Nyxio Technologies (NYXO) 10-Q 2013 Q3 Quarterly report

 SECURITIES PURCHASEAGREEMENT

ThisSECURITIESPURCHASE AGREEMENT(the “Agreement”),dated asofNovember11,2013, by andbetweenNYXIOTECHNOLOGIESCORPORATION,aNevadacorporation, withheadquarterslocatedat2156NEBroadway,Portland, OR97232(the“Company”),andASHERENTERPRISES,INC.,aDelaware corporation,withitsaddressat1Linden Place, Suite207,GreatNeck,NY11021 (the “Buyer”).

WHEREAS:

A.                TheCompanyandtheBuyerareexecutinganddeliveringthisAgreementinrelianceupontheexemptionfromsecurities registrationaffordedbytherulesandregulationsas promulgatedbytheUnitedStatesSecurities andExchange Commission(the “SEC”) under theSecuritiesActof1933, asamended(the “1933Act”);

B.                 Buyerdesirestopurchase andtheCompanydesirestoissueandsell,uponthetermsandconditions setforthinthisAgreement an8%convertiblenoteoftheCompany,intheform attachedheretoasExhibit A,intheaggregateprincipal amountof$22,500.00(togetherwith any note(s)issuedinreplacementthereoforas adividendthereonorotherwisewithrespect theretoinaccordance withthetermsthereof,the“Note”), convertibleintosharesofcommonstock,$0.001parvalueper share, of the Company(the“Common Stock”), upon thetermsandsubject to the limitationsand conditionssetforth insuch Note.

C.                 TheBuyer wishestopurchase,uponthetermsandconditions statedinthis Agreement,such principalamountofNoteasissetforth immediatelybelowitsnameonthesignature pageshereto;and

NOW THEREFORE,the CompanyandtheBuyerseverally(andnotjointly)herebyagreeas follows:

1.                 Purchase and SaleofNote.

a.                  PurchaseofNote.OntheClosingDate(asdefinedbelow),theCompanyshallissueandselltotheBuyerandtheBuyeragreestopurchasefromtheCompanysuch principalamountofNoteasissetforthimmediately belowtheBuyer’sname onthesignature pageshereto.

b.                 FormofPayment. Onthe ClosingDate(asdefined below),(i)theBuyershallpaythepurchasepricefortheNotetobeissuedandsoldtoitattheClosing(asdefinedbelow)(the “PurchasePrice”) bywiretransfer ofimmediatelyavailablefunds to theCompany,inaccordancewiththeCompany’swrittenwiring instructions,againstdelivery oftheNote in theprincipal amountequal to thePurchasePriceas isset forth immediately below theBuyer’snameon thesignaturepageshereto,and(ii)the Companyshalldeliver such dulyexecutedNoteon behalf ofthe Company, to theBuyer,against delivery ofsuchPurchase Price.

c.                  ClosingDate. Subjectto thesatisfaction(orwrittenwaiver)oftheconditionstheretoset forthinSection6andSection7below,thedateandtimeoftheissuanceand saleoftheNotepursuanttothisAgreement (the“ClosingDate”)shallbe12:00noon,Eastern StandardTime on oraboutNovember13, 2013, orsuchother mutuallyagreedupontime.Theclosingof thetransactionscontemplated by thisAgreement(the“Closing”)shalloccuron theClosing Dateatsuchlocation as may be agreed to by the parties.

2.                 Buyer’sRepresentationsandWarranties. TheBuyerrepresentsand warrants to theCompanythat:

a.                  InvestmentPurpose. Asofthedatehereof,theBuyerispurchasingtheNoteandthesharesofCommonStock issuableuponconversionoforotherwise pursuanttotheNote(including, withoutlimitation,suchadditional sharesofCommonStock,ifany,asareissuable(i)onaccountofinterestontheNote, (ii) asaresultoftheevents describedinSections1.3and1.4(g)oftheNoteor(iii)inpaymentoftheStandard LiquidatedDamagesAmount (asdefinedinSection2(f)below)pursuanttothisAgreement,suchsharesofCommonStockbeingcollectivelyreferredtoherein as the“ConversionShares”and, collectivelywith theNote,the“Securities”) for itsown accountand notwith apresentviewtowards the publicsale ordistributionthereof, exceptpursuanttosales registered orexempted fromregistration under the 1933Act;provided,however, that by making therepresentations herein, theBuyer does notagree to hold any of theSecurities for any minimum orotherspecifictermandreservestheright to dispose of theSecurities at any time inaccordancewith or pursuant to aregistrationstatement or an exemptionunderthe1933Act.

b.                 AccreditedInvestorStatus.TheBuyerisan“accreditedinvestor”asthattermisdefined inRule 501(a)of Regulation D (an“Accredited Investor”).

c.                  Reliance onExemptions. The Buyerunderstands that theSecuritiesarebeingofferedandsoldtoitinrelianceuponspecificexemptionsfromtheregistrationrequirementsofUnitedStatesfederal andstatesecuritieslaws andthattheCompanyisrelyinguponthetruthandaccuracyof,andtheBuyer’scompliancewith,therepresentations,warranties, agreements,acknowledgmentsandunderstandings of theBuyerset forthherein inordertodeterminetheavailability ofsuchexemptionsandtheeligibilityof theBuyertoacquire the Securities.

d.                 Information. TheBuyer anditsadvisors,if any,havebeen,and forsolongastheNoteremainoutstandingwill continuetobe, furnishedwithallmaterials relatingtothebusiness,finances andoperationsoftheCompanyandmaterials relatingtotheofferand saleoftheSecuritieswhichhave beenrequestedbytheBuyeroritsadvisors.TheBuyer and itsadvisors,ifany,have been,andforsolongastheNoteremainoutstandingwill continue tobe,affordedthe opportunitytoask questionsof theCompany. Notwithstandingtheforegoing,the CompanyhasnotdisclosedtotheBuyeranymaterialnonpublicinformationand willnotdisclosesuch informationunlesssuchinformationisdisclosedto the publicprior to or promptlyfollowingsuch disclosure to theBuyer.Neithersuch inquiries nor anyother duediligence investigationconductedbyBuyeror any ofits advisors or representativesshall modify,amend oraffect Buyer’sright torely ontheCompany’s representationsandwarranties containedinSection3below.The Buyerunderstands that itsinvestmentin theSecuritiesinvolves asignificant degreeofrisk.The Buyeris notawareofanyfacts thatmay constitutea breach of any ofthe Company'srepresentationsand warrantiesmade herein.

e.                  GovernmentalReview. The Buyerunderstandsthat noUnitedStatesfederalorstateagencyoranyothergovernmentorgovernmentalagencyhaspasseduponor madeanyrecommendationor endorsementofthe Securities.

f.                  TransferorRe-sale. TheBuyer understandsthat (i)thesaleorre-saleoftheSecuritieshasnotbeen andisnotbeingregistered underthe1933Actoranyapplicablestate securitieslaws,andthe Securitiesmaynot be transferredunless(a)the Securitiesare soldpursuanttoaneffectiveregistration statementunder the 1933 Act,(b)theBuyershall havedelivered to theCompany,at thecost of theBuyer, an opinion of counselthatshall be inform,substanceandscope customaryfor opinions ofcounselincomparabletransactions to theeffectthat theSecuritiesto be sold ortransferred may be sold ortransferredpursuant toan exemptionfromsuchregistration,whichopinionshall beacceptedbytheCompany,(c)theSecurities are soldortransferredtoan“affiliate” (asdefined in Rule144promulgatedunder the 1933Act (or asuccessorrule)(“Rule 144”)) of theBuyerwhoagrees tosell orotherwise transfertheSecuritiesonly inaccordance with thisSection2(f)and whoisan AccreditedInvestor,(d)theSecuritiesare soldpursuantto Rule 144, or(e)theSecuritiesare sold pursuanttoRegulationSunder the 1933Act(ora successorrule)(“RegulationS”),and theBuyershall havedelivered to theCompany,at thecost of theBuyer, an opinion of counselthatshall be inform,substanceandscope customaryfor opinions ofcounselincorporatetransactions,whichopinionshall beacceptedbytheCompany;(ii)anysale ofsuch Securitiesmade inreliance on Rule144maybemade onlyinaccordancewiththetermsofsaidRuleandfurther,ifsaidRuleis notapplicable,anyre-sale ofsuchSecuritiesundercircumstances inwhich theseller(or theperson throughwhom thesale is made)maybedeemedtobeanunderwriter(asthat term isdefinedinthe1933Act)mayrequirecompliance withsomeotherexemptionunderthe1933Act ortherulesand regulationsoftheSECthereunder;and(iii)neither theCompanynoranyotherpersonisunderanyobligationtoregistersuch Securitiesunderthe1933Actorany statesecuritieslawsor to complywiththe termsand conditions of any exemptionthereunder (ineachcase). Notwithstanding theforegoing oranything elsecontained herein to thecontrary,theSecuritiesmaybe pledgedascollateral in connectionwith abonafidemargin account orotherlending arrangement.

