Document:

Exhibit
10.1

     

    PREFERRED STOCK PURCHASE
AGREEMENT

     

    This
Preferred Stock Purchase Agreement (“Agreement”) is
entered into and effective as of December 4, 2009 (“Effective Date”), by
and among MedClean Technologies, Inc., a Delaware corporation (“Company”), and Socius Capital Group,
LLC, a Delaware limited liability company, dba Socius Life Sciences
Capital Group,
LLC (including its designees, successors and assigns, “Investor”).

     

    RECITALS

     

    A.          The
parties desire that, upon the terms and subject to the conditions contained
herein, the Company shall issue to Investor, and Investor shall purchase from
the Company, from time to time as provided herein, up to $7,500,000.00 of shares
of Series C Preferred Stock; and

     

    B.           The
offer and sale of the Securities provided for herein are being made without
registration under the Act, in reliance upon the provisions of Section 4(2) of
the Act, Regulation D promulgated under the Act, and such other exemptions from
the registration requirements of the Act as may be available with respect to any
or all of the purchases of Securities to be made hereunder.

     

    AGREEMENT

     

    In
consideration of the premises, the mutual provisions of this Agreement, and
other good and valuable consideration the receipt and adequacy of which are
hereby acknowledged, Company and Investor agree as follows:

     

    ARTICLE 6

    DEFINITIONS

     

    In
addition to the terms defined elsewhere in this Agreement:  (a)
capitalized terms that are not otherwise defined herein have the meanings given
to such terms in the Certificate of Designations, and (b) the following terms
have the meanings indicated in this ARTICLE
1:

     

    “Act” means the
Securities Act of 1933, as amended.

     

    “Affiliate” means any
Person that, directly or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with a Person, as such
terms are used in and construed under Rule 144 under the Act.  With
respect to Investor, without limitation, any Person owning, owned by, or under
common ownership with Investor, and any investment fund or managed account that
is managed on a discretionary basis by the same investment manager as Investor
will be deemed to be an Affiliate.

     

    “Agreement” means this
Preferred Stock Purchase Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Bloomberg” means
Bloomberg Financial Markets.

     

    “Change in Control”
has the meaning set forth within the definition of Fundamental Transaction,
below.

     

    “Certificate of
Designations” means the certificate to be filed with the Secretary of
State of the State of Delaware, in the form attached hereto as Exhibit
B.

     

    “Closing” means any
one of (i) the Commitment Closing and (ii) each Tranche Closing.

     

    “Closing Bid Price”
and “Closing Sale
Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Trading
Market, as reported by Bloomberg, or, if the Trading Market begins to operate on
an extended hours basis and does not designate the closing bid price or the
closing trade price, as the case may be, then the last bid price or last trade
price, respectively, of such security prior to 4:00 p.m., Eastern time, as
reported by Bloomberg, or, if the Trading Market is not the principal securities
exchange or trading market for such security, the last closing bid price or last
trade price, respectively, of such security on the principal securities exchange
or trading market where such security is listed or traded as reported by
Bloomberg, or if the foregoing do not apply, the last closing bid price or last
trade price, respectively, of such security in the over-the-counter market on
the electronic bulletin board for such security as reported by Bloomberg, or, if
no closing bid price or last trade price, respectively, is reported for such
security by Bloomberg, the average of the bid prices, or the ask prices,
respectively, of any market makers for such security as reported in the “pink
sheets” by Pink Sheets LLC (formerly the National Quotation Bureau,
Inc.).  If the Closing Bid Price or the Closing Sale Price cannot be
calculated for a security on a particular date on any of the foregoing bases,
the Closing Bid Price or the Closing Sale Price, as the case may be, of such
security on such date shall be the fair market value as mutually determined by
the Company and Investor.  If the Company and Investor are unable to
agree upon the fair market value of such security, then such dispute shall be
resolved pursuant to Section
6.7.  All such determinations to be appropriately adjusted for
any stock dividend, stock split, stock combination or other similar transaction
during the applicable calculation period.

     

    “Commitment Closing”
has the meaning set forth in Section 2.2(a).

     

    “Commitment
Fee”  means a non-refundable fee of $375,000.00 (5.0% of the
Maximum Placement), payable by the Company to Investor in consideration of
Investor’s commitment to fund the investment contemplated by this
Agreement.  The Commitment Fee is payable on the earlier of (i) the
first Tranche Closing Date, or (ii) the six-month anniversary of the Effective
Date, at the Company’s election either (a) in cash, by offset from the first
Tranche Proceeds or wire transfer of immediately available funds to an account
designated by the Investor, or (b) by issuance and delivery of registered and
freely tradable shares of Common Stock, valued based upon the Commitment Share
VWAP Price.  If not paid earlier, the Commitment Fee shall be due and
payable in full on the six-month anniversary of the Effective Date, whether or
not any Tranche Closings have then occurred.  The Commitment Fee is
non-refundable.

    
      
         

      

      
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    “Commitment Fee
Shares” means any shares of Common Stock issued to Investor in payment of
the Commitment Fee.

     

    “Commitment Share VWAP
Price” means 87% of the VWAP of the Common Stock for the five Trading
Days immediately preceding the date that the Commitment Fee is first payable to
Investor.

     

    “Common Shares”
includes the Warrant Shares and any Commitment Fee Shares.

     

    “Common Stock” means
the common stock, par value $0.0001 per share, of the Company, and any
replacement or substitute thereof, or any share capital into which such Common
Stock shall have been changed or any share capital resulting from a
reclassification of such Common Stock.

     

    “Company Termination”
has the meaning set forth in Section 3.2.

     

    “Delisting Event”
means any time during the term of this Agreement, that the Common Stock is not
listed for and actively and/or regularly trading on a Trading Market, or is
suspended or delisted with respect to the trading of the shares of Common Stock
on a Trading Market.

     

    “Disclosure Schedules”
means the disclosure schedules of the Company delivered concurrently herewith,
attached hereto, and incorporated herein by reference.  The Disclosure
Schedules shall contain no material non-public information.

    

    “DTC” means The
Depository Trust Company, or any successor performing substantially the same
function for Company.

     

    “DWAC Shares” means,
following the earlier of the date that the Registration Statement is declared
effective by the SEC or the six-month anniversary of issuance, all Common Shares
or other shares of Common Stock issued or issuable to Investor or any Affiliate,
successor or assign of Investor pursuant to any of the Transaction Documents,
all of which shall be (a) issued in electronic form, (b) freely tradable and
without restriction on resale, and (c) timely credited by Company to the
specified Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast
Automated Securities Transfer (FAST) Program or any similar program hereafter
adopted by DTC performing substantially the same function, in accordance with
irrevocable instructions issued to and countersigned by the Transfer Agent, in
the form attached hereto as Exhibit C or in such
other form agreed upon by the parties.

