Holders a written request or requests that the Company effect a registration
on Form S-3 with respect to all or a part of the Registrable Securities owned by such Holders (which amount of Registrable Securities
shall have a fair market value of at least $500,000 in the aggregate, based upon the last sales price of the Common on a national
exchange or over-the-counter market, as applicable, on the day immediately preceding the date of such request), the Company will
(i) promptly give notice of the proposed registration to all other Holders and (ii) as soon as practicable, use its reasonable
best efforts to effect the registration of all or such portion of such Holders&rsquo; Registrable Securities as are specified in
such request, together with all or such portion of the Registrable Securities of any other Holders joining in such request as are
specified in a written request given within ten (10) days after receipt of such written notice from the Company; <I>provided</I>,
<I>however</I>, that the Company shall not be obligated to effect any such registration pursuant to this <U>Section 2.4</U>: (w)
if Form S-3 is not available for such offering by the Holders; (x) if the Holders, together with the holders of any other securities
of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if
any) at an aggregate price to the public (after deduction of any underwriters&rsquo; discounts or commissions) of less than $500,000;
(y) if the Company has, within the twelve (12) month period preceding the date of such request, already effected one (1) such registration
on Form S-3 for the Holders pursuant to this <U>Section 2.4</U>; or (z) if the Company shall furnish to the initiating Holders
a certificate signed by the Chief Executive Officer or President of the Company stating that in the good faith judgment of the
Board, it would be materially detrimental to the Company and its stockholders for such Form S-3 Registration to be effected at
such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period
of not more than ninety (90) days after receipt of the request of the Holders under this <U>Section 2.4</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other securities
so requested to be registered as soon as practicable (and in any event within forty-five (45) days) after receipt of the request
or requests of the Holders.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>No registration requested by any Holder pursuant to this <U>Section 2.4</U> shall be deemed a Demand Registration pursuant
to <U>Section 2.2</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.5</TD><TD STYLE="text-align: justify"><U>Restrictions on Sales</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>The Company agrees not to effect any public sale or distribution of any Shares (except (i) pursuant to registrations on Form
S-4 or S-8 or any successor thereto or (ii) for those securities being sold by the Company pursuant to a registration statement
in which the Holders of Registrable Securities are participating) during the period beginning on the effective date of any registration
statement in which the Holders of Registrable Securities are participating and ending on the earlier of (x) the date on which all
Registrable Securities registered on such registration statement are sold or (y) one hundred eighty (180) days after the effective
date of such registration statement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>Each Holder agrees that, if requested by the underwriters for an offering of equity securities by the Company, such Holder
shall not sell, transfer, pledge, make any short sale of, grant any option for the purchase of or enter into any hedging or similar
transaction with the same economic effect as a sale of any Registrable Securities held by such Holder (other than those included
in the offering pursuant to the terms hereof) for a period specified by such underwriters not to exceed one hundred eighty (180)
days (or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the
publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but not limited
to, the restrictions contained in Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;) Rule 2711(f)(4) or New York Stock
Exchange Rule 472(f)(4), or any successor provisions or amendments thereto) following the effective date of the registration statement
relating to such offering (or, in the case of an offering pursuant to an effective shelf registration statement pursuant to Rule
415 of the Act, the pricing date for such underwritten offering); <I>provided</I>, <I>however</I>, that all officers and directors
of the Company and holders of at least five percent (5%) of the Company&rsquo;s voting securities enter into similar agreements.
The Company may impose stop-transfer instructions with respect to any Registrable Securities subject to the foregoing restriction
until the end of the period referenced above. The underwriters of the Company&rsquo;s equity securities are intended third-party
beneficiaries of this <U>Section 2.5(b)</U> and shall have the right, power and authority to enforce the provisions hereof as though
they were parties hereto.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.6</TD><TD STYLE="text-align: justify"><U>Obligations of the Company</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">Whenever required under this <U>Article
II</U> to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its reasonable best
efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the votes
then represented by the Registrable Securities held by the Holders registered thereunder, keep such registration statement effective
for a period of time required for the distribution of the Registrable Securities; <I>provided, however,</I> that such period of
time will not exceed one hundred eighty (180) days after the effective date of such registration statement (the &ldquo;Effectiveness
Period&rdquo;); <I>provided</I>, <I>further</I>, that (i) the Effectiveness Period shall be extended for a period of time equal
to the period the Holders refrain from selling any securities included in such registration at the request of an underwriter of
Common (or other securities) of the Company; and (ii) in the case of any registration of Registrable Securities on Form S-3 that
are intended to be offered on a continuous or delayed basis, the Effectiveness Period shall be extended, if necessary, to keep
the registration statement effective for up to one (1) year or, if earlier, until all such Registrable Securities are sold, <I>provided
that</I> Rule 415, or any successor rule under the Act, permits an offering on a continuous or delayed basis, and <I>provided further</I>
that applicable rules under the Act governing the obligation to file a post-effective amendment permit, in lieu of filing a post-effective
amendment that (x) includes any prospectus required by Section 10(a)(3) of the Act or (y) reflects facts or events representing
a material or fundamental change in the information set forth in the registration statement, the incorporation by reference of
information required to be included in (x) and (y) above to be contained in periodic reports filed pursuant to Section 13 or 15(d)
of the 1934 Act in the registration statement. In the event that, in the good faith and reasonable judgment of the Company, it
is advisable to suspend use of the prospectus relating to such registration statement for a discrete period of time (a &ldquo;Deferral
Period&rdquo;) due to pending material corporate developments or similar material events that have not yet been publicly disclosed
and as to which the Company believes public disclosure will be prejudicial to the Company, the Company shall deliver a certified
resolution of the Board, signed by a duly authorized officer of the Company, to each Holder of Registrable Securities covered by
such registration statement, to the effect of the foregoing and, upon receipt of such certificate, such Holders agree not to dispose
of such Holders&rsquo; Registrable Securities covered by such registration or prospectus (other than in transactions exempt from
the registration requirements under the Act); <I>provided</I>, <I>however</I>, that such Deferral Period shall be no longer than
ninety (90) days and that there may be only one Deferral Period during any twelve (12) month period. The Effectiveness Period shall
be extended for a period of time equal to such Deferral Period.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition of
all securities covered by such registration statement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>Furnish to the Holders of Registrable Securities covered by such registration statement such numbers of copies of a prospectus,
including a preliminary prospectus, and any amendment or supplement thereto and a reasonable number of copies of the then-effective
registration statement and any post-effective amendment thereto, all in conformity with the requirements of the Act, and such other
documents as they may reasonably request in order to facilitate the disposition of such Registrable Securities.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>Use its reasonable best efforts to register and qualify the securities covered by such registration statement under such other
securities or &ldquo;blue sky&rdquo; laws of such jurisdictions, and to continue such qualification in effect in such jurisdictions,
as shall be reasonably requested by the Holders; <I>provided that</I> the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD>In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in
usual and customary form, with the managing underwriter of such offering; <I>provided that</I> each Holder participating in such
underwriting shall also enter into and perform its obligations under such underwriting agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD>Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating
thereto is required to be delivered under the Act of the happening of any event as a result of which the prospectus included in
such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading, and at the request of any such Holder prepare and furnish to such Holder a reasonable number of copies of
a supplement or an amendment to such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then
existing.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(g)</TD><TD>Use its reasonable best efforts to cause all such Registrable Securities registered pursuant hereto to be listed on each securities
exchange or automated quotation system on which similar securities issued by the Company are then listed.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(h)</TD><TD>Provide a transfer agent and registrar for all Registrable Securities registered pursuant hereto and a CUSIP number for all
such Registrable Securities, in each case not later than the effective date of such registration.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>Permit a single firm of counsel designated as selling stockholders&rsquo; counsel (the &ldquo;Holder Counsel&rdquo;) by the
Holders participating in such registration to review, at the expense of the Holders, the registration statement and all amendments
and supplements thereto a reasonable period of time prior to their filing with the SEC and state authorities, and shall not file
any document in a form to which such counsel reasonably objects.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(j)</TD><TD>Subject to reasonable confidentiality arrangements, make available for inspection, upon reasonable notice during the Company&rsquo;s
regular business hours, by any seller of Registrable Securities covered by a registration statement, any managing underwriter participating
in any disposition pursuant to such registration statement, the Holder Counsel and any accountant retained by any such seller or
any managing underwriter (each, an &ldquo;Inspector&rdquo; and collectively, the &ldquo;Inspectors&rdquo;), all financial and other
records, pertinent corporate documents and properties of the Company (collectively, the &ldquo;Records&rdquo;) as shall be reasonably
necessary to enable them to exercise their due diligence responsibility, and cause the Company&rsquo;s officers, directors and
employees, and the independent public accountants of the Company, to supply all information reasonably requested by any such Inspector
in connection with such registration statement. Records that the Company determines, in good faith, to be confidential and of which
it notifies the Inspectors are confidential shall not be disclosed by the Inspectors unless (x) the disclosure of such Records
is necessary to avoid or correct a misstatement or omission in the registration statement, (y) the release of such Records is ordered
pursuant to a subpoena or other order from a court of competent jurisdiction or (z) the information in such Records was known to
the Inspectors on a non-confidential basis prior to its disclosure by the Company or has been made generally available to the public.
Each seller of Registrable Securities agrees that it shall, upon learning that disclosure of such Records is sought in a court
of competent jurisdiction, give notice to the Company and allow the Company, at the Company&rsquo;s expense, to undertake appropriate
action to prevent disclosure of the Records deemed confidential.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(k)</TD><TD>If such sale is pursuant to an underwritten offering, use its reasonable best efforts to obtain a &ldquo;cold comfort&rdquo;
letter from the Company&rsquo;s independent public accountants in customary form and covering such matters of the type customarily
covered by &ldquo;cold comfort&rdquo; letters as Holders&rsquo; counsel or the managing underwriter reasonably request.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(l)</TD><TD>Use its reasonable best efforts to furnish, on the date Registrable Securities are delivered to the underwriters for sale pursuant
to an underwritten registration, an opinion, dated such date, of counsel representing the Company for the purposes of such registration,
addressed to the underwriters, covering such legal matters with respect to the registration in respect of which such opinion is
being given as are customarily included in such opinions and are reasonably acceptable to counsel representing the Company.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(m)</TD><TD>Use its reasonable best efforts to comply with all applicable rules and regulations of the SEC, and make available to its security
holders, as soon as reasonably practicable but no later than fifteen (15) months after the effective date of the registration statement,
an earnings statement covering a period of twelve (12) months beginning after the effective date of the registration statement,
in a manner which satisfies the provisions of Section 11(a) of the Act and Rule 158 thereunder.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(n)</TD><TD>Cooperate with each seller of Registrable Securities and each underwriter participating in the disposition of such Registrable
Securities and their respective counsel in connection with any filings required to be made with the FINRA.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(o)</TD><TD>Use its reasonable best efforts to take all other steps necessary to effect the registration of the Registrable Securities
contemplated hereby.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.7</TD><TD STYLE="text-align: justify"><U>Furnish Information</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">It shall be a condition precedent
to the obligations of the Company to take any action pursuant to this <U>Article II</U> with respect to the Registrable Securities
that any selling Holder shall timely furnish to the Company such information regarding itself, the Registrable Securities held
by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Registrable
Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.8</TD><TD STYLE="text-align: justify"><U>Expenses of Registration</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>Except as set forth in <U>Section 2.8(b)</U>, the Company shall bear and pay all expenses incurred in connection with any registration,
filing or qualification of Registrable Securities pursuant to this Agreement, including (without limitation) all registration,
filing and qualification fees, printers&rsquo; and accounting fees, &ldquo;blue sky&rdquo; fees and expenses, including fees and
disbursements of counsel related to all &ldquo;blue sky&rdquo; matters, fees and expenses of listing any Registrable Securities
on any securities exchange or automated quotation system on which shares of Common are then listed, fees and disbursements of counsel
for the Company but excluding stock transfer taxes that may be payable by the selling Holders and underwriting discounts and commissions
relating to Registrable Securities covered by such registration, which shall be borne <I>pro rata</I> by the Holders. Expenses
for any and all registrations not specifically payable by the Company pursuant to this <U>Section 2.8(a)</U> shall be borne <I>pro
rata</I> by the selling stockholders based on the number of shares of securities sold by each such selling stockholder in the offering.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>Notwithstanding <U>Section 2.8(a)</U>, the Company shall not be required to pay for any expenses of any registration proceeding
begun pursuant to <U>Section 2.2</U> if the registration request is subsequently withdrawn at the request of the Initiating Holders
(in which case all participating Holders shall bear such expenses), unless the Holders holding at least a majority of the Registrable
Securities agree to forfeit their right to one of the demand registrations to which they are entitled pursuant to <U>Section 2.2</U>;
<I>provided</I>, <I>however</I>, that if such withdrawal occurs prior to the date the registration statement shall have become
effective and at the time of such withdrawal, the Holders have learned of a material adverse change in the financial condition,
business, prospects, properties or results of operations of the Company from that known to the Holders at the time of their request
and have withdrawn the request within five (5) business days following disclosure by the Company of such material adverse change,
then the Holders shall not be required to pay any of such expenses and shall retain their respective rights pursuant to <U>Section
2.2</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.9</TD><TD STYLE="text-align: justify"><U>Underwriting Requirements</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">In connection with any offering involving
an underwriting of shares being issued by the Company, the Company shall be required under <U>Section 2.3</U> to include any securities
held by the Holders in such underwriting on the same terms and conditions as the securities of the Company included therein, but
only in such quantity as the underwriters determine in their reasonable and good faith judgment and written opinion will not jeopardize
the success of the offering by the Company. If such written opinion states that the registration of all or part of the Registrable
Securities that the Holders have requested to be included would materially adversely affect such offering, then the Company shall
be required to include in such registration, to the extent of the amount that the underwriters believe may be sold without jeopardizing
the success of the offering, <U>first</U>, all of the securities to be offered for the account of the Company; <U>second</U>, the
Registrable Securities to be offered for the account of the Holders, <I>pro rata</I> based upon the amount recommended by the underwriters;
and <U>third</U>, any other securities required to be included in such underwriting and so requested to be included; <I>provided</I>,
<I>however</I>, that the aggregate value of the Registrable Securities to be included in such registration by the Holders may not
be so reduced to less than twenty-five percent (25%) of the total value of all securities included in such registration. For purposes
of the preceding sentence concerning apportionment, for any selling stockholder that is a Holder of Registrable Securities that
is a partnership, limited liability company or corporation, the partners, retired partners, members and stockholders of such Holder,
or the estates and family members of any such partners and retired partners or members and any trusts for the benefit of any of
the foregoing persons and Affiliates of such Holder shall be deemed to be a single &ldquo;selling stockholder,&rdquo; and any <I>pro