g.                 Legends. TheBuyer understandsthattheNoteand, untilsuch timeastheConversionShareshave beenregisteredunderthe1933ActmaybesoldpursuanttoRule144orRegulationSwithoutanyrestrictionastothenumberofsecuritiesasofaparticulardatethatcanthenbeimmediately sold,theConversionSharesmay bear arestrictivelegendin substantiallythe followingform(andastop-transfer order maybeplaced againsttransfer of thecertificatesforsuchSecurities):

“NEITHERTHEISSUANCE ANDSALEOFTHESECURITIES REPRESENTEDBYTHISCERTIFICATENORTHESECURITIESINTOWHICH THESESECURITIESAREEXERCISABLE HAVEBEENREGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDED,ORAPPLICABLESTATE SECURITIESLAWS.THESECURITIESMAYNOTBEOFFERED FORSALE,SOLD,TRANSFERRED ORASSIGNED

(I) INTHEABSENCEOF(A)ANEFFECTIVE REGISTRATIONSTATEMENTFORTHESECURITIESUNDERTHESECURITIESACTOF1933,ASAMENDED,OR(B)AN OPINIONOFCOUNSEL(WHICH COUNSELSHALL BESELECTEDBY THEHOLDER),INAGENERALLYACCEPTABLEFORM, THATREGISTRATION ISNOTREQUIREDUNDERSAIDACTOR(II)UNLESSSOLDPURSUANTTORULE144 ORRULE 144AUNDERSAIDACT. NOTWITHSTANDINGTHEFOREGOING,THESECURITIESMAYBEPLEDGEDINCONNECTIONWITH A BONA FIDEMARGINACCOUNT OROTHERLOANORFINANCINGARRANGEMENTSECUREDBYTHE SECURITIES.”

The legendset forthabove shallberemovedandtheCompanyshallissueacertificate withoutsuchlegendtotheholderofanySecurityuponwhichitisstamped,if,unless otherwiserequiredbyapplicable statesecuritieslaws,(a)suchSecurity isregisteredforsale underaneffectiveregistration statementfiled under the 1933Act orotherwise maybe soldpursuantto Rule 144orRegulationSwithoutanyrestrictionastothe numberof securitiesasofaparticulardatethatcan thenbeimmediatelysold,or(b)suchholderprovidestheCompanywithanopinion ofcounsel, inform,substanceandscopecustomary for opinions ofcounsel incomparable transactions,totheeffectthatapublicsaleortransferofsuchSecurity maybemade withoutregistrationunderthe1933Act, whichopinionshallbeaccepted by theCompany sothatthesale ortransferiseffected.TheBuyer agrees to sellallSecurities,including thoserepresentedbyacertificate(s)fromwhich thelegendhasbeenremoved,incompliancewithapplicableprospectus deliveryrequirements,ifany.Inthe eventthat the Companydoesnotaccept the opinionofcounsel provided by theBuyerwith respecttothetransfer ofSecuritiespursuanttoanexemptionfrom registration,suchasRule 144orRegulationS,attheDeadline,itwillbeconsidered anEventof Default pursuant toSection 3.2 ofthe Note.

h.                 Authorization;Enforcement. ThisAgreementhasbeendulyandvalidlyauthorized.This Agreementhasbeendulyexecuted anddeliveredonbehalfoftheBuyer, andthisAgreement constitutesavalid andbindingagreementoftheBuyer enforceableinaccordance with itsterms.

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i.                   Residency.TheBuyerisaresidentofthejurisdictionsetforthimmediately belowtheBuyer’snameon the signature pageshereto.

3.                 RepresentationsandWarrantiesoftheCompany. TheCompanyrepresentsandwarrantsto the Buyer that:

a.                  OrganizationandQualification. TheCompanyandeachofitsSubsidiaries(as definedbelow),ifany,isacorporationdulyorganized,validlyexistingandingoodstandingunderthelawsofthejurisdictioninwhichitisincorporated, withfullpowerand authority(corporateand other)toown, lease,useandoperateitsproperties andtocarryonitsbusinessas andwhere nowowned,leased, used,operatedandconducted. Schedule3(a)setsfortha list ofall of theSubsidiaries of the Companyand the jurisdiction inwhich each isincorporated.TheCompanyandeachofitsSubsidiariesisdulyqualifiedasaforeign corporation to do businessand is in good standing in everyjurisdictioninwhich itsownership or use ofproperty orthenatureofthebusinessconductedby itmakes suchqualificationnecessaryexceptwhere thefailuretobe soqualifiedor ingoodstanding wouldnothaveaMaterialAdverseEffect.“MaterialAdverse Effect”meansanymaterialadverseeffectonthebusiness,operations, assets, financialcondition orprospectsof the Company or itsSubsidiaries, ifany, takenas awhole,oron the transactionscontemplated hereby orby theagreements orinstruments to beenteredinto inconnectionherewith.“Subsidiaries”meansanycorporation orotherorganization,whetherincorporatedorunincorporated,inwhichtheCompanyowns,directlyorindirectly,anyequity orother ownershipinterest.

b.                 Authorization;Enforcement. (i) TheCompanyhasall requisitecorporatepowerandauthoritytoenterintoandperformthisAgreement,theNoteandtoconsummatethetransactionscontemplated herebyandtherebyandtoissuetheSecurities,in accordancewith the termshereofand thereof,(ii) theexecution anddelivery of thisAgreement, theNoteby the Company and theconsummationby it of thetransactionscontemplatedherebyand thereby(includingwithoutlimitation, theissuanceof the Note and theissuanceandreservationforissuanceof theConversionSharesissuableuponconversion orexercisethereof) havebeendulyauthorizedbytheCompany’sBoard ofDirectorsandnofurtherconsentorauthorization of theCompany, itsBoard ofDirectors,or itsshareholders isrequired,(iii) thisAgreementhasbeen dulyexecutedand deliveredby the Companybyitsauthorizedrepresentative,andsuchauthorizedrepresentative is the trueandofficial representativewith authority tosign thisAgreementandtheother documentsexecuted inconnectionherewithandbindtheCompanyaccordingly,and (iv)thisAgreement constitutes,anduponexecutionand deliverybytheCompanyof theNote, each ofsuch instruments will constitute, alegal, valid andbinding obligationofthe Company enforceable against theCompanyinaccordancewith itsterms.

c.                  Capitalization. Asofthedate hereof,theauthorizedcapitalstockoftheCompanyconsistsof: (i)500,000,000[tobeincreasedto1,000,000,000sharesupontheeffective dateofaDefinitive14C]sharesofCommonStock,$0.001parvalueper share,ofwhich131,373,609sharesareissuedand outstanding;and(ii)1,100sharesofClassAConvertible PreferredStock, $0.01 par value pershare,ofwhich 1,100sharesare issuedandoutstanding;(iii)100shares of Class BConvertible PreferredStock, $0.01par valueper share, ofwhich100sharesare issuedand outstanding;andnosharesarereserved forissuancepursuant to theCompany’sstockoptionplans, noshares arereservedfor issuancepursuanttosecurities(otherthan sharesreservedfor theNote and seven(7)priorconvertiblepromissory notes infavor oftheBuyer:

(a)   priorconvertiblepromissorynoteinfavoroftheBuyer datedNovember13,2012intheamountof$40,000.00,theprincipalofwhichwasincreasedto$60,000.00butisnowreducedafter conversions todateto $38,040.00;and

(b)   priorconvertiblepromissorynoteinfavoroftheBuyer datedJanuary31,2013intheamount of$37,500.00, the principal ofwhichwasincreased to $37,500.00after default; and

(c) priorconvertiblepromissorynoteinfavoroftheBuyerdatedApril11,2013intheamount of$41,500.00;