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended.

     

    “Fundamental
Transaction” means and shall be deemed to have occurred at such time upon
any of the following events:

     

    (i)           a
consolidation, merger or other business combination or event or transaction
following which the holders of Common Stock immediately preceding such
consolidation, merger, combination or event either (a) no longer hold a majority
of the shares of Common Stock or (b) no longer have the ability to elect a
majority of the board of directors of the Company (a “Change in
Control”);

    
      
         

      

      
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    (ii)          the
sale or transfer of all or substantially all of the Company’s assets, other than
in the ordinary course of business; or

     

    (iii)         a
purchase, tender or exchange offer made to the holders of the outstanding shares
of Common Stock.

     

    “GAAP” means United
States generally accepted accounting principles applied on a consistent basis
during the periods involved.

     

    “Indebtedness” means
(a) any liabilities for borrowed money or amounts owed in excess of $250,000
(other than trade accounts payable incurred in the ordinary course of business),
(b) all guaranties, endorsements and other contingent obligations in respect of
Indebtedness of others, whether or not the same are or should be reflected in
the Company’s balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of
any lease payments in excess of $250,000 due under leases required to be
capitalized in accordance with GAAP.

     

    “Liens” means a lien,
charge, security interest, encumbrance, right of first refusal, preemptive right
or other restriction.

     

    “Material Adverse
Effect” means any material adverse effect on (i) the legality, validity
or enforceability of any Transaction Document, (ii) the results of operations,
assets, business, prospects or financial condition of the Company and the
Subsidiaries, taken as a whole, or (iii) a the Company’s ability to perform in
any material respect on a timely basis its obligations under any Transaction
Document.

     

    “Material Agreement”
means any material loan agreement, financing agreement, equity investment
agreement or securities instrument to which Company is a party, any agreement or
instrument to which Company and Investor or any Affiliate of Investor is a
party, and any other material agreement listed, or required to be listed, on any
of Company’s reports filed or required to be filed with the SEC, including
without limitation Forms 10-K, 10-Q or 8-K.

     

    “Maximum Placement”
means $7,500,000.00.

     

    “Maximum Tranche
Amount” means, subject to any other applicable limitations set forth in
this Agreement, the Maximum Placement less the amount of any previously noticed
and funded Tranches.

     

     “Officer’s Closing
Certificate” means a certificate in customary form reasonably acceptable
to Investor, executed by an authorized officer of the Company.

    
      
         

      

      
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    “Opinion” means an
opinion from Company’s independent legal counsel, in the form attached as Exhibit D or in such
other form agreed upon by the parties, to be delivered in connection with the
Commitment Closing and any Tranche Closing.

     

    “Person” means an
individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any
kind.

     

    “Preferred Shares”
means shares of Series C Preferred Stock of the Company provided for in the
Certificate of Designations, to be issued to Investor pursuant to this
Agreement.

     

    “Prospectus” includes
each prospectus and prospectus supplement (within the meaning of the Act)
related to the sale or offering of any Common Shares, including without
limitation any prospectus or prospectus supplement contained within the
Registration Statement.

     

    “Registration
Statement” means a valid, current and effective shelf or other
registration statement registering for resale the shares of Common Stock to be
issued as Warrant Shares and Commitment Fee Shares hereunder, and except where
the context otherwise requires, means such registration statement, as amended,
including (i) all documents filed as a part thereof or incorporated by reference
therein, and (ii) any information contained or incorporated by reference in a
prospectus filed with the SEC in connection with such registration statement, to
the extent such information is deemed under the Act to be part of such
registration statement.

     

    “Regulation D” means
Regulation D promulgated under the Act.

     

    “Required Approval”
means any approval of the Trading Market or the Company’s stockholders required
to be obtained by Company prior to issuing the Securities pursuant to any
applicable rules of the Trading Market.

     

    “Required Tranche
Documents” has the meaning set forth in Section
2.3(e).

     

    “Rule 144” means Rule
144 promulgated by the SEC pursuant to the Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC
having substantially the same effect.

     

    “Rule 144 Eligible”
means eligible for immediate resale under Rule 144 without limitation on the
amount of securities sold under Rule 144(e) and without  requiring
discharge by payment in full of any promissory notes given to the Company prior
to the sale of the securities under Rule 144(d)(2)(iii).

     

    “SEC” means the United
States Securities and Exchange Commission.

     

    “SEC Reports” includes
all reports required to be filed by the Company under the Act and/or the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two
years preceding the Effective Date (or such shorter period as the Company was
required by law to file such material) and for the period in which this
Agreement is in effect.

    
      
         

      

      
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    “Securities” includes
the Warrant, the Common Shares and the Preferred Shares issuable pursuant to
this Agreement.

     

    “Subsidiary” means any
Person the Company owns or controls, or in which the Company, directly or
indirectly, owns a majority of the capital stock or similar interest that would
be disclosable pursuant to Regulation S-K, Item 601(b)(21).

     

    “Termination” has the
meaning set forth in Section 3.1.

     

    “Termination Date”
means the earlier of (i) the date that is the two-year anniversary of the
Effective Date, or (ii) the Tranche Closing Date on which the sum of the
aggregate Tranche Purchase Price for all Tranche Shares equals the Maximum
Placement.

     

    “Termination Notice”
has the meaning as set forth in Section 3.2.

     

    “Trading Day” means
any day on which the Common Stock is traded on the Trading Market; provided that
it shall not include any day on which the Common Stock is (a) scheduled to trade
for less than 5 hours, or (b) suspended from trading.

     

    “Trading Market” means
the OTC Bulletin Board, the NASDAQ Capital Market, the NASDAQ Global Market, the
NASDAQ Global Select Market, the NYSE Amex, or the New York Stock Exchange,
whichever is at the time the principal trading exchange or market for the Common
Stock, but does not include the Pink Sheets inter-dealer electronic quotation
and trading system.

     

    “Tranche” has the
meaning set forth in Section 2.3.

     

    “Tranche Amount” means
the amount of any individual purchase of Preferred Shares under this Agreement,
as specified by the Company, and shall not exceed the Maximum Tranche
Amount.

     

    “Tranche Closing” has
the meaning set forth in Section
2.3(f).

     

    “Tranche Closing Date”
has the meaning set forth in Section
2.3(f).

