Document:

REGISTRATION
        RIGHTS AGREEMENT

       

      REGISTRATION
        RIGHTS AGREEMENT (this “Agreement”),
        dated
        as of February 28, 2008, by and among Sew Cal Logo, Inc., a Nevada corporation
        with its headquarters located at 207 W. 138th
        Street,
        Los Angeles, CA 90061 (the “Company”),
        and
        each of the undersigned (together with their respective affiliates and any
        assignee or transferee of all of their respective rights hereunder, the
“Initial
        Investors”).
        

       

      WHEREAS:

       

      A. In
        connection with the Securities Purchase Agreement by and among the parties
        hereto of even date herewith (the “Securities Purchase Agreement”), the Company
        has agreed, upon the terms and subject to the conditions contained therein,
        to
        issue and sell to the Initial Investors (i) secured convertible notes in
        the aggregate principal amount of up to Three Hundred Fifty Thousand Dollars
        ($350,000) (the “Notes”) that are convertible into shares of the Company’s
        common stock (the “Common Stock”), upon the terms and subject to the limitations
        and conditions set forth in such Notes and (ii) warrants (the “Warrants”)
        to acquire an aggregate of 10,000,000 shares of Common Stock, upon the terms
        and
        conditions and subject to the limitations and conditions set forth in the
        Warrants; and

       

      B. To
        induce
        the Initial Investors to execute and deliver the Securities Purchase Agreement,
        the Company has agreed to provide certain registration rights under the
        Securities Act of 1933, as amended, and the rules and regulations thereunder,
        or
        any similar successor statute (collectively, the “1933
        Act”),
        and
        applicable state securities laws;

       

      NOW,
        THEREFORE,
        in
        consideration of the premises and the mutual covenants contained herein and
        other good and valuable consideration, the receipt and sufficiency of which
        are
        hereby acknowledged, the Company and each of the Initial Investors hereby
        agree
        as follows:

       

      1. DEFINITIONS.

       

      a. As
        used
        in this Agreement, the following terms shall have the following
        meanings:

       

      (i) “Investors”
means
        the Initial Investors and any transferee or assignee who agrees to become
        bound
        by the provisions of this Agreement in accordance with Section 9
        hereof.

       

      (ii) “register,”
        “registered,”
and
        “registration”
refer
        to a registration effected by preparing and filing a Registration Statement
        or
        Statements in compliance with the 1933 Act and pursuant to Rule 415 under
        the
        1933 Act or any successor rule providing for offering securities on a continuous
        basis (“Rule
        415”),
        and
        the declaration or ordering of effectiveness of such Registration Statement
        by
        the United States Securities and Exchange Commission (the “SEC”).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (iii) “Registrable
        Securities”
means
        the Conversion Shares issued or issuable upon conversion or otherwise pursuant
        to the Notes including, without limitation, Damages Shares (as defined in
        the
        Notes) issued or issuable pursuant to the Notes, shares of Common Stock issued
        or issuable in payment of the Standard Liquidated Damages Amount (as defined
        in
        the Securities Purchase Agreement), shares issued or issuable in respect
        of
        interest or in redemption of the Notes in accordance with the terms thereof)
        and
        any shares of capital stock issued or issuable as a dividend on or in exchange
        for or otherwise with respect to any of the foregoing.

       

      (iv) “Registration
        Statement”
means
        a
        registration statement of the Company under the 1933 Act.

       

      b. Capitalized
        terms used herein and not otherwise defined herein shall have the respective
        meanings set forth in the Securities Purchase Agreement or the Convertible
        Note.

       

      2. REGISTRATION.

       

      a. Mandatory
        Registration.
        The
        Company shall prepare, and, on or prior to thirty (30) days from the date
        of
        Closing (as defined in the Securities Purchase Agreement) (the “Filing
        Date”),
        file
        with the SEC a Registration Statement on Form S-3 (or, if Form S-3 is not
        then
        available, on such form of Registration Statement as is then available to
        effect
        a registration of the Registrable Securities, subject to the consent of the
        Initial Investors, which consent will not be unreasonably withheld) covering
        the
        resale of the Registrable Securities underlying the Notes and Warrants issued
        or
        issuable pursuant to the Securities Purchase Agreement, which Registration
        Statement, to the extent allowable under the 1933 Act and the rules and
        regulations promulgated thereunder (including Rule 416), shall state that
        such
        Registration Statement also covers such indeterminate number of additional
        shares of Common Stock as may become issuable upon conversion of or otherwise
        pursuant to the Notes and exercise of the Warrants to prevent dilution resulting
        from stock splits, stock dividends or similar transactions. The number of
        shares
        of Common Stock initially included in such Registration Statement shall be
        no
        less than an amount equal to the sum of the number of Conversion Shares that
        are
        then issuable upon conversion of the Notes (based on the Variable Conversion
        Price as would then be in effect and assuming the Variable Conversion Price
        is
        the Conversion Price at such time), without regard to any limitation on the
        Investor’s ability to convert the Notes. The Company acknowledges that the
        number of shares initially included in the Registration Statement represents
        a
        good faith estimate of the maximum number of shares issuable upon conversion
        of
        the Notes. 

       

      b. Underwritten
        Offering.
        If any
        offering pursuant to a Registration Statement pursuant to Section 2(a) hereof
        involves an underwritten offering, the Investors who hold a majority in interest
        of the Registrable Securities subject to such underwritten offering, with
        the
        consent of a majority-in-interest of the Initial Investors, shall have the
        right
        to select one legal counsel and an investment banker or bankers and manager
        or
        managers to administer the offering, which investment banker or bankers or
        manager or managers shall be reasonably satisfactory to the
        Company.

       

      
        
           

        

        
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      c. Payments
        by the Company.
        The
        Company shall use its best efforts to obtain effectiveness of the Registration
        Statement as soon as practicable. If (i) the Registration Statement(s)
        covering the Registrable Securities required to be filed by the Company pursuant
        to Section 2(a) hereof is not filed by the Filing Date or declared effective
        by
        the SEC on or prior to ninety (90) days from the date of Closing (as defined
        in
        the Securities Purchase Agreement), or (ii) after the Registration
        Statement has been declared effective by the SEC, sales of all of the
        Registrable Securities cannot be made pursuant to the Registration Statement,
        or
        (iii) the Common Stock is not listed or included for quotation on the
        Nasdaq National Market (“Nasdaq”),
        the
        Nasdaq SmallCap Market (“Nasdaq
        SmallCap”),
        the
        New York Stock Exchange (the “NYSE”)
        or the
        American Stock Exchange (the “AMEX”)
        after
        being so listed or included for quotation after the date hereof, or
        (iv) the Common Stock ceases to be traded on the Over-the-Counter Bulletin
        Board (the “OTCBB”)
        or any
        equivalent replacement exchange prior to being listed or included for quotation
        on one of the aforementioned markets, then the Company will make payments
        to the
        Investors in such amounts and at such times as shall be determined pursuant
        to
        this Section 2(c) as partial relief for the damages to the Investors by reason
        of any such delay in or reduction of their ability to sell the Registrable
        Securities (which remedy shall not be exclusive of any other remedies available
        at law or in equity). The Company shall pay to each holder of the Notes or
        Registrable Securities an amount equal to the then outstanding principal
        amount
        of the Notes (and, in the case of holders of Registrable Securities, the
        principal amount of Notes from which such Registrable Securities were converted)
        (“Outstanding
        Principal Amount”),
        multiplied by the Applicable Percentage (as defined below) times the sum
        of: (i)
        the number of months (prorated for partial months) after the Filing Date
        or the
        end of the aforementioned ninety (90) day period and prior to the date the
        Registration Statement is declared effective by the SEC, provided, however,
        that
        there shall be excluded from such period any delays which are solely
        attributable to changes required by the Investors in the Registration Statement
        with respect to information relating to the Investors, including, without
        limitation, changes to the plan of distribution, or to the failure of the
        Investors to conduct their review of the Registration Statement pursuant
        to
        Section 3(h) below in a reasonably prompt manner; (ii) the number of months
        (prorated for partial months) that sales of all of the Registrable Securities
        cannot be made pursuant to the Registration Statement after the Registration
        Statement has been declared effective (including, without limitation, when
        sales
        cannot be made by reason of the Company’s failure to properly supplement or
        amend the prospectus included therein in accordance with the terms of this
        Agreement, but excluding any days during an Allowed Delay (as defined in
        Section
        3(f)); and (iii) the number of months (prorated for partial months) that
        the
        Common Stock is not listed or included for quotation on the OTCBB, Nasdaq,
        Nasdaq SmallCap, NYSE or AMEX or that trading thereon is halted after the
        Registration Statement has been declared effective. The term “Applicable
        Percentage”
means
        two hundredths (.02). (For example, if the Registration Statement becomes
        effective one (1) month after the end of such ninety (90) day period, the
        Company would pay $5,000 for each $250,000 of Outstanding Principal Amount.
        If
        thereafter, sales could not be made pursuant to the Registration Statement
        for
        an additional period of one (1) month, the Company would pay an additional
        $5,000 for each $250,000 of Outstanding Principal Amount.) Such amounts shall
        be
        paid in cash or, at the Company’s option, in shares of Common Stock priced at
        the Conversion Price (as defined in the Notes) on such payment date.