(d)   priorconvertiblepromissorynoteinfavoroftheBuyerdatedJune27,2013intheamountof$22,500.00;

(e)     priorconvertiblepromissory notein favorofthe Buyerdated August 12, 2013 in theamount of $15,750.00;

(f)    priorconvertiblepromissory notein favorofthe Buyerdated September13, 2013 inthe amount of$10,000.00;

(g)   prior convertiblepromissory notein favorofthe Buyerdated October16, 2013 in theamountof$2,500.00;

exercisablefor,orconvertibleintoorexchangeableforsharesofCommonStock andanaggregatetotalof850,000,000[which willbecomeavailablefor saidreserveupontheeffectivedateoftheDefinitive14CandAmendmenttotheCertificate ofIncorporatingwhichwillincreasethenumberofauthorizedsharesto1,000,000,000]shares arereservedforissuanceuponconversion of theNote aswellas the seven (7)priornotesreferencedabove.Allofsuchoutstandingsharesofcapitalstock are,oruponissuancewill be,dulyauthorized,validlyissued, fully paidand non-assessable.No sharesofcapitalstock oftheCompany are subjectto preemptive rights oranyother similar rights oftheshareholders ofthe Company orany liens orencumbrances imposed through the actions orfailure to act of the Company. Asofthe effective date of this Agreement, (i) there are no outstanding options, warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments or rights ofanycharacter whatsoever relating to, or securities or rights convertible into or exchangeable forany shares of capital stock of the Company orany of its Subsidiaries, or arrangementsbywhich the Companyoranyof its Subsidiaries is ormaybecome bound to issue additional shares of capital stock of the Companyorany of its Subsidiaries, (ii) there areno agreements or arrangements under which the Companyoranyof its Subsidiaries is obligated to register the sale ofanyof its or their securities under the 1933 Act and (iii) there are no anti- dilution or price adjustment provisions contained inany security issuedby the Company (or in any agreement providing rights to securityholders) that will be triggeredby the issuance of the NoteortheConversion Shares.TheCompany hasfurnished totheBuyer trueand correct copiesof the Company’s Certificate of Incorporation as in effect on the date hereof (“Certificate of Incorporation”),the Company’s By-laws,as ineffect onthe date hereof(the “By-laws”),andthe terms ofall securities convertible intoorexercisable forCommon Stock ofthe Company andthe material rights of the holders thereof in respect thereto. The Company shall provide the Buyer with awritten update of this representation signedby the Company’s ChiefExecutive on behalf of the Company as of theClosing Date.

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d.                 IssuanceofShares. The ConversionShares aredulyauthorizedand reservedforissuanceand,uponconversionoftheNoteinaccordancewithitsrespectiveterms, willbevalidlyissued,fullypaid andnon-assessable,andfree fromalltaxes,liens,claims andencumbranceswithrespectto the issuethereof andshall not besubject topreemptiverightsorothersimilarrightsofshareholdersof the Companyandwillnotimposepersonalliability upon the holder thereof.

e.                  AcknowledgmentofDilution.TheCompanyunderstandsandacknowledgesthepotentiallydilutiveeffecttotheCommonStock upontheissuanceoftheConversion SharesuponconversionoftheNote. The Companyfurtheracknowledges thatitsobligation to issueConversionShares uponconversion oftheNoteinaccordancewiththisAgreement,theNoteisabsoluteandunconditionalregardless ofthe dilutiveeffectthatsuch issuancemay haveon theownership interests ofothershareholders ofthe Company.

f.                  NoConflicts. The execution,deliveryandperformanceofthisAgreement,the NotebytheCompanyandtheconsummationbytheCompanyofthetransactionscontemplatedherebyandthereby(including,withoutlimitation,theissuanceandreservationfor issuance of the ConversionShares)willnot(i)conflict withorresultinaviolationofanyprovisionof theCertificate ofIncorporationorBy-laws,or(ii) violate orconflictwith,orresult inabreachofany provisionof,orconstitute a default(oraneventwhichwithnoticeor lapse of time or bothcouldbecome adefault)under,orgive toothersanyrightsoftermination,amendment,accelerationorcancellationof,anyagreement,indenture, patent,patentlicense orinstrumenttowhichtheCompany orany ofitsSubsidiariesisaparty, or(iii)resultinaviolation ofanylaw, rule,regulation,order, judgmentor decree (includingfederal andstatesecuritieslaws andregulations andregulationsofanyself-regulatoryorganizationstowhichthe Companyorits securitiesare subject)applicableto the CompanyoranyofitsSubsidiariesor bywhichanyproperty orasset of the Companyor anyof itsSubsidiariesis bound oraffected(except for suchconflicts,defaults,terminations, amendments,accelerations, cancellationsand violationsaswould not, individually or in theaggregate, have aMaterialAdverseEffect). NeithertheCompany noranyofitsSubsidiaries is inviolationof itsCertificateofIncorporation, By-lawsor otherorganizationaldocuments andneither the Company nor any of itsSubsidiariesis indefault(and no eventhas occurredwhichwith notice orlapse of time or bothcouldput the Company orany of itsSubsidiariesindefault)under,and neither the Company norany of itsSubsidiaries hastaken any action orfailed to take anyactionthatwould givetoothersanyrightsoftermination,amendment,accelerationorcancellationof,anyagreement,indenture orinstrumenttowhichthe Companyorany of itsSubsidiariesisa party orbywhichanyproperty orassets of the Company oranyof itsSubsidiaries is bound or affected,except for possibledefaultsaswouldnot, individually or in theaggregate, have aMaterial Adverse Effect.Thebusinessesof the Companyand itsSubsidiaries,ifany, are not beingconducted,and shall not beconductedso longas theBuyer ownsanyof theSecurities,inviolation ofany law, ordinanceorregulationof anygovernmental entity.Except asspecificallycontemplatedby thisAgreement and asrequired under the 1933 Actandanyapplicable statesecurities laws, the Company isnotrequired toobtainany consent,authorization ororderof, ormakeany filing orregistrationwith,anycourt,governmental agency,regulatoryagency,self regulatory organization orstockmarketor anythird party inorderforit toexecute, deliver orperform any of itsobligations under thisAgreement,the Note inaccordance with the termshereoforthereofor to issueandsell the Note inaccordance with theterms hereofandto issue theConversionShares uponconversion of theNote. All consents, authorizations,orders,filings andregistrations which the Company isrequiredtoobtainpursuanttotheprecedingsentence have beenobtained oreffectedon orpriortothedate hereof.TheCompany isnot inviolationof the listingrequirementsof theOver-the- CounterBulletin Board(the“OTCBB”) and does not reasonablyanticipatethatthe CommonStockwill bedelistedbytheOTCBBin theforeseeablefuture. The Companyand itsSubsidiaries are unaware ofanyfactsorcircumstances which mightgiverise toany oftheforegoing.

g.                 SECDocuments;FinancialStatements. TheCompany hastimelyfiled allreports,schedules,forms, statementsandotherdocuments requiredtobefiledbyitwiththeSECpursuanttothereportingrequirementsoftheSecuritiesExchangeActof1934,as amended(the “1934Act”)(all of the foregoingfiledprior to thedatehereof andallexhibitsincludedthereinandfinancialstatements andschedulesthereto and documents(otherthan exhibits tosuchdocuments)incorporatedbyreferencetherein, beinghereinafter referred tohereinas the“SEC Documents”).Uponwrittenrequest the Company willdeliver to the Buyertrueand completecopiesoftheSECDocuments,except forsuchexhibitsand incorporateddocuments.Asoftheirrespectivedates,theSECDocuments complied inallmaterialrespects with therequirements of the 1934Act and the rulesandregulations of theSECpromulgated thereunder applicable to theSECDocuments,and noneoftheSEC Documents, atthetimethey werefiled with the SEC, containedanyuntrue statement of a material fact or omitted to state a material fact required tobe stated thereinornecessary inordertomake the statements therein, in light of the circumstances under which theywere made, not misleading. None of the statements made inany such SEC Documents is, or has been, required to be amended or updated under applicable law (except for such statements as have been amendedor updated in subsequent filings prior the date hereof). As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with United States generallyaccepted accounting principles, consistently applied, during theperiods involved and fairly present in all material respects the consolidated financial position of the Companyand its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows fortheperiods then ended (subject, in thecase ofunauditedstatements, to normal year-end audit adjustments). Except as set forth in the financial statements of the Company included in theSEC Documents, theCompany has no liabilities, contingent orotherwise, other than (i) liabilities incurred in the ordinary course of business subsequent to June 30, 2013, and

(ii) obligationsunder contractsand commitmentsincurredintheordinarycourseofbusinessandnotrequiredundergenerally acceptedaccountingprinciplestobereflectedinsuchfinancialstatements, which,individuallyor in theaggregate,are notmaterialto thefinancialcondition oroperating results of theCompany. The Company issubject to the reportingrequirementsof the 1934Act.