rata</I> reduction with respect to such &ldquo;selling stockholder&rdquo; shall be based upon the aggregate amount of Registrable
Securities owned by all entities and individuals included in such &ldquo;selling stockholder,&rdquo; as defined in this sentence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.10</TD><TD STYLE="text-align: justify"><U>Indemnification</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">In the event any Registrable Securities
are included in a registration statement under this <U>Article II</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>To the extent permitted by law, the Company will indemnify and hold harmless each Holder and their respective officers, directors,
trustees, partners, employees, any underwriter (as defined in the Act) for such Holder and each Person, if any, who controls such
Holder or underwriter within the meaning of the Act or the 1934 Act (each, a &ldquo;Holder Indemnified Person&rdquo;), against
any losses, claims, damages, expenses or liabilities (joint or several) to which they may become subject under the Act or the 1934
Act, insofar as such losses, claims, damages, expenses or liabilities (or actions in respect thereof) arise out of or are based
upon any of the following statements, omissions or violations (collectively, a &ldquo;Violation&rdquo;): (i) any untrue statement
or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or
final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein
a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation
or alleged violation by the Company of the Act, the 1934 Act, or any rule or regulation promulgated under the Act or the 1934 Act;
and the Company will reimburse, as incurred, the Holder Indemnified Persons, for any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such loss, claim, damage, liability or action; <I>provided</I>, <I>however</I>,
that the indemnity agreement contained in this <U>Section 2.10(a)</U> shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or
action to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by any Holder Indemnified Person.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>To the extent permitted by law, each selling Holder will indemnify and hold harmless the Company, its directors, its officers,
its employees, each Person, if any, who controls the Company within the meaning of the Act and any underwriter (each, a &ldquo;Company
Indemnified Person&rdquo;) against any losses, claims, damages, expenses or liabilities (joint or several) to which any of the
foregoing Persons may become subject, under the Act or the 1934 Act insofar as such losses, claims, damages, expenses or liabilities
(or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent)
that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use
in connection with such registration; and each such Holder will reimburse, as incurred, any legal or other expenses reasonably
incurred by any Company Indemnified Person, in connection with investigating or defending any such loss, claim, damage, liability
or action; <I> provided</I>, <I>however</I>, that the indemnity agreement contained in this <U>Section 2.10(b)</U> shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent
of the Holder (which consent shall not be unreasonably withheld); <I>provided further</I>, that, in no event shall any indemnity
under this <U>Section 2.10(b)</U> exceed the aggregate proceeds (net of underwriting discounts and commissions) from the sale of
the Registrable Securities received by such Holder from the shares sold by such Holder in the offering in question.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>Promptly after receipt by an indemnified party under this <U>Section 2.10</U> of notice of the commencement of any action (including
any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party
under this <U>Section 2.10</U>, deliver to the indemnifying party a written notice of the commencement thereof; <I>provided</I>,
<I>however</I>, that the failure to so notify the indemnifying party shall not relieve the indemnifying party of any liability
that it may have to the indemnified party hereunder, except to the extent that the indemnifying party is materially prejudiced
by such failure to notify. The indemnifying party shall have the right to participate in, and, to the extent the indemnifying party
so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory
to the parties; <I>provided</I>, <I>however</I>, that an indemnified party (together with all other indemnified parties that may
be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses
to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party
would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented
by such counsel in such proceeding. An indemnifying party shall not, without the prior written consent of the indemnified parties,
settle, compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding
in respect of which indemnification may be sought hereunder by such indemnified parties (whether or not the indemnified parties
are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes a release of such
indemnified parties reasonably acceptable to such indemnified parties from all liability arising out of such claim, action, suit
or proceeding or unless the indemnifying parties shall confirm in a written agreement reasonably acceptable to such indemnified
parties, that notwithstanding any federal, state or common law, such settlement, compromise or consent shall not adversely affect
the right of any indemnified party to indemnification as provided in this <U>Article II</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>If the indemnification provided for in this <U>Section 2.10</U> is held by a court of competent jurisdiction to be unavailable
to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying
party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified
party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative
fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or
omissions that resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations.
The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties&rsquo; relative intent, knowledge, access to information,
and opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, the liability of each Holder under
this <U>Section 2.10(d)</U> shall be limited to an amount equal to the aggregate proceeds (net of underwriting discounts and commissions)
from the sale of the Registrable Securities received by such Holder from the shares sold by such Holder in the offering in question.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD>The obligations of the Company and the Holders under this <U>Section 2.10</U> shall survive the completion of any offering
of Registrable Securities in a registration statement under this <U>Article II</U> and otherwise.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.11</TD><TD STYLE="text-align: justify"><U>Assignment of Registration Rights</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">The rights to cause the Company to
register Registrable Securities pursuant to this <U>Article II</U> may be assigned (but only with all related obligations hereunder)
by (a) a Holder to a transferee or assignee of such securities who, after such assignment or transfer, holds at least 10% of the
outstanding Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations and other
recapitalizations and including for purposes of such calculation the shares of Common then issuable upon conversion of any securities
of the Company), (b) a Holder to its partners, members, former partners or former members (or their estates) or Affiliates or (c)
a Holder to any family member, family limited partnership, family limited liability company or trust for the benefit of the Holder;
<I>provided </I>in each case that: (i) the Company is, within a reasonable time after such transfer, furnished with written notice
of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being
assigned; (ii) such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement
as a &ldquo;Holder&rdquo;; and (iii) such assignment shall be effective only if immediately following such transfer the further
disposition of such securities by the transferee or assignee is restricted under the Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.12</TD><TD STYLE="text-align: justify"><U>Limitations on Subsequent Registration Rights</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">From and after the date of this Agreement,
the Company shall not, without the prior written consent of the Holders holding at least a majority of the outstanding Registrable
Securities held by the Holders, enter into any agreement with any holder or prospective holder of any securities of the Company
that would allow such holder or prospective holder (a) to include such securities in any registration filed under <U>Section 2.2</U>,
<U>Section 2.3</U> or <U>Section 2.4</U> hereof, unless under the terms of such agreement, such holder or prospective holder may
include such securities in any such registration only to the extent that the inclusion of such prospective holder&rsquo;s securities
will not reduce the amount of the Registrable Securities of the existing Holders that are included or (b) to effect a registration
that could result in such registration statement being declared effective within one hundred eighty (180) days of the effective
date of any registration effected pursuant to <U>Section 2.2</U> or <U>Section 2.4</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.13</TD><TD STYLE="text-align: justify"><U>Termination of Registration Rights</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">This Agreement shall terminate and
be of no further force or effect, and no Holder shall be entitled to exercise any right provided for in this <U>Article II</U>
after the earlier of (i) five (5) years following the date hereof and (ii) as to each Holder, the date on which such Holder can
sell all shares of its Registrable Securities without restriction pursuant to Rule 144 or any successor provision thereto, without
regard to volume limitations or manner of sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE III</B><BR>
<B>MISCELLANEOUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.1</TD><TD STYLE="text-align: justify"><U>Successors and Assigns</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">Except as otherwise provided herein,
the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns
of the parties (including transferees of any shares of Registrable Securities). Nothing in this Agreement, express or implied,
is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.2</TD><TD STYLE="text-align: justify"><U>Governing Law</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.3</TD><TD STYLE="text-align: justify"><U>Counterparts</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">This Agreement may be executed in any number of counterparts
and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement, and may be delivered to the other parties hereto by facsimile
or similar electronic means.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.4</TD><TD STYLE="text-align: justify"><U>Headings</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">The headings and subheadings in this
Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.5</TD><TD STYLE="text-align: justify"><U>Notices</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">All notices, demands and other communications provided
for or permitted hereunder shall be made in writing and shall be by registered or certified first-class mail, return receipt requested,
telecopier, courier service or personal delivery:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>if to the Company:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Transgenomic, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">12325 Emmet Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Omaha, Nebraska 68164</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Attention: Chief Financial Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Facsimile: 402-452-5401</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">with a copy to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Paul Hastings LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">1117 S. California Avenue<BR>
Palo Alto, California 94304</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Attention: Jeffrey T. Hartlin</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Facsimile: 650-320-1904</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>if to the Investors:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">c/o Third Security, LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">1881 Grove Avenue</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Radford, Virginia 24141</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Attention: Tad Fisher</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Facsimile: 540-633-7939</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">with a copy to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Troutman Sanders LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Troutman Sanders Building</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">1001 Haxall Point</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Richmond, Virginia 23219</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Attention: John Owen Gwathmey</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Facsimile: 804-698-5174</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>if to any other Holders, to the address reflected in the stock ledger of the Company</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">All such notices and communications shall be deemed
to have been duly given and received when delivered by hand, if personally delivered; when delivered by courier, if delivered by
commercial courier service; and five days of business after being deposited in the mail, postage prepaid, if mailed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.6</TD><TD STYLE="text-align: justify"><U>Expenses</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">If any action at law or in equity
is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys&rsquo;
fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">3.7</TD><TD STYLE="text-align: justify"><U>Amendments and Waivers</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>No failure or delay on the part of any party to this Agreement in exercising any right, power or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative and are not
exclusive of any remedies that may be available to the parties hereto at law, in equity or otherwise.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>Any amendment, supplement or modification of or to any provision of this Agreement, any waiver of any provision of this Agreement,
and any consent to any departure by any of the parties to this Agreement from the terms of any provision of this Agreement, shall
be effective (i) only if it is made or given in writing and signed by the Company and Holders holding at least a majority of the
outstanding Registrable Securities, and (ii) only in the specific instance and for the specific purpose for which made or given.
Except where notice is specifically required by this Agreement, no notice to or demand on the Company in any case shall entitle
the Company to any other further notice or demand in similar or other circumstances.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.8</TD><TD STYLE="text-align: justify"><U>Severability</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">If any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in
any way impaired, unless the provision held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining
provisions hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.9</TD><TD STYLE="text-align: justify"><U>Rules of Construction</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Unless the context otherwise requires, references to
sections or subsections refer to sections or subsections of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.10</TD><TD STYLE="text-align: justify"><U>Entire Agreement</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">This Agreement and the other Transaction Documents are
intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement
and understanding of the parties hereto in respect of the subject matter contained herein and therein. There are no restrictions,
promises, representations, warranties or undertakings, other than those set forth or referred to herein or therein. This Agreement,
together with the exhibits and schedules hereto, and the other Transaction Documents, supersede all prior agreements and understandings
between the parties with respect to such subject matter, of which any such agreements are hereby terminated and shall have no further
force or effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Signatures appear on the following page.]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed and delivered by their respective officers hereunto duly authorized on the date first above
written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">COMPANY:</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">TRANSGENOMIC, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/ Paul Kinnon</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name: Paul Kinnon</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Its: CEO and President</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">INVESTORS:</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">THIRD SECURITY SENIOR STAFF 2008 LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/ Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name: Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title: Manager, Third Security, LLC, which is the Manager of Third Security Senior Staff 2008 LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">THIRD SECURITY STAFF 2014 LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/ Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name: Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title: Manager, Third Security, LLC, which is the Manager of Third Security Staff 2014 LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">THIRD SECURITY INCENTIVE 2010 LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT>&nbsp;&nbsp;</TD>
    <TD STYLE="width: 49%; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/ Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name: Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title: Manager, Third Security, LLC, which is the Manager of Third Security Incentive 2010 LLC</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Signature Page to Series B Registration
Rights Agreement]</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>5
<FILENAME>v370740_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FOURTH AMENDMENT TO</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LOAN AND SECURITY AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>(TERM LOAN AND REVOLVING LOAN)</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This <B>FOURTH AMENDMENT
TO LOAN AND SECURITY AGREEMENT</B> (this &ldquo;<B>Amendment</B>&rdquo;), dated as of March 3, 2014 (the &ldquo;<B>Effective Date</B>&rdquo;),
is entered into by and among <B>THIRD SECURITY SENIOR STAFF 2008 LLC</B>, as administrative agent (the &ldquo;<B>Agent</B>&rdquo;),
and a lender, the other lenders party hereto (collectively, the &ldquo;<B>Lenders</B>&rdquo;), and <B>TRANSGENOMIC, INC.</B>, a
Delaware corporation (the &ldquo;<B>Borrower</B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, the
Borrower, the Agent and the Lenders are parties to that certain Loan and Security Agreement (Term Loan and Revolving Loan), dated
as of March 13, 2013 (as amended, restated, supplemented, or otherwise modified from time to time, the &ldquo;<B>Loan Agreement</B>&rdquo;),
whereby the Lenders have extended to the Borrower a loan facility pursuant to the Loan Agreement on the terms and subject to the
conditions contained therein; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, the
Borrower has requested that the Agent and the Lenders, and the Agent and the Lenders have agreed to, subject to the terms and conditions
set forth in this Amendment, amend certain provisions of the Loan Agreement effective as of the Effective Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE</B>,
in consideration of the foregoing premises, and other good and valuable consideration, the receipt and legal sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&#9;<B>Definitions</B>.
