Document:

Exhibit 4.2

 

SUBSCRIPTION AGREEMENT

 

THIS SUBSCRIPTION AGREEMENT (this “Agreement”), dated as of March     ,
2010, is entered into by and between Alma Maritime Limited, a corporation
incorporated under the laws of the Republic of the Marshall Islands (the “Corporation”),
and Gallery Services Ltd., a Marshall Islands corporation (the “Purchaser”).

 

WHEREAS, the Corporation desires to issue and sell to
Purchaser, and Purchaser desires to subscribe for and purchase from the
Corporation, a number of shares of the Common Stock, par value $0.001 per
share, of the Corporation (“Common Stock”);

 

WHEREAS, the Corporation and Purchaser are executing and
delivering this Agreement in reliance upon an exemption from securities
registration afforded by the provisions of the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and the rules and regulations
promulgated by the U.S. Securities and Exchange Commission thereunder.

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants and obligations hereinafter
set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Corporation and Purchaser,
intending to be legally bound, hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

The following capitalized terms used in this Agreement
shall have the following respective meanings:

 

“Affiliate” means a
person that directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, another person.

 

“Common Stock” means the Common Stock, par
value $0.001 per share, of the Corporation.

 

“Consummation of the Initial Public Offering” following the
sale to the underwriters of the number of firm shares stated in the final
prospectus related to this Corporation’s initial public offering of Common
Stock.

 

“Control” including the terms “controlling,” “controlled by” and
“under common control with,” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a
person, whether through the ownership of voting shares, by contract or
otherwise. A person who is the owner of 20% or more of the outstanding voting
shares of any corporation, partnership, unincorporated association or other
entity shall be presumed to have control of such entity, in the absence of
proof by a preponderance of the evidence to the contrary.  Notwithstanding the foregoing, a presumption
of control shall not apply where such person holds voting shares, in good faith
and not for the purpose of circumventing this provision, as an agent, bank,
broker, nominee, custodian or trustee for one or more owners who do not
individually or as a group have control of such entity.

 

 

“Purchase Price” means one million one hundred
seventy four thousand one hundred U.S. Dollars ($1,174,100.00). Purchaser shall
be entitled to receive credit towards the Purchase Price for any cash advanced
to the Corporation prior to consummation of the transactions contemplated in
Sections 2.1 and 2.2 hereof.

 

“Shares” means 58,705 shares of Common Stock to
be purchased by the Purchaser and issued by the Corporation in accordance with
the terms hereof.

 

“United States” means United States of America,
its territories and possessions, any State of the United States of America or
the District of Columbia

 

“U.S. person” means any natural person who is a
resident of the United States or to any other U.S. person (as defined in
Regulation S under the Securities Act).

 

ARTICLE II

PURCHASE AND SALE OF SHARES

 

SECTION 2.1.                      Agreement to Sell and
Purchase the Shares.  Subject to the terms and
conditions hereof, the Corporation agrees to issue and sell to Purchaser, and
the Purchaser agrees to subscribe for and purchase from the Corporation, the
Shares   in exchange for the Purchase Price paid by the
Purchaser as set forth in Section 2.2 below.

 

SECTION 2.2.                      Payment for Issuance of
Shares.  The
Purchaser shall pay the Purchase Price for the Shares and the Corporation shall
issue the Shares to the Purchaser concurrently with the Consummation of the
Initial Public Offering.

 

SECTION 2.3.                      Registration Rights. 
In connection with the sale and purchase of the Shares, the Corporation
has agreed to grant the Purchaser certain registration rights with respect to
Common Stock held by the Purchase and concurrently with the execution and
delivery of this Agreement, the Corporation and the Purchaser, together with
certain other purchasers of Common Stock, are entering into a Registration
Rights Agreement for such purpose..

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF
THE PURCHASER

 

The Purchaser hereby
represents and warrants to the Corporation as follows:

 

(a)         The Purchaser has the legal capacity,
power and authority to enter into and perform all of its obligations under this
Agreement.  This Agreement has been duly
and validly authorized, executed and delivered by the Purchaser and constitutes
a valid and binding agreement of the Purchaser, enforceable against the
Purchaser in accordance with its terms, except that such enforceability (i) may
be limited by bankruptcy, insolvency, moratorium or other similar laws
affecting or relating to enforcement of creditors’ rights generally and (ii) is
subject to general principles of equity.

 

(b)         The execution, delivery and performance
by the Purchaser of this Agreement will not (with or without notice or lapse of
time, or both) (i) result in any violation of any provision of its
articles of incorporation  company
agreement, bylaws or other organizational documents, (ii) conflict with or
constitute breach of, or default under, or result in the creation or imposition
of any lien, encumbrance, security interest, pledge, mortgage, charge, 

 

2

 

other claim, contract, lease, license, indenture,
agreement, commitment or other legally binding arrangement to which it is a
party or by which any of its assets may be bound or (iii) result in any
violation of any applicable law, statute, rule or regulation or order of
any governmental authority.  Except as
already obtained, no material consent, approval, license, permit, order or
authorization of, or registration, declaration or filing with, any federal,
state, local or foreign governmental authority is required in connection with
the execution, delivery and performance of this Agreement or the consummation
of the transactions contemplated hereby.

 

(c)         The Purchaser represents and warrants
that the Purchaser: (i)  is familiar with the Corporation and its business
prospects and (ii) has had an opportunity to select and consult with such
attorneys, business consultants and any other person(s) the Purchaser has
wished to confer with.  The Purchaser
acknowledges that the Corporation has made available to the Purchaser prior to
the signing of this Agreement and sale of any Common Stock, the opportunity to
ask questions of any person authorized to act on behalf of the Corporation
concerning any aspect of the investment and to obtain any additional
information, to the extent the Corporation possesses such information or can
acquire it without unreasonable effort or expense, necessary to verify the
accuracy of the information.

 

(d)         The Purchaser is an “accredited investor,”
as such term is defined in Rule 501(a) of Regulation D under the
Securities Act.   The Purchaser has
substantial knowledge and experience in financial, investment and business
matters, and has the requisite knowledge and experience to evaluate the risks
and merits of this investment.  The
decision of the Purchaser to purchase the Shares hereunder has been made by the
Purchaser independent of any statements, disclosures or judgments as to the
properties, business, prospects or condition (financial or otherwise) of the
Corporation that may have been made or given to the Purchaser.  The Purchaser can and will bear the economic
risks of the Purchaser’s investment in the Corporation and is able to hold the
Corporation’s Common Stock indefinitely without registration and is able to
sustain a complete loss if the Shares become worthless.

 

(e)         The Purchaser is neither a U.S. person
nor acquiring Shares for the account or benefit of any U.S. person.

 

(f)          This Agreement has been executed and
delivered by the Purchaser outside the United States.

 

(g)         (i) The Shares being purchased
hereunder have not been registered under the Securities Act, (ii) such
Shares are being sold pursuant an exemption under Section 4(2) of the
Securities Act or in reliance on Regulation S promulgated under the Securities
Act, and (iii) the Corporation’s reliance on such exemption  or Regulation S is predicated in part on the Purchaser’s
representations made pursuant to this Agreement.  The Purchaser has no contract, undertaking,
agreement or arrangement with any other person or entity to sell, transfer or
pledge any Common Stock that the Purchaser is purchasing hereunder, and the
Purchaser has no present plans or intentions to enter into any such contract,
undertaking, agreement or arrangement.

 

3

 

(h)         The Purchaser acknowledges that the
Shares of Common Stock have not been registered or qualified for resale under
applicable securities laws and may not be sold except pursuant to such
registration or qualification thereunder or an exemption therefrom.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF
THE CORPORATION

 

The Corporation hereby
represents and warrants to the Purchaser as follows:

 

(a)         The Corporation has the legal capacity,
power and authority to enter into and perform all of its obligations under this
Agreement.  The execution, delivery and
performance of this Agreement by the Corporation will not violate any other
material agreement to which the Corporation is a party.  This Agreement has been duly and validly
authorized, executed and delivered by the Corporation and constitutes a valid
and binding agreement of the Corporation, enforceable against the Corporation
in accordance with its terms, except that such enforceability (i) may be
limited by bankruptcy, insolvency, moratorium or other similar laws affecting
or relating to enforcement of creditors’ rights generally and (ii) s
subject to general principles of equity.

 

(b)         The Shares, upon issuance against payment
therefore hereunder, will be duly authorized, validly issued, fully paid and
non-assessable.

 

ARTICLE V

MISCELLANEOUS

 

SECTION 5.1.                      Governing Law. 
This Agreement shall be governed by and construed under the law of the
State of New York without regard to its choice of law provisions.

 

SECTION 5.2.                      Assignment. 
Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder shall be assignable by either the Corporation or Purchaser
without the other’s prior written consent, except that Purchaser (or any
successor assignee) may assign any or all of the foregoing in whole or in part
to one or more of its Affiliates.

 

SECTION 5.3.                      Binding Effect. 
The provisions of this Agreement shall be binding upon and accrue to the
benefit of the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns.

 

SECTION 5.4.                      Section and  Other
Headings; Interpretation.  The section
and other headings herein are for convenience of reference only, do not
constitute part of this Agreement and shall not be deemed to limit or otherwise
affect any of the provisions hereof.

 

SECTION 5.5.                      Counterparts. 
This Agreement may be executed in counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which
together shall be deemed to be one and the same agreement.

 

4

 

SECTION
5.6.                      Entire Agreement;
Waiver, Amendment.  This Agreement contains the
entire agreement of the parties with respect to the subject matter hereof and
supersedes any and all prior agreements, understandings or undertakings,
written or oral.  Neither this Agreement
nor any provision hereof shall be waived, amended, modified, changed,
discharged or terminated except by an instrument in writing, signed by the
party against whom any waiver, amendment, modification, change, discharge or
termination is sought.

 

[Signature
page follows.]

 

5

 

IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Agreement as of the date first
above written.

 

	
   

  	
  ALMA MARITIME LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GALLERY SERVICES LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

[Signature Page to Alma Maritime Limited Subscription Agreement]

 

6

 

SUBSCRIPTION
AGREEMENT

 

THIS SUBSCRIPTION AGREEMENT (this “Agreement”), dated as of March     ,
2010, is entered into by and between Alma Maritime Limited, a corporation
incorporated under the laws of the Republic of the Marshall Islands (the “Corporation”),
and Kingsway Navigation Limited, a Marshall Islands corporation (the “Purchaser”).

 

WHEREAS, the Corporation desires to issue and
sell to Purchaser, and Purchaser desires to subscribe for and purchase from the
Corporation, a number of shares of the Common Stock, par value $0.001 per
share, of the Corporation (“Common Stock”);

 

WHEREAS, the Corporation and Purchaser are
executing and delivering this Agreement in reliance upon an exemption from
securities registration afforded by the provisions of the U.S. Securities Act
of 1933, as amended (the “Securities Act”), and the rules and
regulations promulgated by the U.S. Securities and Exchange Commission
thereunder.

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants and obligations hereinafter
set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Corporation and Purchaser,
intending to be legally bound, hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

The following capitalized
terms used in this Agreement shall have the following respective meanings:

 

“Affiliate”
means a person that directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, another person.

 

“Common Stock”
means the Common Stock, par value $0.001 per share, of the Corporation.

 

“Consummation of the Initial
Public Offering” following the sale to the underwriters of the number
of firm shares stated in the final prospectus related to this Corporation’s initial
public offering of Common Stock.

 

“Control” including the terms “controlling,” “controlled
by” and “under common control with,” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting shares, by
contract or otherwise. A person who is the owner of 20% or more of the
outstanding voting shares of any corporation, partnership, unincorporated
association or other entity shall be presumed to have control of such entity,
in the absence of proof by a preponderance of the evidence to the
contrary.  Notwithstanding the foregoing,
a presumption of control shall not apply where such person holds voting shares,
in good faith and not for the purpose of circumventing this provision, as an
agent, bank, broker, nominee, custodian or trustee for one or more owners who
do not individually or as a group have control of such entity.

 

 

“Purchase Price”
means five hundred twenty five thousand nine hundred U.S. Dollars ($525,900.00).
Purchaser shall be entitled to receive credit towards the Purchase Price for
any cash advanced to the Corporation prior to consummation of the transactions
contemplated in Sections 2.1 and 2.2 hereof.

 

“Shares” means 26,295
shares of Common Stock to be purchased by the Purchaser and issued by the
Corporation in accordance with the terms hereof.

 

“United States”
means United States of America, its territories and possessions, any State of
the United States of America or the District of Columbia

 

“U.S. person”
means any natural person who is a resident of the United States or to any other
U.S. person (as defined in Regulation S under the Securities Act).

 

ARTICLE
II

PURCHASE
AND SALE OF SHARES

 

SECTION 2.1.                      Agreement to Sell and Purchase
the Shares.  Subject to the terms and conditions hereof,
the Corporation agrees to issue and sell to Purchaser, and the Purchaser agrees
to subscribe for and purchase from the Corporation, the Shares   in exchange for the
Purchase Price paid by the Purchaser as set forth in Section 2.2 below.

 

SECTION 2.2.                      Payment for Issuance of
Shares.  The Purchaser shall
pay the Purchase Price for the Shares and the Corporation shall issue the Shares
to the Purchaser concurrently with the Consummation of the Initial Public
Offering.

 

SECTION 2.3.                      Registration Rights.  In
connection with the sale and purchase of the Shares, the Corporation has agreed
to grant the Purchaser certain registration rights with respect to Common Stock
held by the Purchase and concurrently with the execution and delivery of this
Agreement, the Corporation and the Purchaser, together with certain other
purchasers of Common Stock, are entering into a Registration Rights Agreement
for such purpose..

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER

 

The
Purchaser hereby represents and warrants to the Corporation as follows:

 

(a)           The Purchaser has the legal capacity, power and
authority to enter into and perform all of its obligations under this
Agreement.  This Agreement has been duly
and validly authorized, executed and delivered by the Purchaser and constitutes
a valid and binding agreement of the Purchaser, enforceable against the
Purchaser in accordance with its terms, except that such enforceability (i) may
be limited by bankruptcy, insolvency, moratorium or other similar laws
affecting or relating to enforcement of creditors’ rights generally and (ii) is
subject to general principles of equity.