     

    “Tranche Notice” has
the meaning set forth in Section
2.3(b).

     

    “Tranche Notice Date”
has the meaning set forth in Section
2.3(b).

     

    “Tranche Purchase
Price” has the meaning set forth in Section 2.3(b), and
shall be specified in writing by the Company.

     

    “Tranche Share Price”
means $10,000.00 per Preferred Share.  The Company may not issue
fractional Preferred Shares.

    
      
         

      

      
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    “Tranche Shares” means
the Preferred Shares that are purchased by Investor pursuant to a
Tranche.  For the Maximum Placement, the Company shall issue 750
Preferred Shares to Investor.

     

    “Transaction
Documents” means this Agreement, the other agreements and documents
referenced herein, and the exhibits and schedules hereto and
thereto.

     

    “Transfer Agent” means
Securities Transfer Corporation or any successor transfer agent for the Common
Stock.

     

    “Use of Proceeds
Certificate” means a certificate, in substantially the form attached as
Exhibit E,
signed by an officer of the Company, setting forth how the Tranche Purchase
Price will be applied by the Company.

     

    “VWAP” means, for any
date, the volume-weighted average price, calculated by dividing the aggregate
value of Common Stock traded on the Trading Market (price multiplied by number
of shares traded) by the total volume (number of shares) of Common Stock traded
on the Trading Market for such date, or the nearest preceding Trading
Day.

     

    “Warrant Shares” means
the shares of Common Stock issuable upon exercise of the Warrant.

     

    “Warrant” means the
warrant issuable under this Agreement, in the form attached hereto as Exhibit A, to
purchase shares of Common Stock with an aggregate exercise price equal to 135.0%
of the Maximum Placement (subject to adjustment as set forth
therein).

     

    ARTICLE 7

    PURCHASE AND
SALE

     

    7.1     
   Agreement to
Purchase

     

    .  Subject
to the terms and conditions herein and the satisfaction of the conditions to
closing set forth in this ARTICLE 2:

     

    (a)           Investor
hereby agrees to purchase such amounts of Preferred Shares as the Company may,
in its sole and absolute discretion, from time to time elect to issue and sell
to Investor according to one or more Tranches pursuant to Section 2.3 below;
and

     

    (b)           The
Company agrees to pay the Commitment Fee and to issue the Preferred Shares, the
Common Shares, the Commitment Fee Shares, and the Warrant to Investor as
provided herein.

     

    7.2       
 Investment
Commitment

     

    (a)           Investment
Commitment. The closing of this Agreement (the “Commitment Closing”)
shall be deemed to occur when this Agreement has been duly executed by both
Investor and the Company, and the other Conditions to the Commitment Closing set
forth in Section
2.2(b)(i) and
Section 2.2(c) have been met.

    
      
         

      

      
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      (b)           Commitment Fee
Shares.

       

      (i)           As
a condition to the Commitment Closing, on or prior to the Effective Date the
Company shall issue to Investor, as an estimate of the maximum number of
Commitment Fee Shares to which Investor may become entitled under this
Agreement, 19,121,282 Commitment Fee Shares.  The Commitment Fee
Shares shall be evidenced by a stock certificate, titled in the name of Investor
or its designee, and bearing a legend substantially in the form set forth in
Section 5.1(b)
hereof and, at the Company’s option, an additional legend indicating that such
shares are subject to the contractual restrictions set forth in this
Agreement.

       

      (ii)         A
total of 19,121,282 shares of Common Stock shall be included in the Registration
Statement for use by the Company in satisfaction of the Commitment
Fee.  Any such shares that are registered for resale but are not used
in payment of the Commitment Fee shall be cancelled by the Company.

       

      (iii)        If
the Company elects to pay the Commitment Fee in cash, then upon Investor’s
receipt of funds the Commitment Fee Shares shall be returned to the Company for
cancellation.  If the Company elects to pay the Commitment Fee in
stock, or if the Company fails to pay the Commitment Fee in cash for any reason,
then on the date that the Commitment Fee is payable,  the legends
shall be removed from the certificate for the Commitment Fee
Shares.  If necessary to make the aggregate number of shares delivered
to Investor equal to the total Commitment Fee divided by the then-applicable
Commitment Share VWAP Price, on the date the Commitment Fee is payable, the
Company shall deliver to Investor (A) if more shares are required, a second
legend-free certificate for the balance of the required shares, or (B) if less
shares are required, a legend-free replacement certificate for the total
required number of shares and, in such case, the original certificate shall be
returned to the Company for cancellation.  Prior to the date that
Investor is entitled to receive legend-free certificates, neither Investor nor
the Company shall be entitled to sell, pledge, assign or otherwise transfer any
of the Commitment Fee Shares.

       

      (iv)         If
the Commitment Fee has not been paid by the six-month anniversary of the
Effective Date (whether because the first Tranche Closing has not occurred or
for any other reason), then on such date the legend shall be removed from the
certificate for the Commitment Fee Shares.  If necessary to make the
aggregate number of shares delivered to Investor equal to the total Commitment
Fee divided by the then-applicable Commitment Share VWAP Price, on the date the
Commitment Fee is payable, the Company shall deliver to Investor (A) if more
shares are required, a second legend-free certificate for the balance of the
required shares, or (B) if less shares are required, a legend-free replacement
certificate for the total required number of shares and, in such case, the
original certificate shall be returned to the Company for
cancellation.

       

      (c)           Conditions to Investment
Commitment. As a condition precedent to the Commitment Closing, all of
the following (the “Conditions to Commitment
Closing”) shall have been satisfied prior to or concurrently with the
Company’s execution and delivery of this Agreement:

       

      
        
          
             

          

          
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      (i)           the
following documents shall have been delivered to Investor:  (A) this
Agreement, executed by the Company; (B) a Secretary’s Certificate as to (x) the
resolutions of the Company’s board of directors authorizing this Agreement and
the Transaction Documents, and the transactions contemplated hereby and thereby,
(y) a copy of the Company’s current Certificate or Articles of Incorporation,
and (z) a copy of the Company’s current Bylaws; (C) the Certificate of
Designations executed by the Company and filed with the Delaware Secretary of
State; (D) the Opinion; and (E) a copy of (1) the Company’s press release (if
any) announcing the transactions contemplated by this Agreement; and (F) a copy
of the Company’s Current Report on Form 8-K, as filed with the SEC, describing
the transaction contemplated by, and attaching a complete copy of, the
Transaction Documents;

       

      (ii)         other
than for losses incurred in the ordinary course of business, there has not been
any Material Adverse Effect on the Company since the date of the last SEC Report
filed by the Company, including but not limited to incurring material
liabilities;

       

      (iii)        the
representations and warranties of the Company in this Agreement shall be true
and correct in all material respects and the Company shall have delivered an
Officer’s Closing Certificate to such effect to Investor, signed by an officer
of the Company;

       

      (iv)         the
Warrant to purchase shares of Common Stock with an aggregate exercise price
equal to 135.0% of the Maximum Placement (subject to adjustment as set forth
therein) shall have been delivered to Investor;

       

      (v)          the
certificate for the Commitment Fee Shares shall have been delivered to Investor;
and

       

      (vi)         any
Required Approval has been obtained.