Unless otherwise defined herein, capitalized terms used herein shall have the meanings assigned to them in the Loan Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&#9;<B>Amendment
to the Loan Agreement</B>. Effective as of the Effective Date, the Loan Agreement is amended as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&#9;Section
2.2(b) of the Loan Agreement is amended by amending and restating the first sentence thereof as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;Commencing
on the Amortization Date and continuing on the Payment Date of each successive month thereafter through and including the Maturity
Date, Borrower shall make monthly payments of interest to each Lender in accordance with its respective Pro Rata Share, in arrears,
and calculated as set forth in Section 2.3.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&#9;The
Loan Agreement is amended by inserting the following text as a new Section 2.8(d):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;(d)&#9;<U>Payment and Computation of Interest</U>. Interest on the Advances is payable on each
Payment Date and shall be computed on the basis of a 360-day year for the actual number of days elapsed in the period during which
such interest accrues. In computing interest on the Revolving Line, the date of the making of any Credit Extension shall be included
and the date of payment shall be excluded; <U>provided</U>, <U>however</U>, that if any Credit Extension is repaid on the same
day on which it is made, such day shall be included in computing interest on such Credit Extension.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&#9;Section
14.1 of the Loan Agreement is amended by amending and restating the definition of &ldquo;Amortization Date&rdquo; as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<B>Amortization
Date</B>&rdquo; means April 1, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.&#9;<B>Conditions
Precedent</B>. The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&#9;receipt
by the Agent of a copy of this Amendment, duly executed and delivered by the Borrower and the Required Lenders;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&#9;receipt
by the Agent of any other documents or agreements reasonably requested by the Agent in connection with the transactions contemplated
by this Amendment;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&#9;the
truth and accuracy of the representations and warranties contained in <U>Section 5</U> of this Amendment; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&#9;receipt
by the Lenders and the Agent of any fees and expenses due and payable on or before the Effective Date under the Loan Agreement
or this Amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.&#9;<B>Reaffirmation</B>.
The Borrower hereby reaffirms each of the agreements, covenants, and undertakings set forth in the Loan Agreement and each and
every other Loan Document as of the Effective Date as if the Borrower was making said agreements, covenants and undertakings as
of the Effective Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.&#9;<B>Representations,
Warranties, Covenants and Acknowledgments</B>. To induce the Agent and Lenders to enter into this Amendment, the Borrower hereby:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&#9;represents
and warrants that (i) as of the Effective Date, all of the representations and warranties made or deemed to be made under the Loan
Documents are true and correct in all material respects (other than any representation or warranty that is qualified by materiality
or Material Adverse Effect, in which case such representation or warranty is true and correct in all respects) on and as of the
Effective Date to the same extent as though made on and as of the Effective Date, except to the extent such representations and
warranties specifically relate to an earlier date, in which case such representations and warranties were true and correct in all
material respects (other than any representation or warranty that is qualified by materiality or Material Adverse Effect, in which
case such representation or warranty was true and correct in all respects) on and as of such earlier date; (ii) as of the Effective
Date, there exists no Default or Event of Default under the Loan Agreement or any of the other Loan Documents; (iii) the Borrower
has the corporate power and is duly authorized to enter into, deliver and perform this Amendment; and (iv) this Amendment is the
legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, except as may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors&rsquo; rights
generally or by equitable principles relating to enforceability;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&#9;acknowledges
and agrees that (i) this Amendment does not and shall not create (nor shall the Borrower or any of its Subsidiaries rely upon the
existence of or claim or assert that there exists) any obligation of the Agent or any Lender to consider or agree to any further
consent, waiver or amendment with respect to any Loan Document and, in the event that the Agent or any Lender subsequently agrees
to consider any further consent, waiver or amendment with respect to any Loan Document, neither this Amendment nor any other conduct
of the Agent or any Lender shall be of any force or effect on the Agent&rsquo;s or such Lender&rsquo;s consideration or decision
with respect thereto, and neither the Agent nor any Lender shall have any further obligation whatsoever to consider or agree to
any further consent, waiver or amendment with respect to any Loan Document; and (ii) the Agent and each Lender reserves all of
their respective rights pursuant to the Loan Agreement and all other Loan Documents;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&#9;further
acknowledges and agrees that the Agent&rsquo;s and Lenders&rsquo; agreement to amend the specific matters addressed in this Amendment,
do not and shall not create (nor shall the Borrower or any of its Subsidiaries rely upon the existence of or claim or assert that
there exists) any obligation of the Agent or any Lender to consider or agree to any further waivers, consents or amendments and,
in the event that the Agent or any Lender subsequently agrees to consider any further waivers, consents or amendments, neither
this Amendment nor any other conduct of the Agent or any Lender shall be of any force or effect on the Agent&rsquo;s or any Lender&rsquo;s
consideration or decision with respect to any such requested consent;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&#9;further
acknowledges and agrees that no right of offset, defense, counterclaim, claim, cause of action or objection in favor of the Borrower
against any Lender exists arising out of or with respect to (i) this Amendment, the Loan Agreement or any other Loan Document,
or (ii) any other documents now or heretofore evidencing, securing or in any way relating to the foregoing; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(e)&#9;further
acknowledges and agrees that this Amendment shall be deemed a Loan Document for all purposes under the Loan Agreement and the other
Loan Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.&#9;<B>Effect of
Non-Compliance.</B> To the extent any representation or warranty made herein shall be untrue in any material respect, such occurrence
shall be deemed an Event of Default pursuant to the terms of the Loan Agreement and the other Loan Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.&#9;<B>Release; Indemnitees</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&#9;In
further consideration of the execution of this Amendment by the Agent and each Lender, the Borrower, individually and on behalf
of its successors (including, without limitation, any trustees acting on behalf of the Borrower and any debtor-in-possession with
respect to the Borrower), assigns, subsidiaries and Affiliates, hereby forever releases the Agent, each Lender and their respective
successors, assigns, parents, subsidiaries, Affiliates, officers, employees, directors, agents and attorneys (collectively, the
<B>&ldquo;Releasees&rdquo;</B>) from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages,
actions and causes of actions (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated,
whether known or unknown, matured or unmatured, fixed or contingent (collectively, <B>&ldquo;Claims&rdquo;</B>) that the Borrower
may have against the Releasees which arise from or relate to any actions which the Releasees may have taken or omitted to take
in connection with the Loan Agreement or the other Loan Documents prior to the Effective Date, including, without limitation, with
respect to the Obligations, any Collateral, the Loan Agreement, any other Loan Document and any third parties liable in whole or
in part for the Obligations. This provision shall survive and continue in full force and effect whether or not the Borrower shall
satisfy all other provisions of this Amendment, the Loan Documents or the Loan Agreement, including payment in full of all Obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&#9;The
Borrower hereby further agrees to indemnify and hold the Releasees harmless with respect to any and all liabilities, obligations,
losses, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever incurred by the
Releasees, or any of them, whether direct, indirect or consequential, as a result of or arising from or relating to any proceeding
by, or on behalf of any Person, including, without limitation, officers, directors, agents, trustees, creditors, partners or shareholders
of the Borrower or any parent, Subsidiary or Affiliate of the Borrower, whether threatened or initiated, asserting any claim for
legal or equitable remedy under any statutes, regulation or common law principle arising from or in connection with the negotiation,
preparation, execution, delivery, performance, administration and enforcement of this Amendment. The foregoing indemnity shall
survive the payment in full of the Obligations and the termination of this Amendment, the Loan Agreement and the other Loan Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.&#9;<B>Effect; Relationship
of Parties</B>. Except as expressly modified hereby, the Loan Agreement and each other Loan Document shall be and remain in full
force and effect as originally written, and shall constitute the legal, valid, binding and enforceable obligations of the Borrower
to the Agent and Lenders. The relationship of the Agent and Lenders, on the one hand, and the Borrower, on the other hand, has
been and shall continue to be, at all times, that of creditor and debtor and not as joint venturers or partners. Nothing contained
in this Amendment, any instrument, document or agreement delivered in connection herewith or in the Loan Agreement or any of the
other Loan Documents shall be deemed or construed to create a fiduciary relationship between or among the parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.&#9;<B>Expenses</B>.
The Borrower shall pay the Agent all of its actual, documented and reasonable costs and expenses in connection with the preparation,
negotiation, execution and enforcement of this Amendment in accordance with the Loan Agreement (including, without limitation,
all actual, documented and reasonable fees, expenses and disbursements of counsel to the Agent).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.&#9;<B>Miscellaneous</B>.
This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of
which, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute
but one and the same instrument. This Amendment shall be binding upon and inure to the benefit of the successors and permitted
assigns of the parties hereto. California law governs this Amendment, without regard to principles of conflicts of law. This Amendment
embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes
all prior oral or written negotiations, agreements and understandings of the parties with respect to the subject matter hereof.
Time is of the essence of this Amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[<I>remainder of page intentionally blank</I>]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be executed as of the Effective Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><B><U>BORROWER</U></B>:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><B>TRANSGENOMIC, INC.</B></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Paul Kinnon</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>Name:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Paul Kinnon</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>Title:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">President &amp; CEO</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><B><U>AGENT:</U></B></TD>
    <TD><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><B>THIRD SECURITY SENIOR STAFF 2008 LLC</B></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">As Agent for Lenders</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>By</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Randal J. Kirk</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>Name:</TD>
    <TD>Randal J. Kirk</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>Title:</TD>
    <TD><FONT STYLE="font-size: 10pt">Manager, Third Security, LLC, which is</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">the Manager of Third Security Senior</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Staff&nbsp;2008 LLC</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><B><U>LENDERS:</U></B></TD>
    <TD><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><B>THIRD SECURITY SENIOR STAFF 2008 LLC</B></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>By</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Randal J. Kirk</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Randal J. Kirk</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Manager, Third Security, LLC, which is the</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Manager of Third Security Senior Staff 2008 LLC</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><B>THIRD SECURITY STAFF 2010 LLC</B></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>By</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Randal J. Kirk</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Randal J. Kirk</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Manager, Third Security, LLC, which is the</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Manager of Third Security Staff 2010 LLC</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><B>THIRD SECURITY INCENTIVE 2010 LLC</B></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>By</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Randal J. Kirk</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Randal J. Kirk</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Manager, Third Security, LLC, which is the</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Manager of Third Security Incentive 2010 LLC</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Signature Page to Fourth Amendment]</P>



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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>6
<FILENAME>v370740_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SERIES B CONVERTIBLE PREFERRED STOCK
PURCHASE AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">THIS SERIES B CONVERTIBLE PREFERRED STOCK
PURCHASE AGREEMENT (this &ldquo;Agreement&rdquo;) is made as of this 5th day of March, 2014, by and among Transgenomic, Inc., a
Delaware corporation (the &ldquo;Company&rdquo;), and Third Security Senior Staff 2008 LLC, a Virginia limited liability company
(&ldquo;Senior Staff LLC&rdquo;), Third Security Staff 2014 LLC, a Virginia limited liability company (&ldquo;Staff LLC&rdquo;),
and Third Security Incentive 2010 LLC, a Virginia limited liability company (&ldquo;Incentive LLC&rdquo; and, together with Senior
Staff LLC and Staff LLC, the &ldquo;Purchasers&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, upon the terms and conditions set
forth in this Agreement, the Company proposes to issue and sell to the Purchasers 1,443,297 shares of Series B Convertible Preferred
Stock (the &ldquo;Series B Preferred&rdquo;) having the rights, preferences, privileges and restrictions set forth in the Certificate
of Designation in the form attached to this Agreement as <U>Exhibit A</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">NOW, THEREFORE, in consideration of the
foregoing premises and the mutual covenants and conditions set forth herein, and for good and valuable consideration the receipt
and adequacy of which is hereby acknowledged, the parties hereto agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE I</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DEFINITIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.1</TD><TD><U>Definitions</U>.</TD></TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">In addition to the terms defined elsewhere herein, when
used herein, the following terms shall have the meanings indicated hereunder:</P>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>&ldquo;Accredited Investor Questionnaire&rdquo; means the Accredited Investor Questionnaire in the form attached hereto as
<U>Exhibit F</U>.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>&ldquo;Act&rdquo; means the Securities Act of 1933, as amended, and the rules and regulations of the SEC thereunder.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>&ldquo;Affiliate&rdquo; shall mean, with respect to any Person, any other Person who controls, is controlled by or is under
common control with such Person.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>&ldquo;Agreement&rdquo; means this Agreement as the same may be amended, supplemented or modified in accordance with the terms
hereof.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD>&ldquo;Assets&rdquo; has the meaning set forth in <U>Section 3.19</U> of this Agreement.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD>&ldquo;Board of Directors&rdquo; means the Board of Directors of the Company.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(g)</TD><TD>&ldquo;Business Day&rdquo; means any day other than a Saturday, Sunday or other day on which commercial banks in the State
of Delaware are authorized or required by law or executive order to close.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(h)</TD><TD>&ldquo;Bylaws&rdquo; means the Company&rsquo;s Bylaws, as the same may have been amended and as in effect as of the Closing
Date, in the form attached hereto as <U>Exhibit C</U>.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>&ldquo;Capital Stock&rdquo; means all of the Company&rsquo;s issued and outstanding equity securities.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(j)</TD><TD>&ldquo;Certificate of Designation&rdquo; means the certificate of designation setting forth the rights, preferences, privileges
and restrictions of the Series B Preferred, in the form attached hereto as <U>Exhibit A</U>.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(k)</TD><TD>&ldquo;Certificate of Incorporation&rdquo; means the Third Amended and Restated Certificate of Incorporation of the Company,
as the same may have been amended and as in effect as of the Closing Date, in the form attached hereto as <U>Exhibit B</U>.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(l)</TD><TD>&ldquo;Claims&rdquo; has the meaning set forth in <U>Section 3.5</U> of this Agreement.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(m)</TD><TD>&ldquo;Closing&rdquo; has the meaning set forth in <U>Section 2.2(a)</U> of this Agreement.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(n)</TD><TD>&ldquo;Closing Date&rdquo; has the meaning set forth in <U>Section 2.2(a)</U> of this Agreement.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(o)</TD><TD>&ldquo;Code&rdquo; means the Internal Revenue Code of 1986, as amended, or any successor statue thereto.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(p)</TD><TD>&ldquo;Common&rdquo; means Common Stock, $0.01 par value per share, of the Company, or any other Capital Stock into which such
stock is reclassified or reconstituted.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(q)</TD><TD>&ldquo;Company&rdquo; has the meaning assigned to such term in the recitals to this Agreement.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(r)</TD><TD>&ldquo;Company Disclosure Schedule&rdquo; means the schedule of exceptions and qualifications to the representations and warranties