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h.                 AbsenceofCertainChanges. SinceJune30,2013,therehasbeennomaterialadversechangeandnomaterialadversedevelopmentintheassets, liabilities,business,properties,operations, financialcondition,resultsofoperations,prospectsor1934Act reportingstatus oftheCompanyor anyofitsSubsidiaries.

i.                   AbsenceofLitigation. Thereis noaction,suit,claim,proceeding,inquiry orinvestigationbeforeorbyanycourt,publicboard, governmentagency,self-regulatoryorganizationorbodypendingor,totheknowledgeoftheCompanyorany ofitsSubsidiaries,threatenedagainst or affecting the Company orany of itsSubsidiaries,ortheirofficers ordirectorsintheircapacity as such,that could have aMaterialAdverseEffect. Schedule 3(i)contains acompletelistand summarydescriptionofanypendingor,to theknowledge of theCompany,threatened proceedingagainst oraffectingthe CompanyoranyofitsSubsidiaries,withoutregardtowhether itwouldhaveaMaterialAdverseEffect.The Companyand itsSubsidiariesare unaware ofanyfactsorcircumstanceswhichmight giverise toanyoftheforegoing.

j.                   Patents,Copyrights,etc.TheCompanyandeachofitsSubsidiaries ownsorpossessestherequisitelicensesorrightstouseall patents,patentapplications,patent rights,inventions,know-how,trade secrets,trademarks,trademarkapplications, servicemarks,servicenames,tradenames andcopyrights(“IntellectualProperty”) necessary toenableitto conductitsbusinessas nowoperated(and, aspresently contemplated tobe operated inthe future); thereis noclaim or actionbyany personpertainingto,or proceeding pending,or tothe Company’s knowledge threatened, which challenges the right ofthe Company or of a Subsidiary with respect to any Intellectual Property necessary to enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future); to the best of the Company’s knowledge, the Company’s or its Subsidiaries’ current and intended products,services and processesdo not infringe onany Intellectual Property orotherrightsheld by any person;andtheCompany isunawareofany facts orcircumstanceswhichmight giverise to any of the foregoing. The Company and each of its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of their Intellectual Property.

k.                 NoMateriallyAdverse Contracts,Etc. Neitherthe CompanynoranyofitsSubsidiariesissubjecttoanycharter,corporateorotherlegal restriction,oranyjudgment, decree,order,ruleorregulationwhichinthejudgment of theCompany’s officershas or isexpectedinthefuture tohaveaMaterialAdverseEffect. Neither the Company norany ofitsSubsidiariesisa party toanycontractoragreementwhichinthe judgment of theCompany’s officers has oris expected tohavea MaterialAdverse Effect.

l.                   TaxStatus. The CompanyandeachofitsSubsidiaries hasmadeorfiledallfederal, stateandforeign incomeandallother taxreturns,reportsand declarationsrequiredbyanyjurisdiction towhichit issubject (unlessandonlyto theextentthattheCompanyand eachofitsSubsidiarieshas setasideonitsbooksprovisionsreasonably adequateforthepaymentofallunpaid andunreportedtaxes)andhas paidalltaxesandothergovernmental assessmentsandchargesthatarematerialin amount,shown ordetermined to be due onsuchreturns,reports anddeclarations,except those beingcontested ingood faithand hassetaside on its booksprovisions reasonablyadequatefor thepaymentofall taxesforperiods subsequent to the periods towhichsuchreturns, reports ordeclarationsapply. Thereare nounpaid taxes inanymaterial amount claimed to be dueby the taxing authorityofanyjurisdiction,andtheofficers of the Company know ofnobasisforanysuch claim.The Companyhasnotexecuted awaiverwith respect to thestatute oflimitations relatingto theassessmentorcollection ofanyforeign, federal,state orlocal tax.None of theCompany’stax returns is presentlybeingauditedbyany taxingauthority.

m.               CertainTransactions. Except forarm’s lengthtransactions pursuanttowhichtheCompanyoranyofitsSubsidiaries makespaymentsintheordinarycourseofbusinessupontermsnolessfavorablethantheCompanyoranyofitsSubsidiariescouldobtain fromthirdpartiesand otherthanthe grant ofstock optionsdisclosed onSchedule3(c),none oftheofficers,directors,oremployeesofthe Company ispresentlya party toanytransactionwith the CompanyoranyofitsSubsidiaries(other thanforservicesas employees,officersanddirectors),includinganycontract, agreement orotherarrangementprovidingfor thefurnishingofservices to orby,providingforrental ofreal orpersonalproperty to orfrom, orotherwiserequiringpaymentsto orfrom anyofficer, directororsuch employeeor, to theknowledgeof theCompany,anycorporation, partnership,trustor other entity inwhichanyofficer, director, or anysuchemployee has a substantialinterestor isan officer,director, trustee or partner.

n.                 Disclosure. Allinformation relatingtoorconcerningtheCompanyoranyofitsSubsidiariessetforthinthisAgreement andprovidedtotheBuyerpursuanttoSection2(d)hereofandotherwiseinconnectionwiththetransactionscontemplatedherebyistrue andcorrect inallmaterial respectsand the Companyhas notomitted tostate anymaterial fact necessary inordertomakethestatementsmadehereinortherein, inlightof thecircumstancesunderwhichtheyweremade, notmisleading. Noevent orcircumstancehas occurred or existswithrespect to the Companyor any of itsSubsidiaries or its ortheirbusiness,properties,prospects, operationsorfinancial conditions,which,under applicablelaw,ruleorregulation,requirespublicdisclosureor announcementby the Company butwhichhasnot been so publiclyannouncedordisclosed(assuming for thispurpose that theCompany’sreportsfiledunderthe 1934Actare beingincorporatedintoaneffective registrationstatementfiledby the Company underthe1933Act).

o.                 AcknowledgmentRegardingBuyer’ PurchaseofSecurities. TheCompanyacknowledgesand agreesthattheBuyerisacting solelyinthecapacityofarm’slengthpurchasers withrespecttothisAgreement andthetransactions contemplatedhereby.TheCompanyfurtheracknowledgesthattheBuyer is notactingas afinancialadvisoror fiduciaryof the Company(orinanysimilar capacity)withrespectto thisAgreementand thetransactions contemplated hereby and anystatement madebytheBuyer orany of itsrespective representatives or agents inconnectionwiththisAgreementand thetransactions contemplated herebyis notadviceor arecommendationandismerelyincidentalto theBuyer’purchase of theSecurities.The Companyfurtherrepresents to theBuyerthat theCompany’sdecision toenterintothisAgreementhasbeenbasedsolely ontheindependent evaluationofthe Companyanditsrepresentatives.

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p.                 NoIntegratedOffering. NeithertheCompany,nor anyofitsaffiliates,noranypersonactingonitsortheirbehalf,hasdirectlyorindirectlymadeanyoffersor sales inanysecurityor solicitedanyofferstobuyanysecurityunder circumstancesthatwouldrequire registrationunder the 1933Actof theissuance of theSecurities to the Buyer.Theissuance of theSecuritiesto theBuyerwill not beintegrated with anyotherissuance of theCompany’s securities(past,currentorfuture)for purposes ofanyshareholderapproval provisionsapplicableto theCompanyoritssecurities.

q.                 NoBrokers.TheCompanyhastakennoactionwhich wouldgiverisetoanyclaimbyanypersonfor brokeragecommissions,transaction feesorsimilar paymentsrelatingto thisAgreement orthe transactionscontemplatedhereby.

r.                   Permits;Compliance.TheCompanyandeachofitsSubsidiaries isinpossessionofallfranchises,grants,authorizations,licenses,permits,easements,variances,exemptions,consents,certificates, approvalsandordersnecessarytoown,leaseand operateitsproperties andto carryonitsbusinessasit isnowbeing conducted (collectively,the “CompanyPermits”), andthere is noaction pendingor, to theknowledge of theCompany,threatened regardingsuspensionorcancellationof anyof the CompanyPermits. Neither the Company nor any of itsSubsidiariesisinconflict with, or indefault orviolationof, any of the CompanyPermits,except for anysuch conflicts, defaults orviolations which, individually or in theaggregate, wouldnotreasonablybeexpectedtohave aMaterialAdverse Effect.Since June 30, 2013,neitherthe Company nor any of itsSubsidiaries has receivedanynotification withrespect to possibleconflicts,defaultsorviolations ofapplicablelaws, except fornotices relating to possibleconflicts, defaultsorviolations, whichconflicts,defaultsor violationswouldnothave aMaterial Adverse Effect.

s. Environmental Matters.