       

      
        
           

        

        
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      d. Piggy-Back
        Registrations.
        Subject
        to the last sentence of this Section 2(d), if at any time prior to the
        expiration of the Registration Period (as hereinafter defined) the Company
        shall
        determine to file with the SEC a Registration Statement relating to an offering
        for its own account or the account of others under the 1933 Act of any of
        its
        equity securities (other than on Form S-4 or Form S-8 or their then equivalents
        relating to equity securities to be issued solely in connection with any
        acquisition of any entity or business or equity securities issuable in
        connection with stock option or other bona fide,
        employee benefit plans), the Company shall send to each Investor who is entitled
        to registration rights under this Section 2(d) written notice of such
        determination and, if within fifteen (15) days after the effective date of
        such
        notice, such Investor shall so request in writing, the Company shall include
        in
        such Registration Statement all or any part of the Registrable Securities
        such
        Investor requests to be registered, except that if, in connection with any
        underwritten public offering for the account of the Company the managing
        underwriter(s) thereof shall impose a limitation on the number of shares
        of
        Common Stock which may be included in the Registration Statement because,
        in
        such underwriter(s)’ judgment, marketing or other factors dictate such
        limitation is necessary to facilitate public distribution, then the Company
        shall be obligated to include in such Registration Statement only such limited
        portion of the Registrable Securities with respect to which such Investor
        has
        requested inclusion hereunder as the underwriter shall permit. Any exclusion
        of
        Registrable Securities shall be made pro rata among the Investors seeking
        to
        include Registrable Securities in proportion to the number of Registrable
        Securities sought to be included by such Investors; provided,
        however,
        that
        the Company shall not exclude any Registrable Securities unless the Company
        has
        first excluded all outstanding securities, the holders of which are not entitled
        to inclusion of such securities in such Registration Statement or are not
        entitled to pro rata inclusion with the Registrable Securities; and provided,
        further,
        however,
        that,
        after giving effect to the immediately preceding proviso, any exclusion of
        Registrable Securities shall be made pro rata with holders of other securities
        having the right to include such securities in the Registration Statement
        other
        than holders of securities entitled to inclusion of their securities in such
        Registration Statement by reason of demand registration rights. No right
        to
        registration of Registrable Securities under this Section 2(d) shall be
        construed to limit any registration required under Section 2(a) hereof. If
        an
        offering in connection with which an Investor is entitled to registration
        under
        this Section 2(d) is an underwritten offering, then each Investor whose
        Registrable Securities are included in such Registration Statement shall,
        unless
        otherwise agreed by the Company, offer and sell such Registrable Securities
        in
        an underwritten offering using the same underwriter or underwriters and,
        subject
        to the provisions of this Agreement, on the same terms and conditions as
        other
        shares of Common Stock included in such underwritten offering. Notwithstanding
        anything to the contrary set forth herein, the registration rights of the
        Investors pursuant to this Section 2(d) shall only be available in the event
        the
        Company fails to timely file, obtain effectiveness or maintain effectiveness
        of
        any Registration Statement to be filed pursuant to Section 2(a) in accordance
        with the terms of this Agreement.

       

      e. Eligibility
        for Form S-3, SB-2 or S-1; Conversion to Form S-3.
        The
        Company represents and warrants that it meets the requirements for the use
        of
        Form S-3, SB-2 or S-1 for registration of the sale by the Initial Investors
        and
        any other Investors of the Registrable Securities. The Company agrees to
        file
        all reports required to be filed by the Company with the SEC in a timely
        manner
        so as to remain eligible or become eligible, as the case may be, and thereafter
        to maintain its eligibility, for the use of Form S-3. If the Company is not
        currently eligible to use Form S-3, not later than five (5) business days
        after
        the Company first meets the registration eligibility and transaction
        requirements for the use of Form S-3 (or any successor form) for registration
        of
        the offer and sale by the Initial Investors and any other Investors of
        Registrable Securities, the Company shall file a Registration Statement on
        Form
        S-3 (or such successor form) with respect to the Registrable Securities covered
        by the Registration Statement on Form SB-2 or Form S-1, whichever is applicable,
        filed pursuant to Section 2(a) (and include in such Registration Statement
        on
        Form S-3 the information required by Rule 429 under the 1933 Act) or convert
        the
        Registration Statement on Form SB-2 or Form S-1, whichever is applicable,
        filed
        pursuant to Section 2(a) to a Form S-3 pursuant to Rule 429 under the 1933
        Act
        and cause such Registration Statement (or such amendment) to be declared
        effective no later than thirty (30) days after filing. In the event of a
        breach
        by the Company of the provisions of this Section 2(e), the Company will be
        required to make payments pursuant to Section 2(c) hereof.

       

      
        
           

        

        
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      3. OBLIGATIONS
        OF THE COMPANY. 

       

      In
        connection with the registration of the Registrable Securities, the Company
        shall have the following obligations:

       

      a. The
        Company shall prepare promptly, and file with the SEC not later than the
        Filing
        Date, a Registration Statement with respect to the number of Registrable
        Securities provided in Section 2(a), and thereafter use its best efforts
        to
        cause such Registration Statement relating to Registrable Securities to become
        effective as soon as possible after such filing but in no event later than
        ninety (90) days from the date of Closing), and keep the Registration Statement
        effective pursuant to Rule 415 at all times until such date as is the earlier
        of
        (i) the date on which all of the Registrable Securities have been sold and
        (ii)
        the date on which the Registrable Securities (in the opinion of counsel to
        the
        Initial Investors) may be immediately sold to the public without registration
        or
        restriction (including, without limitation, as to volume by each holder thereof)
        under the 1933 Act (the “Registration
        Period”),
        which
        Registration Statement (including any amendments or supplements thereto and
        prospectuses contained therein) shall not contain any untrue statement of
        a
        material fact or omit to state a material fact required to be stated therein,
        or
        necessary to make the statements therein not misleading.

       

      b. The
        Company shall prepare and file with the SEC such amendments (including
        post-effective amendments) and supplements to the Registration Statements
        and
        the prospectus used in connection with the Registration Statements as may
        be
        necessary to keep the Registration Statements effective at all times during
        the
        Registration Period, and, during such period, comply with the provisions
        of the
        1933 Act with respect to the disposition of all Registrable Securities of
        the
        Company covered by the Registration Statements until such time as all of
        such
        Registrable Securities have been disposed of in accordance with the intended
        methods of disposition by the seller or sellers thereof as set forth in the
        Registration Statements. In the event the number of shares available under
        a
        Registration Statement filed pursuant to this Agreement is insufficient to
        cover
        all of the Registrable Securities issued or issuable upon conversion of the
        Notes and exercise of the Warrants, the Company shall amend the Registration
        Statement, or file a new Registration Statement (on the short form available
        therefor, if applicable), or both, so as to cover all of the Registrable
        Securities, in each case, as soon as practicable, but in any event within
        fifteen (15) days after the necessity therefor arises (based on the market
        price
        of the Common Stock and other relevant factors on which the Company reasonably
        elects to rely). The Company shall use its best efforts to cause such amendment
        and/or new Registration Statement to become effective as soon as practicable
        following the filing thereof, but in any event within thirty (30) days after
        the
        date on which the Company reasonably first determines (or reasonably should
        have
        determined) the need therefor. The provisions of Section 2(c) above shall
        be
        applicable with respect to such obligation, with the ninety (90) days running
        from the day the Company reasonably first determines (or reasonably should
        have
        determined) the need therefor.

       

      
        
           

        

        
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      c. The
        Company shall furnish to each Investor whose Registrable Securities are included
        in a Registration Statement and its legal counsel (i) promptly (but in no
        event more than two (2) business days) after the same is prepared and publicly
        distributed, filed with the SEC, or received by the Company, one copy of
        each
        Registration Statement and any amendment thereto, each preliminary prospectus
        and prospectus and each amendment or supplement thereto, and, in the case
        of the
        Registration Statement referred to in Section 2(a), each letter written by
        or on
        behalf of the Company to the SEC or the staff of the SEC, and each item of
        correspondence from the SEC or the staff of the SEC, in each case relating
        to
        such Registration Statement (other than any portion of any thereof which
        contains information for which the Company has sought confidential treatment),
        and (ii) promptly (but in no event more than two (2) business days) after
        the Registration Statement is declared effective by the SEC, such number
        of
        copies of a prospectus, including a preliminary prospectus, and all amendments
        and supplements thereto and such other documents as such Investor may reasonably
        request in order to facilitate the disposition of the Registrable Securities
        owned by such Investor. The Company will immediately notify each Investor
        by
        facsimile of the effectiveness of each Registration Statement or any
        post-effective amendment. The Company will promptly respond to any and all
        comments received from the SEC (which comments shall promptly be made available
        to the Investors upon request), with a view towards causing each Registration
        Statement or any amendment thereto to be declared effective by the SEC as
        soon
        as practicable, shall promptly file an acceleration request as soon as
        practicable (but in no event more than two (2) business days) following the
        resolution or clearance of all SEC comments or, if applicable, following
        notification by the SEC that any such Registration Statement or any amendment
        thereto will not be subject to review and shall, if required by SEC Rules,
        promptly file with the SEC a final prospectus as soon as practicable (but
        in no
        event more than two (2) business days) following receipt by the Company from
        the
        SEC of an order declaring the Registration Statement effective. In the event
        of
        a breach by the Company of the provisions of this Section 3(c), the Company
        will
        be required to make payments pursuant to Section 2(c) hereof.

       

      d. The
        Company shall use reasonable efforts to (i) register and qualify the
        Registrable Securities covered by the Registration Statements under such
        other
        securities or “blue sky” laws of such jurisdictions in the United States as the
        Investors who hold a majority in interest of the Registrable Securities being
        offered reasonably request, (ii) prepare and file in those jurisdictions
        such amendments (including post-effective amendments) and supplements to
        such
        registrations and qualifications as may be necessary to maintain the
        effectiveness thereof during the Registration Period, (iii) take such other
        actions as may be necessary to maintain such registrations and qualifications
        in
        effect at all times during the Registration Period, and (iv) take all other
        actions reasonably necessary or advisable to qualify the Registrable Securities
        for sale in such jurisdictions; provided,
        however,
        that
        the Company shall not be required in connection therewith or as a condition
        thereto to (a) qualify to do business in any jurisdiction where it would
        not otherwise be required to qualify but for this Section 3(d), (b) subject
        itself to general taxation in any such jurisdiction, (c) file a general
        consent to service of process in any such jurisdiction, (d) provide any
        undertakings that cause the Company undue expense or burden, or (e) make
        any change in its charter or bylaws, which in each case the Board of Directors
        of the Company determines to be contrary to the best interests of the Company
        and its shareholders.

       

      
        
           

        

        
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      e. In
        the
        event Investors who hold a majority-in-interest of the Registrable Securities
        being offered in the offering (with the approval of a majority-in-interest
        of
        the Initial Investors) select underwriters for the offering, the Company
        shall
        enter into and perform its obligations under an underwriting agreement, in
        usual
        and customary form, including, without limitation, customary indemnification
        and
        contribution obligations, with the underwriters of such offering.