       

      (d)         Investor’s Obligation to
Purchase. Subject to the prior satisfaction of all conditions set forth
in this Agreement, following Investor’s receipt of a validly delivered Tranche
Notice, Investor shall be required to purchase from the Company a number of
Tranche Shares equal to the permitted Tranche Share Amount, in the manner
described below.

       

      7.3       
Tranches to
Investor

       

      (a)         Procedure to Elect a
Tranche. Subject to the Maximum Tranche Amount, the Maximum Placement and
the other conditions and limitations set forth in this Agreement, at any time
beginning on the effective date of the Registration Statement, the Company may,
in its sole and absolute discretion, elect to exercise one or more individual
purchases of Preferred Shares under this Agreement (each a “Tranche”) according
to the following procedure.

      
        
           

        

        
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      (b)         Delivery of Tranche
Notice.  The Company shall deliver an irrevocable written
notice (the “Tranche
Notice”), in the form attached hereto as Exhibit F, to
Investor stating that the Company shall exercise a Tranche and stating the
number of Preferred Shares which the Company will sell to Investor at the
Tranche Share Price, and the aggregate purchase price for such Tranche (the
“Tranche Purchase
Price”).  A Tranche Notice delivered by the Company to Investor
by 4:30 p.m. Eastern time on any Trading Day shall be deemed delivered on the
same day.  A Tranche Notice delivered by the Company to Investor after
4:30 p.m. Eastern time on any Trading Day, or at any time on a non-Trading Day,
shall be deemed delivered on the next Trading Day.  The date that the
Tranche Notice is deemed delivered is the “Tranche Notice
Date”.  Each Tranche Notice shall be delivered via facsimile or
electronic mail, with confirming copy by overnight carrier, in each case to the
address set forth in Section
6.2.  Except for the first Tranche Closing, the Company may not
give a Tranche Notice unless the Tranche Closing for the prior Tranche has
occurred or has been cancelled by the Company pursuant to Section
2.3(g).

       

      (c)         Warrant.  On
each Tranche Notice Date, that portion of the Warrant equal to 135% of the
Tranche Amount shall vest and become exercisable, and such vested portion may be
exercised at any time on or after such Tranche Notice Date.  Any
portion of the Warrant that becomes exercisable in connection with the delivery
of the Tranche Notice and is exercised by Investor in accordance with Section 1.1 of the
Warrant shall be deemed exercised (i) on the applicable Tranche Notice Date, if
the Company receives the Exercise Delivery Documents from Investor by 6:30 p.m.
Eastern time on the Tranche Notice Date, or (ii) on the next Trading Day, if the
Company receives the Exercise Delivery Documents from Investor after 6:30 p.m.
Eastern Time on the applicable Tranche Notice Date or on any subsequent
date.

       

      (d)         Conditions Precedent to
Right to Deliver a Tranche Notice.  The right of the Company to
deliver a Tranche Notice is subject to the satisfaction (or written waiver by
Investor in its sole discretion), on the date of delivery of such Tranche
Notice, of each of the following conditions:

       

      (i)           the
Common Stock (including without limitation any shares of Common Stock that may
be issued to Investor in payment of the Commitment Fee) shall be listed for and
currently trading on the Trading Market, and to the Company’s knowledge there is
no notice of any suspension or delisting with respect the trading of the shares
of Common Stock on such Trading Market;

       

      (ii)         the
representations and warranties of the Company set forth in this Agreement shall
be true and correct in all material respects as if made on such date (except for
any representations and warranties that are expressly made as of a particular
date, in which case such representations and warranties shall be true and
correct as of such particular date), and no default shall have occurred under
this Agreement, or any other agreement with Investor or any Affiliate of
Investor, or any other Material Agreement, and the Company shall deliver an
Officer’s Closing Certificate to such effect to Investor, signed by an officer
of the Company;

       

      (iii)        other
than losses incurred in the ordinary course of business, there has been no
Material Adverse Effect on the Company since the Commitment
Closing;

       

      
        
          
          

        

        
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      (iv)         the
Company is not, and will not be as a result of the applicable Tranche, in
default of this Agreement, any other agreement with Investor or any Affiliate of
Investor, or any other Material Agreement;

      (v)           there
is not then in effect any law, rule or regulation prohibiting or restricting the
transactions contemplated in this Agreement or any other Transaction Document,
or requiring any consent or approval which shall not have been obtained, nor is
there any pending or threatened proceeding or investigation which may have the
effect of prohibiting or adversely affecting any of the transactions
contemplated by this Agreement; no statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
adopted by any court or governmental authority of competent jurisdiction that
prohibits the transactions contemplated by this Agreement, and no actions, suits
or proceedings shall be in progress, pending or, to the Company’s knowledge
threatened, by any person (other than Investor or any Affiliate of Investor),
that seek to enjoin or prohibit the transactions contemplated by this
Agreement;

       

      (vi)         all
Common Shares shall have been timely delivered at the times provided for in this
Agreement, including all Warrant Shares issuable pursuant to any Exercise Notice
delivered to Company prior to the Tranche Notice Date;

       

      (vii)        all
previously-issued and issuable Common Shares are DWAC Shares, are DTC eligible,
and can be immediately converted into electronic form without restriction on
resale;

       

      (viii)      
Company is in compliance with all requirements to maintain its then-current
listing on the Trading Market;

       

      (ix)         Company
has a current, valid and effective Registration Statement permitting the lawful
resale of all previously-issued and issuable Common Shares (including without
limitation all Warrant Shares issuable upon exercise of the Warrant delivered in
connection with such Tranche and any Commitment Fee Shares);

       

      (x)          Company
has a sufficient number of duly authorized shares of Common Stock reserved for
issuance in such amount as may be required to fulfill its obligations pursuant
to the Transaction Documents and any outstanding agreements with Investor and
any Affiliate of Investor, including without limitation all Warrant Shares
issuable upon exercise of the Warrant issued in connection with such
Tranche;

       

      (xi)         the
aggregate number of Warrant Shares issuable upon exercise of the Warrant issued
on the Tranche Notice Date, when aggregated with all other shares of Common
Stock deemed beneficially owned by Investor and its Affiliates (whether acquired
in connection with the transactions contemplated by the Transaction Documents or
otherwise), would not result in Investor owning more than 9.99% of all Common
Stock outstanding on the Tranche Notice Date, as determined in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder; and

       

      
        
          
          

        

        
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      (xii)       for
any Tranche Notice delivered after the earlier of (A) the first Tranche Closing,
or (B) the six-month anniversary of the Effective Date, Investor shall have
previously received the Commitment Fee.