(i)                       Thereare,totheCompany’sknowledge, withrespecttotheCompanyoranyofitsSubsidiariesoranypredecessoroftheCompany,nopastorpresentviolationsofEnvironmentalLaws(asdefined below),releasesofanymaterialintotheenvironment,actions,activities, circumstances,conditions,events, incidents, orcontractualobligations whichmaygive risetoanycommonlaw environmental liability oranyliability under theComprehensive EnvironmentalResponse,Compensation andLiabilityAct of 1980 orsimilarfederal,state, local orforeign lawsand neither the Company norany of itsSubsidiarieshasreceivedanynotice withrespecttoanyof theforegoing, nor isanyactionpendingor,to theCompany’s knowledge,threatened inconnection with anyof theforegoing.The term“EnvironmentalLaws” meansallfederal,state, local orforeignlawsrelatingto pollution orprotection of human health or theenvironment (including,withoutlimitation,ambientair,surface water,groundwater,landsurfaceorsubsurfacestrata),including, withoutlimitation, lawsrelatingtoemissions, discharges,releasesorthreatenedreleasesofchemicals,pollutants contaminants,ortoxicorhazardoussubstancesorwastes(collectively, “HazardousMaterials”) into theenvironment, orotherwiserelatingto themanufacture,processing,distribution,use,treatment, storage,disposal,transportorhandlingofHazardous Materials,as wellasallauthorizations, codes,decrees, demands ordemandletters, injunctions,judgments,licenses, notices ornoticeletters,orders, permits,plans orregulationsissued,entered,promulgatedorapprovedthereunder.

(ii)                     Otherthanthosethat areorwerestored,usedordisposedofincompliancewithapplicable law,noHazardous Materialsarecontainedonoraboutanyrealpropertycurrentlyowned,leasedorusedbytheCompanyor anyofitsSubsidiaries,andnoHazardous Materialswerereleasedonorabout anyrealproperty previously owned,leasedorusedbytheCompany oranyofitsSubsidiariesduring theperiodtheproperty wasowned, leased or usedby theCompany oranyofitsSubsidiaries,exceptin thenormal courseofthe Company’s oranyofitsSubsidiaries’ business.

(iii)                   Thereare noundergroundstorage tanksonorunderanyrealpropertyowned,leasedorusedbytheCompanyoranyofitsSubsidiaries thatarenotincompliance withapplicable law.

t.                   TitletoProperty.TheCompanyanditsSubsidiarieshavegoodand marketabletitleinfeesimpletoallrealpropertyandgood andmarketabletitletoall personal property owned bythemwhichismaterial to thebusiness of the Companyand itsSubsidiaries, ineach casefreeand clear ofall liens,encumbrancesanddefectsexcept suchas aredescribed in Schedule 3(t) orsuchaswould nothave aMaterial AdverseEffect. Anyrealpropertyandfacilities heldunderlease by the Companyand itsSubsidiaries are held bythemundervalid,subsisting andenforceableleases withsuchexceptionsas would nothave aMaterialAdverseEffect.

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u.                 Insurance. TheCompanyandeachofitsSubsidiariesareinsuredbyinsurersofrecognizedfinancialresponsibilityagainstsuchlossesandrisksandinsuchamounts asmanagementoftheCompanybelievestobeprudentandcustomaryinthe businesses inwhich the Companyand itsSubsidiariesare engaged.Neither the Company noranysuch Subsidiaryhasany reason tobelievethat itwillnot beable torenew itsexisting insurancecoverageasand when such coverageexpires ortoobtainsimilar coveragefrom similarinsurersasmaybe necessarytocontinue itsbusinessatacostthatwouldnot have aMaterialAdverseEffect. Uponwrittenrequest the Companywillprovideto theBuyertrueandcorrect copies ofallpoliciesrelatingtodirectors’andofficers’liabilitycoverage,errors andomissionscoverage,and commercialgeneral liabilitycoverage.

v.                 InternalAccountingControls.TheCompanyandeachofitsSubsidiariesmaintainasystemofinternalaccountingcontrolssufficient,inthejudgmentoftheCompany’s boardofdirectors,toprovidereasonableassurance that(i)transactionsare executedinaccordance withmanagement’sgeneralorspecificauthorizations, (ii)transactionsarerecordedasnecessary topermitpreparationoffinancialstatementsinconformitywithgenerallyaccepted accountingprinciples and tomaintainassetaccountability,(iii)access toassets ispermittedonly inaccordancewithmanagement’sgeneral orspecificauthorizationand(iv) therecordedaccountability forassets iscompared with theexistingassets atreasonableintervals andappropriateactionis takenwithrespect toanydifferences.

w.               ForeignCorruptPractices. NeithertheCompany,noranyofitsSubsidiaries,noranydirector,officer, agent,employeeorotherpersonactingonbehalfoftheCompanyor anySubsidiaryhas, in the course of hisactionsfor, or on behalfof,theCompany,usedanycorporatefundsforanyunlawfulcontribution,gift,entertainmentorotherunlawfulexpenses relatingto politicalactivity; made anydirectorindirectunlawfulpaymenttoanyforeign ordomestic governmentofficial oremployeefromcorporate funds;violatedor is inviolationof anyprovisionof theU.S.ForeignCorruptPracticesActof 1977,asamended,ormadeanybribe,rebate,payoff, influencepayment,kickbackorotherunlawfulpaymenttoanyforeignor domesticgovernment official oremployee. 

x.                 Solvency. TheCompany(aftergivingeffecttothetransactionscontemplatedbythisAgreement)issolvent(i.e.,itsassetshaveafairmarketvalueinexcessoftheamountrequired topayits probableliabilities on its existingdebtsas theybecomeabsoluteandmatured) and currently the Company has noinformationthat wouldlead it toreasonablyconclude thatthe Companywouldnot,aftergiving effecttothetransaction contemplatedbythisAgreement, have the ability to, nor does itintendtotakeanyactionthat wouldimpairits ability to, payitsdebtsfrom time to timeincurred inconnection therewithassuchdebts mature.The Company did notreceiveaqualified opinionfrom itsauditorswithrespectto its mostrecentfiscal yearendand,after givingeffecttothetransactions contemplatedby thisAgreement,doesnotanticipate or know ofany basis uponwhich itsauditorsmightissue aqualified opinion inrespectofitscurrent fiscalyear.

y.                 NoInvestmentCompany. TheCompanyisnot,andupontheissuance andsaleoftheSecurities ascontemplatedby thisAgreement willnotbean“investment company”requiredtoberegisteredundertheInvestmentCompanyActof1940(an “InvestmentCompany”).TheCompany is notcontrolledbyanInvestmentCompany.

z.                  BreachofRepresentations andWarrantiesbytheCompany.IftheCompanybreachesanyoftherepresentationsorwarrantiessetforthinthisSection3,andinaddition toany otherremedies available to theBuyer pursuant to thisAgreement,itwill beconsideredan Event of defaultunderSection 3.4 ofthe Note.

4. COVENANTS.

a.                  BestEfforts.Thepartiesshallusetheirbest effortstosatisfytimelyeach oftheconditionsdescribedinSection6and7 ofthisAgreement.

b.                 FormD;Blue SkyLaws. UnlesstheCompanybelievesitisexemptfromsuch filing,theCompanyagreestofileaFormDwithrespecttotheSecurities asrequiredunderRegulationDandtoprovideacopythereoftotheBuyerpromptlyaftersuch filing.TheCompany shall,onorbeforetheClosingDate,takesuchaction astheCompany shall reasonablydetermine isnecessary to qualify theSecuritiesforsaleto theBuyerattheapplicableclosingpursuantto thisAgreementunderapplicablesecuritiesor“bluesky”lawsof thestatesof theUnitedStates(ortoobtainanexemptionfromsuchqualification), and shallprovideevidence ofanysuch action sotaken to the Buyeron orpriorto theClosingDate.

c.                  UseofProceeds.TheCompanyshallusetheproceedsfor generalworkingcapitalpurposes.