       

      f. As
        promptly as practicable after becoming aware of such event, the Company shall
        notify each Investor of the happening of any event, of which the Company
        has
        knowledge, as a result of which the prospectus included in any Registration
        Statement, as then in effect, includes an untrue statement of a material
        fact or
        omission to state a material fact required to be stated therein or necessary
        to
        make the statements therein not misleading, and use its best efforts promptly
        to
        prepare a supplement or amendment to any Registration Statement to correct
        such
        untrue statement or omission, and deliver such number of copies of such
        supplement or amendment to each Investor as such Investor may reasonably
        request; provided that, for not more than ten (10) consecutive trading days
        (or
        a total of not more than twenty (20) trading days in any twelve (12) month
        period), the Company may delay the disclosure of material non-public information
        concerning the Company (as well as prospectus or Registration Statement
        updating) the disclosure of which at the time is not, in the good faith opinion
        of the Company, in the best interests of the Company (an “Allowed
        Delay”);
        provided, further, that the Company shall promptly (i) notify the Investors
        in writing of the existence of (but in no event, without the prior written
        consent of an Investor, shall the Company disclose to such investor any of
        the
        facts or circumstances regarding) material non-public information giving
        rise to
        an Allowed Delay and (ii) advise the Investors in writing to cease all
        sales under such Registration Statement until the end of the Allowed Delay.
        Upon
        expiration of the Allowed Delay, the Company shall again be bound by the
        first
        sentence of this Section 3(f) with respect to the information giving rise
        thereto.

       

      g. The
        Company shall use its best efforts to prevent the issuance of any stop order
        or
        other suspension of effectiveness of any Registration Statement, and, if
        such an
        order is issued, to obtain the withdrawal of such order at the earliest possible
        moment and to notify each Investor who holds Registrable Securities being
        sold
        (or, in the event of an underwritten offering, the managing underwriters)
        of the
        issuance of such order and the resolution thereof.

       

      h. The
        Company shall permit a single firm of counsel designated by the Initial
        Investors to review such Registration Statement and all amendments and
        supplements thereto (as well as all requests for acceleration or effectiveness
        thereof) a reasonable period of time prior to their filing with the SEC,
        and not
        file any document in a form to which such counsel reasonably objects and
        will
        not request acceleration of such Registration Statement without prior notice
        to
        such counsel. The sections of such Registration Statement covering information
        with respect to the Investors, the Investor’s beneficial ownership of securities
        of the Company or the Investors intended method of disposition of Registrable
        Securities shall conform to the information provided to the Company by each
        of
        the Investors.

       

      
        
           

        

        
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      i. The
        Company shall make generally available to its security holders as soon as
        practicable, but not later than ninety (90) days after the close of the period
        covered thereby, an earnings statement (in form complying with the provisions
        of
        Rule 158 under the 1933 Act) covering a twelve-month period beginning not
        later
        than the first day of the Company’s fiscal quarter next following the effective
        date of the Registration Statement.

       

      j. At
        the
        request of any Investor, the Company shall furnish, on the date that Registrable
        Securities are delivered to an underwriter, if any, for sale in connection
        with
        any Registration Statement or, if such securities are not being sold by an
        underwriter, on the date of effectiveness thereof (i) an opinion, dated as
        of such date, from counsel representing the Company for purposes of such
        Registration Statement, in form, scope and substance as is customarily given
        in
        an underwritten public offering, addressed to the underwriters, if any, and
        the
        Investors and (ii) a letter, dated such date, from the Company’s
        independent certified public accountants in form and substance as is customarily
        given by independent certified public accountants to underwriters in an
        underwritten public offering, addressed to the underwriters, if any, and
        the
        Investors.

       

      k. The
        Company shall make available for inspection by (i) any Investor,
        (ii) any underwriter participating in any disposition pursuant to a
        Registration Statement, (iii) one firm of attorneys and one firm of
        accountants or other agents retained by the Initial Investors, (iv) one
        firm of attorneys and one firm of accountants or other agents retained by
        all
        other Investors, and (v) one firm of attorneys retained by all such
        underwriters (collectively, the “Inspectors”)
        all
        pertinent financial and other records, and pertinent corporate documents
        and
        properties of the Company, including without limitation, records of conversions
        by other holders of convertible securities issued by the Company and the
        issuance of stock to such holders pursuant to the conversions (collectively,
        the
“Records”),
        as
        shall be reasonably deemed necessary by each Inspector to enable each Inspector
        to exercise its due diligence responsibility, and cause the Company’s officers,
        directors and employees to supply all information which any Inspector may
        reasonably request for purposes of such due diligence; provided,
        however,
        that
        each Inspector shall hold in confidence and shall not make any disclosure
        (except to an Investor) of any Record or other information which the Company
        determines in good faith to be confidential, and of which determination the
        Inspectors are so notified, unless (a) the disclosure of such Records is
        necessary to avoid or correct a misstatement or omission in any Registration
        Statement, (b) the release of such Records is ordered pursuant to a
        subpoena or other order from a court or government body of competent
        jurisdiction, or (c) the information in such Records has been made
        generally available to the public other than by disclosure in violation of
        this
        or any other agreement. The Company shall not be required to disclose any
        confidential information in such Records to any Inspector until and unless
        such
        Inspector shall have entered into confidentiality agreements (in form and
        substance satisfactory to the Company) with the Company with respect thereto,
        substantially in the form of this Section 3(k). Each Investor agrees that
        it
        shall, upon learning that disclosure of such Records is sought in or by a
        court
        or governmental body of competent jurisdiction or through other means, give
        prompt notice to the Company and allow the Company, at its expense, to undertake
        appropriate action to prevent disclosure of, or to obtain a protective order
        for, the Records deemed confidential. Nothing herein (or in any other
        confidentiality agreement between the Company and any Investor) shall be
        deemed
        to limit the Investor’s ability to sell Registrable Securities in a manner which
        is otherwise consistent with applicable laws and regulations. 

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      l. The
        Company shall hold in confidence and not make any disclosure of information
        concerning an Investor provided to the Company unless (i) disclosure of
        such information is necessary to comply with federal or state securities
        laws,
        (ii) the disclosure of such information is necessary to avoid or correct a
        misstatement or omission in any Registration Statement, (iii) the release
        of such information is ordered pursuant to a subpoena or other order from
        a
        court or governmental body of competent jurisdiction, or (iv) such
        information has been made generally available to the public other than by
        disclosure in violation of this or any other agreement. The Company agrees
        that
        it shall, upon learning that disclosure of such information concerning an
        Investor is sought in or by a court or governmental body of competent
        jurisdiction or through other means, give prompt notice to such Investor
        prior
        to making such disclosure, and allow the Investor, at its expense, to undertake
        appropriate action to prevent disclosure of, or to obtain a protective order
        for, such information.

       

      m. The
        Company shall (i) cause all the Registrable Securities covered by the
        Registration Statement to be listed on each national securities exchange
        on
        which securities of the same class or series issued by the Company are then
        listed, if any, if the listing of such Registrable Securities is then permitted
        under the rules of such exchange, or (ii) to the extent the securities of
        the same class or series are not then listed on a national securities exchange,
        secure the designation and quotation, of all the Registrable Securities covered
        by the Registration Statement on Nasdaq or, if not eligible for Nasdaq, on
        Nasdaq SmallCap or, if not eligible for Nasdaq or Nasdaq SmallCap, on the
        OTCBB
        and, without limiting the generality of the foregoing, to arrange for at
        least
        two market makers to register with the National Association of Securities
        Dealers, Inc. (“NASD”)
        as
        such with respect to such Registrable Securities.

       

      n. The
        Company shall provide a transfer agent and registrar, which may be a single
        entity, for the Registrable Securities not later than the effective date
        of the
        Registration Statement.

       

      o. The
        Company shall cooperate with the Investors who hold Registrable Securities
        being
        offered and the managing underwriter or underwriters, if any, to facilitate
        the
        timely preparation and delivery of certificates (not bearing any restrictive
        legends) representing Registrable Securities to be offered pursuant to a
        Registration Statement and enable such certificates to be in such denominations
        or amounts, as the case may be, as the managing underwriter or underwriters,
        if
        any, or the Investors may reasonably request and registered in such names
        as the
        managing underwriter or underwriters, if any, or the Investors may request,
        and,
        within three (3) business days after a Registration Statement which includes
        Registrable Securities is ordered effective by the SEC, the Company shall
        deliver, and shall cause legal counsel selected by the Company to deliver,
        to
        the transfer agent for the Registrable Securities (with copies to the Investors
        whose Registrable Securities are included in such Registration Statement)
        an
        instruction in the form attached hereto as Exhibit
        1
        and an
        opinion of such counsel in the form attached hereto as Exhibit 2.

       

      p. At
        the
        request of the holders of a majority-in-interest of the Registrable Securities,
        the Company shall prepare and file with the SEC such amendments (including
        post-effective amendments) and supplements to a Registration Statement and
        any
        prospectus used in connection with the Registration Statement as may be
        necessary in order to change the plan of distribution set forth in such
        Registration Statement.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      q. From
        and
        after the date of this Agreement, the Company shall not, and shall not agree
        to,
        allow the holders of any securities of the Company to include any of their
        securities, in excess of 250,000 shares of Common Stock, in any Registration
        Statement under Section 2(a) hereof or any amendment or supplement thereto
        under
        Section 3(b) hereof without the consent of the holders of a majority-in-interest
        of the Registrable Securities.

       

      r. The
        Company shall take all other reasonable actions necessary to expedite and
        facilitate disposition by the Investors of Registrable Securities pursuant
        to a
        Registration Statement.

       

      4. OBLIGATIONS
        OF THE INVESTORS.

       

      In
        connection with the registration of the Registrable Securities, the Investors
        shall have the following obligations:

       

      a. It
        shall
        be a condition precedent to the obligations of the Company to complete the
        registration pursuant to this Agreement with respect to the Registrable
        Securities of a particular Investor that such Investor shall furnish to the
        Company such information regarding itself, the Registrable Securities held
        by it
        and the intended method of disposition of the Registrable Securities held
        by it
        as shall be reasonably required to effect the registration of such Registrable
        Securities and shall execute such documents in connection with such registration
        as the Company may reasonably request. At least three (3) business days prior
        to
        the first anticipated filing date of the Registration Statement, the Company
        shall notify each Investor of the information the Company requires from each
        such Investor. 

       

      b. Each
        Investor, by such Investor’s acceptance of the Registrable Securities, agrees to
        cooperate with the Company as reasonably requested by the Company in connection
        with the preparation and filing of the Registration Statements hereunder,
        unless
        such Investor has notified the Company in writing of such Investor’s election to
        exclude all of such Investor’s Registrable Securities from the Registration
        Statements.

       

      c. In
        the
        event Investors holding a majority-in-interest of the Registrable Securities
        being registered (with the approval of the Initial Investors) determine to
        engage the services of an underwriter, each Investor agrees to enter into
        and
        perform such Investor’s obligations under an underwriting agreement, in usual
        and customary form, including, without limitation, customary indemnification
        and
        contribution obligations, with the managing underwriter of such offering
        and
        take such other actions as are reasonably required in order to expedite or
        facilitate the disposition of the Registrable Securities, unless such Investor
        has notified the Company in writing of such Investor’s election to exclude all
        of such Investor’s Registrable Securities from such Registration
        Statement.