       

      (e)         Documents to be Delivered at
Tranche Closing. The Closing of any Tranche and Investor’s obligations
hereunder shall additionally be conditioned upon the delivery to Investor of
each of the following (the “Required Tranche
Documents”) on or before the applicable Tranche Closing
Date:

       

      (i)           a
number of Preferred Shares equal to the Tranche Purchase Price divided by the
Tranche Share Price shall have been delivered to Investor or an account
specified by Investor for the Tranche Shares;

       

      (ii)         the
executed Opinion and Officer’s Certificate;

       

      (iii)        a
Use of Proceeds Certificate, signed by an officer of the Company, and setting
forth how the Tranche Purchase Price will be applied by the
Company;

       

      (iv)         all
Warrant Shares shall have been timely delivered in accordance with any Exercise
Notice delivered to Company prior to the Tranche Closing Date;

       

      (v)          all
documents, instruments and other writings required to be delivered by the
Company to Investor on or before the Tranche Closing Date pursuant to any
provision of this Agreement or in order to implement and effect the transactions
contemplated herein; and

       

      (vi)         payment
of a $5,000.00 non-refundable administrative fee to Investor’s counsel, by
offset against the Tranche Amount, or wire transfer of immediately available
funds.

       

      (f)      
   Mechanics of Tranche
Closing.

       

      (i)           Each
of the Company and Investor shall deliver all documents, instruments and
writings required to be delivered by either of them pursuant to Section 2.3(e) of
this Agreement at or prior to each Tranche Closing. Subject to such delivery and
the satisfaction of the conditions set forth in Section
2.3(d) as of the Tranche Closing Date, the closing of the
purchase by Investor of Preferred Shares shall occur by 5:00 p.m. Eastern time,
on the date which is 10 Trading Days following (and not counting) the Tranche
Notice Date (each a “Tranche Closing
Date”) at the offices of Investor.

       

      (ii)         If
any portion of the Warrant is exercised by Investor on or after the Tranche
Notice Date and prior to or on the Tranche Closing Date (which exercise shall be
effected by Investor sending the Exercise Delivery Documents to the Company in
accordance with Section 1.1 of the
Warrant), the Company shall send Investor an electronic copy of its share
issuance instructions to the Transfer Agent and shall cause the requisite number
of Warrant Shares to be credited to Investor’s account with DTC as DWAC Shares
by 12:00 p.m. Eastern time on the Trading Day after the date the Company
receives the Exercise Delivery Documents from Investor.  If DWAC
shares are not timely credited pursuant to this Section 2.3(f)(ii), then the
Tranche Closing Date shall be extended by one Trading Day for each Trading Day
that such timely credit of DWAC Shares is not made.

       

      
        
          
          

        

        
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      (iii)        On
or before each Tranche Closing Date, Investor shall deliver to the Company, in
cash or immediately available funds, the Tranche Purchase Price to be paid for
such Tranche Shares.

       

      (iv)         The
closing (each a “Tranche Closing”) for
each Tranche shall occur on the date that both (i) the Company has delivered to
Investor all Required Tranche Documents, and (ii) Investor has delivered to the
Company the Tranche Purchase Price.

       

      (g)         Limitation on Obligations to
Purchase and Sell.  Notwithstanding any other provision, in the
event the Closing Bid Price or Closing Sale Price of the Common Stock during any
one or more of the 9 Trading Days following the Tranche Notice Date falls below
75.0% of the Closing Bid Price on the Tranche Notice Date, except as otherwise
agreed in writing between the Company and Investor:  (i) the Company
may, at its option, and without penalty, terminate the Tranche Notice and
decline to sell any Tranche Shares on the Tranche Closing Date; and (ii)
Investor may, at its option, decline to purchase any Tranche Shares on the
Tranche Closing Date.

       

      7.4        
Maximum
Placement.  Investor
shall not be obligated to purchase any additional Tranche Shares once the
aggregate Tranche Purchase Price paid by Investor equals the Maximum
Placement.

       

      7.5        
Share
Sufficiency.  On
or before the date on which any portion of the Warrant become exercisable, the
Company shall have a sufficient number of duly authorized shares of Common Stock
for issuance in such amount as may be required to fulfill its obligations
pursuant to the Transaction Documents and any outstanding agreements with
Investor and any Affiliate of Investor.

       

      ARTICLE 8

      TERMINATION

       

      8.1        
Termination.  The
Investor may elect to terminate this Agreement and the Company’s right to
initiate subsequent Tranches to Investor under this Agreement (each, a “Termination”) upon
the occurrence of any of the following:

       

      (a)         if,
at any time, either the Company or any director or executive officer of the
Company has engaged in a transaction or conduct related to the Company that has
resulted in (i) a SEC enforcement action, including without limitation such
director or executive officer being sanctioned by the SEC, or (ii) a civil
judgment or criminal conviction for fraud or misrepresentation, or for any other
offense that, if prosecuted criminally, would constitute a felony under
applicable law;

       

      
        
          
          

        

        
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      (b)         on
any date after a Delisting Event that lasts for an aggregate of 20 Trading Days
during any calendar year;

       

      (c)         if
at any time the Company has filed for and/or is subject to any bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for
relief under any bankruptcy law or any law for the relief of debtors instituted
by or against the Company or any Subsidiary of the Company;

       

      (d)         the
Company is in breach or default of any Material Agreement, which breach or
default could have a Material Adverse Effect;

       

      (e)         the
Company is in breach or default of this Agreement, any Transaction Document, or
any agreement with Investor or any Affiliate of Investor;

       

      (f)         upon
the occurrence of a Fundamental Transaction;

       

      (g)         so
long as any Preferred Shares are outstanding, the Company effects or publicly
announces its intention to create a security senior to the Series C Preferred
Stock, or substantially altering the capital structure of the Company in a
manner that materially adversely affects the rights or preferences of the Series
C Preferred Stock; and

       

      (h)         on
the Termination Date.