 

(b)           The execution, delivery and performance by the
Purchaser of this Agreement will not (with or without notice or lapse of time,
or both) (i) result in any violation of any provision of its articles of
incorporation  company agreement, bylaws or
other organizational documents, (ii) conflict with or constitute breach
of, or default under, or result in the creation or imposition of any lien,
encumbrance, security interest, pledge, mortgage, charge, 

 

2

 

other claim, contract,
lease, license, indenture, agreement, commitment or other legally binding
arrangement to which it is a party or by which any of its assets may be bound
or (iii) result in any violation of any applicable law, statute, rule or
regulation or order of any governmental authority.  Except as already obtained, no material consent,
approval, license, permit, order or authorization of, or registration,
declaration or filing with, any federal, state, local or foreign governmental
authority is required in connection with the execution, delivery and
performance of this Agreement or the consummation of the transactions
contemplated hereby.

 

(c)           The Purchaser represents and warrants that the
Purchaser: (i)  is familiar with the Corporation and its business
prospects and (ii) has had an opportunity to select and consult with such
attorneys, business consultants and any other person(s) the Purchaser has
wished to confer with.  The Purchaser
acknowledges that the Corporation has made available to the Purchaser prior to
the signing of this Agreement and sale of any Common Stock, the opportunity to
ask questions of any person authorized to act on behalf of the Corporation
concerning any aspect of the investment and to obtain any additional
information, to the extent the Corporation possesses such information or can
acquire it without unreasonable effort or expense, necessary to verify the
accuracy of the information.

 

(d)           The Purchaser is an “accredited investor,” as such
term is defined in Rule 501(a) of Regulation D under the Securities
Act.   The Purchaser has substantial
knowledge and experience in financial, investment and business matters, and has
the requisite knowledge and experience to evaluate the risks and merits of this
investment.  The decision of the
Purchaser to purchase the Shares hereunder has been made by the Purchaser
independent of any statements, disclosures or judgments as to the properties,
business, prospects or condition (financial or otherwise) of the Corporation
that may have been made or given to the Purchaser.  The Purchaser can and will bear the economic
risks of the Purchaser’s investment in the Corporation and is able to hold the
Corporation’s Common Stock indefinitely without registration and is able to
sustain a complete loss if the Shares become worthless.

 

(e)           The Purchaser is neither a U.S. person nor acquiring Shares
for the account or benefit of any U.S. person.

 

(f)            This Agreement has been executed and delivered by the
Purchaser outside the United States.

 

(g)           (i) The Shares being purchased hereunder have not
been registered under the Securities Act, (ii) such Shares are being sold
pursuant an exemption under Section 4(2) of the Securities Act or in
reliance on Regulation S promulgated under the Securities Act, and (iii) the
Corporation’s reliance on such exemption  or Regulation
S is predicated in part on the Purchaser’s representations made pursuant to
this Agreement.  The Purchaser has no
contract, undertaking, agreement or arrangement with any other person or entity
to sell, transfer or pledge any Common Stock that the Purchaser is purchasing
hereunder, and the Purchaser has no present plans or intentions to enter into
any such contract, undertaking, agreement or arrangement.

 

3

 

(h)           The Purchaser acknowledges that the Shares of Common
Stock have not been registered or qualified for resale under applicable
securities laws and may not be sold except pursuant to such registration or
qualification thereunder or an exemption therefrom.

 

ARTICLE
IV

REPRESENTATIONS
AND WARRANTIES OF THE CORPORATION

 

The
Corporation hereby represents and warrants to the Purchaser as follows:

 

(a)           The Corporation has the legal capacity, power and
authority to enter into and perform all of its obligations under this
Agreement.  The execution, delivery and
performance of this Agreement by the Corporation will not violate any other
material agreement to which the Corporation is a party.  This Agreement has been duly and validly
authorized, executed and delivered by the Corporation and constitutes a valid
and binding agreement of the Corporation, enforceable against the Corporation
in accordance with its terms, except that such enforceability (i) may be
limited by bankruptcy, insolvency, moratorium or other similar laws affecting
or relating to enforcement of creditors’ rights generally and (ii) s
subject to general principles of equity.

 

(b)           The Shares, upon issuance against payment therefore
hereunder, will be duly authorized, validly issued, fully paid and
non-assessable.

 

ARTICLE
V

MISCELLANEOUS

 

SECTION 5.1.                      Governing Law. 
This Agreement shall be governed by and construed under the law of the
State of New York without regard to its choice of law provisions.

 

SECTION 5.2.                      Assignment. 
Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder shall be assignable by either the Corporation or Purchaser
without the other’s prior written consent, except that Purchaser (or any
successor assignee) may assign any or all of the foregoing in whole or in part
to one or more of its Affiliates.

 

SECTION 5.3.                      Binding Effect.  The
provisions of this Agreement shall be binding upon and accrue to the benefit of
the parties hereto and their respective heirs, legal representatives,
successors and permitted assigns.

 

SECTION 5.4.                      Section and Other
Headings; Interpretation.  The section
and other headings herein are for convenience of reference only, do not
constitute part of this Agreement and shall not be deemed to limit or otherwise
affect any of the provisions hereof.

 

SECTION 5.5.                      Counterparts. 
This Agreement may be executed in counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which
together shall be deemed to be one and the same agreement.

 

4

 

SECTION 5.6.                      Entire Agreement; Waiver,
Amendment.  This Agreement contains the entire agreement
of the parties with respect to the subject matter hereof and supersedes any and
all prior agreements, understandings or undertakings, written or oral.  Neither this Agreement nor any provision hereof
shall be waived, amended, modified, changed, discharged or terminated except by
an instrument in writing, signed by the party against whom any waiver,
amendment, modification, change, discharge or termination is sought.

 

[Signature page follows.]

 

5

 

IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Agreement as of the date first
above written.

 

	
   

  	
  ALMA
  MARITIME LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  KINGSWAY
  NAVIGATION LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Signature Page to Alma Maritime Limited
Subscription Agreement]

 

6

 

SUBSCRIPTION AGREEMENT

 

THIS SUBSCRIPTION AGREEMENT (this “Agreement”), dated as of March     ,
2010, is entered into by and between Alma Maritime Limited, a corporation
incorporated under the laws of the Republic of the Marshall Islands (the “Corporation”),
and Maas Capital Investments B.V., a company organized under the laws of The
Netherlands (the “Purchaser”).

 

WHEREAS, the Corporation desires to issue and sell to
Purchaser, and Purchaser desires to subscribe for and purchase from the
Corporation, a number of shares of the Common Stock, par value $0.001 per
share, of the Corporation (“Common Stock”);

 

WHEREAS, the Corporation and Purchaser are executing and
delivering this Agreement in reliance upon an exemption from securities
registration afforded by the provisions of the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and the rules and regulations
promulgated by the U.S. Securities and Exchange Commission thereunder.

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants and obligations hereinafter
set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Corporation and Purchaser,
intending to be legally bound, hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

The following capitalized terms used in this Agreement
shall have the following respective meanings:

 

“Affiliate” means a
person that directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, another person.

 

“Common Stock” means the Common Stock, par
value $0.001 per share, of the Corporation.

 

“Consummation of the Initial Public Offering” following the
sale to the underwriters of the number of firm shares stated in the final
prospectus related to this Corporation’s initial public offering of Common
Stock.

 

“Control” including the terms “controlling,” “controlled
by” and “under common control with,” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting shares, by
contract or otherwise. A person who is the owner of 20% or more of the
outstanding voting shares of any corporation, partnership, unincorporated
association or other entity shall be presumed to have control of such entity,
in the absence of proof by a preponderance of the evidence to the
contrary.  Notwithstanding the foregoing,
a presumption of control shall not apply where such person holds voting shares,
in good faith and not for the purpose of circumventing this provision, as an
agent, bank, broker, nominee, custodian or trustee for one or more owners who
do not individually or as a group have control of such entity.

 

 

“Purchase Price” means twenty-six million nine
hundred fifty two thousand five hundred eighty U.S. Dollars ($26,952,580.00).  Purchaser shall be entitled to receive credit
towards the Purchase Price for any cash advanced to the Corporation prior to
consummation of the transactions contemplated in Sections 2.1 and 2.2 hereof.

 

“Shares” means 1,347,629 shares of Common Stock
to be purchased by the Purchaser and issued by the Corporation in accordance
with the terms hereof.

 

“United States” means United States of America,
its territories and possessions, any State of the United States of America or
the District of Columbia

 

“U.S. person” means any natural person who is a
resident of the United States or to any other U.S. person (as defined in
Regulation S under the Securities Act).

 

ARTICLE II

PURCHASE AND SALE
OF SHARES

 

SECTION 2.1.                      Agreement to Sell and
Purchase the Shares.  Subject to the terms and
conditions hereof, the Corporation agrees to issue and sell to Purchaser, and the
Purchaser agrees to subscribe for and purchase from the Corporation, the Shares   in exchange for the
Purchase Price paid by the Purchaser as set forth in Section 2.2 below.

 

SECTION 2.2.                      Payment for Issuance of
Shares.  The Purchaser shall
pay the Purchase Price for the Shares and the Corporation shall issue the Shares
to the Purchaser concurrently with the Consummation of the Initial Public
Offering.

 

SECTION 2.3.                      Registration Rights.  In
connection with the sale and purchase of the Shares, the Corporation has agreed
to grant the Purchaser certain registration rights with respect to Common Stock
held by the Purchase and concurrently with the execution and delivery of this
Agreement, the Corporation and the Purchaser, together with certain other
purchasers of Common Stock, are entering into a Registration Rights Agreement
for such purpose..

 

ARTICLE III

REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER

 

The Purchaser hereby
represents and warrants to the Corporation as follows:

 

(a)         The
Purchaser has the legal capacity, power and authority to enter into and perform
all of its obligations under this Agreement. 
This Agreement has been duly and validly authorized, executed and
delivered by the Purchaser and constitutes a valid and binding agreement of the
Purchaser, enforceable against the Purchaser in accordance with its terms,
except that such enforceability (i) may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting or relating to
enforcement of creditors’ rights generally and (ii) is subject to general
principles of equity.

 

(b)         The
execution, delivery and performance by the Purchaser of this Agreement will not
(with or without notice or lapse of time, or both) (i) result in any
violation of any provision of its articles of incorporation, company agreement,
bylaws or other organizational documents, (ii) conflict with or constitute
breach of, or default under, or result in the creation or imposition of any
lien, encumbrance, security interest, pledge, mortgage, charge,

 

2

 

other claim, contract, lease, license, indenture, agreement, commitment
or other legally binding arrangement to which it is a party or by which any of
its assets may be bound or (iii) result in any violation of any applicable
law, statute, rule or regulation or order of any governmental authority.  Except as already obtained, no material
consent, approval, license, permit, order or authorization of, or registration,
declaration or filing with, any federal, state, local or foreign governmental
authority is required in connection with the execution, delivery and
performance of this Agreement or the consummation of the transactions
contemplated hereby.

 

(c)         The
Purchaser represents and warrants that the Purchaser: (i)  is familiar
with the Corporation and its business prospects and (ii) has had an
opportunity to select and consult with such attorneys, business consultants and
any other person(s) the Purchaser has wished to confer with.  The Purchaser acknowledges that the
Corporation has made available to the Purchaser prior to the signing of this
Agreement and sale of any Common Stock, the opportunity to ask questions of any
person authorized to act on behalf of the Corporation concerning any aspect of
the investment and to obtain any additional information, to the extent the
Corporation possesses such information or can acquire it without unreasonable
effort or expense, necessary to verify the accuracy of the information.

 

(d)         The
Purchaser is an “accredited investor,” as such term is defined in Rule 501(a) of
Regulation D under the Securities Act.  
The Purchaser has substantial knowledge and experience in financial,
investment and business matters, and has the requisite knowledge and experience
to evaluate the risks and merits of this investment.  The decision of the Purchaser to purchase the
Shares hereunder has been made by the Purchaser independent of any statements,
disclosures or judgments as to the properties, business, prospects or condition
(financial or otherwise) of the Corporation that may have been made or given to
the Purchaser.  The Purchaser can and
will bear the economic risks of the Purchaser’s investment in the Corporation
and is able to hold the Corporation’s Common Stock indefinitely without
registration and is able to sustain a complete loss if the Shares become
worthless.

 

(e)         The
Purchaser is neither a U.S. person nor acquiring Shares for the account or
benefit of any U.S. person.

 

(f)          This
Agreement has been executed and delivered by the Purchaser outside the United
States.

 

(g)         (i) The
Shares being purchased hereunder have not been registered under the Securities
Act, (ii) such Shares are being sold pursuant an exemption under Section 4(2) of
the Securities Act or in reliance on Regulation S promulgated under the
Securities Act, and (iii) the Corporation’s reliance on such exemption  or Regulation S is predicated in part on the Purchaser’s
representations made pursuant to this Agreement.  The Purchaser has no contract, undertaking,
agreement or arrangement with any other person or entity to sell, transfer or
pledge any Common Stock that the Purchaser is purchasing hereunder, and the
Purchaser has no present plans or intentions to enter into any such contract,
undertaking, agreement or arrangement.

 

3

 

(h)         The
Purchaser acknowledges that the Shares of Common Stock have not been registered
or qualified for resale under applicable securities laws and may not be sold
except pursuant to such registration or qualification thereunder or an
exemption therefrom.

 

ARTICLE IV

REPRESENTATIONS
AND WARRANTIES OF THE CORPORATION

 

The Corporation hereby
represents and warrants to the Purchaser as follows:

 

(a)         The
Corporation has the legal capacity, power and authority to enter into and
perform all of its obligations under this Agreement.  The execution, delivery and performance of
this Agreement by the Corporation will not violate any other material agreement
to which the Corporation is a party.  This Agreement has been duly and validly
authorized, executed and delivered by the Corporation and constitutes a valid
and binding agreement of the Corporation, enforceable against the Corporation
in accordance with its terms, except that such enforceability (i) may be
limited by bankruptcy, insolvency, moratorium or other similar laws affecting
or relating to enforcement of creditors’ rights generally and (ii) s
subject to general principles of equity.

 

(b)         The
Shares, upon issuance against payment therefore hereunder, will be duly
authorized, validly issued, fully paid and non-assessable.