       

      d. Each
        Investor agrees that, upon receipt of any notice from the Company of the
        happening of any event of the kind described in Section 3(f) or 3(g), such
        Investor will immediately discontinue disposition of Registrable Securities
        pursuant to the Registration Statement covering such Registrable Securities
        until such Investor’s receipt of the copies of the supplemented or amended
        prospectus contemplated by Section 3(f) or 3(g) and, if so directed by the
        Company, such Investor shall deliver to the Company (at the expense of the
        Company) or destroy (and deliver to the Company a certificate of destruction)
        all copies in such Investor’s possession, of the prospectus covering such
        Registrable Securities current at the time of receipt of such
        notice.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      e. No
        Investor may participate in any underwritten registration hereunder unless
        such
        Investor (i) agrees to sell such Investor’s Registrable Securities on the
        basis provided in any underwriting arrangements in usual and customary form
        entered into by the Company, (ii) completes and executes all
        questionnaires, powers of attorney, indemnities, underwriting agreements
        and
        other documents reasonably required under the terms of such underwriting
        arrangements, and (iii) agrees to pay its pro rata share of all
        underwriting discounts and commissions and any expenses in excess of those
        payable by the Company pursuant to Section 5 below.

       

      5. EXPENSES
        OF REGISTRATION.

       

      All
        reasonable expenses, other than underwriting discounts and commissions, incurred
        in connection with registrations, filings or qualifications pursuant to Sections
        2 and 3, including, without limitation, all registration, listing and
        qualification fees, printers and accounting fees, the fees and disbursements
        of
        counsel for the Company, and the reasonable fees and disbursements of one
        counsel selected by the Initial Investors pursuant to Sections 2(b) and 3(h)
        hereof shall be borne by the Company and shall be included in the fees paid
        to
        counsel under the Securities Purchase Agreement for purposes of counsel selected
        by the Initial Investors.

       

      6. INDEMNIFICATION.
        

       

      In
        the
        event any Registrable Securities are included in a Registration Statement
        under
        this Agreement:

       

      a. To
        the
        extent permitted by law, the Company will indemnify, hold harmless and defend
        (i) each Investor who holds such Registrable Securities, (ii) the
        directors, officers, partners, employees, agents and each person who controls
        any Investor within the meaning of the 1933 Act or the Securities Exchange
        Act
        of 1934, as amended (the “1934
        Act”),
        if
        any, (iii) any underwriter (as defined in the 1933 Act) for the Investors,
        and (iv) the directors, officers, partners, employees and each person who
        controls any such underwriter within the meaning of the 1933 Act or the 1934
        Act, if any (each, an “Indemnified
        Person”),
        against any joint or several losses, claims, damages, liabilities or expenses
        (collectively, together with actions, proceedings or inquiries by any regulatory
        or self-regulatory organization, whether commenced or threatened, in respect
        thereof, “Claims”)
        to
        which any of them may become subject insofar as such Claims arise out of
        or are
        based upon: (i) any untrue statement or alleged untrue statement of a material
        fact in a Registration Statement or the omission or alleged omission to state
        therein a material fact required to be stated or necessary to make the
        statements therein not misleading; (ii) any untrue statement or alleged untrue
        statement of a material fact contained in any preliminary prospectus if used
        prior to the effective date of such Registration Statement, or contained
        in the
        final prospectus (as amended or supplemented, if the Company files any amendment
        thereof or supplement thereto with the SEC) or the omission or alleged omission
        to state therein any material fact necessary to make the statements made
        therein, in light of the circumstances under which the statements therein
        were
        made, not misleading; or (iii) any violation or alleged violation by the
        Company
        of the 1933 Act, the 1934 Act, any other law, including, without limitation,
        any
        state securities law, or any rule or regulation thereunder relating to the
        offer
        or sale of the Registrable Securities (the matters in the foregoing clauses
        (i)
        through (iii) being, collectively, “Violations”).
        Subject to the restrictions set forth in Section 6(c) with respect to the
        number
        of legal counsel, the Company shall reimburse the Indemnified Person, promptly
        as such expenses are incurred and are due and payable, for any reasonable
        legal
        fees or other reasonable expenses incurred by them in connection with
        investigating or defending any such Claim. Notwithstanding anything to the
        contrary contained herein, the indemnification agreement contained in this
        Section 6(a): (i) shall not apply to a Claim arising out of or based upon
        a
        Violation which occurs in reliance upon and in conformity with information
        furnished in writing to the Company by any Indemnified Person or underwriter
        for
        such Indemnified Person expressly for use in connection with the preparation
        of
        such Registration Statement or any such amendment thereof or supplement thereto,
        if such prospectus was timely made available by the Company pursuant to Section
        3(c) hereof; (ii) shall not apply to amounts paid in settlement of any Claim
        if
        such settlement is effected without the prior written consent of the Company,
        which consent shall not be unreasonably withheld; and (iii) with respect
        to any
        preliminary prospectus, shall not inure to the benefit of any Indemnified
        Person
        if the untrue statement or omission of material fact contained in the
        preliminary prospectus was corrected on a timely basis in the prospectus,
        as
        then amended or supplemented, such corrected prospectus was timely made
        available by the Company pursuant to Section 3(c) hereof, and the Indemnified
        Person was promptly advised in writing not to use the incorrect prospectus
        prior
        to the use giving rise to a Violation and such Indemnified Person,
        notwithstanding such advice, used it. Such indemnity shall remain in full
        force
        and effect regardless of any investigation made by or on behalf of the
        Indemnified Person and shall survive the transfer of the Registrable Securities
        by the Investors pursuant to Section 9.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      b. In
        connection with any Registration Statement in which an Investor is
        participating, each such Investor agrees severally and not jointly to indemnify,
        hold harmless and defend, to the same extent and in the same manner set forth
        in
        Section 6(a), the Company, each of its directors, each of its officers who
        signs
        the Registration Statement, each person, if any, who controls the Company
        within
        the meaning of the 1933 Act or the 1934 Act, any underwriter and any other
        shareholder selling securities pursuant to the Registration Statement or
        any of
        its directors or officers or any person who controls such shareholder or
        underwriter within the meaning of the 1933 Act or the 1934 Act (collectively
        and
        together with an Indemnified Person, an “Indemnified
        Party”),
        against any Claim to which any of them may become subject, under the 1933
        Act,
        the 1934 Act or otherwise, insofar as such Claim arises out of or is based
        upon
        any Violation by such Investor, in each case to the extent (and only to the
        extent) that such Violation occurs in reliance upon and in conformity with
        written information furnished to the Company by such Investor expressly for
        use
        in connection with such Registration Statement; and subject to Section 6(c)
        such
        Investor will reimburse any legal or other expenses (promptly as such expenses
        are incurred and are due and payable) reasonably incurred by them in connection
        with investigating or defending any such Claim; provided,
        however,
        that
        the indemnity agreement contained in this Section 6(b) shall not apply to
        amounts paid in settlement of any Claim if such settlement is effected without
        the prior written consent of such Investor, which consent shall not be
        unreasonably withheld; provided,
        further,
        however,
        that
        the Investor shall be liable under this Agreement (including this Section
        6(b)
        and Section 7) for only that amount as does not exceed the net proceeds to
        such
        Investor as a result of the sale of Registrable Securities pursuant to such
        Registration Statement. Such indemnity shall remain in full force and effect
        regardless of any investigation made by or on behalf of such Indemnified
        Party
        and shall survive the transfer of the Registrable Securities by the Investors
        pursuant to Section 9. Notwithstanding anything to the contrary contained
        herein, the indemnification agreement contained in this Section 6(b) with
        respect to any preliminary prospectus shall not inure to the benefit of any
        Indemnified Party if the untrue statement or omission of material fact contained
        in the preliminary prospectus was corrected on a timely basis in the prospectus,
        as then amended or supplemented.

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      c. Promptly
        after receipt by an Indemnified Person or Indemnified Party under this Section
        6
        of notice of the commencement of any action (including any governmental action),
        such Indemnified Person or Indemnified Party shall, if a Claim in respect
        thereof is to be made against any indemnifying party under this Section 6,
        deliver to the indemnifying party a written notice of the commencement thereof,
        and the indemnifying party shall have the right to participate in, and, to
        the
        extent the indemnifying party so desires, jointly with any other indemnifying
        party similarly noticed, to assume control of the defense thereof with counsel
        mutually satisfactory to the indemnifying party and the Indemnified Person
        or
        the Indemnified Party, as the case may be; provided,
        however,
        that an
        Indemnified Person or Indemnified Party shall have the right to retain its
        own
        counsel with the fees and expenses to be paid by the indemnifying party,
        if, in
        the reasonable opinion of counsel retained by the indemnifying party, the
        representation by such counsel of the Indemnified Person or Indemnified Party
        and the indemnifying party would be inappropriate due to actual or potential
        differing interests between such Indemnified Person or Indemnified Party
        and any
        other party represented by such counsel in such proceeding. The indemnifying
        party shall pay for only one separate legal counsel for the Indemnified Persons
        or the Indemnified Parties, as applicable, and such legal counsel shall be
        selected by Investors holding a majority-in-interest of the Registrable
        Securities included in the Registration Statement to which the Claim relates
        (with the approval of a majority-in-interest of the Initial Investors), if
        the
        Investors are entitled to indemnification hereunder, or the Company, if the
        Company is entitled to indemnification hereunder, as applicable. The failure to
        deliver written notice to the indemnifying party within a reasonable time
        of the
        commencement of any such action shall not relieve such indemnifying party
        of any
        liability to the Indemnified Person or Indemnified Party under this Section
        6,
        except to the extent that the indemnifying party is actually prejudiced in
        its
        ability to defend such action. The indemnification required by this Section
        6
        shall be made by periodic payments of the amount thereof during the course
        of
        the investigation or defense, as such expense, loss, damage or liability
        is
        incurred and is due and payable.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      7. CONTRIBUTION.

       

      To
        the
        extent any indemnification by an indemnifying party is prohibited or limited
        by
        law, the indemnifying party agrees to make the maximum contribution with
        respect
        to any amounts for which it would otherwise be liable under Section 6 to
        the
        fullest extent permitted by law; provided,
        however,
        that
        (i) no contribution shall be made under circumstances where the maker would
        not have been liable for indemnification under the fault standards set forth
        in
        Section 6, (ii) no seller of Registrable Securities guilty of fraudulent
        misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall
        be
        entitled to contribution from any seller of Registrable Securities who was
        not
        guilty of such fraudulent misrepresentation, and (iii)contribution (together
        with any indemnification or other obligations under this Agreement) by any
        seller of Registrable Securities shall be limited in amount to the net amount
        of
        proceeds received by such seller from the sale of such Registrable
        Securities.

