CONTRIBUTION AGREEMENT
 
THIS CONTRIBUTION AGREEMENT (the “Agreement”) is entered into as of the 26th day
of October, 2007, by and between The 500 Group, LLC (the “Funding Party”), a New
York entity, and PubliCARD, Inc., a Pennsylvania corporation (the “Debtor”).
 
W I T N E S S E T H:
 
WHEREAS, on May 17, 2007, the Debtor filed with the United States Bankruptcy
Court for the Southern District of New York (the “Bankruptcy Court”) a voluntary
petition for relief under Chapter 11 of the United States Bankruptcy Code.
 
WHEREAS, on October 26, 2007, the Debtor filed a plan of reorganization (the
“Plan”)1  with the Bankruptcy Court.
 
WHEREAS, pursuant to the Plan, the Funding Party would receive 370,000 shares of
New Common Stock, which shares would represent, as of the Effective Date, 90% of
the outstanding shares of New Common Stock.
 
WHEREAS, in exchange for such New Common Stock and the releases and related
provisions set forth in the Plan, the Funding Party wishes to contribute
$500,000 to the Debtor on the Effective Date to allow the Debtor to satisfy its
obligations under the Plan, among other things;
 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Funding Party and the Debtor hereby agree
as follows:
 
1.  Contribution. In exchange for the New Common Stock provided to the Funding
Party under the Plan and the releases and related provisions set forth therein,
the Funding Party shall contribute $500,000 to the Debtor on the Effective Date
to allow the Debtor to satisfy its obligations under the Plan, among other
things.
 
2.  Acceptance. The Debtor hereby agrees to accept such contribution and to
record such contribution as a capital contribution in a corresponding amount on
its books and records.
 
3.  Bankruptcy Court Approval. This Agreement shall be subject to Bankruptcy
Court approval.
 
4.  Authorization. Each party has the full power and authority to execute,
deliver, and perform his or its obligations under this Agreement, subject to
Bankruptcy Court approval.

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1 Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in  the Plan.
 
 
 

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5.  Binding Agreement. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors.
 
6.  Choice of Law. This Agreement shall be construed and enforced in accordance
with the internal laws of the State of New York.
 
7.  Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, but all of which shall
constitute one and the same instrument.
 
8.  Amendments. This Agreement may not be modified, amended, or terminated
except by a written agreement executed by all of the parties hereto.
 
IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto
as of the date first above written.
 

        THE 500 GROUP, LLC  
   
   
  By:   /s/ Joseph E. Sarachek  

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Joseph E. Sarachek   Managing Member

 

        PUBLICARD, INC.  
   
   
  By:   /s/ Jay S. Goldsmith  

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Jay S. Goldsmith  
Director

         
   
   
  By:   /s/ Harry I. Freund  

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Harry I. Freund
  Director

         
   
   
  By:   /s/ Emil Vogel  

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Emil Vogel   Director

         
   
   
  By:   /s/ Larry G. Schafran  

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Larry G. Schafran   Director

         
   
   
  By:   /s/ Clifford B. Cohn  

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Clifford B. Cohn   Director

 
 
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