made by the Company herein, as furnished to the Purchasers concurrently with the execution and delivery of this Agreement.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(s)</TD><TD>&ldquo;Compensation Plans&rdquo; means, without limitation, plans, arrangements or practices that provide for severance pay,
deferred compensation, incentive, bonus or performance awards and stock ownership or stock options.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(t)</TD><TD>&ldquo;Contractual Obligation(s)&rdquo; means as to any Person, any agreement, undertaking, contract, indenture, mortgage,
deed of trust or other instrument to which such Person is a party or by which it or any of its property is bound.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(u)</TD><TD>&ldquo;Copyright(s)&rdquo; means any foreign or United States copyright registrations and applications for registration thereof,
and any non-registered copyrights.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(v)</TD><TD>&ldquo;Environmental Laws&rdquo; means federal, state, local and foreign laws, principles of common law, civil law, regulations
and codes, as well as orders, decrees, judgments or injunctions issued, promulgated, approved or entered thereunder relating to
pollution, protection of the environment or public health and safety.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(w)</TD><TD>&ldquo;ERISA&rdquo; means the Employee Retirement Income Security Act of 1974, as amended.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(x)</TD><TD>&ldquo;Exchange Act&rdquo; means the Securities Exchange Act of 1934, as amended, or any similar successor federal statute
and the rules and regulations thereunder, as the same shall be in effect from time to time.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(y)</TD><TD>&ldquo;Financial Statements&rdquo; has the meaning set forth in <U>Section 3.11</U> of this Agreement.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(z)</TD><TD>&ldquo;GAAP&rdquo; means U.S. generally accepted accounting principles in effect from time to time.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(aa)</TD><TD>&ldquo;Governmental Authority(ies)&rdquo; when used in the singular, means any federal, state or local governmental or quasi-governmental
instrumentality, agency, board, commission or department or any regulatory agency, bureau, commission or authority and, when used
in the plural, means all such entities.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(bb)</TD><TD>&ldquo;Indebtedness&rdquo; means, as to any Person, (a) all obligations of such person for borrowed money (including, without
limitation, reimbursement and all other obligations with respect to surety bonds, letters of credit and bankers&rsquo; acceptances,
whether or not matured), (b) all obligations of such person evidenced by notes, bonds, debentures or similar instruments, (c) all
obligations of such person to pay the deferred purchase price of property or services, except trade accounts payable and accrued
commercial or trade liabilities arising in the ordinary course of business, (d) all interest rate and currency swaps, caps, collars
and similar agreements or hedging devices under which payments are obligated to be made by such Person, whether periodically or
upon the happening of a contingency, (e) all indebtedness created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such property), (f) all obligations of such Person under
leases which have been or should be, in accordance with GAAP, recorded as capital leases and (g) all indebtedness secured by any
Lien (other than Liens in favor of lessors under leases other than leases included in clause (f)) on any property or asset owned
or held by that Person regardless of whether the indebtedness secured thereby shall have been assumed by that Person or is non-recourse
to the credit of that Person.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(cc)</TD><TD>&ldquo;Intellectual Property Rights&rdquo; means Copyrights, Patents, Trade Secrets, Trademarks, Internet Assets, Mask Works,
software (excluding &ldquo;off the shelf&rdquo; software) and other proprietary rights in intellectual property existing under
Requirements of Law.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(dd)</TD><TD>&ldquo;Internet Assets&rdquo; mean any internet domain names and other computer user identifiers and any rights in and to sites
on the worldwide web, including rights in and to any text, graphics, audio and video files and html or other code incorporated
in such sites.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ee)</TD><TD>&ldquo;Lien&rdquo; means any mortgage, deed of trust, pledge, hypothecation, assignment, encumbrance, lien (statutory or other)
or preference, priority, right or other security interest or preferential arrangement of any kind or nature whatsoever (excluding
preferred stock and equity related preferences), including, without limitation, those created by, arising under or evidencing substantially
the same economic effect as any of the foregoing.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ff)</TD><TD>&ldquo;Losses&rdquo; means all losses, Claims, or written threats thereof, damages, expenses (including reasonable fees, disbursements
and other charges of counsel incurred) or other liabilities.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(gg)</TD><TD>&ldquo;Mask Works&rdquo; means any mask works and registrations and applications for registrations thereof.</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(hh)</TD><TD>&ldquo;Material Adverse Effect&rdquo; means, subject to any applicable cure or grace periods, a material adverse effect upon
any of (a) the financial condition, operations, business or properties of the Company, except to the extent resulting from (i)
changes in general local, domestic, foreign, or international economic conditions (except to the extent such change has a materially
disproportionate effect on the Company as compared to other similarly situated Persons in the industry in which the Company operates),
(ii) changes affecting generally the industry or industries in which the Company operates (except to the extent such change has
a materially disproportionate effect on the Company as compared to other similarly situated Persons in the industry in which the
Company operates), (iii) acts of war, sabotage or terrorism, military actions or the escalation thereof, (iv) any changes in applicable
laws or accounting rules or principles, including, without limitation, changes in GAAP, (v) any action required by this Agreement
or (vi) the announcement of this Agreement or the transactions contemplated hereby, (b) the ability of the Company to perform its
material obligations under this Agreement or any of the Transaction Documents or (c) the legality, validity or enforceability of
this Agreement or any of the Transaction Documents.</TD></TR></TABLE>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD>&ldquo;Material Company IP&rdquo; has the meaning set forth in <U>Section 3.21(b)</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(jj)</TD><TD>&ldquo;Obligations&rdquo; means, collectively, all of the Company&rsquo;s Indebtedness, liabilities and Contractual Obligations.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(kk)</TD><TD>&ldquo;Orders&rdquo; has the meaning set forth in <U>Section 3.2</U> of this Agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ll)</TD><TD>&ldquo;Patent(s)&rdquo; means any foreign or United States patents and patent applications, including any divisionals, continuations,
continuations-in-part, substitutions or reissues thereof, whether or not patents are issued on such applications and whether or
not such applications are modified, withdrawn or resubmitted.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(mm)</TD><TD>&ldquo;Person&rdquo; means any individual or group of individuals, firm, corporation, partnership, trust, incorporated or unincorporated
association, joint venture, joint stock company, limited liability company, Governmental Authority or other entity of any kind,
and shall include any successor (by merger or otherwise) of such entity.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(nn)</TD><TD>&ldquo;Permits&rdquo; has the meaning set forth in <U>Section 3.6(b)</U> of this Agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(oo)</TD><TD>&ldquo;Purchased Shares&rdquo; has the meaning set forth in <U>Section 2.1(a)</U> of this Agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(pp)</TD><TD>&ldquo;Purchasers&rdquo; has the meaning assigned to such term in the recitals to this Agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(qq)</TD><TD>&ldquo;Registration Rights Agreement&rdquo; means the Registration Rights Agreement to be entered into among the Company and
the Purchasers under the conditions set forth herein, the form of which is attached hereto as <U>Exhibit D</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(rr)</TD><TD>&ldquo;Requirements of Law&rdquo; means, as to any Person, any law, statute, treaty, rule, regulation, license or franchise
or determination of an arbitrator or a court or other Governmental Authority, in each case applicable or binding upon such Person
or any of its property or to which such Person or any of its property is subject or pertaining to any or all of the transactions
contemplated or referred to herein.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ss)</TD><TD>&ldquo;SEC&rdquo; means the Securities and Exchange Commission or any similar agency then having jurisdiction to enforce the
Act.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(tt)</TD><TD>&ldquo;SEC Documents&rdquo; has the meaning set forth in <U>Section 3.11</U> of this Agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(uu)</TD><TD>&ldquo;Securities Filings&rdquo; means the filing of a Form D with the SEC under the Act and any filing required to be filed
with the any state by the Company in respect of its issuance of the Series B Preferred.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(vv)</TD><TD>&ldquo;Series A Preferred&rdquo; means the Company&rsquo;s Series A Convertible Preferred Stock, $0.01 par value per share.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ww)</TD><TD>&ldquo;Series B Preferred&rdquo; means the Company&rsquo;s Series B Convertible Preferred Stock, $0.01 par value per share.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(xx)</TD><TD>&ldquo;Share Purchase Price&rdquo; means $4.85, the price per share of the Series B Preferred to be paid by the Purchasers.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(yy)</TD><TD>&ldquo;Stock Certificate Questionnaire&rdquo; means the Stock Certificate Questionnaire in the form attached hereto as <U>Exhibit
G</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(zz)</TD><TD>&ldquo;Taxes&rdquo; has the meaning set forth in <U>Section 3.12</U> of this Agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(aaa)</TD><TD>&ldquo;Trade Secrets&rdquo; means any scientific or technical information, design, process, procedure, formula or improvement
that derives independent economic value from not being generally known, and not being readily ascertainable through proper means,
to the Company&rsquo;s competitors or other persons who can obtain economic value from its use. To the fullest extent consistent
with the foregoing, and otherwise lawful, Trade Secrets shall include, without limitation, information and documentation pertaining
to the design, specifications, testing, validation, implementation and customizing techniques and procedures concerning the Company&rsquo;s
present and future products and services.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(bbb)</TD><TD>&ldquo;Trademarks&rdquo; means any foreign or United States trademarks, service marks, trade dress, trade names, brand names,
designs and logos, corporate names, product or service identifiers, whether registered or unregistered, and all registrations and
applications for registration thereof.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ccc)</TD><TD>&ldquo;Transaction Documents&rdquo; means, collectively, this Agreement and the Registration Rights Agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.2</TD><TD><U>Accounting Terms; Financial Statements</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">All accounting terms used herein not expressly defined
in this Agreement shall have the respective meanings given to them in accordance with sound accounting practice. The term &ldquo;sound
accounting practice&rdquo; shall mean such accounting practice as, in the opinion of the independent certified public accountants
regularly retained by the Company, conforms at the time to GAAP applied on a consistent basis except for changes with which such
accountants concur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.3</TD><TD><U>Knowledge of the Company</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">All references to &ldquo;Knowledge of the Company&rdquo;
or any similar phrase means the actual knowledge of those individuals set forth on <U>Schedule 1.3 </U>of the Company Disclosure
Schedule or knowledge any such person would be reasonably expected to have given their position with the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PURCHASE AND SALE OF SERIES B PREFERRED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">2.1</TD><TD><U>Purchase and Sale of Series B Preferred</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in">(a)</TD><TD>Subject to the terms and conditions herein set forth, the Company agrees to issue and sell to the Purchasers, and each Purchaser
agrees that it will purchase from the Company, on the Closing Date, such number of shares of Series B Preferred (all of the shares
of Series B Preferred being purchased pursuant to this <U>Section 2.1(a)</U> being referred to herein as the &ldquo;Purchased Shares&rdquo;)
set forth opposite such Purchaser&rsquo;s name on <U>Schedule A</U> hereto for the aggregate purchase price of approximately Seven
Million Dollars ($7,000,000.00).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>The Purchased Shares shall have the preferences and rights set forth in the Certificate of Designation for the Series B Preferred.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">2.2</TD><TD><U>Closing</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The closing of the sale and purchase of the Purchased
Shares (the &ldquo;Closing&rdquo;) shall take place at the offices of Third Security, LLC at 1881 Grove Avenue, Radford, Virginia
24141, at 10:00 a.m., local time, on March 5, 2014, or at such other time, place and date that the Company and the Purchasers may
agree in writing (the &ldquo;Closing Date&rdquo;). On the Closing Date, each Purchaser shall deliver or cause to be delivered payment
of the aggregate purchase price for the Purchased Shares being acquired by such Purchaser, as set forth on <U>Schedule A</U> hereto,
by or on behalf of each Purchaser to the Company by certified check or by wire transfer of immediately available funds to an account
designated in writing by the Company, and the Company shall, within three (3) business days following receipt by the Company of
such payment, deliver the Purchased Shares being acquired by each of the Purchasers in the form of certificates issued in each
Purchaser&rsquo;s name.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">2.3</TD><TD><U>Use of Proceeds</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company shall use the proceeds from the sale of
the Purchased Shares hereunder for working capital and general corporate purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE III</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REPRESENTATIONS, WARRANTIES AND COVENANTS
OF THE COMPANY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Except as set forth on the Company Disclosure Schedule, the
Company hereby represents, warrants and covenants to each Purchaser as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.1</TD><TD><U>Corporate Existence and Power</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company (a) is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware; (b) has all requisite corporate power and authority to own
and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently, or
is currently proposed to be, engaged; (c)&nbsp;is licensed and in good standing under the laws of each jurisdiction to which its
ownership, lease or operation of property or the conduct of its business requires such qualification, except to the extent the
failure to do so would not have a Material Adverse Effect; and (d) has the corporate power and authority to execute, deliver and
perform its obligations under this Agreement and each of the other Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.2</TD><TD><U>Authorization; No Contravention</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The execution, delivery and performance by the Company
of this Agreement and each of the other Transaction Documents and the transactions contemplated hereby and thereby, including,
without limitation, the sale, issuance and delivery of the Purchased Shares (a) have been duly authorized by all necessary corporate
action of the Company; (b) do not contravene the terms of the Certificate of Incorporation or the Bylaws; and (c) do not violate,
conflict with or result in any breach or contravention of, or the creation of any Lien under, any Contractual Obligation or the
judgment, injunction, writ, award, decree or order of any nature (collectively, &ldquo;Orders&rdquo;) of any Governmental Authority
against, or binding upon, the Company, in each case in this clause (c), individually or in the aggregate, as would have a Material
Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.3</TD><TD><U>Governmental Authorization; Third Party Consents</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Except as set forth on <U>Schedule 3.3</U> of the Company
Disclosure Schedule and except for the filing of the Securities Filings and the filing and acceptance of the Certificate of Designation,
no approval, consent, exemption, authorization or other action by, or notice to, or filing with, any Governmental Authority or
any other Person in respect of any Requirement of Law, and no lapse of a waiting period under a Requirement of Law, is necessary
or required in connection with the execution, delivery or performance (including, without limitation, the sale, issuance and delivery
of the Purchased Shares) by, or enforcement against the Company of this Agreement and the other Transaction Documents or the transactions
contemplated hereby and thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.4</TD><TD><U>Binding Effect</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">This Agreement and each of the other Transaction Documents
have been duly executed and delivered by the Company and constitute the legal, valid and binding obligations of the Company enforceable
against the Company in accordance with their terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting the enforcement of creditors&rsquo; rights
generally or by general principles of equity relating to enforceability (regardless of whether considered in a proceeding at law
or in equity).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.5</TD><TD><U>Litigation</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">There are no actions, suits, proceedings, claims, complaints,
disputes, arbitrations or investigations (collectively, &ldquo;Claims&rdquo;) pending or, to the Knowledge of the Company, threatened,
at law, in equity, in arbitration or before any Governmental Authority against the Company. To the Knowledge of the Company, there
is no fact, event or circumstance that is likely to give rise to any Claim. The Company has not received notice of any Order and
no Order has been issued by any court or other Governmental Authority against the Company purporting to enjoin or restrain the
execution, delivery or performance of this Agreement or any of the other Transaction Documents to which it is a party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.6</TD><TD><U>Compliance with Laws</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>The Company is in compliance in all respects with all Requirements of Law and all Orders issued by any court or Governmental