       

      8. REPORTS
        UNDER THE 1934 ACT.

       

      With
        a
        view to making available to the Investors the benefits of Rule 144 promulgated
        under the 1933 Act or any other similar rule or regulation of the SEC that
        may
        at any time permit the investors to sell securities of the Company to the
        public
        without registration (“Rule
        144”),
        the
        Company agrees to:

       

      a. make
        and
        keep public information available, as those terms are understood and defined
        in
        Rule 144;

       

      b. file
        with
        the SEC in a timely manner all reports and other documents required of the
        Company under the 1933 Act and the 1934 Act so long as the Company remains
        subject to such requirements (it being understood that nothing herein shall
        limit the Company’s obligations under Section 4(c) of the Securities Purchase
        Agreement) and the filing of such reports and other documents is required
        for
        the applicable provisions of Rule 144; and

       

      c. furnish
        to each Investor so long as such Investor owns Registrable Securities, promptly
        upon request, (i) a written statement by the Company that it has complied
        with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act,
        (ii) a copy of the most recent annual or quarterly report of the Company
        and such other reports and documents so filed by the Company, and
        (iii) such other information as may be reasonably requested to permit the
        Investors to sell such securities pursuant to Rule 144 without
        registration.

       

      9. ASSIGNMENT
        OF REGISTRATION RIGHTS.

       

      The
        rights under this Agreement shall be automatically assignable by the Investors
        to any transferee of all or any portion of Registrable Securities if:
        (i) the Investor agrees in writing with the transferee or assignee to
        assign such rights, and a copy of such agreement is furnished to the Company
        within a reasonable time after such assignment, (ii) the Company is, within
        a reasonable time after such transfer or assignment, furnished with written
        notice of (a) the name and address of such transferee or assignee, and
        (b) the securities with respect to which such registration rights are being
        transferred or assigned, (iii) following such transfer or assignment, the
        further disposition of such securities by the transferee or assignee is
        restricted under the 1933 Act and applicable state securities laws, (iv)
        at or
        before the time the Company receives the written notice contemplated by clause
        (ii) of this sentence, the transferee or assignee agrees in writing with
        the
        Company to be bound by all of the provisions contained herein, (v) such transfer
        shall have been made in accordance with the applicable requirements of the
        Securities Purchase Agreement, and (vi) such transferee shall be an
“accredited
        investor”
as
        that
        term defined in Rule 501 of Regulation D promulgated under the 1933
        Act.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      10. AMENDMENT
        OF REGISTRATION RIGHTS. 

       

      Provisions
        of this Agreement may be amended and the observance thereof may be waived
        (either generally or in a particular instance and either retroactively or
        prospectively), only with written consent of the Company, each of the Initial
        Investors (to the extent such Initial Investor still owns Registrable
        Securities) and Investors who hold a majority interest of the Registrable
        Securities. Any amendment or waiver effected in accordance with this Section
        10
        shall be binding upon each Investor and the Company.

       

      11. MISCELLANEOUS.

       

      a. A
        person
        or entity is deemed to be a holder of Registrable Securities whenever such
        person or entity owns of record such Registrable Securities. If the Company
        receives conflicting instructions, notices or elections from two or more
        persons
        or entities with respect to the same Registrable Securities, the Company
        shall
        act upon the basis of instructions, notice or election received from the
        registered owner of such Registrable Securities.

       

      b. Any
        notices required or permitted to be given under the terms hereof shall be
        sent
        by certified or registered mail (return receipt requested) or delivered
        personally or by courier (including a recognized overnight delivery service)
        or
        by facsimile and shall be effective five days after being placed in the mail,
        if
        mailed by regular United States mail, or upon receipt, if delivered personally
        or by courier (including a recognized overnight delivery service) or by
        facsimile, in each case addressed to a party. The addresses for such
        communications shall be:

       

      If
        to the
        Company:

       

      Sew
        Cal
        Logo, Inc.

      207
        W.
        138th
        Street

      Los
        Angeles, CA 90061

      Attention:
        Chief Executive Officer 

      Telephone:
         (310)
        352-3300

      Facsimile:   
         (866)
        820-6476

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      With
        a
        copy to:

       

      Anslow
        & Jaclin, LLP

      195
        Route
        9, Suite 204

      Manalapan,
        NJ 07725

      Attention:
        Gregg Jaclin, Esq.

      Telephone: 
         (732) 409-1212

      Facsimile:    
         (732) 577-1188

       

      If
        to an
        Investor: to the address set forth immediately below such Investor’s name on the
        signature pages to the Securities Purchase Agreement. 

       

      With
        a
        copy to:

       

      Ballard
        Spahr Andrews & Ingersoll, LLP

      1735
        Market Street

      51st
        Floor

      Philadelphia,
        Pennsylvania 19103

      Attention:
        Gerald J. Guarcini, Esq.

      Telephone:
        215-865-8625

      Facsimile:  
         215-864-8999

       

      c. Failure
        of any party to exercise any right or remedy under this Agreement or otherwise,
        or delay by a party in exercising such right or remedy, shall not operate
        as a
        waiver thereof.

       

      d. 
        THIS
        AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
        THE
        LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
        ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT
        OF
        LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
        UNITED STATES FEDERAL COURTS LOCATED NEW YORK, NEW YORK WITH RESPECT TO ANY
        DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN CONNECTION
        HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES
        IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
        OF
        SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
        UPON
        A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
        SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING
        HEREIN
        SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
        BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH
        SUIT
        OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
        BY
        SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES
        NOT
        PREVAIL IN ANY DISPUTE ARISING UNDER THIS AGREEMENT SHALL BE RESPONSIBLE
        FOR ALL
        FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY
        IN CONNECTION WITH SUCH DISPUTE.

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      e. In
        the
        event that any provision of this Agreement is invalid or unenforceable under
        any
        applicable statute or rule of law, then such provision shall be deemed
        inoperative to the extent that it may conflict therewith and shall be deemed
        modified to conform with such statute or rule of law. Any provision hereof
        which
        may prove invalid or unenforceable under any law shall not affect the validity
        or enforceability of any other provision hereof.

       

      f. This
        Agreement, the Notes, the Warrants and the Securities Purchase Agreement
        (including all schedules and exhibits thereto) constitute the entire agreement
        among the parties hereto with respect to the subject matter hereof and thereof.
        There are no restrictions, promises, warranties or undertakings, other than
        those set forth or referred to herein and therein. This Agreement and the
        Securities Purchase Agreement supersede all prior agreements and understandings
        among the parties hereto with respect to the subject matter hereof and
        thereof.

       

      g. Subject
        to the requirements of Section 9 hereof, this Agreement shall be binding
        upon
        and inure to the benefit of the parties and their successors and
        assigns.

       

      h. The
        headings in this Agreement are for convenience of reference only and shall
        not
        form part of, or affect the interpretation of, this Agreement.

       

      i. This
        Agreement may be executed in two or more counterparts, each of which shall
        be
        deemed an original but all of which shall constitute one and the same agreement
        and shall become effective when counterparts have been signed by each party
        and
        delivered to the other party. This Agreement, once executed by a party, may
        be
        delivered to the other party hereto by facsimile transmission of a copy of
        this
        Agreement bearing the signature of the party so delivering this
        Agreement.

       

      j. 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.

       

      k. Except
        as
        otherwise provided herein, all consents and other determinations to be made
        by
        the Investors pursuant to this Agreement shall be made by Investors holding
        a
        majority of the Registrable Securities, determined as if the all of the Notes
        then outstanding have been converted into for Registrable
        Securities.

       

      l. The
        Company acknowledges that a breach by it of its obligations hereunder will
        cause
        irreparable harm to each Investor by vitiating the intent and purpose of
        the
        transactions contemplated hereby. Accordingly, the Company acknowledges that
        the
        remedy at law for breach of its obligations under this Agreement will be
        inadequate and agrees, in the event of a breach or threatened breach by the
        Company of any of the provisions under this Agreement, that each Investor
        shall
        be entitled, in addition to all other available remedies in law or in equity,
        and in addition to the penalties assessable herein, to an injunction or
        injunctions restraining, preventing or curing any breach of this Agreement
        and
        to enforce specifically the terms and provisions hereof, without the necessity
        of showing economic loss and without any bond or other security being
        required.

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      m. 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.

       

      

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF,
        the
        Company and the undersigned Initial Investors have caused this Agreement
        to be
        duly executed as of the date first above written.

       

      SEW
        CAL LOGO, INC.

       

      ________________

      Richard
        Songer

      President

       

      AJW
        PARTNERS, LLC

      By:
        SMS
        Group, LLC

       

      ______________________________________

      Corey
        S.
        Ribotsky

      Manager
        

       

      AJW
        MASTER FUND, LTD.

      By:
        First
        Street Manager II, LLC

      

      ______________________________________

      Corey
        S.
        Ribotsky

      Manager

      

      

      NEW
        MILLENNIUM CAPITAL PARTNERS, II, LLC

      By:
        First
        Street Manager II, LLC

       

      ______________________________________

      Corey
        S.
        Ribotsky

      Manager

       

      
        
           

        

        
          19SECURITY
      AGREEMENT

     

    SECURITY
      AGREEMENT (this “Agreement”),
      dated
      as of February 28, 2008, by and among Sew Cal Logo, Inc., a Nevada corporation
      (“Parent”
or
      “Company”)
      and
      the secured parties signatory hereto and their respective endorsees, transferees
      and assigns (collectively, the “Secured
      Party”).
      