       

      8.2       
Company
Termination.  The
Company may at any time in its sole discretion terminate (a “Company Termination”)
this Agreement and its right to initiate future Tranches by providing 30 days
advanced written notice (“Termination Notice”)
to Investor.

       

      8.3       
Effect of
Termination.  Except
as otherwise provided herein, the termination of this Agreement will have no
effect on any Common Shares, Preferred Shares, Commitment Fee Shares, Warrant,
Warrant Shares, or DWAC Shares previously issued, delivered or credited, or on
any then-existing rights of any holder thereof.  Notwithstanding any
other provision of this Agreement and regardless of whether the first Tranche
has closed, the Commitment Fee is payable despite any termination of this
Agreement and all fees paid to Investor or its counsel are
non-refundable.

       

      ARTICLE 9

      REPRESENTATIONS AND
WARRANTIES

       

      9.1        Representations and
Warranties of the Company.  Except
as set forth under the corresponding section of the Disclosure Schedules, which
shall be deemed a part hereof and which shall not contain any material
non-public information, the Company hereby represents and warrants to, and as
applicable covenants with, Investor as of each Closing:

       

      
        
          
          

        

        
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      (a)         Subsidiaries.  All
of the direct and indirect subsidiaries of the Company are set forth on Section 4.1(a) to the
Disclosure Schedule.  The Company owns, directly or indirectly, all of
the capital stock or other equity interests of each Subsidiary, and all of such
directly or indirectly owned capital stock or other equity interests are owned
free and clear of any Liens.  All the issued and outstanding shares of
capital stock of each Subsidiary are duly authorized, validly issued, fully
paid, non-assessable and free of preemptive and similar rights to subscribe for
or purchase securities.

      (b)         Organization and
Qualification.  Each of the Company and each Subsidiary is an
entity duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization, as applicable, with the requisite power and authority to own and
use its properties and assets and to carry on its business as currently
conducted.  Neither the Company nor any Subsidiary is in violation or
default of any of the provisions of its respective certificate or articles of
incorporation, bylaws or other organizational or charter
documents.  Each of the Company and each Subsidiary is duly qualified
to conduct business and is in good standing as a foreign corporation or other
entity in each jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except where the
failure to be so qualified or in good standing, as the case may be, could not
have or reasonably be expected to result in a Material Adverse Effect and no
proceeding has been instituted in any such jurisdiction revoking, limiting or
curtailing or seeking to revoke, limit or curtail such power and authority or
qualification.

       

      (c)         Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents and otherwise to carry out its obligations
hereunder or thereunder.  The execution and delivery of each of the
Transaction Documents by the Company and the consummation by it of the
transactions contemplated hereby or thereby have been duly authorized by all
necessary action on the part of the Company and no further consent or action is
required by the Company other than the filing of the Certificate of
Designations.  Each of the Transaction Documents has been, or upon
delivery will be, duly executed by the Company and, when delivered in accordance
with the terms hereof, will constitute the valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except
(i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other
equitable remedies and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law.  Neither the Company nor
any Subsidiary is in violation of any of the provisions of its respective
certificate or articles of incorporation, by-laws or other organizational or
charter documents.

       

      
        
          
          

        

        
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      (d)         No
Conflicts.  The execution, delivery and performance of the
Transaction Documents by the Company, the issuance and sale of the Securities
and the consummation by the Company of the other transactions contemplated
thereby do not and will not (i) conflict with or violate any provision of the
Company’s or any Subsidiary’s certificate or articles of incorporation, articles
of association, bylaws, or other organizational or charter documents, or (ii)
conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, result in the creation of any Lien
upon any of the properties or assets of the Company or any Subsidiary, or give
to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary debt or
otherwise) or other understanding to which the Company or any Subsidiary is a
party or by which any property or asset of the Company or any Subsidiary is
bound or affected, or (iii) conflict with or result in a violation of any law,
rule, regulation, order, judgment, injunction, decree or other restriction of
any court or governmental authority to which the Company or a Subsidiary is
subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company or a Subsidiary is bound or affected,
or (iv) conflict with or violate the terms of any agreement by which the Company
or any Subsidiary is bound or to which any property or asset of the Company or
any Subsidiary is bound or affected; except in the case of each of clauses (ii)
and (iii), such as could not have or reasonably be expected to result in a
Material Adverse Effect.

       

      (e)         Filings, Consents and
Approvals.  Neither the Company nor any Subsidiary is required
to obtain any consent, waiver, authorization or order of, give any notice to, or
make any filing or registration with, any court or other federal, state, local
or other governmental authority or other Person in connection with the
execution, delivery and performance by the Company of the Transaction Documents,
other than the filing of the Certificate of Designations and required federal
and state securities filings and such filings and approvals as are required to
be made or obtained under the applicable Trading Market rules in connection with
the transactions contemplated hereby, each of which has been, or (if not yet
required to be filed) shall be, timely filed.

       

      (f)      
   Issuance of the
Securities.  The Securities are duly authorized and, when
issued and paid for in accordance with the applicable Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear of
all Liens.  The Company has reserved from its duly authorized capital
stock a number of shares of Common Stock and Preferred Stock for issuance of the
Securities at least equal to the number of Securities which could be issued
pursuant to the terms of the Transaction Documents, based on the
then-anticipated exercise prices of the Warrant.

       

      
        
          
          

        

        
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      (g)         Capitalization.  The
capitalization of the Company is as described in the Company’s most recently
filed periodic SEC Report.  The Company had previously issued and
outstanding shares of Series A preferred stock and Series B preferred stock, all
of which have been retired and none of which is currently
outstanding.  Except for the Preferred Shares to be issued pursuant to
this Agreement, the Company has no currently issued or outstanding shares of
preferred stock.  Other than as set forth in Section 4.1(g) of the
Disclosure Schedule, the Company has not issued any capital stock since such
filing.  No Person has any right of first refusal, preemptive right,
right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents.  Except as a result of the
purchase and sale of the Securities or as set forth in the SEC Reports, there
are no outstanding options, warrants, script rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities, rights or
obligations convertible into or exchangeable for, or giving any Person any right
to subscribe for or acquire, any shares of Common Stock, or contracts,
commitments, understandings or arrangements by which the Company or any
Subsidiary is or may become bound to issue additional shares of Common Stock or
securities convertible into or exercisable for shares of Common
Stock.  The issuance and sale of the Securities will not obligate the
Company to issue shares of Common Stock or other securities to any Person (other
than Investor) and will not result in a right of any holder of Company
securities to adjust the exercise, conversion, exchange, or reset price under
such securities. All of the outstanding shares of capital stock of the Company
are validly issued, fully paid and nonassessable, have been issued in compliance
with all federal and state securities laws, and none of such outstanding shares
was issued in violation of any preemptive rights or similar rights to subscribe
for or purchase securities.  No further approval or authorization of
any stockholder, the Board of Directors of the Company or others is required for
the issuance and sale of the Securities.  Except as set forth in the
SEC Reports, there are no stockholders agreements, voting agreements or other
similar agreements with respect to the Company’s capital stock to which the
Company is a party or, to the knowledge of the Company, between or among any of
the Company’s stockholders.