Authority, except where the failure to be in compliance would not have a Material Adverse Effect.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>The Company has all licenses, permits, orders and approvals of any Governmental Authority (collectively, &ldquo;Permits&rdquo;)
that are necessary for the conduct of the business of the Company taken as a whole; such Permits are in full force and effect;
and no violations are or have been recorded in respect of any Permit, except in each case, individually or in the aggregate, as
would not have a Material Adverse Effect.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>No material expenditure is presently required by the Company to comply with any existing Requirement of Law or Order.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>None of the Company, any subsidiary or any director, officer, or employee of, or, to the Knowledge of the Company, any agent
or other person associated with or acting on behalf of the Company or any subsidiary has, directly or indirectly: (a) used any
funds of the Company or any subsidiary for unlawful contributions, unlawful gifts, unlawful entertainment or other unlawful expenses
relating to political activity; (b) made any unlawful payment to foreign or domestic governmental officials or employees or to
foreign or domestic political parties or campaigns from funds of the Company or any subsidiary; (c) violated any provision of the
Foreign Corrupt Practices Act of 1977, as amended, rule or regulation issued by the U.S. Office of Foreign Assets Control (&ldquo;OFAC&rdquo;)
of the U.S. Treasury Department, the Financial Action Task Force on Money Laundering (&ldquo;FATF&rdquo;) or the U.S. Secretary
of the Treasury under Section 311 or 312 of the USA PATRIOT Act or any similar Requirements of Law; (d) established or maintained
any unlawful fund of monies or other assets of the Company or any subsidiary; (e) made any fraudulent entry on the books or records
of the Company or any subsidiary; or (f) made any unlawful bribe, unlawful rebate, unlawful payoff, unlawful influence payment,
unlawful kickback or other unlawful payment to any person, private or public, regardless of form, whether in money, property or
services, to obtain favorable treatment in securing business, to obtain special concessions for the Company or any subsidiary,
to pay for favorable treatment for business secured or to pay for special concessions already obtained for the Company or any subsidiary.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.7</TD><TD><U>Capitalization</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">On the Closing Date, after giving effect to the issuance
of the Purchased Shares to each of the Purchasers in accordance with the terms hereof, the authorized Capital Stock shall consist
of (a) 150,000,000 shares of Common, of which 7,353,695 will be outstanding and issued, and (b) 15,000,000 shares of Preferred
Stock, par value $0.01 per share, of which (x) 3,879,307 shares are designated as Series A Preferred, of which 2,586,205 shares
will be outstanding and issued, and (y) 1,443,297 shares are designated as Series B Preferred, of which 1,443,297 shares will be
outstanding and issued. Set forth on Schedule 3.7 of the Company Disclosure Schedule is a true and complete list of (i) the stockholders
of record of the Company, and, opposite the name of each such stockholder of record, the amount of all Capital Stock owned by such
stockholder and (ii) the holders of all outstanding options, warrants, conversion privileges, or other rights to purchase or otherwise
acquire any authorized but unissued shares of Capital Stock or other proprietary interests (collectively, &ldquo;Options&rdquo;)
and, opposite the name of each such holder, the amount of all Options of the Company owned by such holder. The Company has reserved
a sufficient number of shares of Common for issuance upon conversion of the Purchased Shares, plus such additional number of shares
of Common as may be necessary upon the application of the anti-dilution provisions of the Series B Preferred set forth in the Certificate
of Designation. The Purchased Shares are duly authorized, and, assuming the accuracy of the representations and warranties of the
Purchasers set forth in Article IV, when issued to the Purchasers pursuant to the terms of this Agreement, will be validly issued,
fully paid and nonassessable and, assuming the accuracy of the representations and warranties of the Purchasers in Sections 4.5,
4.6, and 4.7 hereof, will be issued in compliance with (or pursuant to exemptions under) the registration and qualification requirements
of all applicable securities laws. The shares of Common issuable upon conversion of the Purchased Shares are duly authorized and,
when issued in compliance with the provisions of the Certificate of Incorporation, including the Certificate of Designation, will
be validly issued, fully paid and nonassessable and, assuming the accuracy of the representations and warranties of the Purchasers
in Sections 4.5, 4.6, and 4.7 hereof, will be issued in compliance with (or pursuant to exemptions under) the registration and
qualification requirements of all applicable securities laws. If at any time after the date hereof, the Company does not have a
sufficient number of Common authorized and available for issuance upon conversion of the Purchased Shares, the Company and the
Purchasers will jointly cooperate with one another in obtaining the necessary stockholder approval to increase the number of authorized
shares of Common at the Company&rsquo;s next annual meeting of stockholders; <I>provided, however</I>, that if the Purchasers so
request in writing, in lieu of waiting until the next annual meeting of stockholders, the Company shall call and hold a special
meeting of its stockholders within sixty (60) days of the date such writing is given by the Purchasers for the sole purpose of
increasing the number of authorized shares of Common (such meeting, a &ldquo;Special Meeting&rdquo;), and the Company and the Purchasers
will jointly cooperate with one another in obtaining the necessary stockholder approval at such Special Meeting. Notwithstanding
the foregoing, the Company will not be required to hold a Special Meeting within 3 months of (i) the Company's most recent annual
meeting of stockholders or (ii) the one-year anniversary of the Company's most recent annual meeting of stockholders. The outstanding
shares of Capital Stock of the Company are all duly authorized, validly issued, fully paid and nonassessable, and were issued in
compliance with (or pursuant to exemptions under) the registration and qualification requirements of all applicable securities
laws. The Company does not own directly or indirectly, nor has it made any investment in, any Capital Stock of or ownership interest
in any other Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.8</TD><TD><U>No Default or Breach; Contractual Obligations</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company has not received notice of, and is not in
default under, or with respect to, any Contractual Obligation in any respect, which, individually or together with all such defaults,
would have a Material Adverse Effect. All Contractual Obligations of the Company are valid, in full force and effect and binding
upon the Company, and to the Knowledge of the Company, the other parties thereto except in each case, individually or in the aggregate,
as would not have a Material Adverse Effect. To the Knowledge of the Company, no other party to any such Contractual Obligation
is in default thereunder, nor does any condition exist that with notice or lapse of time or both would constitute a default thereunder,
except in each case, individually or in the aggregate, as would not have a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.9</TD><TD><U>Title to Real Property</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company has good, record and marketable title in
fee simple to, or holds interests as lessee under leases in full force and effect in, all real property used in connection with
its business or otherwise owned or leased by it, except for such defects in title as would not, individually or in the aggregate,
have a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.10</TD><TD><U>FIRPTA</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company is not a &ldquo;foreign person&rdquo; within
the meaning of Section 1445 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.11</TD><TD><U>SEC Documents; Financial Statements</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Common is registered pursuant to Section 12(b) of
the Exchange Act. During the two-year period preceding the Closing Date, the Company has timely filed all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act
(the &ldquo;SEC Documents&rdquo;). At the times of their respective filings, the SEC Documents complied in all material respects
with the requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder and other federal, state
and local laws, rules and regulations applicable to such documents. At the times of their respective filings, the SEC Documents
did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Company
currently meets the &ldquo;registrant eligibility&rdquo; requirements set forth in the general instructions to Form S-3 to enable
the registration of the Common. As of their respective dates, the financial statements of the Company included in the SEC Documents
(the &ldquo;Financial Statements&rdquo;) complied in all material respects with applicable accounting requirements and the published
rules and regulations of the SEC or other applicable rules and regulations with respect thereto. Such financial statements have
been prepared in accordance with GAAP (except (i) as may be otherwise indicated in such financial statements or the notes thereto
or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary
statements), and fairly present in all material respects the consolidated financial position of the Company as of the dates thereof
and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.12</TD><TD><U>Taxes</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>The Company has paid all federal, state, county, local, foreign and other taxes, including, without limitation, income taxes,
estimated taxes, excise taxes, sales taxes, use taxes, gross receipts taxes, franchise taxes, employment and payroll related taxes,
property taxes and import duties, whether or not measured in whole or in part by net income (hereinafter, &ldquo;Taxes&rdquo; or,
individually, a &ldquo;Tax&rdquo;) that have come due and are required to be paid by it through the date hereof, and all deficiencies
or other additions to Tax, interest and penalties owed by it in connection with any such Taxes, and shall timely pay any Taxes
including additions, interest and penalties, required to be paid by it on, before or after the date hereof;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>the Company has timely filed returns for Taxes that it is required to file on and through the date hereof and all information
set forth in such Tax returns is correct and complete in all material respects;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>with respect to all Tax returns of the Company, (i) except as set forth in <U>Schedule 3.12</U>, there is no unassessed tax
deficiency proposed or to the Knowledge of the Company threatened against the Company and (ii) except as set forth in <U>Schedule
3.12</U>, no audit is in progress and no extension of time is in force with respect to any date on which any return for Taxes was
or is to be filed and no waiver or agreement is in force for the extension of time for the assessment or payment of any Tax;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>except as set forth in <U>Schedule 3.12</U>, the Company has neither agreed to nor is required to make any adjustments under
Section 481(a) of the Code by reason of a change in accounting methods or otherwise; <U>Schedule 3.12</U> sets forth the status
of federal income tax audits and state, local and foreign tax audits of the Tax returns of the Company for each taxable year for
which the statute of limitations has not expired; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD>all liabilities for Taxes of the Company attributable to periods prior to the date hereof have been adequately provided for
in the Financial Statements and the liability of the Company for Taxes has not and will not increase at any time up to the Closing
Date other than in the ordinary course of business.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.13</TD><TD><U>Changes</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Except as disclosed in the SEC Documents, since December
31, 2012 there has not been:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>any change in the assets, liabilities, financial condition or operating results of the Company from that reflected in the Financial
Statements, except changes in the ordinary course of business that have not caused, in the aggregate, a Material Adverse Effect;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>any damage, destruction or loss, whether or not covered by insurance, causing a Material Adverse Effect;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>any waiver or compromise by the Company of a valuable right or of a material debt owed, except in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>any satisfaction or discharge of any Lien by the Company, except in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD>any material change or amendment to an Obligation, except in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD>receipt of notice that there has been a loss of, or material order cancellation by, any material customer of the Company or
to the Knowledge of the Company any threatened termination, cancellation or limitation of, or any adverse modification or change
in the business relationship of the Company, or the business of the Company, with any material customer or material supplier and,
to the Knowledge of the Company, there exists no present condition or state of fact circumstances that would have a Material Adverse
Effect or prevent the Company from conducting such business relationships or such business with any such material customer or material
supplier in the same manner as heretofore conducted by the Company;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(g)</TD><TD>any Lien, created by the Company, with respect to any of its material properties or assets, except Liens for taxes not yet
due or payable or Liens arising in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(h)</TD><TD>any loans or guarantees made by the Company to or for the benefit of its employees, officers or directors, or any members of
their immediate families, other than advances made in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>any resignation or termination of employment of any Key Employee;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(j)</TD><TD>any declaration, setting aside or payment or other distribution in respect of any of the Company&rsquo;s Capital Stock (except
for the reservation of shares of Capital Stock pursuant to this Agreement and the Transaction Documents), or any direct or indirect
redemption, purchase or other acquisition of any such stock by the Company; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(k)</TD><TD>any binding agreement or commitment by the Company to do any of the things described in this <U>Section 3.13</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.14</TD><TD><U>Investment Company</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company is not an &ldquo;investment company&rdquo;
within the meaning of the Investment Company Act of 1940, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.15</TD><TD><U>Private Offering</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">No form of general solicitation or general advertising
was used by the Company or its representatives in connection with the offer or sales of the Purchased Shares. Assuming the accuracy
of the representations and warranties of the Purchasers, no registration of the Purchased Shares, pursuant to the provisions of
the Act or any state securities or &ldquo;blue sky&rdquo; laws, will be required by the offer, sale or issuance of the Purchased
Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.16</TD><TD><U>Employee Matters</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD><U>Schedule 3.16</U> contains a list of all of the individuals who are in the employ of the Company (&ldquo;Employees&rdquo;),
including the names, titles and compensation of each. <U>Schedule 3.16</U> lists (i) all increases in compensation of such Employees
during the previous 12 months other than increases in salary in the ordinary course of business consistent with the Company&rsquo;s
policies and (ii) any increases in compensation of such Employees that have not yet been effected but which are valid Contractual
Obligations of the Company. To the Company&rsquo;s Knowledge, no Employee is a party to or is otherwise bound by any agreement
or arrangement (including, without limitation, any license, covenant or commitment of any nature), or subject to any Order, (i)
that would conflict with such Employee&rsquo;s obligation diligently to promote and further the interests of the Company or (ii)
that would conflict with the Company&rsquo;s business as now conducted. The Company has complied with all Requirements of Law relating
to the employment of labor, including provisions relating to wages, hours, equal opportunity, collective bargaining and payment
of Social Security and other taxes, except in each case, individually or in the aggregate, as would not have a Material Adverse
Effect.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD><U>Schedule 3.16(b)</U> contains a complete and accurate list of all written employment agreements for the Employees. The employment
agreements include, without limitation, employee leasing agreements, employee services agreements and non-competition agreements.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>No unwritten amendments have been made, whether by oral communication, pattern of conduct or otherwise, with respect to any
Compensation Plans or employment agreements for the Employees.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>None of the Employees listed on <U>Schedule 3.16(d)</U> of the Company Disclosure Schedule (the &ldquo;Key Employees&rdquo;)
has any plans to terminate his or her employment with the Company to the Company&rsquo;s Knowledge, and the Company has no intention
of terminating the employment of any Key Employee.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.17</TD><TD><U>Labor Relations</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>The Company is not engaged in any unfair labor practice under any Requirement of Law;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>there is (i) no grievance or arbitration proceeding arising out of or under collective bargaining agreements pending or, to
the Knowledge of the Company, threatened against the Company, and (ii) no strike, labor dispute, slowdown or stoppage pending or,
to the Knowledge of the Company, threatened against the Company;<BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD>the Company is not a party to any collective bargaining agreement or contract;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>there is no union representation question existing with respect to the employees of the Company; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD>to the Knowledge of the Company, no union organizing activities are taking place with respect to the employees of the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.18</TD><TD><U>Employee Benefit Plans</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company has no actual or contingent, direct or indirect,
liability in respect of any employee benefit plan or arrangement, including any plan subject to ERISA, other than to administer
and make contributions under or pay benefits pursuant to the plans listed on <U>Schedule 3.18</U> (collectively, the &ldquo;Plans&rdquo;).