     

    WITNESSETH:

     

    WHEREAS,
      pursuant to a Securities Purchase Agreement, dated the date hereof, between
      Parent and the Secured Party (the “Purchase
      Agreement”),
      Parent has agreed to issue to the Secured Party and the Secured Party has agreed
      to purchase from Parent certain of Parent’s 8% Callable Secured Convertible
      Notes, due three years from the date of issue (the “Notes”),
      which
      are convertible into shares of Company’s Common Stock, par value $.001 per share
      (the “Common
      Stock”).
      In
      connection therewith, Parent shall issue the Secured Party certain Common Stock
      purchase warrants (the “Warrants”);
      and

     

    WHEREAS,
      the Parent has been, and is now, engaged in the supplying of wardrobe as well
      as
      promotional and cast and crew items for feature films and television, to the
      major motion picture studios and independent production companies.
      The
      Company produces and manufactures custom embroidered caps, sportswear and
      related corporate identification apparel. They also provide an in-house,
      full-service custom design center where original artwork and logo reproduction
      for embroidery are available;
      and

     

    WHEREAS,
      in order to induce the Secured Party to purchase the Notes, Company has agreed
      to execute and deliver to the Secured Party this Agreement for the benefit
      of
      the Secured Party and to grant to it a first priority security interest in
      certain property of Company to secure the prompt payment, performance and
      discharge in full of all of Company’s obligations under the Notes and exercise
      and discharge in full of Company’s obligations under the Warrants;
      and

     

    WHEREAS,
      in light of the foregoing, the Company expects to derive substantial benefit
      from the Purchase Agreement and sale of the Notes and the transactions
      contemplated thereby and, in furtherance thereof, has agreed to execute and
      deliver this.

     

    NOW,
      THEREFORE, in consideration of the agreements herein contained and for other
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto hereby agree as follows:

     

    1. Certain
      Definitions.
      As used
      in this Agreement, the following terms shall have the meanings set forth in
      this
      Section 1. Terms used but not otherwise defined in this Agreement that are
      defined in Article 9 of the UCC (such as “general
      intangibles”
and
      “proceeds”)
      shall
      have the respective meanings given such terms in Article 9 of the
      UCC.

     

    (a) “Collateral”
means
      the collateral in which the Secured Party is granted a security interest by
      this
      Agreement and which shall include the following, whether presently owned or
      existing or hereafter acquired or coming into existence, and all additions
      and
      accessions thereto and all substitutions and replacements thereof, and all
      proceeds, products and accounts thereof, including, without limitation, all
      proceeds from the sale or transfer of the Collateral and of insurance covering
      the same and of any tort claims in connection therewith:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (i) All
      Goods
      of the Company, including, without limitations, all machinery, equipment,
      computers, motor vehicles, trucks, tanks, boats, ships, appliances, furniture,
      special and general tools, fixtures, test and quality control devices and other
      equipment of every kind and nature and wherever situated, together with all
      documents of title and documents representing the same, all additions and
      accessions thereto, replacements therefor, all parts therefor, and all
      substitutes for any of the foregoing and all other items used and useful in
      connection with the Company’s businesses and all improvements thereto
      (collectively, the “Equipment”);
      and

     

    (ii) All
      Inventory of the Company; and

     

    (iii) All
      of
      the Company’s contract rights and general intangibles, including, without
      limitation, all partnership interests, stock or other securities, licenses,
      distribution and other agreements, computer software development rights, leases,
      franchises, customer lists, quality control procedures, grants and rights,
      goodwill, trademarks, service marks, trade styles, trade names, patents, patent
      applications, copyrights, deposit accounts, and income tax refunds
      (collectively, the “General
      Intangibles”);
      and

     

    (iv) All
      Receivables of the Company including all insurance proceeds, and rights to
      refunds or indemnification whatsoever owing, together with all instruments,
      all
      documents of title representing any of the foregoing, all rights in any
      merchandising, goods, equipment, motor vehicles and trucks which any of the
      same
      may represent, and all right, title, security and guaranties with respect to
      each Receivable, including any right of stoppage in transit; and

     

    (v) All
      of
      the Company’s documents, instruments and chattel paper, files, records, books of
      account, business papers, computer programs and the products and proceeds of
      all
      of the foregoing Collateral set forth in clauses (i)-(iv) above.

     

    (b) “Company”
shall
      mean, collectively, Company and all of the subsidiaries of Company, a list
      of
      which is contained in Schedule
      A,
      attached hereto.

     

    (c) “Obligations”
means
      all of the Company’s obligations under this Agreement and the Notes, in each
      case, whether now or hereafter existing, voluntary or involuntary, direct or
      indirect, absolute or contingent, liquidated or unliquidated, whether or not
      jointly owed with others, and whether or not from time to time decreased or
      extinguished and later decreased, created or incurred, and all or any portion
      of
      such obligations or liabilities that are paid, to the extent all or any part
      of
      such payment is avoided or recovered directly or indirectly from the Secured
      Party as a preference, fraudulent transfer or otherwise as such obligations
      may
      be amended, supplemented, converted, extended or modified from time to
      time.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (d) “UCC”
means
      the Uniform Commercial Code, as currently in effect in the State of New
      York.

     

    2. Grant
      of Security Interest.
      As an
      inducement for the Secured Party to purchase the Notes and to secure the
      complete and timely payment, performance and discharge in full, as the case
      may
      be, of all of the Obligations, the Company hereby, unconditionally and
      irrevocably, pledges, grants and hypothecates to the Secured Party, a continuing
      security interest in, a continuing first lien upon, an unqualified right to
      possession and disposition of and a right of set-off against, in each case
      to
      the fullest extent permitted by law, all of the Company’s right, title and
      interest of whatsoever kind and nature in and to the Collateral (the
“Security
      Interest”).

     

    3. Representations,
      Warranties, Covenants and Agreements of the Company.
      The
      Company represents and warrants to, and covenants and agrees with, the Secured
      Party as follows: 

     

    (a) The
      Company has the requisite corporate power and authority to enter into this
      Agreement and otherwise to carry out its obligations thereunder. The execution,
      delivery and performance by the Company of this Agreement and the filings
      contemplated therein have been duly authorized by all necessary action on the
      part of the Company and no further action is required by the Company. This
      Agreement constitutes a legal, valid and binding obligation of the Company
      enforceable in accordance with its terms, except as enforceability may be
      limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
      affecting the enforcement of creditor’s rights generally.

     

    (b) The
      Company represents and warrants that it has no place of business or offices
      where its respective books of account and records are kept (other than
      temporarily at the offices of its attorneys or accountants) or places where
      Collateral is stored or located, except as set forth on Schedule
      A
      attached
      hereto;

     

    (c) The
      Company is the sole owner of the Collateral (except for non-exclusive licenses
      granted by the Company in the ordinary course of business), free and clear
      of
      any liens, security interests, encumbrances, rights or claims, and is fully
      authorized to grant the Security Interest in and to pledge the Collateral.
      There
      is not on file in any governmental or regulatory authority, agency or recording
      office an effective financing statement, security agreement, license or transfer
      or any notice of any of the foregoing (other than those that have been filed
      in
      favor of the Secured Party pursuant to this Agreement) covering or affecting
      any
      of the Collateral. So long as this Agreement shall be in effect, the Company
      shall not execute and shall not knowingly permit to be on file in any such
      office or agency any such financing statement or other document or instrument
      (except to the extent filed or recorded in favor of the Secured Party pursuant
      to the terms of this Agreement).

     

    (d) No
      part
      of the Collateral has been judged invalid or unenforceable. No written claim
      has
      been received that any Collateral or the Company’s use of any Collateral
      violates the rights of any third party. There has been no adverse decision
      to
      the Company’s claim of ownership rights in or exclusive rights to use the
      Collateral in any jurisdiction or to the Company’s right to keep and maintain
      such Collateral in full force and effect, and there is no proceeding involving
      said rights pending or, to the best knowledge of the Company, threatened before
      any court, judicial body, administrative or regulatory agency, arbitrator or
      other governmental authority. 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (e) The
      Company shall at all times maintain its books of account and records relating
      to
      the Collateral at its principal place of business and its Collateral at the
      locations set forth on Schedule
      A
      attached
      hereto and may not relocate such books of account and records or tangible
      Collateral unless it delivers to the Secured Party at least 30 days prior to
      such relocation (i) written notice of such relocation and the new location
      thereof (which must be within the United States) and (ii) evidence that
      appropriate financing statements and other necessary documents have been filed
      and recorded and other steps have been taken to perfect the Security Interest
      to
      create in favor of the Secured Party valid, perfected and continuing first
      priority liens in the Collateral. 

     

    (f) This
      Agreement creates in favor of the Secured Party a valid security interest in
      the
      Collateral securing the payment and performance of the Obligations and, upon
      making the filings described in the immediately following sentence, a perfected
      first priority security interest in such Collateral. Except for the filing
      of
      financing statements on Form-1 under the UCC with the jurisdictions indicated
      on
Schedule
      B,
      attached hereto, no authorization or approval of or filing with or notice to
      any
      governmental authority or regulatory body is required either (i) for
      the grant by the Company of, or the effectiveness of, the Security Interest
      granted hereby or for the execution, delivery and performance of this Agreement
      by the Company or (ii) for
      the perfection of or exercise by the Secured Party of its rights and remedies
      hereunder. 

     

    (g) On
      the
      date of execution of this Agreement, the Company will deliver to the Secured
      Party one or more executed UCC financing statements on Form-1 with respect
      to
      the Security Interest for filing with the jurisdictions indicated on
Schedule
      B,
      attached hereto and in such other jurisdictions as may be requested by the
      Secured Party.

     

    (h) The
      execution, delivery and performance of this Agreement does not conflict with
      or
      cause a breach or default, or an event that with or without the passage of
      time
      or notice, shall constitute a breach or default, under any agreement to which
      the Company is a party or by which the Company is bound. No consent (including,
      without limitation, from stock holders or creditors of the Company) is required
      for the Company to enter into and perform its obligations
      hereunder.

     

    (i) The
      Company shall at all times maintain the liens and Security Interest provided
      for
      hereunder as valid and perfected first priority liens and security interests
      in
      the Collateral in favor of the Secured Party until this Agreement and the
      Security Interest hereunder shall terminate pursuant to Section 11. The Company
      hereby agrees to defend the same against any and all persons. The Company shall
      safeguard and protect all Collateral for the account of the Secured Party.
      At
      the request of the Secured Party, the Company will sign and deliver to the
      Secured Party at any time or from time to time one or more financing statements
      pursuant to the UCC (or any other applicable statute) in form reasonably
      satisfactory to the Secured Party and will pay the cost of filing the same
      in
      all public offices wherever filing is, or is deemed by the Secured Party to
      be,
      necessary or desirable to effect the rights and obligations provided for herein.
      Without limiting the generality of the foregoing, the Company shall pay all
      fees, taxes and other amounts necessary to maintain the Collateral and the
      Security Interest hereunder, and the Company shall obtain and furnish to the
      Secured Party from time to time, upon demand, such releases and/or
      subordinations of claims and liens which may be required to maintain the
      priority of the Security Interest hereunder. 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (j) The
      Company will not transfer, pledge, hypothecate, encumber, license (except for
      non-exclusive licenses granted by the Company in the ordinary course of
      business), sell or otherwise dispose of any of the Collateral without the prior
      written consent of the Secured Party.