 

ARTICLE V

MISCELLANEOUS

 

SECTION 5.1.                      Governing Law. 
This Agreement shall be governed by and construed under the law of the
State of New York without regard to its choice of law provisions.

 

SECTION 5.2.                      Assignment. 
Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder shall be assignable by either the Corporation or Purchaser
without the other’s prior written consent, except that Purchaser (or
any successor assignee) may assign any or all of the foregoing in whole or in
part to one or more of its Affiliates.

 

SECTION 5.3.                      Binding Effect. 
The provisions of this Agreement shall be binding upon and accrue to the
benefit of the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns.

 

SECTION 5.4.                      Section and Other Headings; Interpretation. 
The section and other headings herein are for convenience of reference
only, do not constitute part of this Agreement and shall not be deemed to limit
or otherwise affect any of the provisions hereof.

 

SECTION 5.5.                      Counterparts. 
This Agreement may be executed in counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which
together shall be deemed to be one and the same agreement.

 

4

 

SECTION 5.6.                      Entire Agreement;
Waiver, Amendment.  This Agreement contains the
entire agreement of the parties with respect to the subject matter hereof and
supersedes any and all prior agreements, understandings or undertakings, written
or oral.  Neither this Agreement nor any
provision hereof shall be waived, amended, modified, changed, discharged or
terminated except by an instrument in writing, signed by the party against whom
any waiver, amendment, modification, change, discharge or termination is
sought.

 

 

[Signature
page follows.]

 

5

 

IN WITNESS WHEREOF, the parties hereto have executed
and delivered this Agreement as of the date first above written.

 

	
   

  	
  ALMA MARITIME LIMITED

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAAS CAPITAL INVESTMENTS B.V.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[Signature Page to Alma Maritime Limited Subscription
Agreement]

 

6

 

 

SUBSCRIPTION AGREEMENT

 

THIS SUBSCRIPTION AGREEMENT (this “Agreement”), dated as of March     ,
2010, is entered into by and between Alma Maritime Limited, a corporation
incorporated under the laws of the Republic of the Marshall Islands (the “Corporation”),
and MK Maritime LLC, a Delaware limited liability company (the “Purchaser”).

 

WHEREAS, the Corporation desires to issue and sell to
Purchaser, and Purchaser desires to subscribe for and purchase from the
Corporation, a number of shares of the Common Stock, par value $0.001 per
share, of the Corporation (“Common Stock”);

 

WHEREAS, the Corporation and Purchaser are executing and
delivering this Agreement in reliance upon an exemption from securities
registration afforded by the provisions of the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and the rules and regulations
promulgated by the U.S. Securities and Exchange Commission thereunder.

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants and obligations hereinafter
set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Corporation and Purchaser,
intending to be legally bound, hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

The following capitalized terms used in this Agreement
shall have the following respective meanings:

 

“Affiliate” means a
person that directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, another person.

 

“Common Stock” means the Common Stock, par
value $0.001 per share, of the Corporation.

 

“Consummation of the Initial Public Offering” following the
sale to the underwriters of the number of firm shares stated in the final
prospectus related to the Corporation’s initial public offering of Common Stock.

 

“Control” including the terms “controlling,” “controlled by” and
“under common control with,” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a
person, whether through the ownership of voting shares, by contract or
otherwise. A person who is the owner of 20% or more of the outstanding voting
shares of any corporation, partnership, unincorporated association or other
entity shall be presumed to have control of such entity, in the absence of
proof by a preponderance of the evidence to the contrary.  Notwithstanding the foregoing, a presumption
of control shall not apply where such person holds voting shares, in good faith
and not for the purpose of circumventing this provision, as an agent, bank,
broker, nominee, custodian or trustee for one or more owners who do not
individually or as a group have control of such entity.

 

 

“Purchase Price” means thirty-three  million three hundred and forty-seven thousand four hundred
and twenty U.S. Dollars ($33,347,420.00). 
Purchaser shall be entitled to receive credit towards the Purchase Price
for any cash advanced to the Corporation prior to consummation of the
transactions contemplated in Sections 2.1 and 2.2 hereof.

 

“Shares” means 1,667,371 shares of Common Stock
to be purchased by the Purchaser and issued by the Corporation in accordance
with the terms hereof.

 

ARTICLE II

PURCHASE AND SALE OF
SHARES

 

SECTION 2.1.                      Agreement to Sell and
Purchase the Shares.  Subject to the terms and
conditions hereof, the Corporation agrees to issue and sell to Purchaser, and the
Purchaser agrees to subscribe for and purchase from the Corporation, the Shares
in exchange for the Purchase Price paid by the Purchaser as set forth in Section 2.2
below.

 

SECTION 2.2.                      Payment for Issuance of
Shares.  The Purchaser shall
pay the Purchase Price for the Shares and the Corporation shall issue the Shares
to the Purchaser concurrently with the Consummation of the Initial Public
Offering.

 

SECTION 2.3.                      Registration Rights.  In
connection with the sale and purchase of the Shares, the Corporation has agreed
to grant the Purchaser certain registration rights with respect to Common Stock
held by the Purchaser and, concurrently with the execution and delivery of this
Agreement, the Corporation and the Purchaser together with certain other
purchasers of the Common Stock, are entering into a Registration Rights
Agreement for such purpose..

 

ARTICLE III

REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER

 

The Purchaser hereby
represents and warrants to the Corporation as follows:

 

(a)           The Purchaser has the legal capacity,
power and authority to enter into and perform all of its obligations under this
Agreement.  This Agreement has been duly
and validly authorized, executed and delivered by the Purchaser and constitutes
a valid and binding agreement of the Purchaser, enforceable against the
Purchaser in accordance with its terms, except that such enforceability (i) may
be limited by bankruptcy, insolvency, moratorium or other similar laws
affecting or relating to enforcement of creditors’ rights generally and (ii) is
subject to general principles of equity.

 

(b)           The execution, delivery and
performance by the Purchaser of this Agreement will not (with or without notice
or lapse of time, or both) (i) result in any violation of any provision of
its limited liability company agreement, bylaws or other organizational
documents, (ii) conflict with or constitute breach of, or default under ,
or result in the creation or imposition of any lien, encumbrance, security
interest, pledge, mortgage, charge, other claim, contract, lease, license,
indenture, agreement, commitment or other legally binding arrangement to which it
is a party or by which any of its assets may be bound or (iii) result in
any violation of any applicable law, statute, rule or regulation or order
of any governmental authority.  Except as
already obtained, no material consent, approval, license, permit, order or
authorization of, or registration, declaration or filing with, any federal,
state, local or foreign governmental authority

 

2

 

is required in connection with the execution, delivery
and performance of this Agreement or the consummation of the transactions
contemplated hereby.

 

(c)           The Purchaser represents and warrants
that the Purchaser: (i)  is familiar with the Corporation and its business
prospects and (ii) has had an opportunity to select and consult with such
attorneys, business consultants and any other person(s) the Purchaser has
wished to confer with.  The Purchaser
acknowledges that the Corporation has made available to the Purchaser prior to
the signing of this Agreement and sale of any Common Stock, the opportunity to
ask questions of any person authorized to act on behalf of the Corporation
concerning any aspect of the investment and to obtain any additional
information, to the extent the Corporation possesses such information or can
acquire it without unreasonable effort or expense, necessary to verify the
accuracy of the information.

 

(d)           The Purchaser is an “accredited
investor,” as such term is defined in Rule 501(a) of Regulation D
under the Securities Act.  The Purchaser
has substantial knowledge and experience in financial, investment and business
matters, and has the requisite knowledge and experience to evaluate the risks
and merits of this investment.  The
decision of the Purchaser to purchase the Shares hereunder has been made by the
Purchaser independent of any statements, disclosures or judgments as to the
properties, business, prospects or condition (financial or otherwise) of the
Corporation that may have been made or given to the Purchaser.  The Purchaser can and will bear the economic
risks of the Purchaser’s investment in the Corporation and is able to hold the
Corporation’s Common Stock indefinitely without registration and is able to
sustain a complete loss if the Shares become worthless.

 

(e)           The Purchaser recognizes that: (i) the
Shares being purchased hereunder have not been registered under the Securities
Act, (ii) such Shares are being sold pursuant an exemption under Section 4(2) of
the Securities Act, and (iii) the Corporation’s reliance on such exemption
is predicated in part on the Purchaser’s representations made pursuant to this
Agreement.  The Purchaser is acquiring
the Shares for its own account, for investment purposes only and has no
contract, undertaking, agreement or arrangement with any other person or entity
to sell, transfer or pledge any Shares that the Purchaser is purchasing
hereunder, and the Purchaser has no present plans or intentions to enter into
any such contract, undertaking, agreement or arrangement.

 

(f)            The Purchaser acknowledges and
agrees that the Shares and the other shares of Common Stock held by the
Purchaser have not been registered or qualified for resale under applicable
securities laws and may not be sold except pursuant to such registration or
qualification thereunder or an exemption therefrom.

 

ARTICLE IV

REPRESENTATIONS
AND WARRANTIES OF THE CORPORATION

 

The Corporation hereby
represents and warrants to the Purchaser as follows:

 

(a)           The Corporation has the legal
capacity, power and authority to enter into and perform all of its obligations
under this Agreement.  The execution, delivery
and performance of this Agreement by the Corporation will not violate any other
material agreement

 

3

 

to which the Corporation is a party.  This Agreement has been duly and validly
authorized, executed and delivered by the Corporation and constitutes a valid
and binding agreement of the Corporation, enforceable against the Corporation
in accordance with its terms, except that such enforceability (i) may be
limited by bankruptcy, insolvency, moratorium or other similar laws affecting
or relating to enforcement of creditors’ rights generally and (ii) s
subject to general principles of equity.

 

(b)           The Shares, upon issuance against
payment therefore hereunder, will be duly authorized, validly issued, fully paid
and non-assessable.

 

ARTICLE V

MISCELLANEOUS

 

SECTION 5.1.                      Governing Law. 
This Agreement shall be governed by and construed under the law of the
State of New York without regard to its choice of law provisions.

 

SECTION 5.2.                      Assignment. 
Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder shall be assignable by either the Corporation or Purchaser
without the other’s prior written consent, except that Purchaser (or any
successor assignee) may assign any or all of the foregoing in whole or in part
to one or more of its Affiliates.

 

SECTION 5.3.                      Binding Effect. 
The provisions of this Agreement shall be binding upon and accrue to the
benefit of the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns.

 

SECTION 5.4.                      Section and Other Headings; Interpretation. 
The section and other headings herein are for convenience of reference
only, do not constitute part of this Agreement and shall not be deemed to limit
or otherwise affect any of the provisions hereof.

 

SECTION 5.5.                      Counterparts. 
This Agreement may be executed in counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which
together shall be deemed to be one and the same agreement.

 

SECTION 5.6.                      Entire Agreement;
Waiver, Amendment.  This Agreement contains the
entire agreement of the parties with respect to the subject matter hereof and
supersedes any and all prior agreements, understandings or undertakings,
written or oral.  Neither this Agreement
nor any provision hereof shall be waived, amended, modified, changed,
discharged or terminated except by an instrument in writing, signed by the
party against whom any waiver, amendment, modification, change, discharge or
termination is sought.

 

[Signature
page follows]

 

4

 

IN WITNESS WHEREOF, the parties hereto have executed
and delivered this Agreement as of the date first above written.

 

	
   

  	
  ALMA MARITIME LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MK MARITIME LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[Signature Page to Alma — MK Maritime Subscription Agreement]

 

5ex10x1.htm

    Exhibit 10.1

    
 

    INVESTMENT
AGREEMENT

     

    THIS INVESTMENT AGREEMENT
(hereinafter referred to as the “Agreement”), dated as of March 22, 2010 by and
between

     

    Wind
Works Power Corp., a Nevada corporation (hereinafter referred to as the
"Company"),

     

     

    and

     

     

    Kodiak
Capital Group, LLC, a Delaware limited liability company (hereinafter referred
to as the "Investor").

     

    WHEREAS, the parties desire
that, upon the terms and subject to the conditions contained herein, the
Investor shall invest up to ten million dollars ($10,000,000) to purchase the
Company's Common Stock, at no par value per share (the "Common Stock");
and

     

    WHEREAS, such investments will
be made in reliance upon the provisions of Section 4(2) under the Securities Act
of 1933, as amended (the "1933 Act"), Rule 506 of Regulation D, and the rules
and regulations promulgated thereunder, and/or upon such other exemption from
the registration requirements of the 1933 Act as may be available with respect
to any or all of the investments in Common Stock to be made hereunder;
and

     

    WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the parties hereto are
executing and delivering a Registration Rights Agreement substantially in the
form attached hereto (the "Registration Rights Agreement") pursuant to which the
Company has agreed to provide certain registration rights under the 1933 Act,
and the rules and regulations promulgated thereunder, and applicable state
securities laws.

     

    NOW THEREFORE, in
consideration of the foregoing recitals, which shall be considered an integral
part of this Agreement, the covenants and agreements set forth hereafter, and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Company and the Investor hereby agree as
follows:

     

     

     

     

    1

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SECTION 1.
DEFINITIONS.

     

    As used
in this Agreement, the following terms shall have the following meanings
specified or indicated below, and such meanings shall be equally applicable to
the singular and plural forms of such defined terms.

    

    “1933
Act” shall have the meaning set forth in the preamble of this
agreement.

    

    “1934
Act” shall mean the Securities Exchange Act of 1934, as it may be
amended.

    

    “Affiliate”
shall have the meaning specified in Section 5(H), below.

     

    “Agreement”
shall mean this Investment Agreement.

    

    “Best
Bid”
shall mean the lowest bid price at closing of the Common Stock during a given
period of time.

    

    “By-laws”
shall have the meaning specified in Section 4(C).

    

    “Certificate
of Incorporation” shall have the meaning specified in Section
4(C).

    

    “Closing”
shall have the meaning specified in Section 2(G).

    

    “Closing
Date” shall mean no more than seven (7) Trading Days following the Put
Notice Date.

    

    “Common
Stock” shall have the meaning set forth in the preamble of this
Agreement.

    

    “Control”
or “Controls”
shall have the meaning specified in Section 5(H).