All of the Plans are in compliance with all applicable Requirements of Law except to the extent that noncompliance with such Requirements
of Law would not have a Material Adverse Effect. No Plan (a) is subject to Title IV of ERISA, or is otherwise a Defined Benefit
Plan, or is a multiple employer plan (within the meaning of Section 413(c) of the Code); or (b) provides for post-retirement welfare
benefits except to the extent any such benefits are required by law or a &ldquo;parachute payment&rdquo; (within the meaning of
Section 280G(b) of the Code) except as set forth on <U>Schedule 3.18</U>. The execution and delivery of this Agreement and each
of the other Transaction Documents, the purchase and sale of the Purchased Shares and the consummation of the transactions contemplated
hereby and thereby will not result in any prohibited transaction by the Company within the meaning of Section 406 of ERISA or Section
4975 of the Code. <U>Schedule 3.18</U> also sets forth all Compensation Plans of the Company, other than compensation disclosed
on <U>Schedule 3.16</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.19</TD><TD><U>Title to Assets</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company owns and has good and valid title to all
of its properties and assets used in its business and reflected as owned in the Financial Statements or so described in any Schedule
hereto (collectively, the &ldquo;Assets&rdquo;), in each case free and clear of all Liens, except for (a) Liens specifically described
in the notes to the Financial Statements, (b) Liens that would not, individually or in the aggregate, have a Material Adverse Effect,
or (c) Liens for Taxes that have not yet become delinquent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.20</TD><TD><U>Liabilities</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company has no material liabilities other than (i)
liabilities fully and adequately reflected or reserved against in the Financial Statements, (ii) liabilities not required by GAAP
to be set forth in the Financial Statements and (iii) liabilities incurred since December 31, 2012 in the ordinary course of business
and that will not have a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.21</TD><TD><U>Intellectual Property</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>Except as provided on <U>Schedule 3.21(a)</U> or in the agreements listed in <U>Schedule 3.21(c)</U>, the Company is the owner
of or has the license or right to use, sell, license or dispose of all of the Intellectual Property Rights that are used in connection
with the business of the Company as presently conducted, free and clear of all Liens.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD><U>Schedule 3.21(b)</U> sets forth all of the registered Copyrights, Patents, patent applications, registered Trademarks, and
domain names owned or licenses by the Company that are material to the business of the Company as currently conducted. None of
the Intellectual Property Rights that are material to the business of the Company as currently conducted (the &ldquo;Material Company
IP&rdquo;) is subject to any outstanding Order, and no Claim is pending or, to the Knowledge of the Company, threatened, which
challenges the validity, enforceability, use or ownership of the item.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD><U>Schedule 3.21(c)</U> sets forth all licenses, sublicenses and other agreements under which the Company is either a licensor
or licensee of any Material Company IP. The Company has performed all material obligations imposed upon it thereunder, and the
Company is not, nor to the Knowledge of the Company is any party thereto in breach of or default thereunder in any material respect,
nor is there any event which with notice or lapse of time or both would constitute a default thereunder. All of the licenses listed
on <U>Schedule 3.21(c)</U> are valid, enforceable and in full force and effect with respect to the Company and, to the Knowledge
of the Company, with respect to the other party or parties to such licenses, and will continue to be so on identical terms immediately
following the Closing, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or similar laws affecting the enforcement of creditors&rsquo; rights generally and by general
principles of equity related to enforceability (regardless of whether considered in a proceeding at law or in equity).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>To the Knowledge of the Company none of the Material Company IP currently sold or licensed by the Company to any Person or
used by or licensed to the Company infringes upon or otherwise violates any Intellectual Property Rights of others.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD>No litigation is pending and no Claim has been made against the Company or, to the Knowledge of the Company, is threatened,
contesting the right of the Company to sell or license the Material Company IP to any Person or use the Material Company IP presently
sold or licensed to such Person or used by the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD>To the Knowledge of the Company, no Person is infringing upon or otherwise violating the Material Company IP.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(g)</TD><TD>No former employer of any Employee, and no current or former client of any consultant of the Company, has made a claim, or
to the Knowledge of the Company threatened to make a claim, against the Company that such Employee or such consultant is utilizing
proprietary information of such former employer or client.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(h)</TD><TD>To the Knowledge of the Company, no Employee is in material violation of any term of any employment agreement, patent or invention
disclosure agreement or other contract or agreement relating to the relationship of such Employee with the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>None of the Company&rsquo;s Trade Secrets has been disclosed to any Person other than (i) employees, representatives and agents
of the Company, (ii) as required pursuant to any filings with a Governmental Authority, (iii) when disclosure to a Person is pursuant
to provisions in non-disclosure, consultant, license or other confidentiality agreements entered into by the Company or (iv) in
connection with discussions with possible sources of financing for the Company subject to customary non-disclosure arrangements.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.22</TD><TD STYLE="text-align: justify"><U>Potential Conflicts of Interest</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Except as disclosed in the SEC Documents or as set forth
on <U>Schedule 3.22</U>, during the two-year period preceding the Closing Date, no event has occurred that would be required to
be reported by the Company pursuant to Item 404(d)(1) of Regulation S-K promulgated by the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.23</TD><TD STYLE="text-align: justify"><U>Trade Relations</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Except as set forth on <U>Schedule 3.23</U>, there exists
no actual or, to the Knowledge of the Company, threatened termination, cancellation or material limitation of, or any adverse modification
or change in, the business relationship of the Company, or the business of the Company, with any customer or any group of customers
whose purchases are individually or in the aggregate material to the Company, or with any material supplier of the Company, and,
to the Knowledge of the Company, there exists no present condition or state of fact or circumstances that would have a Material
Adverse Effect or prevent the Company from conducting such business relationships or such business with any such customer, such
group of customers or such material supplier substantially in the same manner as heretofore conducted by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.24</TD><TD STYLE="text-align: justify"><U>Outstanding Borrowing</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><U>Schedule 3.24</U> sets forth (a) the amount of all
Indebtedness with respect to the Company as of the date hereof, (b) the Liens that relate to such Indebtedness and that encumber
the Assets and (c) the name of each lender thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.25</TD><TD STYLE="text-align: justify"><U>Insurance</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company maintains insurance with insurance companies
in such amounts and covering such risks as are usually and customarily carried by Persons engaged in the business conducted by
the Company. Such policies and binders are valid and enforceable in accordance with their terms and are in full force and effect.
None of such policies will be affected by, or terminate or lapse by reason of, any transaction contemplated by this Agreement or
any of the other Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.26</TD><TD STYLE="text-align: justify"><U>Minute Records</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">All minutes and written consents since January 1, 2013
of the Board of Directors and stockholders of the Company have been provided or made available to each of the Purchasers. The minutes
and written consents contain a complete summary of all meetings of the Board of Directors and stockholders since January 1, 2013
and reflect all transactions referred to in such minutes and written consents accurately in all material respects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.27</TD><TD STYLE="text-align: justify"><U>Environmental Matters</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company is and has been in compliance in all respects
with all applicable Environmental Laws except for failures to be in compliance that would not, individually or in the aggregate,
have a Material Adverse Effect. There is no Claim pending or, to the Knowledge of the Company, threatened against the Company pursuant
to Environmental Laws that would reasonably be expected to result in a fine, penalty or other obligation, cost or expense that
would have a Material Adverse Effect; and, there are no past or present events, conditions, circumstances, activities, practices,
incidents, agreements, actions or plans which may prevent compliance with, or which have given rise to or will give rise to liability
under, Environmental Laws except in each case, individually or in the aggregate, as has not had or would not have a Material Adverse
Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.28</TD><TD STYLE="text-align: justify"><U>Broker&rsquo;s, Finder&rsquo;s or Similar Fees</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Except as set forth on <U>Schedule 3.28</U>, there are
no brokerage commissions, finder&rsquo;s fees or similar fees or commissions payable by the Company in connection with the transactions
contemplated hereby based on any agreement, arrangement or understanding with the Company or any action taken by any such Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.29</TD><TD STYLE="text-align: justify"><U>Accountants</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">McGladrey LLP, whose report on the financial statements
of the Company is filed with the SEC in the Company&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2012, were,
at the time such report was issued, independent registered public accountants as required by the Act. Except as described in the
SEC Documents and as preapproved in accordance with the requirements set forth in Section 10A of the Exchange Act, to the Knowledge
of the Company, neither McGladrey LLP nor Ernst &amp; Young LLP has engaged in any non-audit services prohibited by subsection
(g) of Section 10A of the Exchange Act on behalf of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.30</TD><TD STYLE="text-align: justify"><U>Internal Controls</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company has established and maintains a system of
internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with
management&rsquo;s general or specific authorization; (ii)&nbsp;transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only
in accordance with management&rsquo;s general or specific authorization; and (iv) the recorded accountability for assets is compared
with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.31</TD><TD STYLE="text-align: justify"><U>Corporate Governance</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Board of Directors meets the independence requirements
of, and has established an audit committee that meets the independence requirements of, the rules and regulations of the SEC. The
Audit Committee has reviewed the adequacy of its charter within the past 12 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.32</TD><TD STYLE="text-align: justify"><U>Disclosure Controls</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company has established and maintains disclosure
controls and procedures (as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act). Since the date of the most
recent evaluation of such disclosure controls and procedures, there have been no significant changes in internal controls or in
other factors that could significantly affect internal controls, including any corrective actions with regard to significant deficiencies
and material weaknesses. The Company is in compliance in all material respects with all provisions currently in effect and applicable
to the Company of the Sarbanes-Oxley Act of 2002, and all rules and regulations promulgated thereunder or implementing the provisions
thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.33</TD><TD STYLE="text-align: justify"><U>No Undisclosed Events or Circumstances</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Except as disclosed in the SEC Documents, since December
31, 2012, except for the consummation of the transactions contemplated herein, to the Company&rsquo;s Knowledge, no event or circumstance
has occurred or exists with respect to the Company or its businesses, properties, prospects, operations or financial condition,
which, under any Requirement of Law, requires public disclosure or announcement by the Company but which has not been so publicly
announced or disclosed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.34</TD><TD STYLE="text-align: justify"><U>Application of Takeover Provisions</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The issuance of the Series B Preferred pursuant hereto
and the Purchasers&rsquo; ownership thereof is not prohibited by the business combination statutes of the state of Delaware or
the Certificate of Incorporation. The Company has not adopted any stockholder rights plan, &ldquo;poison pill&rdquo; or similar
arrangement that would trigger any right, obligation or event as a result of the issuance of such securities and the Purchasers&rsquo;
ownership of such securities and there are no similar anti-takeover provisions under the Certificate of Incorporation. In addition,
the Company covenants and agrees that, from and after the Closing Date, it will not adopt any such anti-takeover provisions, whether
under its Certificate or otherwise, that would be applicable to the Purchasers or any of their respective Affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.35</TD><TD STYLE="text-align: justify"><U>No Stockholder Approval</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">No approval of the stockholders of the Company is required
under law or otherwise for the Company to issue and deliver to the Purchasers the shares of Series B Preferred as contemplated
hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.36</TD><TD STYLE="text-align: justify"><U>Disclosure</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD><U>Agreement and Other Documents</U>. This Agreement and the documents and certificates furnished to the Purchasers by the
Company, including but not limited to the SEC Documents, do not contain any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements contained herein or therein, in the light of the circumstances under
which they were made, not misleading.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD><U>Material Adverse Effects</U>. To the Knowledge of the Company, there is no fact which the Company has not disclosed to each
of the Purchasers in writing which would have a Material Adverse Effect.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE IV</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REPRESENTATIONS AND WARRANTIES OF THE
PURCHASERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each Purchaser hereby represents and warrants to the Company
as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.1</TD><TD><U>Existence and Power</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Purchaser is duly organized, validly existing and
in good standing under the laws of the Commonwealth of Virginia and has the power and authority to execute, deliver and perform
its obligations under this Agreement and each of the other Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.2</TD><TD><U>Authorization; No Contravention</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The execution, delivery and performance by the Purchaser
of this Agreement and each of the other Transaction Documents to which it is a party and the transactions contemplated hereby and
thereby, including, without limitation, the purchase of the Purchased Shares, (a) have been duly authorized by all necessary action,
(b) do not contravene the terms of the Purchaser&rsquo;s organizational documents, or any amendment thereof, and (c) do not violate,
conflict with or result in any breach or contravention of or the creation of any Lien under, any Contractual Obligation of the
Purchaser, or any Orders of any Governmental Authority or Requirement of Law applicable to the Purchaser in each case, individually
or in the aggregate, as would have a material adverse effect on (i) the ability of the Purchaser to perform its material obligations
under this Agreement or any of the other Transaction Documents or (ii) the legality, validity or enforceability of this Agreement
or any of the other Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.3</TD><TD><U>Governmental Authorization; Third Party Consents</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">No approval, consent, exemption, authorization, or other
action by, or notice to, or filing with, any Governmental Authority or any other person with respect to any Requirement of Law,
and no lapse of a waiting period under any Requirement of Law, is necessary or required in connection with the execution, delivery