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d.                 RightofFirst Refusal. Unlessitshallhave firstdeliveredtotheBuyer, atleastseventytwo(72) hourspriortotheclosingofsuch FutureOffering(asdefined herein),writtennoticedescribingtheproposedFutureOffering,includingthetermsandconditions thereofand proposeddefinitive documentationto beenteredintoinconnectiontherewith,and providingtheBuyer anoptionduringthe seventytwo(72) hourperiod following deliveryofsuch notice topurchasethe securitiesbeing offered in theFuture Offeringon thesametermsas contemplatedbysuch FutureOffering(thelimitationsreferredtointhissentenceandtheprecedingsentence are collectivelyreferredtoasthe“Right ofFirst Refusal”)(andsubject to theexceptions describedbelow), the Companywillnotconduct anyequityfinancing (includingdebtwithanequitycomponent)(“Future Offerings”) during theperiodbeginningon the ClosingDateandending twelve(12) monthsfollowing the ClosingDate. In theevent theterms andconditions of aproposedFutureOffering areamendedin anyrespect after deliveryof thenotice to theBuyerconcerningthe proposedFuture Offering,the Companyshall deliver anew notice to theBuyer describingtheamendedtermsand conditions of theproposedFutureOfferingandtheBuyer thereaftershall havean optionduring the seventytwo(72)hourperiod following delivery of suchnew noticeto purchase itsprorata share of thesecurities beingoffered on thesame termsascontemplatedbysuchproposed FutureOffering, as amended. Theforegoingsentenceshall apply tosuccessive amendments to theterms andconditionsof anyproposed Future Offering.TheRight ofFirstRefusalshallnot applyto any transaction involving(i) issuancesofsecurities in afirm commitment underwritten publicoffering(excludingacontinuous offering pursuant to Rule 415underthe 1933 Act) or(ii) issuances ofsecurities asconsiderationfor amerger, consolidation orpurchaseof assets, or inconnection withanystrategic partnership or jointventure(the primarypurpose ofwhich is not toraise equitycapital),or inconnectionwith thedispositionoracquisition of abusiness,product orlicenseby the Company.TheRightofFirstRefusalalso shall not apply to the issuance ofsecuritiesuponexerciseorconversion of theCompany’soptions,warrants orotherconvertible securities outstandingas of thedate hereofor to thegrant ofadditionaloptions orwarrants, or theissuanceofadditionalsecurities,under anyCompanystockoptionorrestricted stockplanapprovedby theshareholdersof theCompany. TheRight ofFirstRefusal shall apply only to liketransactions(i.e. convertible debentures) thatare lessthan$100,000.00 in the aggregate.

e.                  Expenses. AttheClosing,theCompanyshallreimburseBuyer forexpensesincurredbytheminconnection withthenegotiation,preparation, execution,deliveryandperformanceofthisAgreement andtheother agreementstobeexecutedinconnectionherewith(“Documents”), including,withoutlimitation,reasonableattorneys’and consultants’feesandexpenses, transferagentfees,feesfor stockquotationservices,fees relating to anyamendmentsormodificationsof theDocuments or anyconsentsorwaiversofprovisionsintheDocuments,fees for thepreparation ofopinions ofcounsel,escrowfees, andcosts ofrestructuring the transactionscontemplatedby theDocuments.Whenpossible, the Company mustpaythesefeesdirectly,otherwisethe Company mustmakeimmediate paymentforreimbursementto theBuyer forallfees andexpenses immediately uponwritten noticeby theBuyer or the submission ofaninvoice by theBuyer. TheCompany’sobligationwithrespect to thistransactionis toreimburse Buyer’expenses shall be$2,500.

f.                  FinancialInformation. UponwrittenrequesttheCompanyagreestosendormakeavailablethefollowingreportstotheBuyeruntiltheBuyer transfers,assigns,orsells allof theSecurities:(i) withinten (10)daysafterthefilingwiththeSEC,acopy ofitsAnnual ReportonForm 10-KitsQuarterlyReportsonForm10-QandanyCurrent ReportsonForm 8-K;(ii) within one(1) dayafterrelease,copiesofallpressreleases issued by the Company or any of itsSubsidiaries;and (iii)contemporaneouslywith themaking available orgivingto theshareholdersof theCompany,copies of any notices orother information the Companymakesavailableorgives tosuch shareholders.

g. [INTENTIONALLY DELETED]

h.                 Listing.The CompanyshallpromptlysecurethelistingoftheConversionShares uponeach nationalsecuritiesexchangeor automated quotationsystem, if any,uponwhichsharesofCommonStockarethen listed(subjecttoofficialnoticeofissuance)and,solongastheBuyerownsanyoftheSecurities,shall maintain,solongasanyothersharesof CommonStockshall be solisted, suchlisting ofallConversion Sharesfrom time to timeissuableuponconversion of theNote. The Companywillobtain and, so longas theBuyerownsanyof theSecurities, maintain the listingand tradingofits CommonStock on theOTCBB or anyequivalent replacementexchange, theNasdaqNationalMarket (“Nasdaq”), theNasdaqSmallCap Market(“NasdaqSmallCap”),theNewYork StockExchange(“NYSE”),ortheAmericanStockExchange (“AMEX”)andwill complyinallrespects with theCompany’sreporting, filingandotherobligations under thebylaws orrulesoftheFinancial IndustryRegulatory Authority(“FINRA”)andsuch exchanges,asapplicable. The Companyshall promptly provideto theBuyercopiesofany noticesitreceivesfromtheOTCBBandany otherexchanges orquotation systems onwhich the CommonStock isthenlistedregardingthecontinuedeligibilityoftheCommonStockfor listing onsuchexchangesandquotationsystems.

i.                   CorporateExistence.SolongastheBuyerbeneficiallyownsanyNote,theCompanyshallmaintainitscorporateexistence andshallnotsellallorsubstantiallyallof theCompany’s assets,exceptin theevent of amerger or consolidation orsale ofall or substantiallyalloftheCompany’s assets,wherethesurvivingorsuccessorentity insuchtransaction (i)assumes theCompany’sobligationshereunderandunder theagreementsandinstruments entered into inconnectionherewithand(ii) is a publiclytradedcorporation whose CommonStockislisted for trading on theOTCBB,Nasdaq,NasdaqSmallCap, NYSE orAMEX.

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j.                   NoIntegration. TheCompanyshallnotmakeanyoffersorsalesofanysecurity(otherthantheSecurities)undercircumstancesthatwouldrequire registrationoftheSecuritiesbeing offeredorsoldhereunderunderthe1933ActorcausetheofferingoftheSecurities to beintegratedwithanyotheroffering ofsecurities bytheCompanyfor thepurpose ofanystockholder approvalprovisionapplicabletotheCompany orits securities.

k.                 BreachofCovenants.IftheCompanybreachesanyofthecovenantssetforthinthisSection4,andinadditiontoanyotherremediesavailabletotheBuyer pursuant tothisAgreement,it willbeconsideredan eventofdefault underSection 3.4oftheNote.

l.                   FailuretoComplywiththe1934Act.So longastheBuyerbeneficiallyownstheNote,theCompanyshallcomplywiththereportingrequirementsofthe1934Act;and the Companyshall continuetobesubject tothereporting requirementsof the 1934Act.

m.               TradingActivities. NeithertheBuyernoritsaffiliateshasan openshort position in the commonstock oftheCompanyand theBuyer agreethat itshall not,andthatitwillcauseitsaffiliatesnotto,engageinanyshortsalesoforhedgingtransactionswithrespectto the commonstock ofthe Company.