       

      (h)         SEC Reports; Financial
Statements.  The Company has filed all required SEC Reports for
the two years preceding the Effective Date (or such shorter period as the
Company was required by law to file such SEC Reports) on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension.  As of their
respective dates, the SEC Reports complied in all material respects with the
requirements of the Act and the Exchange Act and the rules and regulations of
the SEC promulgated thereunder, as applicable, and none of the SEC Reports, when
filed, contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.  The financial statements of the Company included in
the SEC Reports comply in all material respects with applicable accounting
requirements and the rules and regulations of the SEC with respect thereto as in
effect at the time of filing.  Such financial statements have been
prepared in accordance with GAAP, except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial
statements may not contain all footnotes required by GAAP, and fairly present in
all material respects the financial position of the Company and its consolidated
subsidiaries as of and for the dates thereof and the results of operations and
cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.

       

      
        
          
          

        

        
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      (i)     
    Material
Changes.  Since the date of the latest audited financial
statements included within the SEC Reports, except as specifically disclosed in
the SEC Reports, (i) there has been no event, occurrence or development that has
had, or that could reasonably be expected to result in, a Material Adverse
Effect, (ii) the Company has not incurred any liabilities (contingent or
otherwise) other than (A) trade payables and accrued expenses incurred in the
ordinary course of business consistent with past practice, and (B) liabilities
not required to be reflected in the Company’s financial statements pursuant to
GAAP or required to be disclosed in filings made with the SEC, (iii) the Company
has not altered its method of accounting, (iv) the Company has not declared or
made any dividend or distribution of cash or other property to its stockholders
or purchased, redeemed or made any agreements to purchase or redeem any shares
of its capital stock and (v) the Company has not issued any equity securities to
any officer, director or Affiliate, except pursuant to existing Company equity
incentive plans as disclosed in the SEC Reports.  The Company does not
have pending before the SEC any request for confidential treatment of
information.

       

      (j)          Litigation.  There
is no action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the
Company, any Subsidiary or any of their respective properties before or by any
court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”), which (i)
adversely affects or challenges the legality, validity or enforceability of any
of the Transaction Documents or the Securities, or (ii) could, if there were an
unfavorable decision, have or reasonably be expected to result in a Material
Adverse Effect.  Neither the Company nor any Subsidiary, nor to the
knowledge of the Company any director or officer thereof, is or has been the
subject of any Action involving a claim of violation of or liability under
federal or state securities laws or a claim of breach of fiduciary
duty.  There has not been, and to the knowledge of the Company, there
is not pending or contemplated, any investigation by the SEC involving the
Company or any current or former director or officer of the
Company.  The SEC has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by the Company
or any Subsidiary under the Exchange Act or the Act.

       

      (k)         Labor
Relations.  No material labor dispute exists or, to the
knowledge of the Company, is imminent with respect to any of the employees of
the Company, which could reasonably be expected to result in a Material Adverse
Effect.

       

      (l)         
Compliance.  Neither
the Company nor any Subsidiary (i) is in default under or in violation of (and
no event has occurred that has not been waived that, with notice or lapse of
time or both, would result in a default by the Company or any Subsidiary under),
nor has the Company or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or credit
agreement or any other similar agreement or instrument to which it is a party or
by which it or any of its properties is bound (whether or not such default or
violation has been waived), (ii) is in violation of any order of any court,
arbitrator or governmental body, or (iii) is or has been in violation of any
statute, rule or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws applicable to its
business, except in each case under clauses (i)-(iii) above as could not have a
Material Adverse Effect.

       

      
        
          
          

        

        
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      (m)        Regulatory
Permits.  The Company and each Subsidiary possess all
certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their
respective businesses as described in the SEC Reports, except where the failure
to possess such permits could not, individually or in the aggregate, have or
reasonably be expected to result in a Material Adverse Effect (“Material Permits”),
and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material
Permit.

       

      (n)         Title to
Assets.  The Company and each Subsidiary have good and
marketable title in fee simple to all real property owned by them that is
material to the business of the Company and each Subsidiary and good and
marketable title in all personal property owned by them that is material to the
business of the Company and each Subsidiary, in each case free and clear of all
Liens, except for Liens that do not materially affect the value of such property
and do not materially interfere with the use made and proposed to be made of
such property by the Company and each Subsidiary and Liens for the payment of
federal, state or other taxes, the payment of which is neither delinquent nor
subject to penalties.  Any real property and facilities held under
lease by the Company and each Subsidiary are held by them under valid,
subsisting and enforceable leases of which the Company and each Subsidiary are
in compliance.

       

      (o)         Patents and
Trademarks.  The Company and each Subsidiary have, or have
rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, licenses and other similar
rights that are necessary or material for use in connection with their
respective businesses as described in the SEC Reports and which the failure to
so have could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”).  Neither the Company nor any Subsidiary has
received a written notice that the Intellectual Property Rights used by the
Company or any Subsidiary violates or infringes upon the rights of any Person.
To the knowledge of the Company, all such Intellectual Property Rights are
enforceable and there is no existing infringement by another Person of any of
the Intellectual Property Rights of the Company or each Subsidiary.

       

      (p)         Insurance.  The
Company and each Subsidiary are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses in which the Company and each Subsidiary are
engaged, including but not limited to directors and officers insurance coverage
at least equal to the Maximum Placement.  To the best of Company’s
knowledge, such insurance contracts and policies are accurate and
complete.  Neither the Company nor any Subsidiary has any reason to
believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business without a significant increase in
cost.

       

      (q)         Transactions With Affiliates
and Employees.  Except as set forth in the SEC Reports, none of
the officers or directors of the Company and, to the knowledge of the Company,
none of the employees of the Company is presently a party to any transaction
with the Company or any Subsidiary (other than for services as employees,
officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any
officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee or partner, in each case in excess
of $120,000 other than (i) for payment of salary or consulting fees for services
rendered, (ii) reimbursement for expenses incurred on behalf of the Company and
(iii) for other employee benefits, including stock option agreements under any
equity incentive plan of the Company.