or performance (including, without limitation, the purchase of the Purchased Shares) by, or enforcement against, the Purchaser
of this Agreement and each of the other Transaction Documents to which the Purchaser is a party or the transactions contemplated
hereby and thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.4</TD><TD><U>Binding Effect</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">This Agreement and each of the other Transaction Documents
to which the Purchaser is a party have been duly executed and delivered by the Purchaser and constitute the legal, valid and binding
obligations of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting the
enforcement of creditors&rsquo; rights generally or by equitable principles relating to enforceability (regardless of whether considered
in a proceeding at law or in equity).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.5</TD><TD><U>Purchase for Own Account</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Purchased Shares and the shares of Capital Stock
issuable upon conversion thereof that are being acquired by the Purchaser pursuant to this Agreement are being or will be acquired
for its own account and with no intention of distributing or reselling such securities or any part thereof in any transaction that
would be in violation of the securities laws of the United States of America, or any state, without prejudice, however, to the
rights of the Purchaser at all times to sell or otherwise dispose of all or any part of such securities under an effective registration
statement under the Act, or under an exemption from such registration available under the Act. If the Purchaser should in the future
decide to dispose of any of such securities, the Purchaser understands and agrees that it may do so only in compliance with the
Act and applicable state securities laws, as then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.6</TD><TD><U>Restricted Securities</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Purchaser understands that the Purchased Shares
will not be registered at the time of their issuance under the Act for the reason that the sale provided for in this Agreement
is exempt pursuant to Section 4(2) of the Act and that the reliance of the Company on such exemption is predicated in part on the
Purchaser&rsquo;s representations set forth herein. The Purchaser represents that it is experienced in evaluating companies such
as the Company, has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and
risks of its investment and has the ability to suffer the total loss of its investment. The Purchaser further represents that it
has had the opportunity to ask questions of and receive answers from the Company concerning the terms and conditions of the offering
and to obtain additional information to such Purchaser&rsquo;s satisfaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.7</TD><TD><U>Accredited Investor Status</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">At the time such Purchaser was offered the Shares, it
was, and at the date hereof it is, and on the Closing Date it will be, an &ldquo;accredited investor&rdquo; as defined in Rule
501(a)&nbsp;under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.8</TD><TD><U>Accuracy of Accredited Investor Questionnaire</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Accredited Investor Questionnaire delivered by such
Purchaser in connection with this Agreement is complete and accurate in all respects as of the date of this Agreement and will
be correct as of the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.9</TD><TD><U>Residency</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Such Purchaser&rsquo;s offices in which its investment
decision with respect to the Purchased Shares was made are located at the address immediately below such Purchaser&rsquo;s name
on its signature page hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.10</TD><TD><U>Certain Trading Activities</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Such Purchaser has not directly or indirectly engaged
in any Short Sales involving the Company&rsquo;s securities since the time that it was first contacted by the Company with respect
to the transactions contemplated hereby. &ldquo;Short Sales&rdquo; include, without limitation, all &ldquo;short sales&rdquo; as
defined in Rule 200 promulgated under Regulation SHO under the Exchange Act and all types of direct and indirect stock pledges,
forward sale contracts, options, puts, calls, short sales, swaps and similar arrangements (including on a total return basis),
and sales and other transactions through non-US broker dealers or foreign regulated brokers. Notwithstanding the foregoing, in
the case of a Purchaser that is or is part of a multi-managed investment vehicle (a &ldquo;Fund&rdquo;) whereby separate portfolio
managers manage separate portions of such Fund&rsquo;s assets and the portfolio managers have no direct knowledge of the investment
decisions made by the portfolio managers managing other portions of such Fund&rsquo;s assets, the representation set forth above
shall solely apply with respect to the portion of assets of such Purchaser managed by the portfolio manager that made the investment
decision to purchase the Purchased Shares. Such Purchaser hereby covenants and agrees not to engage, directly or indirectly, in
any transactions in the securities of the Company or involving the Company&rsquo;s securities during the period from the date hereof
until such time as (i)&nbsp;the transactions contemplated by this Agreement are first publicly announced or (ii)&nbsp;this Agreement
is terminated in full. Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation
or warranty, or preclude any actions, with respect to the identification of the availability of, or securing of, available shares
to borrow in order to effect short sales or similar transactions in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.11</TD><TD><U>Litigation</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">There are no Claims pending or, to the knowledge of
the Purchaser, threatened, at law, in equity, in arbitration or before any Governmental Authority against the Purchaser that, individually
or in the aggregate, would have a material adverse effect on (i) the ability of the Purchaser to perform its material obligations
under this Agreement or any of the other Transaction Documents or (ii) the legality, validity or enforceability of this Agreement
or any of the other Transaction Documents. No Order has been issued by any court or other Governmental Authority against the Purchaser
purporting to enjoin or restrain the execution, delivery or performance of this Agreement or any of the other Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.12</TD><TD><U>Broker&rsquo;s, Finder&rsquo;s or Similar Fees</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">There are no brokerage commissions, finder&rsquo;s fees
or similar fees or commissions payable by the Purchaser, in connection with the transactions contemplated hereby based on any agreement,
arrangement or understanding with the Purchaser or any action taken by the Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.13</TD><TD><U>Inquiries and Access; No Reliance</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company has provided the Purchaser the opportunity
to ask questions of the Company and has provided full access to its facilities and personnel in response to any request therefor
that the Purchaser and his or its purchaser representative(s), if any, have made, concerning the Company and its activities, and
all other matters relating to the operations of the Company and the offering and sale of the Purchased Shares. Such Purchaser acknowledges
that he or it is not relying upon any other investor or any officer, director, stockholder, employee, agent, partner or Affiliate
of any such investor in making his or its investment, or decision to invest, in the Company or in monitoring such investment. In
addition, the purchase of the Purchased Shares and the consummation of the transactions contemplated hereunder by the Purchaser
are not done in reliance upon any warranty or representation by, or information from, the Company of any sort, oral or written,
except the warranties and representations specifically set forth in this Agreement (including the schedules and exhibits hereto)
and in any certificates required to be delivered to the Purchaser by the Company hereunder and thereunder. Such purchase and consummation
are instead done entirely on the basis of the Purchaser&rsquo;s own investigation, analysis, judgment and assessment of the present
and potential value and earning power of the Company as well as those representations and warranties by the Company specifically
set forth in this Agreement (including the schedules and exhibits hereto) and in any certificates required to be delivered to the
Purchaser by the Company hereunder and thereunder. In no respect does this <U>Section 4.13</U> limit the representations and warranties
contained in <U>Article III</U> of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE V</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDITIONS TO THE OBLIGATION OF THE PURCHASERS
TO CLOSE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The obligation of each of the Purchasers
(i) to purchase the Purchased Shares pursuant to the terms of this Agreement and (ii) to perform any obligations hereunder with
respect to the Closing shall be subject to the satisfaction as reasonably determined by, or waiver by, each of the Purchasers of
the following conditions on or before the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.1</TD><TD><U>Representations and Warranties</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The representations and warranties of the Company contained
in <U>Article III</U> hereof shall be true and correct at and on the Closing Date as if made at and on such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.2</TD><TD><U>Compliance with this Agreement</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company shall have performed and complied with all
of its agreements and conditions set forth herein that are required to be performed or complied with by the Company on or before
the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.3</TD><TD><U>Secretary&rsquo;s Certificate</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Secretary of the Company shall deliver to each of
the Purchasers a certificate certifying from the Company, in form and substance satisfactory to each of the Purchasers, dated the
Closing Date and signed by the Secretary of the Company, certifying (a) that the attached copies of the Certificate of Incorporation,
Certificate of Designation, the Bylaws and resolutions of the Board of Directors approving this Agreement and each of the other
Transaction Documents to which the Company is a party and the transactions contemplated hereby and thereby, are all true, complete
and correct and remain unamended and in full force and effect and (b) as to the incumbency and specimen signature of each officer
of the Company executing this Agreement, each other Transaction Document and any other document delivered in connection herewith
on behalf of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.4</TD><TD><U>Filing of the Certificate of Designation</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Certificate of Designation shall have been duly
filed by the Company with and accepted by the Delaware Secretary of State and be in full force and effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.5</TD><TD><U>Registration Rights Agreement</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">As of the Closing Date, the Company and the Purchasers
shall have duly executed and delivered the Registration Rights Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.6</TD><TD><U>Consents and Approvals</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Except for the Securities Filings or with respect to
the matters set forth on <U>Schedule 3.3</U> of the Company Disclosure Schedule, all consents, exemptions, authorizations, or other
action by, or notices to, or filings with, Governmental Authorities and other Persons required in respect of all Requirements of
Law and with respect to those Contractual Obligations of the Company that are necessary in connection with the execution, delivery
or performance by, or enforcement against, the Company of this Agreement and each of the other Transaction Documents shall have
been obtained and be in full force and effect, and each of the Purchasers shall have been furnished with appropriate evidence thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.7</TD><TD><U>No Application of Anti-Takeover Provisions.</U></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company&rsquo;s Board of Directors, to the extent
permissible under Delaware law, shall have taken all necessary action such that any provisions contained in the Certificate of
Incorporation or Delaware law that may apply to business combinations or other transactions with affiliated stockholders or impact
the voting rights of affiliated stockholders shall not apply to the Purchasers or their Affiliates, including but not limited to
Section 203 of the Delaware General Corporation Law. The Company shall not have adopted any stockholder rights plan, &ldquo;poison
pill&rdquo; or similar arrangement, or any anti-takeover provisions under its charter documents, that would trigger any right,
obligation or event as a result of the issuance of the Series B Preferred pursuant hereto to the Purchasers or the Purchasers&rsquo;
ownership of such securities, or the accumulation of Company securities acquired in the market by the Purchasers or their respective
Affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.8</TD><TD><U>No Material Judgment or Order</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">There shall not be on the Closing Date any Order of
a court of competent jurisdiction or any ruling of any Governmental Authority or any condition imposed under any Requirement of
Law that, in the reasonable judgment of the Purchasers, would prohibit the purchase of the Purchased Shares or subject any of the
Purchasers to any penalty or other onerous condition under or pursuant to any Requirement of Law if the Purchased Shares were to
be purchased hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.9</TD><TD><U>No Litigation</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">No action, suit proceeding, claim or dispute shall have
been brought or otherwise arisen at law, in equity, in arbitration or before any Governmental Authority against the Company that,
if adversely determined, would have, individually or in the aggregate, a material adverse effect on (i) the ability of the Company
to perform its material obligations under this Agreement or any of the other Transaction Documents or (ii) the legality, validity
or enforceability of this Agreement or any of the other Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.10</TD><TD><U>Opinion of Company Counsel</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Purchasers and the Company shall have received from
Paul Hastings LLP, counsel to the Company, an opinion, dated as of the Closing, in the form attached hereto as <U>Exhibit E</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.11</TD><TD><U>Preemptive Rights</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">All stockholders of the Company having any preemptive,
first refusal or other rights with respect to the issuance of the Purchased Shares shall have irrevocably waived the same in writing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.12</TD><TD><U>No Suspension of Trading</U>.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Trading in the Common shall not have been suspended
by the SEC or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE VI</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDITIONS TO THE OBLIGATIONS OF THE
COMPANY TO CLOSE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The obligation of the Company to issue and
sell the Purchased Shares and the obligation of the Company to perform its other obligations hereunder shall be subject to the
satisfaction as reasonably determined by, or written waiver by, the Company of the following conditions on or before the Closing
Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">6.1</TD><TD><U>Representations and Warranties</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The representation and warranties of each of the Purchasers
contained in <U>Article IV</U> hereof shall be true and correct at and on the Closing Date as if made at and on such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">6.2</TD><TD><U>Compliance with this Agreement</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Each Purchaser shall have performed and complied with
all of the agreements and conditions set forth herein that are required to be performed or complied with by such Purchaser on or
before the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">6.3</TD><TD><U>Registration Rights Agreement</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Each Purchaser shall have duly executed and delivered
the Registration Rights Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">6.4</TD><TD><U>Questionnaires</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Each Purchaser shall have duly executed and delivered
to the Company an Accredited Investor Questionnaire, satisfactory to the Company, and Stock Certificate Questionnaire, in the forms
attached hereto as <U>Exhibits F</U> and <U>G</U>, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">6.5</TD><TD><U>No Material Judgment or Order</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">There shall not be on the Closing Date any Order of
a court of competent jurisdiction or any ruling of any Governmental Authority or any condition imposed under any Requirement of
Law that, in the reasonable judgment of the Company, would prohibit the sale of the Purchased Shares or subject the Company to
any penalty or other onerous condition under or pursuant to any Requirement of Law if the Purchased Shares to be purchased hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">6.6</TD><TD><U>No Litigation</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">No action, suit proceeding, claim or dispute shall have
been brought or otherwise arisen at law, in equity, in arbitration or before any Governmental Authority against the Purchasers
that, if adversely determined, would have, individually or in the aggregate, a material adverse effect on (i) the ability of the