5.                 TransferAgentInstructions. TheCompanyshallissueirrevocableinstructionstoitstransferagenttoissuecertificates,registeredinthenameoftheBuyeroritsnominee, fortheConversion Sharesinsuch amountsasspecifiedfrom timetotimebytheBuyerto the Company uponconversionof theNote inaccordancewiththetermsthereof(the “IrrevocableTransfer AgentInstructions”). IntheeventthattheBorrowerproposestoreplace itstransferagent,theBorrowershallprovide,prior to theeffective dateofsuchreplacement, a fullyexecutedIrrevocableTransferAgent Instructions in aformasinitiallydelivered pursuant to thePurchase Agreement(including but notlimitedto theprovision to irrevocablyreserve shares of CommonStock in theReserved Amount) signedby thesuccessortransfer agent toBorrowerand theBorrower.Priortoregistration of the ConversionShares under the 1933Act or thedate onwhich theConversionSharesmay be sold pursuant to Rule 144withoutanyrestrictionas to thenumberofSecuritiesas of aparticulardatethatcan then be immediatelysold,allsuchcertificatesshall bear therestrictivelegend specified inSection2(g) ofthisAgreement.The Companywarrants that:(i) noinstructionother than theIrrevocableTransferAgentInstructionsreferredtointhisSection 5,andstoptransferinstructionstogiveeffecttoSection2(f)hereof (in thecase of the ConversionShares, prior toregistration of the ConversionShares under the 1933Act or the date onwhichtheConversionShares maybesoldpursuant to Rule 144without anyrestrictionas to the number ofSecuritiesas of aparticular datethat canthen be immediatelysold),will begivenby the Company to itstransferagentand that theSecurities shallotherwise be freelytransferableon the booksandrecords of the Companyasand to the extentprovidedin thisAgreementand theNote; (ii) itwill notdirect itstransferagent not totransferordelay, impair,and/orhinderitstransfer agentintransferring (orissuing)(electronically or incertificatedform)anycertificateforConversion Shares to beissued to theBuyer uponconversion of orotherwise pursuant to theNoteasand whenrequiredby theNote and thisAgreement;and (iii) itwill notfail toremove (ordirects itstransferagent not to remove or impairs,delays, and/orhindersitstransfer agentfromremoving)anyrestrictive legend(or towithdrawanystoptransferinstructions inrespect thereof) on anycertificateforany ConversionSharesissuedto theBuyer uponconversion of orotherwisepursuant to theNote asandwhenrequiredby theNoteand thisAgreement.Nothing in thisSectionshallaffect in anyway theBuyer’s obligationsandagreementset forth inSection2(g) hereof to complywithallapplicable prospectus deliveryrequirements,ifany,uponre-sale of theSecurities.If theBuyer provides theCompany,atthecost of theBuyer,with (i) an opinion of counsel inform,substanceand scope customary for opinions incomparabletransactions,to theeffect that a publicsaleortransfer ofsuchSecuritiesmay bemade withoutregistration under the 1933Actandsuchsaleortransferiseffected or(ii)theBuyerprovidesreasonableassurances that theSecuritiescanbe soldpursuant to Rule 144, the Companyshallpermit thetransfer, and, in the case of the ConversionShares,promptlyinstructitstransferagent to issueoneormore certificates,free from restrictivelegend,insuch name and in such denominationsasspecifiedby theBuyer. The Companyacknowledges that abreach by it of itsobligations hereunderwillcauseirreparableharm to theBuyer, by vitiating theintent andpurpose of thetransactions contemplated hereby.Accordingly, the Companyacknowledges that the remedyatlawfor abreachof itsobligationsunderthisSection 5 may beinadequateand agrees, in theevent of abreachorthreatenedbreach by the Company of theprovisions of thisSection,thattheBuyer shall beentitled, inaddition toallother available remedies, toan injunctionrestraininganybreachandrequiring immediate transfer,without the necessity ofshowing economiclossand without any bond orothersecuritybeing required.

9

6.                 Conditionsto theCompany’sObligationtoSell. TheobligationoftheCompanyhereundertoissueand selltheNotetotheBuyer attheClosingissubjecttothesatisfaction, atorbeforetheClosing Dateofeach ofthefollowingconditionsthereto,providedthat theseconditions arefor theCompany’s solebenefitandmay bewaived by the Companyat any timein its sole discretion:

a.                 TheBuyershall haveexecutedthisAgreementanddeliveredthe same to theCompany.

b.                  TheBuyershallhavedeliveredthePurchasePriceinaccordancewithSection 1(b) above.

c.                   Therepresentations andwarrantiesoftheBuyershallbetrueandcorrectinallmaterialrespectsasofthedatewhenmadeand asoftheClosingDateasthough madeat that time(exceptforrepresentations andwarrantiesthat speakasof aspecificdate), and theBuyershallhave performed,satisfiedandcomplied inallmaterial respectswith thecovenants,agreementsandconditionsrequiredbythisAgreementtobeperformed, satisfiedorcompliedwithby theBuyerat orpriorto theClosingDate.

d.                 Nolitigation, statute,rule, regulation,executive order,decree, rulingorinjunction shallhavebeenenacted,entered,promulgatedorendorsed by orinanycourtorgovernmental authorityofcompetent jurisdictionoranyself-regulatoryorganization having authority over thematters contemplatedhereby whichprohibits theconsummationof anyof thetransactionscontemplatedby thisAgreement.

7.                 ConditionstoThe Buyer’s ObligationtoPurchase.The obligationof theBuyerhereundertopurchasetheNoteattheClosing issubjecttothesatisfaction, atorbeforetheClosingDateofeachofthefollowing conditions,provided thatthese conditions are fortheBuyer’ssole benefitandmaybe waivedbythe Buyeratanytimein its sole discretion:

a. The CompanyshallhaveexecutedthisAgreement and delivered thesameto the Buyer.

b.                  TheCompanyshall havedeliveredtotheBuyerthedulyexecuted Note (insuch denominationsas the Buyer shallrequest)inaccordancewithSection1(b) above.

c.                   TheIrrevocable TransferAgent Instructions, informand substance satisfactoryto a majority-in-interestof theBuyer, shallhavebeendeliveredtoandacknowledgedinwritingbythe Company’s Transfer Agent.

d.                  Therepresentations andwarrantiesoftheCompanyshallbetrueandcorrectinallmaterialrespectsasofthe datewhen madeandasofthe ClosingDate asthough madeatsuch time(except forrepresentationsand warrantiesthat speakasofaspecificdate) and the Company shallhaveperformed, satisfiedand complied inall materialrespectswith thecovenants, agreementsand conditionsrequiredby thisAgreementto beperformed, satisfied orcomplied withby the Companyat orpriorto theClosingDate.TheBuyer shallhavereceivedacertificate orcertificates,executedby thechief executiveofficer of theCompany,datedasof the ClosingDate,totheforegoing effectandastosuchother mattersasmaybe reasonablyrequestedby theBuyerincluding, but notlimitedtocertificateswith respect to theCompany’sCertificateofIncorporation,By-laws andBoard ofDirectors’resolutionsrelating to thetransactions contemplatedhereby.

e.                   Nolitigation, statute,rule, regulation,executive order,decree, rulingorinjunction shallhavebeenenacted,entered,promulgatedorendorsed by orinanycourtorgovernmentalauthorityofcompetent jurisdictionoranyself-regulatory organization having authority over thematterscontemplatedhereby whichprohibits theconsummationof anyof thetransactionscontemplatedby thisAgreement.

f.                   Noevent shallhave occurredwhich couldreasonably beexpectedtohaveaMaterialAdverse EffectontheCompanyincludingbutnotlimitedtoachangeinthe1934Actreporting statusof the Companyor thefailureof the Companytobe timelyinits1934Act reportingobligations.

g.                  TheConversion Sharesshallhavebeenauthorizedfor quotationontheOTCBBandtradingintheCommonStockontheOTCBB shallnothavebeensuspendedby the SEC orthe OTCBB.

h.                  TheBuyershallhave receivedan officer’scertificate describedinSection 3(c)above,dated asoftheClosingDate.