    

    “Effective
Date” shall mean the date the SEC declares effective under the 1933 Act
the Registration Statement covering the Securities.

    

    “Environmental
Laws” shall have the meaning specified in Section 4(M).

    

    “Equity
Line Transaction Documents” shall mean this Agreement, the Registration
Rights Agreement.

    

    “Execution
Date” shall mean the date indicated in the preamble to this
Agreement.

    

    “Indemnities”
shall have the meaning specified in Section 11.

    

    “Indemnified
Liabilities” shall have the meaning specified in Section 11.

     

     

    2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Ineffective
Period” shall mean any period of time that the Registration Statement or
any Supplemental Registration Statement (as defined in the Registration Rights
Agreement between the parties) becomes ineffective or unavailable for use for
the sale or resale, as applicable, of any or all of the Registrable Securities
(as defined in the Registration Rights Agreement) for any reason (or in the
event the prospectus under either of the above is not current and deliverable)
during any time period required under the Registration Rights
Agreement.

    

    “Investor”
shall have the meaning indicated in the preamble of this Agreement.

    

    “Material
Adverse Effect” shall have the meaning specified in Section
4(A).

    

    “Maximum
Common Stock Issuance” shall have the meaning specified in Section
2(H).

    

    “Open
Market Adjustment Amount” shall have the meaning specified in Section
2(I).

    

    "Open
Market Purchase" shall have the meaning specified in Section
2(I)

    

    “Open
Market Share Purchase” shall have the meaning specified in Section
2(I).

    

    “Open
Period” shall mean the period beginning on and including the Trading Day
immediately following the Effective Date and ending on the earlier to occur of
(i) the date which is
thirty-six months (36) months from the Effective Date; or (ii) termination of the
Agreement in accordance with Section 9, below.

    

    “Pricing
Period” shall mean the period beginning on the Put Notice Date and ending
on and including the date that is five (5) Trading Days after such Put Notice
Date.

    

    “Principal
Market” shall mean the American Stock Exchange, Inc., the National
Association of Securities Dealers, Inc. Over-the-Counter Bulletin Board, the
NASDAQ National Market System or the NASDAQ SmallCap Market, whichever is the
principal market on which the Common Stock is listed.

    

    “Prospectus”
shall mean the prospectus, preliminary prospectus and supplemental prospectus
used in connection with the Registration Statement.

    

    “Purchase
Amount” shall mean the total amount being paid by the Investor on a
particular Closing Date to purchase the Securities.

    

    “Purchase
Price” shall mean ninety-five percent (95%) of the lowest closing Best
Bid price of the Common Stock during the Pricing Period.

    

    “ Put ” shall have
the meaning set forth in Section 2(B)(1) hereof.  

     

     

    3

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Put
Amount” shall have the meaning set forth in Section 2(B)(1) hereof.
 

    

    “Put
Notice” shall mean a written notice sent to the Investor by the Company
stating the Put Amount in U.S. dollars the Company intends to sell to the
Investor pursuant to the terms of the Agreement and stating the current number
of Shares issued and outstanding on such date.

    

    “Put
Notice Date” shall mean the Trading Day, as set forth below, immediately
following the day on which the Investor receives a Put Notice, however a Put
Notice shall be deemed delivered on (a) the Trading Day it is
received by facsimile or otherwise by the Investor if such notice is received
prior to 9:00 am Eastern Time, or (b) the immediately succeeding
Trading Day if it is received by facsimile or otherwise after 9:00 am Eastern
Time on a Trading Day.  No Put Notice may be deemed delivered on a day that
is not a Trading Day.

    

    “Put
Restriction” shall mean the days between the beginning of the Pricing
Period and Closing Date.  During this time, the Company shall not be
entitled to deliver another Put Notice.

    

    “Put
Shares Due” shall have the meaning specified in Section
2(I).

    

    “Registration
Period” shall have the meaning specified in Section 5(C),
below.

    

    “Registration
Rights Agreement” shall have the meaning set forth in the recitals,
above.

    

    “Registration
Statement” means the registration statement of the Company filed under
the 1933 Act covering the Common Stock issuable hereunder.

    

    “Related
Party” shall have the meaning specified in Section 5(H).

    

    “Resolution”
shall have the meaning specified in Section 8(E).

    

    “SEC”
shall mean the U.S. Securities & Exchange Commission.

    

    “SEC
Documents” shall have the meaning specified in Section 4(F).

    

    “Securities”
shall mean the shares of Common Stock issued pursuant to the terms of the
Agreement.

    

    “Shares”
shall mean the shares of the Company’s Common Stock.

    

    “Subsidiaries”
shall have the meaning specified in Section 4(A).

     

     

    4

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Trading
Day” shall mean any day on which the Principal Market for the Common
Stock is open for trading, from the hours of 9:30 am until 4:00 pm.

     

    

     

     

    

     

    5

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SECTION 2. PURCHASE AND SALE
OF COMMON STOCK.

     

    (A) PURCHASE AND SALE OF COMMON
STOCK. Subject to the terms and conditions set forth herein, the Company
shall issue and sell to the Investor, and the Investor shall purchase from the
Company, up to that number of Shares having an aggregate Purchase Price of ten
million dollars ($10,000,000).

     

    (B) DELIVERY OF PUT
NOTICES. Subject to the terms and conditions of the Equity Line
Transaction Documents, and from time to time during the Open Period, the Company
may, in its sole discretion, deliver a Put Notice to the Investor which states
the dollar amount (designated in U.S. Dollars) (the "Put Amount"), which the
Company intends to sell to the Investor on a Closing Date (the "Put"). The Put
Notice shall be in the form attached hereto as Exhibit C and incorporated herein
by reference. The amount that the Company shall be entitled to Put to the
Investor (the "Put Amount") shall be equal to, at the Company's election,
either: (A) Two Hundred percent (200%) of the average daily volume (U.S. market
only) of the Common Stock for the Ten (10) Trading Days prior to the applicable
Put Notice Date, multiplied by the average of the three (3) daily closing bid
prices immediately preceding the Put Date, or (B) one million dollars
($1,000,000). During the Open Period, the Company shall not be entitled to
submit a Put Notice until after the previous Closing has been completed. The
Purchase Price for the Common Stock identified in the Put Notice shall be equal
to ninety-five (95%) of the lowest closing Best Bid price of the Common Stock
during the Pricing Period.

     

    (C) COMPANY’S RIGHT TO
WITHDRAWAL. The Company shall reserve the right, but not the obligation,
to withdraw that portion of the Put that is below the Minimum Acceptable Price,
by submitting to the Investor, in writing, a notice to cancel that portion of
the Put.  Any shares above the Minimum Acceptable price due to the Investor
shall be carried out by the Company under the terms of this
Agreement.

     

    (D) RESERVED; INTENTIONALLY
OMITTED.

     

    (E) CONDITIONS TO INVESTOR'S
OBLIGATION TO PURCHASE SHARES. Notwithstanding anything to the contrary
in this Agreement, the Company shall not be entitled to deliver a Put Notice and
the Investor shall not be obligated to purchase any Shares at a Closing (as
defined in Section 2(G)) unless each of the following conditions are
satisfied:

     

    (I) a
Registration Statement shall have been declared effective and shall remain
effective and available for the resale of all the Registrable Securities (as
defined in the Registration Rights Agreement) at all times until the Closing
with respect to the subject Put Notice;

     

     

     

    6

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (II) at
all times during the period beginning on the related Put Notice Date and ending
on and including the related Closing Date, the Common Stock shall have been
listed on the Principal Market and shall not have been suspended from trading
thereon for a period of two (2) consecutive Trading Days during the Open Period
and the Company shall not have been notified of any pending or threatened
proceeding or other action to suspend the trading of the Common
Stock;

     

    (III) the
Company has complied with its obligations and is otherwise not in breach of or
in default under, this Agreement, the Registration Rights Agreement or any other
agreement executed in connection herewith which has not been cured prior to
delivery of the Investor’s Put Notice Date;

     

    (IV) no
injunction shall have been issued and remain in force, or action commenced by a
governmental authority which has not been stayed or abandoned, prohibiting the
purchase or the issuance of the Securities; and

     

    (V) the
issuance of the Securities will not violate any shareholder approval
requirements of the Principal Market.

     

    If any of
the events described in clauses (I) through (V) above occurs during a Pricing
Period, then the Investor shall have no obligation to purchase the Put Amount of
Common Stock set forth in the applicable Put Notice.

     

    (F) RESERVED.

     

    (G) MECHANICS OF PURCHASE OF
SHARES BY INVESTOR. Subject to the satisfaction of the conditions set
forth in Sections 2(E), 7 and 8, the closing of the purchase by the Investor of
Shares (a "Closing") shall occur on the date which is no later than seven (7)
Trading Days following the applicable Put Notice Date (each a "Closing Date").
Prior to each Closing Date, (I) the Company shall deliver to the Investor
pursuant to this Agreement, certificates representing the Shares to be issued to
the Investor on such date and registered in the name of the Investor; and (II)
the Investor shall deliver to the Company the Purchase Price to be paid for such
Shares, determined as set forth in Section 2(B). In lieu of delivering physical
certificates representing the Securities and provided that the Company's
transfer agent then is participating in The Depository Trust Company ("DTC")
Fast Automated Securities Transfer ("FAST") program, upon request of the
Investor, the Company shall use all commercially reasonable efforts to cause its
transfer agent to electronically transmit the Securities by crediting the
account of the Investor's prime broker (as specified by the Investor within a
reasonably in advance of the Investor's notice) with DTC through its Deposit
Withdrawal Agent Commission ("DWAC") system.

     

     

    

     

    7

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
Company understands that a delay in the issuance of Securities beyond the
Closing Date could result in economic damage to the Investor. After the
Effective Date, as compensation to the Investor for such loss, the Company
agrees to make late payments to the Investor for late issuance of Securities
(delivery of Securities after the applicable Closing Date) in accordance with
the following schedule (where "No. of Days Late" is defined as the number of
trading days beyond the Closing Date, with the Amounts being
cumulative.):

     

    
      	      
              LATE
       PAYMENT  FOR  EACH

              NO.  OF  DAYS
     LATE

            	 $10,000 WORTH OF COMMON
   STOCK
	 1	 $100
	 2	 $200
	 3	 $300
	 4	 $400
	 5	 $500
	 6	 $600
	 7	 $700
	 8	 $800
	 9	 $900
	 10	 $1,000
	 Over
    10	
               
      $1,000  +  $200  for  each Business  

              Day
       late  beyond  10
   days

            

    

     

    The
Company shall make any payments incurred under this Section in immediately
available funds upon demand by the Investor. Nothing herein shall limit the
Investor's right to pursue actual damages for the Company's failure to issue and
deliver the Securities to the Investor, except that such late payments shall
offset any such actual damages incurred by the Investor, and any Open Market
Adjustment Amount, as set forth below.

     

     (H)
OVERALL LIMIT ON
COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the
contrary, if during the Open Period the Company becomes listed on an exchange
that limits the number of shares of Common Stock that may be issued without
shareholder approval, then the number of Shares issuable by the Company and
purchasable by the Investor, shall not exceed that number of the shares of
Common Stock that may be issuable without shareholder approval (the "Maximum
Common Stock Issuance").  If such issuance of shares of Common Stock could
cause a delisting on the Principal Market, then the Maximum Common Stock
Issuance shall first be approved by the Company's shareholders in accordance
with applicable law and the By-laws and Amended and Restated Certificate of
Incorporation of the Company, if such issuance of shares of Common Stock could
cause a delisting on the Principal Market. The parties understand and agree that
the Company's failure to seek or obtain such shareholder approval shall in no
way adversely affect the validity and due authorization of the issuance and sale
of Securities or the Investor's obligation in accordance with the terms and
conditions hereof to purchase a number of Shares in the aggregate up to the
Maximum Common Stock Issuance limitation, and that such approval pertains only
to the applicability of the Maximum Common Stock Issuance limitation provided in
this Section 2(H).

     

     

     

    8

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (I)
 ADDITIONAL
PENALTIES. If, by the third (3rd) business day after the Closing Date,
the Company fails to deliver any portion of the shares of the Put to the
Investor (the "Put Shares Due") and the Investor purchases, in an open market
transaction or otherwise, shares of Common Stock necessary to make delivery of
shares which would have been delivered if the full amount of the shares to be
delivered to the Investor by the Company (the "Open Market Share Purchase") ,
then the Company shall pay to the Investor, in addition to any other amounts due
to Investor pursuant to the Put, and not in lieu thereof, the Open Market
Adjustment Amount (as defined below).  The "Open Market Adjustment Amount"
is the amount equal to the excess, if any, of (x) the Investor's total purchase
price (including brokerage commissions, if any) for the Open Market Share
Purchase minus (y) the net proceeds (after brokerage commissions, if any)
received by the Investor from the sale of the Put Shares Due.  The Company
shall pay the Open Market Adjustment Amount to the Investor in immediately
available funds within five (5) business days of written demand by the Investor.
 By way of illustration and not in limitation of the foregoing, if the
Investor purchases shares of Common Stock having a total purchase price
(including brokerage commissions) of $11,000 to cover an Open Market Purchase
with respect to shares of Common Stock it sold for net proceeds of $10,000, the
Open Market Purchase Adjustment Amount which the Company will be required to pay
to the Investor will be $1,000.

     

     

     

     

    9

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SECTION 3. INVESTOR'S
REPRESENTATIONS, WARRANTIES AND COVENANTS.

     

    The
Investor represents and warrants to the Company, and covenants,
that:

     

    (A) SOPHISTICATED
INVESTOR. The Investor has, by reason of its business and financial
experience, such knowledge, sophistication and experience in financial and
business matters and in making investment decisions of this type that it is
capable of (I) evaluating the merits and risks of an investment in the
Securities and making an informed investment decision; (II) protecting its own
interest; and (III) bearing the economic risk of such investment for an
indefinite period of time.

     

    (B) AUTHORIZATION;
ENFORCEMENT. This Agreement has been duly and validly authorized,
executed and delivered on behalf of the Investor and is a valid and binding
agreement of the Investor enforceable against the Investor in accordance with
its terms, subject as to enforceability to general principles of equity and to
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and
other similar laws relating to, or affecting generally, the enforcement of
applicable creditors' rights and remedies.