Purchasers to perform their respective material obligations under this Agreement or any of the other Transaction Documents or (ii)
the legality, validity or enforceability of this Agreement or any of the other Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">6.7</TD><TD><U>Consents and Approvals</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Except for the Securities Filings, all consents, exemptions,
authorizations, or other action by, or notices to, or filings with, Governmental Authorities and other Persons required in respect
of all Requirements of Law and with respect to those Contractual Obligations of the Purchasers that are necessary in connection
with the execution, delivery or performance by, or enforcement against, the Purchasers of this Agreement shall have been obtained
and be in full force and effect, and the Company shall have been furnished with appropriate evidence thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE VII</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MISCELLANEOUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.1</TD><TD STYLE="text-align: justify"><U>Survival of Representations and Warranties</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">All of the representations and warranties made herein
shall survive the execution and delivery of this Agreement and expire twenty-four (24) months after the Closing Date, except for
(a) <U>Sections 3.1</U>, <U>3.2</U>, <U>3.4</U>, <U>3.7</U>, <U>4.1</U>, <U>4.2</U>, <U>4.4</U>, <U>4.5</U> and <U>4.7</U> which
representations and warranties shall survive indefinitely, and (b) <U>Section 3.12</U>, which shall survive until the later to
occur of (i) the lapse of the statue of limitations with respect to the assessment of any Tax to which such representation and
warranty related (including any extensions or waivers thereof) and (ii) 60 days after the final administrative or judicial determination
of the Taxes to which such representation and warranty relates, and no Claim with respect to <U>Section 3.12</U> may be asserted
thereafter with the exception of Claims arising out of any fact, circumstance, action or proceeding to which the party asserting
such Claim shall have given notice to the other parties to this Agreement prior to the termination of such period of reasonable
belief that a tax liability will subsequently arise therefrom.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.2</TD><TD STYLE="text-align: justify"><U>Notices</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">All notices, demands and other communications provided
for or permitted hereunder shall be made in writing and shall be by registered or certified first-class mail, return receipt requested,
telecopier, courier service or personal delivery:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>if to the Company:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Transgenomic, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">12325 Emmet Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Omaha, Nebraska 68164</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Attention: Chief Financial Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Facsimile: 402-452-5401</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">with a copy to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Paul Hastings LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">1117 S. California Avenue<BR>
Palo Alto, California 94304</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Attention: Jeffrey T. Hartlin</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Facsimile: 650-320-1904</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>if to the Purchasers:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">c/o Third Security, LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">1881 Grove Avenue</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Radford, Virginia 24141</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Attention: Tad Fisher</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Facsimile: 540-633-7939</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">with a copy to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Troutman Sanders LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Troutman Sanders Building</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">1001 Haxall Point</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Richmond, Virginia 23219</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Attention: John Owen Gwathmey</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">Facsimile: 804-698-5174</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">All such notices and communications shall be deemed
to have been duly given when delivered by hand, if personally delivered; when delivered by courier, if delivered by commercial
courier service; five (5) Business Days after being deposited in the mail, postage prepaid, if mailed; and when receipt is mechanically
acknowledged, if telecopied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.3</TD><TD STYLE="text-align: justify"><U>Successors and Assigns; Third Party Beneficiaries</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of the parties hereto. Subject to applicable securities laws the Purchasers may
assign any of their rights under any of the Transaction Documents to any of their Affiliates. The Company may not assign any of
their rights under this Agreement without the written consent of the Purchasers. No person other than the parties hereto and their
successors are intended to be beneficiaries of the provisions of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.4</TD><TD STYLE="text-align: justify"><U>Amendment and Waiver</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>No failure or delay on the part of the Company or Purchasers in exercising any right, power or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative and are not
exclusive of any remedies that may be available to the Company or the Purchasers at law, in equity or otherwise.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>Any amendment, supplement or modification of or to any provision of this Agreement, any waiver of any provision of this Agreement,
and any consent to any departure by the Company or the Purchasers from the terms of any provision of this Agreement, shall be effective
(i) only if it is made or given in writing and signed by the Company and the Purchasers, and (ii) only in the specific instance
and for the specific purpose for which made or given. Except where notice is specifically required by this Agreement, no notice
to or demand on the Company in any case shall entitle the Company to any other further notice or demand in similar or other circumstances.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.5</TD><TD STYLE="text-align: justify"><U>Counterparts; Facsimile</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">This Agreement may be executed in any number of counterparts
and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement, and may be delivered to the other parties hereto by facsimile
or similar electronic means.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.6</TD><TD STYLE="text-align: justify"><U>Headings</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.7</TD><TD STYLE="text-align: justify"><U>Governing Law</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.8</TD><TD STYLE="text-align: justify"><U>Severability</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">If any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in
any way impaired, unless the provision held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining
provisions hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.9</TD><TD STYLE="text-align: justify"><U>Rules of Construction</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Unless the context otherwise requires, references to
sections or subsections refer to sections or subsections of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.10</TD><TD STYLE="text-align: justify"><U>Entire Agreement</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">This Agreement, together with the exhibits and schedules
hereto, and the other Transaction Documents are intended by the parties as a final expression of their agreement and intended to
be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein and therein. There are no restrictions, promises, representations, warranties or undertakings, other than those
set forth or referred to herein or therein. This Agreement, together with the exhibits and schedules hereto, and the other Transaction
Documents supersede all prior agreements and understandings between the parties with respect to such subject matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.11</TD><TD STYLE="text-align: justify"><U>Publicity; Confidentiality</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">None of the parties hereto shall issue a publicity release
or public announcement or otherwise make any disclosure concerning this Agreement or the transactions contemplated hereby or the
Purchasers without prior approval by the other parties hereto; <I>provided</I>, <I>however</I>, that nothing in this Agreement
shall restrict the Purchasers or the Company from disclosing information (a) that is already publicly available, (b) that was known
to the Purchasers on a non-confidential basis prior to its disclosure by the Company, (c) that may be required or appropriate in
response to any summons or subpoena or in connection with any litigation, <I>provided</I> that the parties will use reasonable
efforts to notify the other party in advance of such disclosure so as to permit such party to seek a protective order or otherwise
contest such disclosure, and such other party will use reasonable efforts to cooperate, at the expense of the party trying to prevent
such disclosure, with such party in pursuing any such protective order, (d) to the Purchaser&rsquo;s or the Company&rsquo;s officers,
directors, agents, employees, members, partners, controlling persons, auditors or counsel, (e) to Persons from whom releases, consents
or approvals are required, or to whom notice is required to be provided, pursuant to the transactions contemplated by the Transaction
Documents or (f) to the prospective transferee in connection with any contemplated transfer of any of the Purchased Shares. If
any announcement is required by law or the rules of any securities exchange or market on which shares of Common are traded to be
made by any party hereto, prior to making such announcement such party will deliver a draft of such announcement to the other party
and shall give the other party reasonable opportunity to comment thereon.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">7.12</TD><TD STYLE="text-align: justify"><U>Further Assurances</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Each of the parties shall execute such documents and
perform such further acts, at the expense of the requesting party, (including, without limitation, obtaining any consents, exemptions,
authorizations or other action by, or giving any notices to, or making any filings with, any Governmental Authority or any other
Person) as may be reasonably required or desirable to carry out or to perform the provisions of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">7.13</TD><TD><U>Expenses</U>. Each party hereto shall be responsible for its own fees and expenses associated with this Agreement and the
closing of the transactions contemplated hereby; <I>provided</I>, <I>however</I>, that at the Closing the Company shall reimburse
the Purchasers for all reasonable documented fees and expenses (including attorney&rsquo;s fees) incurred by the Purchasers in
connection with the transactions contemplated by this Agreement, up to a maximum of $50,000.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed and delivered by their respective officers hereunto duly authorized
on the date first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">COMPANY:</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">TRANSGENOMIC, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="width: 49%; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/ Paul Kinnon</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name: Paul Kinnon</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title: CEO and President</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">PURCHASERS:</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">THIRD SECURITY SENIOR STAFF 2008 LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/ Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name: Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title: Manager, Third Security, LLC, which is the Manager of Third Security Senior Staff 2008 LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">THIRD SECURITY STAFF 2014 LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/ Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name: Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title: Manager, Third Security, LLC, which is the Manager of Third Security Staff 2014 LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">THIRD SECURITY INCENTIVE 2010 LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT>&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/ Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name: Randal J. Kirk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title: Manager, Third Security, LLC, which is the Manager of Third Security Incentive 2010 LLC</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Signature Page to Series B Convertible
Preferred Stock Purchase Agreement]</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"></P>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>7
<FILENAME>v370740_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Transgenomic Announces $7 Million Convertible
Preferred Stock Financing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>OMAHA, Neb.</B> <B>(March
6, 2014) -- Transgenomic, Inc. (OTCBB: TBIO)</B>, a global biotechnology company advancing personalized medicine in
cardiology, oncology, and inherited diseases through diagnostic tests as well as clinical and research services founded by
R.J. Kirk, today announced that it has entered into an agreement with affiliates of Third Security, LLC (&quot;Third
Security&quot;), a leading life sciences investment firm, to sell to them 1.44 million Series B convertible preferred shares
at a price of $4.85 per share for gross proceeds of $7.0 million. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to certain restrictions, the preferred
shares are convertible into common shares of Transgenomic on a 1-to-1 basis. Proceeds from the investment will be used to help
fund Transgenomic&rsquo;s working capital requirements and for general corporate purposes. The investment provides the Company
with substantial capital to continue building its presence as a leading personalized medicine company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&ldquo;We are pleased that such a highly
regarded investor, and an existing shareholder, committed to provide the full amount of funds that we sought,&rdquo; said Paul
Kinnon, President and Chief Executive Officer of Transgenomic. &ldquo;Third Security recognizes the value proposition that Transgenomic
represents and we appreciate this opportunity to further our relationship with them. We are entering an important phase in the
strategic transformation of the Company, and this transaction provides us with the necessary capital to drive toward profitability.
We can now focus on commercializing key assets, especially the ICE COLD-PCR technology, while also improving our competitive position
in the molecular diagnostics marketplace.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>About Transgenomic, Inc.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Transgenomic, Inc. (www.transgenomic.com)
is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases. The Company
has three complementary business units: Patient Testing, Biomarker Identification, and Genetic Assays and Platforms, which provide
specialized diagnostic tests, contract research services for drug development, and equipment, reagents and other consumables for
clinical and research applications in molecular testing and cytogenetics.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I><U>Forward-Looking Statements</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Certain statements in this press release
constitute &ldquo;forward-looking statements&rdquo; of Transgenomic within the meaning of the Private Securities Litigation Reform
Act of 1995, which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially
different from any future results, performance or achievements expressed or implied by such statements. Forward-looking statements
include, but are not limited to, those with respect to the anticipated use of the proceeds from the financing, the company&rsquo;s
anticipated drive toward profitability and the company&rsquo;s plans to commercialize key assets. The known risks, uncertainties
and other factors affecting these forward-looking statements are described from time to time in Transgenomic's filings with the
Securities and Exchange Commission. Any change in such factors, risks and uncertainties may cause the actual results, events and
performance to differ materially from those referred to in such statements. Accordingly, the Company claims the protection of the
safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 with respect to all
statements contained in this press release. All information in this press release is as of the date of the release and Transgenomic
does not undertake any duty to update this information, including any forward-looking statements, unless required by law.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>Contact:</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="color: Black"><B><I>Investor
Contact:</I></B></FONT><BR>
<FONT STYLE="color: Black">Argot Partners</FONT><BR>
<FONT STYLE="color: Black">David Pitts, 212-600-1902</FONT><BR>
<FONT STYLE="color: Black"><U>david@argotpartners.com</U></FONT><BR>
<BR></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="color: Black">or<BR>
<BR></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="color: Black"><B><I>Company
Contact:</I></B></FONT><BR>
<FONT STYLE="color: Black">Transgenomic, Inc.</FONT><BR>
<FONT STYLE="color: Black">Donna Christian, 402-452-5416</FONT><BR>
<FONT STYLE="color: Black"><U>investorrelations@transgenomic.com</U></FONT></P>

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