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8. GoverningLaw;Miscellaneous.

a.                  GoverningLaw.This AgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofNewYork withoutregardtoprinciplesofconflictsoflaws. Any actionbroughtby eitherpartyagainst theotherconcerning thetransactionscontemplatedbythisAgreementshallbebroughtonly in thestate courtsof NewYork or in thefederalcourtslocated in the stateand county of Nassau.Thepartiesto thisAgreement hereby irrevocablywaiveany objectiontojurisdictionand venue ofanyactioninstituted hereunderandshallnotassertanydefensebasedonlack of jurisdiction orvenueorbased uponforum nonconveniens.The CompanyandBuyerwaivetrialbyjury.The prevailing partyshallbeentitled torecoverfromtheother party itsreasonableattorney'sfeesand costs.In theevent thatanyprovisionofthisAgreementoranyother agreement deliveredinconnection herewith isinvalid orunenforceableunder anyapplicablestatute orrule oflaw,then suchprovisionshallbe deemedinoperative totheextentthatitmayconflict therewithandshallbedeemedmodified toconform withsuchstatuteorruleoflaw.Anysuchprovisionwhichmayproveinvalidorunenforceableunder any lawshallnotaffectthevalidityorenforceabilityof anyotherprovisionofanyagreement.Each party herebyirrevocablywaivespersonalserviceofprocessandconsentstoprocessbeingservedinany suit,actionorproceeding inconnectionwith thisAgreement oranyotherTransaction Documentbymailingacopythereofviaregistered orcertifiedmailor overnightdelivery(withevidence ofdelivery) tosuch partyattheaddressineffectfornoticesto it under thisAgreementand agreesthatsuchserviceshallconstitute goodandsufficientserviceofprocessand noticethereof.Nothingcontained hereinshall be deemed to limit in anywayany right toserve process inanyother manner permittedbylaw.

b.                 Counterparts. ThisAgreementmaybeexecutedinoneormore counterparts,eachofwhichshallbedeemedanoriginalbutallofwhichshallconstituteoneandthesameagreementand shallbecomeeffectivewhen counterpartshavebeensignedbyeachpartyanddelivered to theother party.

c.                  Headings.TheheadingsofthisAgreementareforconvenienceofreferenceonlyandshallnotformpartof,oraffectthe interpretationof, thisAgreement.

d.                 Severability.IntheeventthatanyprovisionofthisAgreementisinvalidorunenforceableunderanyapplicablestatuteorruleoflaw,thensuchprovisionshallbedeemedinoperativetotheextentthatitmayconflicttherewithandshallbedeemedmodifiedtoconformwithsuch statute orrule oflaw.Anyprovisionhereof which may proveinvalid orunenforceable underanylawshallnotaffectthevalidity orenforceabilityofany otherprovisionhereof.

e.                  EntireAgreement;Amendments. This Agreementandtheinstrumentsreferenced hereincontaintheentireunderstandingofthepartieswithrespecttothematters coveredhereinandthereinand,except asspecificallysetforthhereinortherein,neither the Companynor theBuyermakesanyrepresentation,warranty, covenant orundertaking withrespecttosuch matters.No provisionof thisAgreementmay bewaivedoramendedotherthan byaninstrumentin writingsigned by themajority ininterest ofthe Buyer.

f.                  Notices. All notices, demands, requests, consents, approvals, and other communicationsrequired or permittedhereunder shallbe inwriting and, unlessotherwise specifiedherein, shall be(i) personally served,(ii) deposited in the mail,registered orcertified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or tosuchother address as suchparty shallhave specifiedmost recently by written notice.Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated bythe transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day followingsuch delivery (if delivered other than on a business dayduring normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

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Ifto the Company, to:

NYXIO TECHNOLOGIESCORPORATION

2156NEBroadway

Portland, OR 97232

Attn: GIORGIO JOHNSON,Chief Executive Officer

facsimile: [enter faxnumber]

With acopybyfaxonlyto(which copyshall not constitute notice):

[enter nameof lawfirm]

Attn:[attorneyname]

[enter address line1][enter city,state, zip]

facsimile: [enter faxnumber]

Ifto the Buyer:

ASHER ENTERPRISES,INC.

1Linden Pl., Suite207

Great Neck, NY. 11021

Attn: CurtKramer, President

facsimile: 516-498-9894

With acopybyfaxonlyto(which copyshall not constitute notice):

Naidich Wurman Birnbaum & MadayLLP

80CuttermillRoad,Suite410 

Great Neck, NY11021

facsimile: 516-466-3555

Eachpartyshallprovide noticeto the otherpartyofanychangeinaddress.

g.                 SuccessorsandAssigns. ThisAgreement shallbe bindinguponand inuretothebenefitofthepartiesandtheir successorsandassigns.NeithertheCompany northeBuyershall assignthisAgreementoranyrightsorobligationshereunderwithoutthepriorwritten consentof the other.Notwithstandingtheforegoing,subject to Section2(f), theBuyer mayassignitsrightshereunder toanyperson thatpurchasesSecurities in aprivatetransactionfromtheBuyeror to anyof its“affiliates,”as thatterm isdefinedunder the 1934 Act,without the consentofthe Company.

h.                 ThirdPartyBeneficiaries. This Agreementisintendedforthebenefitoftheparties heretoandtheirrespective permittedsuccessorsandassigns, andisnotforthe benefitof, normay anyprovisionhereofbe enforcedby,anyotherperson.

i.                   Survival. Therepresentations andwarrantiesoftheCompanyandtheagreementsandcovenants setforthinthisAgreement shallsurvivetheclosinghereundernotwithstandinganyduediligenceinvestigationconducted byor onbehalf oftheBuyer. The Companyagrees to indemnifyand holdharmlesstheBuyerandall theirofficers,directors,employees and agents for loss ordamage arisingasaresult of orrelatedtoany breach oralleged breach bythe Company ofanyof itsrepresentations, warrantiesandcovenantsset forth in thisAgreement or any ofitscovenantsand obligationsunderthisAgreement,includingadvancement of expensesas they are incurred.

j.                   Publicity.TheCompany,andtheBuyershallhavetherighttoreviewareasonableperiodoftimebeforeissuanceofanypressreleases,SEC,OTCBBorFINRA filings,oranyotherpublicstatementswith respecttothetransactionscontemplated hereby;provided,however,that the Company shall beentitled,without thepriorapprovalof theBuyer, tomakeanypressrelease orSEC,OTCBB (orotherapplicable tradingmarket) orFINRAfilings withrespect tosuchtransactionsas isrequiredbyapplicable lawandregulations(althoughtheBuyershallbeconsultedbythe Companyinconnectionwithanysuchpressrelease prior to itsreleaseandshallbeprovidedwith a copythereof and begivenan opportunity tocommentthereon).

k.                 FurtherAssurances.Eachpartyshalldoandperform,orcausetobedoneandperformed, allsuchfurtheractsandthings, andshallexecuteand deliverallsuchother agreements,certificates,instrumentsand documents,astheotherpartymay reasonablyrequest in order to carryout theintentandaccomplish thepurposes of thisAgreement and theconsummation ofthe transactionscontemplatedhereby.

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l.                   NoStrictConstruction. Thelanguage usedin thisAgreementwillbedeemedtobethelanguage chosen bythepartiestoexpresstheir mutualintent,andnorulesofstrictconstructionwillbe appliedagainstanyparty.

m.               Remedies. TheCompanyacknowledgesthatabreachbyitofitsobligations hereunderwillcause irreparableharmto the Buyerbyvitiatingthe intentandpurposeofthetransaction contemplatedhereby.Accordingly, theCompanyacknowledges that the remedyatlawforabreachofitsobligationsunderthisAgreementwillbeinadequateandagrees,in theevent of a breach orthreatened breachby the Company of theprovisionsof thisAgreement,that theBuyer shall beentitled, in addition toall otheravailableremediesatlaw or inequity,and in addition to thepenaltiesassessableherein,toan injunction orinjunctionsrestraining,preventingorcuringanybreachofthisAgreementand toenforcespecifically thetermsandprovisions hereof,without thenecessity of showingeconomic lossandwithoutany bond or othersecuritybeingrequired.

INWITNESSWHEREOF,theundersigned BuyerandtheCompanyhavecausedthisAgreement to bedulyexecutedasofthe datefirst above written.

NYXIO TECHNOLOGIESCORPORATION

By; /s/ Giorgio Johnson

GIORGIO JOHNSON

Chief Executive Officer

ASHER ENTERPRISES,INC.

By:/s/ Curt Kramer

Name: CurtKramer

Title: President

1Linden Pl., Suite207GreatNeck, NY. 11021

AGGREGATE SUBSCRIPTION AMOUNT:
Aggregate Principal Amount of Note:	$22,500.00
AggregatePurchase Price:	$22,500.00
3748(10)11-11-13 giorgioj503@gmail.com Giorgio@nyxio.com

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