     

    (C) SECTION 9 OF THE 1934
ACT. During the term of this Agreement, the Investor will comply with the
provisions of Section 9 of the 1934 Act, and the rules promulgated thereunder,
with respect to transactions involving the Common Stock. The Investor agrees not
to sell the Company's stock short, either directly or indirectly through its
affiliates, principals or advisors, the Company's common stock during the term
of this Agreement.

     

    (D) ACCREDITED INVESTOR.
Investor is an "Accredited Investor" as that term is defined in Rule 501(a) of
Regulation D of the 1933 Act.

     

    (E) NO CONFLICTS. The
execution, delivery and performance of the Transaction Documents by the Investor
and the consummation by the Investor of the transactions contemplated hereby and
thereby will not result in a violation of Limited Liability Company Operating
Agreement or other organizational documents of the Investor.

     

    (F) OPPORTUNITY TO
DISCUSS. The Investor has received all materials relating to the
Company's business, finance and operations which it has requested. The Investor
has had an opportunity to discuss the business, management and financial affairs
of the Company with the Company's management.

     

     

    

     

    10

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (G) INVESTMENT PURPOSES.
The Investor is purchasing the Securities for its own account for investment
purposes and not with a view towards distribution and agrees to resell or
otherwise dispose of the Securities solely in accordance with the registration
provisions of the 1933 Act (or pursuant to an exemption from such registration
provisions).

     

    (H) NO REGISTRATION AS A
DEALER. The Investor is not and will not be required to be registered as
a "dealer" under the 1934 Act, either as a result of its execution and
performance of its obligations under this Agreement or otherwise.

     

    (I)
 GOOD
STANDING.  The Investor is a Limited Liability Company, duly
organized, validly existing and in good standing in the State of
Delaware.

     

    (J)
 TAX
LIABILITIES.  The Investor understands that it is liable for its own
tax liabilities.

     

    (K) REGULATION M.
 The Investor will comply with Regulation M under the 1934 Act, if
applicable.  

     

     

     

     

    

     

    11

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SECTION 4. REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

     

    Except as
set forth in the Schedules attached hereto, or as disclosed on the Company's SEC
Documents, the Company represents and warrants to the Investor
that:

     

    (A) ORGANIZATION AND
QUALIFICATION. The Company is a corporation duly organized and validly
existing in good standing under the laws of the State of Nevada, USA and has the
requisite corporate power and authorization to own its properties and to carry
on its business as now being conducted. Both the Company and the companies it
owns or controls (“Subsidiaries”) are duly qualified to do business and are in
good standing in every jurisdiction in which its ownership of property or the
nature of the business conducted by it makes such qualification necessary,
except to the extent that the failure to be so qualified or be in good standing
would not have a Material Adverse Effect. As used in this Agreement, "Material
Adverse Effect" means any material adverse effect on the business, properties,
assets, operations, results of operations, financial condition or prospects of
the Company and its Subsidiaries, if any, taken as a whole, or on the
transactions contemplated hereby or by the agreements and instruments to be
entered into in connection herewith, or on the authority or ability of the
Company to perform its obligations under the Equity Line Transaction Documents
(as defined in Section 1 and 4(B), below).  

     

    (B) AUTHORIZATION; ENFORCEMENT;
COMPLIANCE WITH OTHER INSTRUMENTS.

     

    (I) The
Company has the requisite corporate power and authority to enter into and
perform this Investment Agreement and the Registration Rights Agreement
(collectively, the "Equity Line Transaction Documents"), and to issue the
Securities in accordance with the terms hereof and thereof.

     

    (II) The
execution and delivery of the Equity Line Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby,
including without limitation the reservation for issuance and the issuance of
the Securities pursuant to this Agreement, have been duly and validly authorized
by the Company's Board of Directors and no further consent or authorization is
required by the Company, its Board of Directors, or its
shareholders.

     

    (III) The
Equity Line Transaction Documents have been duly and validly executed and
delivered by the Company.

     

    (IV) The
Equity Line Transaction Documents constitute the valid and binding obligations
of the Company enforceable against the Company in accordance with their terms,
except as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors'
rights and remedies.

     

     

    

     

    12

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (C) CAPITALIZATION. As of
the date hereof, the authorized capital stock of the Company consists of
200,000,000 shares of Common Stock with no par value per share, of which as of
the date hereof, 27,049,046 shares are issued and
outstanding.

     

    Except as
disclosed in the Company's publicly available filings with the SEC:

     

    
      	
              (I)  

            	
              No
      shares of the Company's capital stock are subject to preemptive rights or
      any other similar rights or any liens or encumbrances suffered or
      permitted by the Company;

            

    

     

    
      	
              (II)  

            	
              There
      are no outstanding debt securities;

            

    

     

    
      	
              (III)  

            	
              There
      are no outstanding shares of capital stock, options, warrants, scrip,
      rights to subscribe to, calls or commitments of any character whatsoever
      relating to, or securities or rights convertible into, any shares of
      capital stock of the Company or any of its Subsidiaries, or contracts,
      commitments, understandings or arrangements by which the Company or any of
      its Subsidiaries is or may become bound to issue additional shares of
      capital stock of the Company or any of its Subsidiaries or options,
      warrants, scrip, rights to subscribe to, calls or commitments of any
      character whatsoever relating to, or securities or rights convertible
      into, any shares of capital stock of the Company or any of its
      Subsidiaries;

            

    

     

    
      	
              (IV)  

            	
              There
      are no agreements or arrangements under which the Company or any of its
      Subsidiaries is obligated to register the sale of any of their securities
      under the 1933 Act (except the Registration Rights
    Agreement);

            

    

     

    
      	
              (V)  

            	
              There
      are no outstanding securities of the Company or any of its Subsidiaries
      which contain any redemption or similar provisions, and there are no
      contracts, commitments, understandings or arrangements by which the
      Company or any of its Subsidiaries is or may become bound to redeem a
      security of the Company or any of its
  Subsidiaries;

            

    

     

    
      	
              (VI)  

            	
              There
      are no securities or instruments containing anti-dilution or similar
      provisions that will be triggered by the issuance of the Securities as
      described in this Agreement; (VII) the Company does not have any stock
      appreciation rights or "phantom stock" plans or agreements or any similar
      plan or agreement; and (VIII) there is no dispute as to the classification
      of any shares of the Company's capital
stock.

            

    

     

    The
Company has furnished to the Investor, or the Investor has had access through
EDGAR to, true and correct copies of the Company's Amended and Restated
Certificate of Incorporation, as in effect on the date hereof (the "Certificate
of Incorporation"), and the Company's By-laws, as in effect on the date hereof
(the "By-laws"), and the terms of all securities convertible into or exercisable
for Common Stock and the material rights of the holders thereof in respect
thereto.

     

     

    13

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (D) ISSUANCE OF SHARES.
The Company has reserved 10,000,000  Shares for issuance pursuant to
this Agreement, which have been duly authorized and reserved those Shares for
issuance (subject to adjustment pursuant to the Company's covenant set forth in
Section 5(F) below) pursuant to this Agreement. Upon issuance in accordance with
this Agreement, the Securities will be validly issued, fully paid for and
non-assessable and free from all taxes, liens and charges with respect to the
issue thereof. In the event the Company cannot register a sufficient number of
Shares for issuance pursuant to this Agreement, the Company will use its best
efforts to authorize and reserve for issuance the number of Shares required for
the Company to perform its obligations hereunder as soon as reasonably
practicable.

     

    (E) NO CONFLICTS. The
execution, delivery and performance of the Equity Line Transaction Documents by
the Company and the consummation by the Company of the transactions contemplated
hereby and thereby will not: (I) result in a violation of the Certificate of
Incorporation, any Certificate of Designations, Preferences and Rights of any
outstanding series of preferred stock of the Company or the By-laws; or (II)
conflict with, or constitute a material default (or an event which with notice
or lapse of time or both would become a material default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of,
any material agreement, contract, indenture mortgage, indebtedness or instrument
to which the Company or any of its Subsidiaries is a party, or to the Company's
knowledge result in a violation of any law, rule, regulation, order, judgment or
decree (including United States federal and state securities laws and
regulations and the rules and regulations of the Principal Market or principal
securities exchange or trading market on which the Common Stock is traded or
listed) applicable to the Company or any of its Subsidiaries or by which any
property or asset of the Company or any of its Subsidiaries is bound or
affected. Except as disclosed in Schedule 4(e), neither the Company nor its
Subsidiaries is in violation of any term of, or in default under, the
Certificate of Incorporation, any Certificate of Designations, Preferences and
Rights of any outstanding series of preferred stock of the Company or the
By-laws or their organizational charter or by-laws, respectively, or any
contract, agreement, mortgage, indebtedness, indenture, instrument, judgment,
decree or order or any statute, rule or regulation applicable to the Company or
its Subsidiaries, except for possible conflicts, defaults, terminations,
amendments, accelerations, cancellations and violations that would not
individually or in the aggregate have or constitute a Material Adverse Effect.
The business of the Company and its Subsidiaries is not being conducted, and
shall not be conducted, in violation of any law, statute, ordinance, rule, order
or regulation of any governmental authority or agency, regulatory or
self-regulatory agency, or court, except for possible violations the sanctions
for which either individually or in the aggregate would not have a Material
Adverse Effect. Except as specifically contemplated by this Agreement and as
required under the 1933 Act or any securities laws of any states, to the
Company's knowledge, the Company is not required to obtain any consent,
authorization, permit or order of, or make any filing or registration (except
the filing of a registration statement as outlined in the Registration Rights
Agreement between the Parties) with, any court, governmental authority or
agency, regulatory or self-regulatory agency or other third party in order for
it to execute, deliver or perform any of its obligations under, or contemplated
by, the Equity Line Transaction Documents in accordance with the terms hereof or
thereof. All consents, authorizations, permits, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof and are
in full force and effect as of the date hereof. Except as disclosed in Schedule
4(e), the Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing. The Company is not, and will not
be, in violation of the listing requirements of the Principal Market as in
effect on the date hereof and on each of the Closing Dates and is not aware of
any facts which would reasonably lead to delisting of the Common Stock by the
Principal Market in the foreseeable future.  

     

     

    

    14

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (F) SEC
DOCUMENTS; FINANCIAL STATEMENTS. As of the date hereof, the Company has
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 1934
Act (all of the foregoing filed prior to the date hereof and all exhibits
included therein and financial statements and schedules thereto and documents
incorporated by reference therein being hereinafter referred to as the "SEC
Documents"). The Company has delivered to the Investor or its representatives,
or they have had access through EDGAR to, true and complete copies of the SEC
Documents. As of their respective filing dates, the SEC Documents complied in
all material respects with the requirements of the 1934 Act and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading. 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
generally accepted accounting principles, by a firm that is a member of the
Public Companies Accounting Oversight Board ("PCAOB") consistently applied,
during the periods involved (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 exclude footnotes or may be condensed
or summary statements) and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments). No other written
information provided by or on behalf of the Company to the Investor which is not
included in the SEC Documents, including, without limitation, information
referred to in Section 4(D) of this Agreement, contains any untrue statement of
a material fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstance under which they are or
were made, not misleading. Neither the Company nor any of its Subsidiaries or
any of their officers, directors, employees or agents have provided the Investor
with any material, nonpublic information which was not publicly disclosed prior
to the date hereof and any material, nonpublic information provided to the
Investor by the Company or its Subsidiaries or any of their officers, directors,
employees or agents prior to any Closing Date shall be publicly disclosed by the
Company prior to such Closing Date.

     

     

    

     

    15

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (G) ABSENCE
OF CERTAIN CHANGES. Except as otherwise set forth in the SEC Documents,
the Company does not intend to change the business operations of the Company in
any material way. The Company has not taken any steps, and does not currently
expect to take any steps, to seek protection pursuant to any bankruptcy law nor
does the Company or its Subsidiaries have any knowledge or reason to believe
that its creditors intend to initiate involuntary bankruptcy proceedings.
 

     

    (H) ABSENCE
OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in the
SEC Documents, there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board, government agency, self-regulatory
organization or body pending or, to the knowledge of the executive officers of
Company or any of its Subsidiaries, threatened against or affecting the Company,
the Common Stock or any of the Company's Subsidiaries or any of the Company's or
the Company's Subsidiaries' officers or directors in their capacities as such,
in which an adverse decision could have a Material Adverse Effect.

     

    (I) ACKNOWLEDGMENT
REGARDING INVESTOR'S PURCHASE OF SHARES. The Company acknowledges and
agrees that the Investor is acting solely in the capacity of an arm's length
purchaser with respect to the Transaction Documents and the transactions
contemplated hereby and thereby. The Company further acknowledges that the
Investor is not acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Equity Line Transaction Documents and
the transactions contemplated hereby and thereby and any advice given by the
Investor or any of its respective representatives or agents in connection with
the Equity Line Transaction Documents and the transactions contemplated hereby
and thereby is merely incidental to the Investor's purchase of the Securities,
and is not being relied on by the Company. The Company further represents to the
Investor that the Company's decision to enter into the Equity Line Transaction
Documents has been based solely on the independent evaluation by the Company and
its representatives.

     

    (J) NO
UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as
set forth in the SEC Documents, as of the date hereof, no event, liability,
development or circumstance has occurred or exists, or to the Company's
knowledge is contemplated to occur, with respect to the Company or its
Subsidiaries or their respective business, properties, assets, prospects,
operations or financial condition, that would be required to be disclosed by the
Company under applicable securities laws on a registration statement filed with
the SEC relating to an issuance and sale by the Company of its Common Stock and
which has not been publicly announced.

     

     

    

    16

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (K) EMPLOYEE
RELATIONS. Neither the Company nor any of its Subsidiaries is involved in
any union labor dispute nor, to the knowledge of the Company or any of its
Subsidiaries, is any such dispute threatened. Neither the Company nor any of its
Subsidiaries is a party to a collective bargaining agreement, and the Company
and its Subsidiaries believe that relations with their employees are good. No
executive officer (as defined in Rule 501(f) of the 1933 Act) has notified the
Company that such officer intends to leave the Company's employ or otherwise
terminate such officer's employment with the Company.  