     

    (k) The
      Company shall keep and preserve its Equipment, Inventory and other tangible
      Collateral in good condition, repair and order and shall not operate or locate
      any such Collateral (or cause to be operated or located) in any area excluded
      from insurance coverage.

     

    (l) The
      Company shall, within ten (10) days of obtaining knowledge thereof, advise
      the
      Secured Party promptly, in sufficient detail, of any substantial change in
      the
      Collateral, and of the occurrence of any event which would have a material
      adverse effect on the value of the Collateral or on the Secured Party’s security
      interest therein.

     

    (m) The
      Company shall promptly execute and deliver to the Secured Party such further
      deeds, mortgages, assignments, security agreements, financing statements or
      other instruments, documents, certificates and assurances and take such further
      action as the Secured Party may from time to time request and may in its sole
      discretion deem necessary to perfect, protect or enforce its security interest
      in the Collateral including, without limitation, the execution and delivery
      of a
      separate security agreement with respect to the Company’s intellectual property
      (“Intellectual
      Property Security Agreement”)
      in
      which the Secured Party has been granted a security interest hereunder,
      substantially in a form acceptable to the Secured Party, which Intellectual
      Property Security Agreement, other than as stated therein, shall be subject
      to
      all of the terms and conditions hereof.

     

    (n) The
      Company shall permit the Secured Party and its representatives and agents to
      inspect the Collateral at any time, and to make copies of records pertaining
      to
      the Collateral as may be requested by the Secured Party from time to
      time.

     

    (o) The
      Company will take all steps reasonably necessary to diligently pursue and seek
      to preserve, enforce and collect any rights, claims, causes of action and
      accounts receivable in respect of the Collateral.

     

    (p) The
      Company shall promptly notify the Secured Party in sufficient detail upon
      becoming aware of any attachment, garnishment, execution or other legal process
      levied against any Collateral and of any other information received by the
      Company that may materially affect the value of the Collateral, the Security
      Interest or the rights and remedies of the Secured Party hereunder.

     

    (q) All
      information heretofore, herein or hereafter supplied to the Secured Party by
      or
      on behalf of the Company with respect to the Collateral is accurate and complete
      in all material respects as of the date furnished.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (r) Schedule
      A
      attached
      hereto contains a list of all of the subsidiaries of Company.

     

    4. Defaults.
      The
      following events shall be “Events
      of Default”:

     

    (a) The
      occurrence of an Event of Default (as defined in the Notes) under the
      Notes;

     

    (b) Any
      representation or warranty of the Company in this Agreement or in the
      Intellectual Property Security Agreement shall prove to have been incorrect
      in
      any material respect when made; 

     

    (c) The
      failure by the Company to observe or perform any of its obligations hereunder
      or
      in the Intellectual Property Security Agreement for ten (10) days after receipt
      by the Company of notice of such failure from the Secured Party;
      and

     

    (d) Any
      breach of, or default under, the Warrants.

     

    5. Duty
      To Hold In Trust.
      Upon
      the occurrence of any Event of Default and at any time thereafter, the Company
      shall, upon receipt by it of any revenue, income or other sums subject to the
      Security Interest, whether payable pursuant to the Notes or otherwise, or of
      any
      check, draft, note, trade acceptance or other instrument evidencing an
      obligation to pay any such sum, hold the same in trust for the Secured Party
      and
      shall forthwith endorse and transfer any such sums or instruments, or both,
      to
      the Secured Party for application to the satisfaction of the
      Obligations.

     

    6. Rights
      and Remedies Upon Default.
      Upon
      occurrence of any Event of Default and at any time thereafter, the Secured
      Party
      shall have the right to exercise all of the remedies conferred hereunder and
      under the Notes, and the Secured Party shall have all the rights and remedies
      of
      a secured party under the UCC and/or any other applicable law (including the
      Uniform Commercial Code of any jurisdiction in which any Collateral is then
      located). Without limitation, the Secured Party shall have the following rights
      and powers:

     

    (a) The
      Secured Party shall have the right to take possession of the Collateral and,
      for
      that purpose, enter, with the aid and assistance of any person, any premises
      where the Collateral, or any part thereof, is or may be placed and remove the
      same, and the Company shall assemble the Collateral and make it available to
      the
      Secured Party at places which the Secured Party shall reasonably select, whether
      at the Company’s premises or elsewhere, and make available to the Secured Party,
      without rent, all of the Company’s respective premises and facilities for the
      purpose of the Secured Party taking possession of, removing or putting the
      Collateral in saleable or disposable form.

     

    (b) The
      Secured Party shall have the right to operate the business of the Company using
      the Collateral and shall have the right to assign, sell, lease or otherwise
      dispose of and deliver all or any part of the Collateral, at public or private
      sale or otherwise, either with or without special conditions or stipulations,
      for cash or on credit or for future delivery, in such parcel or parcels and
      at
      such time or times and at such place or places, and upon such terms and
      conditions as the Secured Party may deem commercially reasonable, all without
      (except as shall be required by applicable statute and cannot be waived)
      advertisement or demand upon or notice to the Company or right of redemption
      of
      the Company, which are hereby expressly waived. Upon each such sale, lease,
      assignment or other transfer of Collateral, the Secured Party may, unless
      prohibited by applicable law which cannot be waived, purchase all or any part
      of
      the Collateral being sold, free from and discharged of all trusts, claims,
      right
      of redemption and equities of the Company, which are hereby waived and
      released.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    7. Applications
      of Proceeds.
      The
      proceeds of any such sale, lease or other disposition of the Collateral
      hereunder shall be applied first, to the expenses of retaking, holding, storing,
      processing and preparing for sale, selling, and the like (including, without
      limitation, any taxes, fees and other costs incurred in connection therewith)
      of
      the Collateral, to the reasonable attorneys’ fees and expenses incurred by the
      Secured Party in enforcing its rights hereunder and in connection with
      collecting, storing and disposing of the Collateral, and then to satisfaction
      of
      the Obligations, and to the payment of any other amounts required by applicable
      law, after which the Secured Party shall pay to the Company any surplus
      proceeds. If, upon the sale, license or other disposition of the Collateral,
      the
      proceeds thereof are insufficient to pay all amounts to which the Secured Party
      is legally entitled, the Company will be liable for the deficiency, together
      with interest thereon, at the rate of 15% per annum (the “Default
      Rate”),
      and
      the reasonable fees of any attorneys employed by the Secured Party to collect
      such deficiency. To the extent permitted by applicable law, the Company waives
      all claims, damages and demands against the Secured Party arising out of the
      repossession, removal, retention or sale of the Collateral, unless due to the
      gross negligence or willful misconduct of the Secured Party.

     

    8. Costs
      and Expenses. The
      Company agrees to pay all out-of-pocket fees, costs and expenses incurred in
      connection with any filing required hereunder, including without limitation,
      any
      financing statements, continuation statements, partial releases and/or
      termination statements related thereto or any expenses of any searches
      reasonably required by the Secured Party. The Company shall also pay all other
      claims and charges which in the reasonable opinion of the Secured Party might
      prejudice, imperil or otherwise affect the Collateral or the Security Interest
      therein. The Company will also, upon demand, pay to the Secured Party the amount
      of any and all reasonable expenses, including the reasonable fees and expenses
      of its counsel and of any experts and agents, which the Secured Party may incur
      in connection with (i) the
      enforcement of this Agreement, (ii) the
      custody or preservation of, or the sale of, collection from, or other
      realization upon, any of the Collateral, or (iii) the
      exercise or enforcement of any of the rights of the Secured Party under the
      Notes. Until so paid, any fees payable hereunder shall be added to the principal
      amount of the Notes and shall bear interest at the Default Rate.

     

    9. Responsibility
      for Collateral.
      The
      Company assumes all liabilities and responsibility in connection with all
      Collateral, and the obligations of the Company hereunder or under the Notes
      and
      the Warrants shall in no way be affected or diminished by reason of the loss,
      destruction, damage or theft of any of the Collateral or its unavailability
      for
      any reason. 

     

    10. Security
      Interest Absolute.
      All
      rights of the Secured Party and all Obligations of the Company hereunder, shall
      be absolute and unconditional, irrespective of: (a) any
      lack of validity or enforceability of this Agreement, the Notes, the Warrants
      or
      any agreement entered into in connection with the foregoing, or any portion
      hereof or thereof; (b) any
      change in the time, manner or place of payment or performance of, or in any
      other term of, all or any of the Obligations, or any other amendment or waiver
      of or any consent to any departure from the Notes, the Warrants or any other
      agreement entered into in connection with the foregoing; (c) 
      any exchange, release or nonperfection of any of the Collateral, or any release
      or amendment or waiver of or consent to departure from any other collateral
      for,
      or any guaranty, or any other security, for all or any of the Obligations;
      (d) any
      action by the Secured Party to obtain, adjust, settle and cancel in its sole
      discretion any insurance claims or matters made or arising in connection with
      the Collateral; or (e) any
      other circumstance which might otherwise constitute any legal or equitable
      defense available to the Company, or a discharge of all or any part of the
      Security Interest granted hereby. Until the Obligations shall have been paid
      and
      performed in full, the rights of the Secured Party shall continue even if the
      Obligations are barred for any reason, including, without limitation, the
      running of the statute of limitations or bankruptcy. The Company expressly
      waives presentment, protest, notice of protest, demand, notice of nonpayment
      and
      demand for performance. In the event that at any time any transfer of any
      Collateral or any payment received by the Secured Party hereunder shall be
      deemed by final order of a court of competent jurisdiction to have been a
      voidable preference or fraudulent conveyance under the bankruptcy or insolvency
      laws of the United States, or shall be deemed to be otherwise due to any party
      other than the Secured Party, then, in any such event, the Company’s obligations
      hereunder shall survive cancellation of this Agreement, and shall not be
      discharged or satisfied by any prior payment thereof and/or cancellation of
      this
      Agreement, but shall remain a valid and binding obligation enforceable in
      accordance with the terms and provisions hereof. The Company waives all right
      to
      require the Secured Party to proceed against any other person or to apply any
      Collateral which the Secured Party may hold at any time, or to marshal assets,
      or to pursue any other remedy. The Company waives any defense arising by reason
      of the application of the statute of limitations to any obligation secured
      hereby.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    11. Term
      of Agreement.
      This
      Agreement and the Security Interest shall terminate on the date on which all
      payments under the Notes have been made in full and all other Obligations have
      been paid or discharged. Upon such termination, the Secured Party, at the
      request and at the expense of the Company, will join in executing any
      termination statement with respect to any financing statement executed and
      filed
      pursuant to this Agreement. 