     

    (L) INTELLECTUAL
PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate
rights or licenses to use all trademarks, trade names, service marks, service
mark registrations, service names, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and
rights necessary to conduct their respective businesses as now conducted. Except
as set forth in the SEC Documents, none of the Company's trademarks, trade
names, service marks, service mark registrations, service names, patents, patent
rights, copyrights, inventions, licenses, approvals, government authorizations,
trade secrets or other intellectual property rights necessary to conduct its
business as now or as proposed to be conducted have expired or terminated, or
are expected to expire or terminate within two (2) years from the date of this
Agreement. The Company and its Subsidiaries do not have any knowledge of any
infringement by the Company or its Subsidiaries of trademark, trade name rights,
patents, patent rights, copyrights, inventions, licenses, service names, service
marks, service mark registrations, trade secret or other similar rights of
others, or of any such development of similar or identical trade secrets or
technical information by others and, except as set forth in the SEC Documents,
there is no claim, action or proceeding being made or brought against, or to the
Company's knowledge, being threatened against, the Company or its Subsidiaries
regarding trademark, trade name, patents, patent rights, invention, copyright,
license, service names, service marks, service mark registrations, trade secret
or other infringement; and the Company and its Subsidiaries are unaware of any
facts or circumstances which might give rise to any of the foregoing. The
Company and its Subsidiaries have taken commercially reasonable security
measures to protect the secrecy, confidentiality and value of all of their
intellectual properties.

     

    (M) ENVIRONMENTAL
LAWS. The Company and its Subsidiaries (I) are, to the knowledge of the
management and directors of the Company and its Subsidiaries, in compliance with
any and all applicable foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or
hazardous or toxic substances or wastes, pollutants or contaminants
("Environmental Laws"); (II) have, to the knowledge of the management and
directors of the Company, received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct their respective
businesses; and (III) are in compliance, to the knowledge of the
 management and directors of the Company, with all terms and conditions of
any such permit, license or approval where, in each of the three (3) foregoing
cases, the failure to so comply would have, individually or in the aggregate, a
Material Adverse Effect.

     

     

     

    17

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (N) TITLE.
The Company and its Subsidiaries have good and marketable title to all personal
property owned by them which is material to the business of the Company and its
Subsidiaries, in each case free and clear of all liens, encumbrances and defects
except such as are described in the SEC Documents or such as do not materially
affect the value of such property and do not interfere with the use made and
proposed to be made of such property by the Company or any of its Subsidiaries.
Any real property and facilities held under lease by the Company or any of its
Subsidiaries are held by them under valid, subsisting and enforceable leases
with such exceptions as are not material and do not interfere with the use made
and proposed to be made of such property and buildings by the Company and its
Subsidiaries. 

     

    (O) INSURANCE.
Each of the Company's Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as
management of the Company reasonably believes to be prudent and customary in the
businesses in which the Company and its Subsidiaries are engaged. Neither the
Company nor any of its Subsidiaries has been refused any insurance coverage
sought or applied for and neither the Company nor its Subsidiaries has any
reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that
would not have a Material Adverse Effect.

     

    (P)
REGULATORY PERMITS. The Company and its Subsidiaries have in full force
and effect all certificates, approvals, authorizations and permits from the
appropriate federal, state, local or foreign regulatory authorities and
comparable foreign regulatory agencies, necessary to own, lease or operate their
respective properties and assets and conduct their respective businesses, and
neither the Company nor any such Subsidiary has received any notice of
proceedings relating to the revocation or modification of any such certificate,
approval, authorization or permit, except for such certificates, approvals,
authorizations or permits which if not obtained, or such revocations or
modifications which, would not have a Material Adverse Effect.

     

    (Q) INTERNAL
ACCOUNTING CONTROLS. The Company and each of its Subsidiaries maintain a
system of internal accounting controls sufficient to provide reasonable
assurance that (I) transactions are executed in accordance with management's
general or specific authorizations; (II) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally
accepted accounting principles by a firm with membership to the PCAOB and to
maintain asset accountability; (III) access to assets is permitted only in
accordance with management's general or specific authorization; and (IV) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

     

     

     

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    (R) NO
MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its
Subsidiaries is subject to any charter, corporate or other legal restriction, or
any judgment, decree, order, rule or regulation which in the judgment of the
Company's officers has or is expected in the future to have a Material Adverse
Effect. Neither the Company nor any of its Subsidiaries is a party to any
contract or agreement which in the judgment of the Company's officers has or is
expected to have a Material Adverse Effect.  

     

    (S) TAX
STATUS. The Company and each of its Subsidiaries has made or filed all
United States federal and state income and all other tax returns, reports and
declarations required by any jurisdiction to which it is subject (unless and
only to the extent that the Company and each of its Subsidiaries has set aside
on its books provisions reasonably adequate for the payment of all unpaid and
unreported taxes) and has paid all taxes and other governmental assessments and
charges that are material in amount, shown or determined to be due on such
returns, reports and declarations, except those being contested in good faith
and has set aside on its books provision reasonably adequate for the payment of
all taxes for periods subsequent to the periods to which such returns, reports
or declarations apply. There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the
Company know of no basis for any such claim.

     

    (T) CERTAIN
TRANSACTIONS. Except as set forth in the SEC Documents filed at least ten
(10) days prior to the date hereof and except for arm's length transactions
pursuant to which the Company makes payments in the ordinary course of business
upon terms no less favorable than the Company could obtain from disinterested
third parties and other than the grant of stock options disclosed in the SEC
Documents, none of the officers, directors, or employees of the Company is
presently a party to any transaction with the Company or any of its Subsidiaries
(other than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from,
or otherwise requiring payments to or from any officer, director or such
employee or, to the knowledge of the Company, any corporation, partnership,
trust or other entity in which any officer, director, or any such employee has a
substantial interest or is an officer, director, trustee or
partner.

     

     

     

     

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    (U) DILUTIVE
EFFECT. The Company understands and acknowledges that the number of
shares of Common Stock issuable upon purchases pursuant to this Agreement will
increase in certain circumstances including, but not necessarily limited to, the
circumstance wherein the trading price of the Common Stock declines during the
period between the Effective Date and the end of the Open Period. The Company's
executive officers and directors have studied and fully understand the nature of
the transactions contemplated by this Agreement and recognize that they have a
potential dilutive effect on the shareholders of the Company. The Board of
Directors of the Company has concluded, in its good faith business judgment, and
with full understanding of the implications, that such issuance is in the best
interests of the Company. The Company specifically acknowledges that, subject to
such limitations as are expressly set forth in the Equity Line Transaction
Documents, its obligation to issue shares of Common Stock upon purchases
pursuant to this Agreement is absolute and unconditional regardless of the
dilutive effect that such issuance may have on the ownership interests of other
shareholders of the Company.  

     

    (V) LOCK-UP.
The Company shall cause its officers, insiders, directors, and affiliates or
other related parties under control of the Company, to refrain from buying
and/or selling Common Stock during each Pricing Period.

     

    (W) NO
GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor
any person acting on its behalf, has engaged in any form of general solicitation
or general advertising (within the meaning of Regulation D) in connection with
the offer or sale of the Common Stock to be offered as set forth in this
Agreement.

     

    (X) NO
BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS.  No
brokers, finders or financial advisory fees or commissions will be payable by
the Company, its agents or Subsidiaries, with respect to the transactions
contemplated by this Agreement, except as otherwise disclosed in this
Agreement.

     

     

     

     

     

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    SECTION 5. COVENANTS OF THE
COMPANY

     

    (A) BEST
EFFORTS. The Company shall use all commercially reasonable efforts to
timely satisfy each of the conditions set forth in Section 7 of this
Agreement.

     

    (B) BLUE
SKY. The Company shall, at its sole cost and expense, on or before each
of the Closing Dates, take such action as the Company shall reasonably determine
is necessary to qualify the Securities for, or obtain exemption for the
Securities for, sale to the Investor at each of the Closings pursuant to this
Agreement under applicable securities or "Blue Sky" laws of such states of the
United States, as reasonably specified by the Investor, and shall provide
evidence of any such action so taken to the Investor on or prior to the Closing
Date.

     

    (C) REPORTING
STATUS. Until one of the following occurs, the Company shall file all
reports required to be filed with the SEC pursuant to the 1934 Act, and the
Company shall not terminate its status, or take an action or fail to take any
action, which would terminate its status as a reporting company under the 1934
Act: (i) this Agreement terminates pursuant to Section 9 and the Investor has
the right to sell all of the Securities without restrictions pursuant to Rule
144(k) promulgated under the 1933 Act, or such other exemption (ii) the date on
which the Investor has sold all the Securities and this Agreement has been
terminated pursuant to Section 9.

     

    (D) USE OF
PROCEEDS. The Company will use the proceeds from the sale of the Shares
(excluding amounts paid by the Company for fees as set forth in the Equity Line
Transaction Documents) for general corporate and working capital purposes and
acquisitions or assets, businesses or operations or for other purposes that the
Board of Directors, in its good faith deem to be in the best interest of the
Company.  

     

    (E) FINANCIAL
INFORMATION. During the Open Period, the Company agrees to make available
to the Investor via EDGAR or other electronic means the following documents and
information on the forms set forth: (I) within five (5) Trading Days after the
filing thereof with the SEC, a copy of its Annual Reports on Form 10-KSB, its
Quarterly Reports on Form 10-QSB, any Current Reports on Form 8-K and any
Registration Statements or amendments filed pursuant to the 1933 Act; (II)
copies of any notices and other information made available or given to the
shareholders of the Company generally, contemporaneously with the making
available or giving thereof to the shareholders; and (III) within two (2)
calendar days of filing or delivery thereof, copies of all documents filed with,
and all correspondence sent to, the Principal Market, any securities exchange or
market, or the National Association of Securities Dealers, Inc., unless such
information is material nonpublic information.

     

     

    

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    (F)
RESERVATION OF SHARES. The Company shall take all action necessary to at
all times have authorized, and reserved for the purpose of issuance, a
sufficient number of shares of Common Stock to provide for the issuance of the
Securities to the Investor as required hereunder. In the event that the Company
determines that it does not have a sufficient number of authorized shares of
Common Stock to reserve and keep available for issuance as described in this
Section 5(F), the Company shall use all commercially reasonable efforts to
increase the number of authorized shares of Common Stock by seeking shareholder
approval for the authorization of such additional shares.

     

    (G)
LISTING. The Company shall promptly secure and maintain the listing of
all of the Registrable Securities (as defined in the Registration Rights
Agreement) on the Principal Market and each other national securities exchange
and automated quotation system, if any, upon which shares of Common Stock are
then listed (subject to official notice of issuance) and shall maintain, such
listing of all Registrable Securities from time to time issuable under the terms
of the Equity Line Transaction Documents. Neither the Company nor any of its
Subsidiaries shall take any action which would be reasonably expected to result
in the delisting or suspension of the Common Stock on the Principal Market
(excluding suspensions of not more than one (1) trading day resulting from
business announcements by the Company). The Company shall promptly provide to
the Investor copies of any notices it receives from the Principal Market
regarding the continued eligibility of the Common Stock for listing on such
automated quotation system or securities exchange. The Company shall pay all
fees and expenses in connection with satisfying its obligations under this
Section 5(G).

     

    (H) TRANSACTIONS
WITH AFFILIATES. The Company shall not, and shall cause each of its
Subsidiaries not to, enter into, amend, modify or supplement, or permit any
Subsidiary to enter into, amend, modify or supplement, any agreement,
transaction, commitment or arrangement with any of its or any Subsidiary's
officers, directors, persons who were officers or directors at any time during
the previous two (2) years, shareholders who beneficially own 5% or more of the
Common Stock, or Affiliates or with any individual related by blood, marriage or
adoption to any such individual or with any entity in which any such entity or
individual owns a 5% or more beneficial interest (each a "Related Party"),
except for (I) customary employment arrangements and benefit programs on
reasonable terms, (II) any agreement, transaction, commitment or arrangement on
an arms-length basis on terms no less favorable than terms which would have been
obtainable from a disinterested third party other than such Related Party, or
(III) any agreement, transaction, commitment or arrangement which is approved by
a majority of the disinterested directors of the Company. For purposes hereof,
any director who is also an officer of the Company or any Subsidiary of the
Company shall not be a disinterested director with respect to any such
agreement, transaction, commitment or arrangement. "Affiliate" for purposes
hereof means, with respect to any person or entity, another person or entity
that, directly or indirectly, (I) has a 5% or more equity interest in that
person or entity, (II) has 5% or more common ownership with that person or
entity, (III) controls that person or entity, or (IV) is under common control
with that person or entity. "Control" or "Controls" for purposes hereof means
that a person or entity has the power, directly or indirectly, to conduct or
govern the policies of another person or entity.

     

     

    

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    (I) FILING OF
FORM 8-K. On or before the date which is four (4) Trading Days after the
Execution Date, the Company shall file a Current Report on Form 8-K with the SEC
describing the terms of the transaction contemplated by the Equity Line
Transaction Documents in the form required by the 1934 Act, if such filing is
required.

     

    (J) CORPORATE
EXISTENCE. The Company shall use all commercially reasonable efforts to
preserve and continue the corporate existence of the Company.

     

    (K) NOTICE
OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A
PUT. The Company shall promptly notify the Investor upon the occurrence
of any of the following events in respect of a Registration Statement or related
prospectus in respect of an offering of the Securities: (I) receipt of any
request for additional information by the SEC or any other federal or state
governmental authority during the period of effectiveness of the Registration
Statement for amendments or supplements to the Registration Statement or related
prospectus; (II) the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of any
Registration Statement or the initiation of any proceedings for that purpose;
 (III) receipt of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Securities for sale
in any jurisdiction or the initiation or notice of any proceeding for such
purpose; (IV) the happening of any event that makes any statement made in such
Registration Statement or related prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration Statement, related
prospectus or documents so that, in the case of a Registration Statement, it
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the related prospectus, it will
not contain any untrue statement of a material fact or omit to state any
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 (V) the Company's reasonable determination that a post-effective
amendment to the Registration Statement would be appropriate, and the Company
shall promptly make available to Investor any such supplement or amendment to
the related prospectus. The Company shall not deliver to Investor any Put Notice
during the continuation of any of the foregoing events in this Section 5(K).
 

     

     

     

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    (L)
 REIMBURSEMENT.
 If (I) the Investor becomes involved in any capacity in any action,
proceeding or investigation brought by any shareholder of the Company, in
connection with or as a result of the consummation of the transactions
contemplated by the Equity Line Transaction Documents, or if the Investor is
impleaded in any such action, proceeding or investigation by any person (other
than as a result of a breach of the Investor’s representations and warranties
set forth in this Agreement); or (II) the Investor becomes involved in any
capacity in any action, proceeding or investigation brought by the SEC against
or involving the Company or in connection with or as a result of the
consummation of the transactions contemplated by the Equity Line Transaction
Documents (other than as a result of a breach of the Investor’s representations
and warranties set forth in this Agreement), or if this Investor is impleaded in
any such action, proceeding or investigation by any person, then in any such
case, the Company will reimburse the Investor for its reasonable legal and other
expenses (including the cost of any investigation and preparation) incurred in
connection therewith, as such expenses are incurred. In addition, other than
with respect to any matter in which the Investor is a named party, the Company
will pay to the Investor the charges, as reasonably determined by the Investor,
for the time of any officers or employees of the Investor devoted to appearing
and preparing to appear as witnesses, assisting in preparation for hearings,
trials or pretrial matters, or otherwise with respect to inquiries, hearing,
trials, and other proceedings relating to the subject matter of this Agreement.
The reimbursement obligations of the Company under this section shall be in
addition to any liability which the Company may otherwise have, shall extend
upon the same terms and conditions to any affiliates of the Investor that are
actually named in such action, proceeding or investigation, and partners,
directors, agents, employees, attorneys, accountants, auditors and controlling
persons (if any), as the case may be, of Investor and any such affiliate, and
shall be binding upon and inure to the benefit of any successors of the Company,
the Investor and any such affiliate and any such person.

    

    (M) TRANSFER
AGENT.  Upon effectiveness of the Registration Statement, and for so
long as the Registration Statement is effective,  the Company shall deliver
instructions to its transfer agent to issue Shares to the Investor that are
covered for resale by the Registration Statement free of restrictive
legends.

    

    (N) ACKNOWLEDGEMENT
OF TERMS.  The Company hereby represents and warrants to the
Investor that: (i) it is voluntarily entering into this Agreement of its own
freewill, (ii) it is not entering this Agreement under economic duress, (iii)
the terms of this Agreement are reasonable and fair to the Company, and (iv) the
Company has had independent legal counsel of its own choosing review this
Agreement, advise the Company with respect to this Agreement, and represent the
Company in connection with this Agreement.

     

     

     

     

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    SECTION 6. RESERVED;
INTENTIONALLY OMITTED

     

     

     

     

     

     

     

     

     

     

     

     

     

    
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    SECTION 7. CONDITIONS OF THE
COMPANY'S OBLIGATION TO SELL.

     

    The
obligation hereunder of the Company to issue and sell the Securities to the
Investor is further subject to the satisfaction, at or before each Closing Date,
of each of the following conditions set forth below. These conditions are for
the Company's sole benefit and may be waived by the Company at any time in its
sole discretion.

     

    (A) The
Investor shall have executed this Agreement and the Registration Rights
Agreement and delivered the same to the Company.

     

    (B) The
Investor shall have delivered to the Company the Purchase Price for the
Securities being purchased by the Investor between the end of the Pricing Period
and the Closing Date via a Put Settlement Sheet (hereto attached as Exhibit D).
After receipt of confirmation of delivery of such Securities to the Investor,
the Investor, by wire transfer of immediately available funds pursuant to the
wire instructions provided by the Company will disburse the funds constituting
the Purchase Amount.

     

    (C) No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of any of
the transactions contemplated by this Agreement.

     

     

     

     

     

     

     

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    SECTION 8. FURTHER
CONDITIONS OF THE INVESTOR'S OBLIGATION TO PURCHASE.

     

    The
obligation of the Investor hereunder to purchase Shares is subject to the
satisfaction, on or before each Closing Date, of each of the following
conditions set forth below.

     

    (A) The
Company shall have executed the Equity Line Transaction Documents and delivered
the same to the Investor.

     

    (B) The
Common Stock shall be authorized for quotation on the Principal Market and
trading in the Common Stock shall not have been suspended by the Principal
Market or the SEC, at any time beginning on the date hereof and through and
including the respective Closing Date (excluding suspensions of not more than
one (1) Trading Day resulting from business announcements by the Company,
provided that such suspensions occur prior to the Company's delivery of the Put
Notice related to such Closing).

     

    (C) The
representations and warranties of the Company shall be true and correct as of
the date when made and as of the applicable Closing Date as though made at that
time and the Company shall have performed, satisfied and complied with the
covenants, agreements and conditions required by the Equity Line Transaction
Documents to be performed, satisfied or complied with by the Company on or
before such Closing Date. The Investor may request an update as of such Closing
Date regarding the representation contained in Section 4(C) above.

     

    (D) The
Company shall have executed and delivered to the Investor the certificates
representing, or have executed electronic book-entry transfer of, the Securities
(in such denominations as the Investor shall request) being purchased by the
Investor at such Closing.

     

    (E) The
Board of Directors of the Company shall have adopted resolutions consistent with
Section 4(B)(II) above (the "Resolutions") and such Resolutions shall not have
been amended or rescinded prior to such Closing Date.

     

    (F)
Reserved

     

    (G) No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of any of
the transactions contemplated by this Agreement.

     

     

    

     

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    (H) The
Registration Statement shall be effective on each Closing Date and no stop order
suspending the effectiveness of the Registration statement shall be in effect or
to the Company's knowledge shall be pending or threatened. Furthermore, on each
Closing Date (I) neither the Company nor the Investor shall have received notice
that the SEC has issued or intends to issue a stop order with respect to such
Registration Statement or that the SEC otherwise has suspended or withdrawn the
effectiveness of such Registration Statement, either temporarily or permanently,
or intends or has threatened to do so (unless the SEC's concerns have been
addressed and Investor is reasonably satisfied that the SEC no longer is
considering or intends to take such action), and (II) no other suspension of the
use or withdrawal of the effectiveness of such Registration Statement or related
prospectus shall exist.  

     

    (I) At
the time of each Closing, the Registration Statement (including information or
documents incorporated by reference therein) and any amendments or supplements
thereto shall not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading or which would require public disclosure or an
update supplement to the prospectus.

    

    (J) If
applicable, the shareholders of the Company shall have approved the issuance of
any Shares in excess of the Maximum Common Stock Issuance in accordance with
Section 2(H) or the Company shall have obtained appropriate approval pursuant to
the requirements of British Columbia, Canada law and the Company’s Articles of
Incorporation and By-laws.

    

    (K) The
conditions to such Closing set forth in Section 2(E) shall have been satisfied
on or before such Closing Date.

    

    (L)
 The Company shall have certified to the Investor the number of Shares of
Common Stock outstanding when a Put Notice is given to the Investor.  The
Company's delivery of a Put Notice to the Investor constitutes the Company's
certification of the existence of the necessary number of shares of Common Stock
reserved for issuance.

     

     

     

     

     

     

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    SECTION
9. TERMINATION.

     

    
      	
              A.  

            	
              This
      Agreement shall terminate upon any of the following
  events:

            

    

     

    
      	
              (I)  

            	
                    when
      the Investor has purchased an aggregate of ten million dollars
      ($10,000,000) in the Common Stock of the Company pursuant to this
      Agreement; or,

            

    

     

    
      	
              (II)  

            	
                   on
      the date which is thirty-six (36) months after the Effective Date;
      or,

            

    

     

    
      	
              (III)  

            	
              upon
      written notice of the Company to the Investor.  Any and all shares,
      or penalties, if any, due under this Agreement shall be immediately
      payable and due upon termination of the
Line.

            

    

     

    
      	
              B.  

            	
              This
      Agreement may terminate upon any of the following
  events:

            

    

     

    
      	
              (I)  

            	
              Termination for
      Default. In the event that either party commits a material breach
      of its obligations hereunder, the other party may, at its option,
      terminate this Agreement by written notice of termination specifying such
      material breach; provided, however, that if such default is subject to
      cure, then such notice shall be subject to a twenty (20) day cure
      period from the date thereof, and if the defaulting party cures such
      default prior to expiration of such period, termination shall not take
      place.

            

    

     

    
      	
              (II)  

            	
              Termination for
      Insolvency. Either party hereto may, at its option, upon five
      (5) days written notice, terminate this Agreement should the other
      party hereto (i) admit in writing its inability to pay its debts
      generally as they become due; (ii) make a general assignment for the
      benefit of creditors; (iii) institute proceedings to be adjudicated a
      voluntary bankrupt, or consent to the filing of a petition of bankruptcy
      against it; (iv) be adjudicated by a court of competent jurisdiction
      as being bankrupt or insolvent; (v) seek reorganization under any
      bankruptcy act, or consent to the filing of a petition seeking such
      reorganization, or (vi) have a decree entered against it by a court
      of competent jurisdiction appointing a receiver, liquidator, trustee or
      assignee in bankruptcy or in insolvency covering all or substantially all
      of such party’s property or providing for the liquidation of such party’s
      property or business affairs.

            

    

     

     

     

     

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              C.  

            	
              Survival of
      Termination. The obligations of the parties under this Agreement
      that by their nature would continue beyond expiration, termination or
      cancellation of this Agreement (including, without limitation, the
      warranties, indemnification obligations, confidentiality requirements and
      ownership and property rights) shall survive any such expiration,
      termination or cancellation.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

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    SECTION 10.
 SUSPENSION

    

    This
Agreement shall be suspended upon any of the following events, and shall remain
suspended until such event is rectified:

    

     (I)
 the trading of the Common Stock is suspended by the SEC, the Principal
Market or the NASD for a period of two (2) consecutive Trading Days during the
Open Period; or,

    

    (II) The
Common Stock ceases to be registered under the 1934 Act or listed or traded on
the Principal Market.  Immediately upon the occurrence of one of the
above-described events, the Company shall send written notice of such event to
the Investor.

     

     

     

     

     

     

     

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    SECTION
11. INDEMNIFICATION.

     

    In
consideration of the parties mutual obligations set forth in the Transaction
Documents, each of the parties (in such capacity, an "Indemnitor") shall defend,
protect, indemnify and hold harmless the other and all of the other party's
shareholders, officers, directors, employees, counsel, and direct or indirect
investors and any of the foregoing person's agents or other representatives
(including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the "Indemnitees")
from and against any and all actions, causes of action, suits, claims, losses,
costs, penalties, fees, liabilities and damages, and reasonable expenses in
connection therewith (irrespective of whether any such Indemnitee is a party to
the action for which indemnification hereunder is sought), and including
reasonable attorneys' fees and disbursements (the "Indemnified Liabilities"),
incurred by any Indemnitee as a result of, or arising out of, or relating to (I)
any misrepresentation or breach of any representation or warranty made by the
Indemnitor or any other certificate, instrument or document contemplated hereby
or thereby; (II) any breach of any covenant, agreement or obligation of the
Indemnitor contained in the Equity Line Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby; or (III) any
cause of action, suit or claim brought or made against such Indemnitee by a
third party and arising out of or resulting from the execution, delivery,
performance or enforcement of the Equity Line Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby, except
insofar as any such misrepresentation, breach or any untrue statement, alleged
untrue statement, omission or alleged omission is made in reliance upon and in
conformity with information furnished to Indemnitor which is specifically
intended for use in the preparation of any such Registration Statement,
preliminary prospectus, prospectus or amendments to the prospectus. To the
extent that the foregoing undertaking by the Indemnitor may be unenforceable for
any reason, the Indemnitor shall make the maximum contribution to the payment
and satisfaction of each of the Indemnified Liabilities which is permissible
under applicable law. The indemnity provisions contained herein shall be in
addition to any cause of action or similar rights Indemnitor may have, and any
liabilities the Indemnitor or the Indemnitees may be subject to.

     

     

     

     

     

     

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    SECTION 12. GOVERNING LAW;
DISPUTES SUBMITTED TO ARBITRATION.

     

    (A)
ARBITRATION CLAUSE. All disputes arising under this agreement shall be governed
by and interpreted in accordance with the laws of New York, without regard to
principles of conflict of laws.  The parties to this agreement will submit
all disputes arising under this agreement to arbitration in New York City, New
York before a single arbitrator of the American Arbitration Association (“AAA”).
 The arbitrator shall be selected by application of the rules of the AAA,
or by mutual agreement of the parties, except that such arbitrator shall be an
attorney admitted to practice law New York.  No party to this agreement
will challenge the jurisdiction or venue provisions as provided in this section.
 No party to this agreement will challenge the jurisdiction or venue
provisions as provided in this section.  Nothing contained herein shall
prevent the party from obtaining an injunction. 

     

    (B) LEGAL
FEES; AND MISCELLANEOUS FEES. Except as otherwise set forth in the Equity Line
Transaction Documents, each party shall pay the fees and expenses of its
advisers, counsel, the accountants and other experts, if any, and all other
expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. Any attorneys' fees and
expenses incurred by either the Company or the Investor in connection with the
preparation, negotiation, execution and delivery of any amendments to this
Agreement or relating to the enforcement of the rights of any party, after the
occurrence of any breach of the terms of this Agreement by another party or any
default by another party in respect of the transactions contemplated hereunder,
shall be paid on demand by the party which breached the Agreement and/or
defaulted, as the case may be. The Company shall pay all stamp and other taxes
and duties levied in connection with the issuance of any
Securities.

     

    (C)
COUNTERPARTS. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and
delivered to the other party; provided that a facsimile signature shall be
considered due execution and shall be binding upon the signatory thereto with
the same force and effect as if the signature were an original
signature.

     

    (D)
HEADINGS; SINGULAR/PLURAL. The headings of this Agreement are for convenience of
reference and shall not form part of, or affect the interpretation of, this
Agreement. Whenever required by the context of this Agreement, the singular
shall include the plural and masculine shall include the feminine.

     

    (E)
SEVERABILITY. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction.