     

    12. Power
      of Attorney; Further Assurances.

     

    (a) The
      Company authorizes the Secured Party, and does hereby make, constitute and
      appoint it, and its respective officers, agents, successors or assigns with
      full
      power of substitution, as the Company’s true and lawful attorney-in-fact, with
      power, in its own name or in the name of the Company, to, after the occurrence
      and during the continuance of an Event of Default, (i) endorse
      any notes, checks, drafts, money orders, or other instruments of payment
      (including payments payable under or in respect of any policy of insurance)
      in
      respect of the Collateral that may come into possession of the Secured Party;
      (ii) to
      sign and endorse any UCC financing statement or any invoice, freight or express
      bill, bill of lading, storage or warehouse receipts, drafts against debtors,
      assignments, verifications and notices in connection with accounts, and other
      documents relating to the Collateral; (iii) to
      pay or discharge taxes, liens, security interests or other encumbrances at
      any
      time levied or placed on or threatened against the Collateral; (iv) to
      demand, collect, receipt for, compromise, settle and sue for monies due in
      respect of the Collateral; and (v) generally,
      to do, at the option of the Secured Party, and at the Company’s expense, at any
      time, or from time to time, all acts and things which the Secured Party deems
      necessary to protect, preserve and realize upon the Collateral and the Security
      Interest granted therein in order to effect the intent of this Agreement, the
      Notes and the Warrants, all as fully and effectually as the Company might or
      could do; and the Company hereby ratifies all that said attorney shall lawfully
      do or cause to be done by virtue hereof. This power of attorney is coupled
      with
      an interest and shall be irrevocable for the term of this Agreement and
      thereafter as long as any of the Obligations shall be
      outstanding.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (b) On
      a
      continuing basis, the Company will make, execute, acknowledge, deliver, file
      and
      record, as the case may be, in the proper filing and recording places in any
      jurisdiction, including, without limitation, the jurisdictions indicated on
      Schedule
      B,
      attached hereto, all such instruments, and take all such action as may
      reasonably be deemed necessary or advisable, or as reasonably requested by
      the
      Secured Party, to perfect the Security Interest granted hereunder and otherwise
      to carry out the intent and purposes of this Agreement, or for assuring and
      confirming to the Secured Party the grant or perfection of a security interest
      in all the Collateral.

     

    (c) The
      Company hereby irrevocably appoints the Secured Party as the Company’s
      attorney-in-fact, with full authority in the place and stead of the Company
      and
      in the name of the Company, from time to time in the Secured Party’s discretion,
      to take any action and to execute any instrument which the Secured Party may
      deem necessary or advisable to accomplish the purposes of this Agreement,
      including the filing, in its sole discretion, of one or more financing or
      continuation statements and amendments thereto, relative to any of the
      Collateral without the signature of the Company where permitted by
      law.

     

    13. Notices.
      All
      notices, requests, demands and other communications hereunder shall be in
      writing, with copies to all the other parties hereto, and shall be deemed to
      have been duly given when (i) if
      delivered by hand, upon receipt, (ii) if
      sent by facsimile, upon receipt of proof of sending thereof, (iii) if
      sent by nationally recognized overnight delivery service (receipt requested),
      the next business day or (iv) if
      mailed by first-class registered or certified mail, return receipt requested,
      postage prepaid, four days after posting in the U.S. mails, in each case if
      delivered to the following addresses:

     

    
      	
              If
                to the Company:

            	
              Sew
                Cal Logo, Inc.

            
	 	
              207
                W. 138th Street

            
	 	
              Los
                Angeles, CA 90061

            
	 	
              Attention:
                Chief Executive Officer 

            
	 	
              Telephone:
                (310) 352-3300

            
	 	
              Facsimile:
                (866) 820-6476

            
	 	 
	
              With
                copies to:

            	
              Anslow
                & Jaclin, LLP

            
	 	
              195
                Route 9, Suite 204

            
	 	
              Manalapan,
                NJ 07725

            
	 	
              Attention:
                Gregg Jaclin, Esq.

            
	 	
              Telephone:
                (732) 409-1212

            
	 	
              Facsimile:
                (732) 577-1188

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              If
                to the Secured Party:

            	
              AJW
                Partners, LLC

            
	 	
              AJW
                Master Fund, Ltd.

            
	 	
              New
                Millennium Capital Partners II, LLC

            
	 	
              1044
                Northern Boulevard

            
	 	
              Suite
                302

            
	 	
              Roslyn,
                New York 11576

            
	 	
              Attention:
                Corey Ribotsky

            
	 	
              Facsimile:
                516-739-7115

            
	 	 
	
              With
                copies to:

            	
              Ballard
                Spahr Andrews & Ingersoll, LLP

            
	 	
              1735
                Market Street, 51st Floor

            
	 	
              Philadelphia,
                Pennsylvania 19103

            
	 	
              Attention:
                Gerald J. Guarcini, Esquire

            
	 	
              Facsimile:
                215-864-8999

               

            

    

     

    14. Other
      Security.
      To the
      extent that the Obligations are now or hereafter secured by property other
      than
      the Collateral or by the guarantee, endorsement or property of any other person,
      firm, corporation or other entity, then the Secured Party shall have the right,
      in its sole discretion, to pursue, relinquish, subordinate, modify or take
      any
      other action with respect thereto, without in any way modifying or affecting
      any
      of the Secured Party’s rights and remedies hereunder.

     

    15. Miscellaneous.

     

    (a) No
      course
      of dealing between the Company and the Secured Party, nor any failure to
      exercise, nor any delay in exercising, on the part of the Secured Party, any
      right, power or privilege hereunder or under the Notes shall operate as a waiver
      thereof; nor shall any single or partial exercise of any right, power or
      privilege hereunder or thereunder preclude any other or further exercise thereof
      or the exercise of any other right, power or privilege.

     

    (b) All
      of
      the rights and remedies of the Secured Party with respect to the Collateral,
      whether established hereby or by the Notes or by any other agreements,
      instruments or documents or by law shall be cumulative and may be exercised
      singly or concurrently.

     

    (c) This
      Agreement constitutes the entire agreement of the parties with respect to the
      subject matter hereof and is intended to supersede all prior negotiations,
      understandings and agreements with respect thereto. Except as specifically
      set
      forth in this Agreement, no provision of this Agreement may be modified or
      amended except by a written agreement specifically referring to this Agreement
      and signed by the parties hereto.

     

    (d) In
      the
      event that any provision of this Agreement is held to be invalid, prohibited
      or
      unenforceable in any jurisdiction for any reason, unless such provision is
      narrowed by judicial construction, this Agreement shall, as to such
      jurisdiction, be construed as if such invalid, prohibited or unenforceable
      provision had been more narrowly drawn so as not to be invalid, prohibited
      or
      unenforceable. If, notwithstanding the foregoing, any provision of this
      Agreement is held to be invalid, prohibited or unenforceable in any
      jurisdiction, such provision, as to such jurisdiction, shall be ineffective
      to
      the extent of such invalidity, prohibition or unenforceability without
      invalidating the remaining portion of such provision or the other provisions
      of
      this Agreement and without affecting the validity or enforceability of such
      provision or the other provisions of this Agreement in any other
      jurisdiction.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (e) No
      waiver
      of any breach or default or any right under this Agreement shall be considered
      valid unless in writing and signed by the party giving such waiver, and no
      such
      waiver shall be deemed a waiver of any subsequent breach or default or right,
      whether of the same or similar nature or otherwise.

     

    (f) This
      Agreement shall be binding upon and inure to the benefit of each party hereto
      and its successors and assigns.

     

    (g) Each
      party shall take such further action and execute and deliver such further
      documents as may be necessary or appropriate in order to carry out the
      provisions and purposes of this Agreement.

     

    (h) This
      Agreement shall be construed in accordance with the laws of the State of New
      York, except to the extent the validity, perfection or enforcement of a security
      interest hereunder in respect of any particular Collateral which are governed
      by
      a jurisdiction other than the State of New York in which case such law shall
      govern. Each of the parties hereto irrevocably submit to the exclusive
      jurisdiction of any New York State or United States Federal court sitting in
      Manhattan county over any action or proceeding arising out of or relating to
      this Agreement, and the parties hereto hereby irrevocably agree that all claims
      in respect of such action or proceeding may be heard and determined in such
      New
      York State or Federal court. The parties hereto agree that a final judgment
      in
      any such action or proceeding shall be conclusive and may be enforced in other
      jurisdictions by suit on the judgment or in any other manner provided by law.
      The parties hereto further waive any objection to venue in the State of New
      York
      and any objection to an action or proceeding in the State of New York on the
      basis of forum non conveniens.

     

    (i) EACH
      PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF
      ANY
      CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT. THE SCOPE
      OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY DISPUTES THAT MAY
      BE
      FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER OF THIS AGREEMENT,
      INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS
      AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES
      THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO A
      BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THIS WAIVER IN
      ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY ON THIS
      WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
      REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
      SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL
      FOLLOWING SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE, MEANING THAT,
      NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED EITHER
      ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
      RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE EVENT OF
      A
      LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY
      THE
      COURT. 

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (j) This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this to be duly executed on
      the
      day and year first above written.

     

    
      	
              COMPANY

            
	 
	
              SEW
                CAL LOGO, INC.

            
	 	 
	 	 
	
              By:

            	
               

            
	 	
              Richard
                Songer

            
	 	
              President

            

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	
              SECURED
                PARTY:

            
	 	 
	 	 
	
              AJW
                PARTNERS, LLC

            
	
              By:
                SMS Group, LLC

            
	 
	 
	
              By:
                

            	
               

            
	 	
              Corey
                S. Ribotsky

            
	 	
              Manager

            
	 	 
	
              AJW
                MASTER FUND, LTD.

            
	
              By:
                First Street Manager II, LLC

            
	 
	 
	
              By:
                

            	
               

            
	 	
              Corey
                S. Ribotsky

            
	 	
              Manager

            
	 	 
	 	 
	
              NEW
                MILLENNIUM CAPITAL PARTNERS II, LLC

            
	
              By:
                First Street Manager II, LLC

            
	 
	 
	
              By:
                

            	
               

            
	 	
              Corey
                S. Ribotsky

            
	 	
              Manager

            

    

    
      
        
        

      

      
        14

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