     

     

    

    33

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (F)
ENTIRE AGREEMENT; AMENDMENTS. This Agreement is the FINAL AGREEMENT between the
Company and the Investor with respect to the terms and conditions set forth
herein, and, the terms of this Agreement may not be contradicted by evidence of
prior, contemporaneous, or subsequent oral agreements of the Parties.  No
provision of this Agreement may be amended other than by an instrument in
writing signed by the Company and the Investor, and no provision hereof may be
waived other than by an instrument in writing signed by the party against whom
enforcement is sought. The execution and delivery of the Equity Line Transaction
Documents shall not alter the force and effect of any other agreements between
the Parties, and the obligations under those agreements. 

     

    (G)
NOTICES. Any notices or other communications required or permitted to be given
under the terms of this Agreement must be in writing and will be deemed to have
been delivered (I) upon receipt, when delivered personally; (II) upon receipt,
when sent by facsimile (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party); or (III) one
(1) day after deposit with a nationally recognized overnight delivery service,
in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be:

     

    

    If
to the Company:

    

    Wind
Works Power Corp.

    346
Waverley Street

    Ottawa

    Ontario

    Canada

    K2P
0W5

    

    

    If
to the Investor:

    

    Kodiak
Capital Group, LLC

    One
Columbus Place

    25th
Floor

    New York,
NY 10019

    212.262.2600
Telephone

    212.262.2601
Facsimile

     

    Each
party shall provide five (5) days prior written notice to the other party of any
change in address or facsimile number.

     

     

    34

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    (H) NO
ASSIGNMENT. This Agreement may not be assigned.

     

    (I) NO
THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the
parties hereto and is not for the benefit of, nor may any provision hereof be
enforced by, any other person, except that the Company acknowledges that the
rights of the Investor may be enforced by its general partner.

     

    

    (J)
SURVIVAL. The representations and warranties of the Company and the Investor
contained in Sections 2 and 3, the agreements and covenants set forth in
Sections 4 and 5, and the indemnification provisions set forth in Section 11,
shall survive each of the Closings and the termination of this Agreement.
 

     

    (K)
PUBLICITY. The Company and the Investor shall consult with each other in issuing
any press releases or otherwise making public statements with respect to the
transactions contemplated hereby and no party shall issue any such press release
or otherwise make any such public statement without the prior consent of the
other party, which consent shall not be unreasonably withheld or delayed, except
that no prior consent shall be required if such disclosure is required by law,
in which such case the disclosing party shall provide the other party with prior
notice of such public statement. Notwithstanding the foregoing, the Company
shall not publicly disclose the name of the Investor without the prior consent
of the Investor, except to the extent required by law. The Investor acknowledges
that this Agreement and all or part of the Equity Line Transaction Documents may
be deemed to be "material contracts" as that term is defined by Item 601(b)(10)
of Regulation S-B, and that the Company may therefore be required to file such
documents as exhibits to reports or registration statements filed under the 1933
Act or the 1934 Act.  The Investor further agrees that the status of such
documents and materials as material contracts shall be determined solely by the
Company, in consultation with its counsel.

     

    (L)
FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

     

    (M)
COMMITMENT FEES; OTHER FEES RELATED TO THE TRANSACTION. The Company agrees to a
Commitment Fee equal to two comma five percent (2,5%) of the Facility Amount,
whereby the total Commitment Fee of $250,000 is payable half on the first
draw-down and the balance on the earlier of the second draw-down or six months
from the execution of the Term Sheet (December 19,2009).  The Company
shall be solely responsible for all commissions, fees, and / or transaction
costs associated and / or related to, in any way, with the transaction and / or
transactions herein contemplated and or agreed to under this
Agreement.

    

     

    

    35

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

     

    (N) NO
STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent, and no rules
of strict construction will be applied against any party, as the parties
mutually agree that each has had a full and fair opportunity to review this
Agreement and seek the advice of counsel on it.  The normal rule that
ambiguities shall be interpreted against the drafting party shall not apply in
the instant case.

     

    (O)
REMEDIES. The Investor shall have all rights and remedies set forth in this
Agreement and the Registration Rights Agreement and all rights and remedies
which such holders have been granted at any time under any other agreement or
contract and all of the rights which the Investor has by law. Any person having
any rights under any provision of this Agreement shall be entitled to enforce
such rights specifically (without posting a bond or other security), to recover
damages by reason of any default or breach of any provision of this Agreement,
including the recovery of reasonable attorneys fees and costs, and to exercise
all other rights granted by law.

     

    (P)
PAYMENT SET ASIDE. To the extent that the Company makes a payment or payments to
the Investor hereunder or under the Registration Rights Agreement or the
Investor enforces or exercises its rights hereunder or thereunder, and such
payment or payments or the proceeds of such enforcement or exercise or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid
or otherwise restored to the Company, a trustee, receiver or any other person
under any law (including, without limitation, any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the extent of any
such restoration the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not
occurred.

     

    (Q)
PRICING OF COMMON STOCK. For purposes of this Agreement, the bid price of the
Common Stock shall be as reported on Bloomberg.

     

     

    

     

     

    36

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION 13. NON-DISCLOSURE
OF NON-PUBLIC INFORMATION.

     

    (a) The
Company shall not disclose non-public information to the Investor, its advisors,
or its representatives.

     

    (b)
Nothing herein shall require the Company to disclose non-public information to
the Investor or its advisors or representatives, and the Company represents that
it does not disseminate non-public information to any investors who purchase
stock in the Company in a public offering, to money managers or to securities
analysts, provided, however, that notwithstanding anything herein to the
contrary, the Company will, as hereinabove provided, immediately notify the
advisors and representatives of the Investor and, if any, underwriters, of any
event or the existence of any circumstance (without any obligation to disclose
the specific event or circumstance) of which it becomes aware, constituting
non-public information (whether or not requested of the Company specifically or
generally during the course of due diligence by such persons or entities),
which, if not disclosed in the prospectus included in the Registration Statement
would cause such prospectus to include a material misstatement or to omit a
material fact required to be stated therein in order to make the statements,
therein, in light of the circumstances in which they were made, not misleading.
Nothing contained in this Section 13 shall be construed to mean that such
persons or entities other than the Investor (without the written consent of the
Investor prior to disclosure of such information) may not obtain non-public
information in the course of conducting due diligence in accordance with the
terms of this Agreement and nothing herein shall prevent any such persons or
entities from notifying the Company of their opinion that based on such due
diligence by such persons or entities, that the Registration Statement contains
an untrue statement of material fact or omits a material fact required to be
stated in the Registration Statement or necessary to make the statements
contained therein, in light of the circumstances in which they were made, not
misleading.  

     

     

     

     

     

     

    37

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE 14 ACKNOWLEDGEMENTS
OF THE PARTIES.

     

    Notwithstanding
anything in this Agreement to the contrary, the parties hereto hereby
acknowledge and agree to the following:

     

    
      	
              (i)  

            	
              the
      Investor makes no representations or covenants that it will not engage in
      trading in the securities of the Company, other than the Investor will not
      sell short the Company's common stock at any time during this
      Agreement;

            

    

     

    
      	
              (ii)  

            	
              the
      Company shall, by 8:30 a.m. Eastern US Time on the trading day following
      the date hereof, file a current report on Form 8-K disclosing the material
      terms of the transactions contemplated hereby and in the other Equity Line
      Transaction Documents;

            

    

     

    
      	
              (iii)  

            	
              the
      Company has not and shall not provide material non-public information to
      the Investor unless prior thereto the Investor shall have executed a
      written agreement regarding the confidentiality and use of such
      information; and

            

    

     

    
      	
              (iv)  

            	
               the
      Company understands and confirms that the Investor will be relying on the
      acknowledgements set forth in clauses (i) through (iii) above if the
      Investor effects any transactions in the securities of the Company.
       

            

    

     

     

     

     

     

     

    38

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SIGNATURE PAGE OF INVESTMENT
AGREEMENT

     

    Your
signature on this Signature Page evidences your agreement to be bound by the
terms and conditions of the Investment Agreement and the Registration Rights
Agreement as of the date first written above.

     

    The
undersigned signatory hereby certifies that he has read and understands the
Investment Agreement, and the representations made by the undersigned in this
Investment Agreement are true and accurate, and agrees to be bound by its
terms.

     

    

    KODIAK
CAPITAL GROUP, LLC

    

    

    By: 
/s/ Ryan
Hodson            

           
Ryan C. Hodson, Managing Director

    

    

    WIND
WORKS POWER CORP.

    

    

    By: /s/ Ingo
Stuckmann        

         
  Ingo Stuckmann
- CEO

    

     

     

     

     

     

    39

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LIST OF
EXHIBITS

     

     

    

    
      	 
      
	
              EXHIBIT
       A
                    Registration
       Rights  Agreement

               

              EXHIBIT
       B
                    Opinion
       of  Company's  Counsel

               

              EXHIBIT
       C
                    Put
       Notice

               

              EXHIBIT
       D
                    Put
       Settlement  Sheet

            

    

    

     

     

     

     

     

     

     

     

    40

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    

    FORM OF
NOTICE OF EFFECTIVENESS

    OF
REGISTRATION STATEMENT

    Date:
__________

    [TRANSFER
AGENT]

    

    Re:

    ___________________

    

    Ladies
and Gentlemen:

    

    We are
counsel to _________________, a ___________corporation (the "Company"), and have
represented the Company in connection with that certain Investment Agreement
(the "Investment Agreement") entered into by and among the Company and
_________________________ (the "Investor") pursuant to which the Company has
agreed to issue to the Investor shares of the Company's common stock, without
par value per share (the "Common Stock") on the terms and conditions set forth
in the Investment Agreement. Pursuant to the Investment Agreement, the Company
also has entered into a Registration Rights Agreement with the Investor (the
"Registration Rights Agreement") pursuant to which the Company agreed, among
other things, to register the Registrable Securities (as defined in the
Registration Rights Agreement), including the shares of Common Stock issued or
issuable under the Investment Agreement under the Securities Act of 1933, as
amended (the "1933 Act"). In connection with the Company's obligations under the
Registration Rights Agreement, on _________, 2010 the Company filed a
Registration Statement on Form S- ___ (File No. 333-________) (the "Registration
Statement") with the Securities and Exchange Commission (the "SEC") relating to
the Registrable Securities which names the Investor as a selling shareholder
thereunder.

    

    In
connection with the foregoing, we advise you that [ a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective ] [the Registration
Statement has become effective] under the 1933 Act at [enter the time of
effectiveness] on [enter the date of
effectiveness] and to the best of our knowledge, after telephonic inquiry
of a member of the SEC’s staff, no stop order suspending its effectiveness has
been issued and no proceedings for that purpose are pending before, or
threatened by, the SEC and the Registrable Securities are available for resale
under the 1933 Act pursuant to the Registration Statement.

    

    Very
truly yours,

    

    [Company
Counsel]

    

    

    

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    

     

     

    Date:

     

    RE: Put
Notice Number __

     

    Dear Mr.
Hodson,

     

    This is
to inform you that as of today, ___________., a ___________corporation (the
"Company"), hereby elects to exercise its right pursuant to the Investment
Agreement to require Kodiak Capital Group, LLC to purchase shares of its common
stock. The Company hereby certifies that:

     

    The
amount of this put is $__________.

     

    The
Pricing Period runs from ________ until _______.

     

    The
current number of shares issued and outstanding as of the Company
are:

     

    The
number of shares currently available for issuance on the S-1 for the Equity Line
are:

     

    _________________________

     

    

    Regards,

    

    

    _____________

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
D

    

    PUT
SETTLEMENT SHEET

     

    Date:

     

    Dear Mr.
_________,

     

    Pursuant
to the Put given by ____________________________ ______to Kodiak Capital Group,
LLC. on _________________ 2010 we are now submitting the amount of common shares
for you to issue to Kodiak.

     

    Please
have a certificate bearing no restrictive legend totaling __________ shares
issued to Kodiak Capital Group, LLC. immediately and send via DWAC to the
following account:

     

    Ridge
Clearing and Outsourcing

     

    DTC#
0158

     

    Account#
29880161115

     

    If not
DWAC eligible, please send FedEx Priority Overnight to:

     

    Kodiak
Capital Group, LLC

     

    One
Columbus Place

    25th
Floor

    New
York, NY 10019

     

    Once
these shares are received by us, we will have the funds wired to the
Company.

     

    Regards,

     

     

    Ryan C.
Hodson

     

    
      	 	 
      
	 	
              DATE.
      . . . . . . . . . . . . .  . . . . . . . . . .
       PRICE

               

              Date
      of Day 1 . . . . . . . . . . . . . . . .  Closing Bid of Day
      1

              Date
      of Day 2 . . . . . . . . . . . . . . . .  Closing Bid of Day
      2

              Date
      of Day 3 . . . . . . . . . . . . . . . .  Closing Bid of Day
      3

              Date
      of Day 4 . . . . . . . . . . . . . . . .  Closing Bid of Day
      4

              Date
      of Day 5 . . . . . . . . . . . . . . . .  Closing Bid of Day
      5

               

              LOWEST
      1 (ONE) CLOSING BID IN PRICING PERIOD    ------------

               

              PUT
      AMOUNT   ------------

               

              AMOUNT
      WIRED TO COMPANY ------------

               

              PURCHASE
      PRICE (95)% (NINETY-FIVE PERCENT))    ------------

               

              AMOUNT
      OF SHARES DUE   ------------

            

    

     

    The
undersigned has completed this Put as of this ___th day of _________,
2010.

     

    ________________

    

    ______________________________

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    

    LIST OF
SCHEDULES

    

     

    SCHEDULE
4(a) SUBSIDIARIES

    

     

    SCHEDULE
4(c) CAPITALIZATION

    

    

    SCHEDULE
4(e) CONFLICTS

    

    

    SCHEDULE
4(g) MATERIAL CHANGES

    

    

    SCHEDULE
4(h) LITIGATION

    

    

    SCHEDULE
4(l) INTELLECTUAL PROPERTY

    

    

    SCHEDULE
4(n) LIENS

    

    

    SCHEDULE
4(t) CERTAIN TRANSACTIONS

     

     
 

     

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

     

    SCHEDULE
4(a) SUBSIDIARIES

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
4(c) CAPITALIZATION

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
4(e) CONFLICTS

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
4(g) MATERIAL CHANGES

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
4(h) LITIGATION

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
4(l) INTELLECTUAL PROPERTY

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
4(n) LIENS

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
4(t) CERTAIN TRANSACTIONS

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