       

      
        
          
          

        

        
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      (r)         Sarbanes-Oxley; Internal
Accounting Controls.  The Company is in material compliance
with all provisions of the Sarbanes-Oxley Act of 2002, which are applicable to
it as of the date of the Commitment Closing.  The Company and each
Subsidiary maintain a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance
with management’s general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management’s general or specific
authorization, and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.  The Company has established disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the Company and designed such disclosure controls and procedures
to ensure that material information relating to the Company, including its
Subsidiaries, is made known to the certifying officers by others within those
entities, particularly during the period in which the Company’s most recently
filed periodic report under the Exchange Act, as the case may be, is being
prepared.  The Company’s certifying officers have evaluated the
effectiveness of the Company’s disclosure controls and procedures as of the date
prior to the filing date of the most recently filed periodic report under the
Exchange Act (such date, the “Evaluation
Date”).  The Company presented in its most recently filed
periodic report under the Exchange Act the conclusions of the certifying
officers about the effectiveness of the Company’s disclosure controls and
procedures based on their evaluations as of the Evaluation
Date.  Since the Evaluation Date, there have been no significant
changes in the Company’s internal accounting controls or its disclosure controls
and procedures or, to the Company’s knowledge, in other factors that could
materially affect the Company’s internal accounting controls or its disclosure
controls and procedures.

       

      (s)         Certain
Fees.  Except for the payment of the Commitment Fee, no
brokerage or finder’s fees or commissions are or will be payable by the Company
to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions
contemplated by this Agreement.  Investor shall have no obligation
with respect to any fees or with respect to any claims made by or on behalf of
other Persons for fees of a type contemplated in this Section
4.1(s) that may be due in connection with the transactions
contemplated by this Agreement or the other Transaction Documents.

       

      (t)     
    Private Placement.
Assuming the accuracy of Investor representations and warranties set forth in
Section 4.2, no
registration under the Act is required for the offer and sale of the Securities
by the Company to Investor as contemplated hereby. The issuance and sale of the
Securities hereunder does not contravene the rules and regulations of any
Trading Market.

       

      
        
          
          

        

        
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      (u)         Investment Company.
The Company is not, and is not an Affiliate of, and immediately after receipt of
payment for the Securities, will not be or be an Affiliate of, an “investment
company” within the meaning of the Investment Company Act of 1940, as
amended.  The Company shall conduct its business in a manner so that
it will not become subject to the Investment Company Act.

       

      (v)      
   Registration
Rights.  No Person (other than Investor pursuant to the
Transaction Documents) has any right to cause the Company to effect the
registration under the Act of any securities of the Company.

       

      (w)         Listing and Maintenance
Requirements.  The Common Stock is registered pursuant to
Section 12 of the Exchange Act, and the Company has taken no action designed to,
or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company
received any notification that the SEC is contemplating terminating such
registration.  The Company has not, in the 12 months preceding the
Effective Date, received notice from any Trading Market on which the Common
Stock is or has been listed or quoted to the effect that the Company is not in
compliance with the listing or maintenance requirements of such Trading Market.
The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance
requirements.

       

      (x)         Application of Takeover
Protections.  The Company and its Board of Directors have taken
all necessary action, if any, in order to render inapplicable any control share
acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti takeover provision under the Company’s
Certificate of Incorporation (or similar charter documents) or the laws of its
state of incorporation that is or could become applicable to Investor as a
result of Investor and the Company fulfilling their obligations or exercising
their rights under the Transaction Documents, including without limitation the
Company’s issuance of the Securities and Investor’s ownership of the
Securities.

       

      (y)         Disclosure; Non-Public
Information.  Except with respect to the information that will
be, and to the extent that it actually is timely publicly disclosed by the
Company pursuant to Section 2.2(c)(i),
and notwithstanding any other provision in this Agreement or the other
Transaction Documents, neither the Company nor any other Person acting on its
behalf has provided Investor or its agents or counsel with any information that
constitutes or might constitute material, non-public information, including
without limitation this Agreement and the Exhibits, Appendices and Schedules
hereto, unless prior thereto Investor shall have executed a written agreement
regarding the confidentiality and use of such information.  The
Company understands and confirms that neither Investor nor any Affiliate of
Investor shall have any duty of trust or confidence that is owed directly,
indirectly, or derivatively to the Company or the shareholders of the Company or
to any other Person who is the source of material non-public information
regarding the Company.  No information contained in the Disclosure
Schedules constitutes material non-public information.  There is no
adverse material information regarding the Company that has not been publicly
disclosed.  The Company understands and confirms that Investor will
rely on the foregoing representations and covenants in effecting transactions in
securities of the Company.  All disclosure provided to Investor
regarding the Company, its business and the transactions contemplated hereby,
including the Disclosure Schedules to this Agreement, furnished by or on behalf
of the Company with respect to the representations and warranties made herein
are true and correct in all material respects and do not contain any untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under
which they were made, not misleading.

       

      
        
          
          

        

        
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      (z)         No Integrated
Offering. Neither the Company, nor any of its Affiliates, nor any Person
acting on its or their behalf has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy any security, under
circumstances that would cause this offering of the Securities to be integrated
with prior offerings by the Company for purposes of the Act or which could
violate any applicable stockholder approval provisions, including, without
limitation, under the rules and regulations of the Trading Market.

       

      (aa)      
Financial
Condition.  Based on the financial condition of the Company as
of the date of the Commitment Closing: (i) the fair saleable market value of the
Company’s assets exceeds the amount that will be required to be paid on or in
respect of the Company’s existing debts and other liabilities (including known
contingent liabilities) as they mature; (ii) the Company’s assets do not
constitute unreasonably small capital to carry on its business for the current
fiscal year as now conducted and as proposed to be conducted including its
capital needs taking into account the particular capital requirements of the
business conducted by the Company, and projected capital requirements and
capital availability thereof; and (iii) the current cash flow of the Company,
together with the proceeds the Company would receive, were it to liquidate all
of its assets, after taking into account all anticipated uses of the cash, would
be sufficient to pay all amounts on or in respect of its debt when such amounts
are required to be paid.  The Company does not intend to incur debts
beyond its ability to pay such debts as they mature (taking into account the
timing and amounts of cash to be payable on or in respect of its debt). The
Company has no knowledge of any facts or circumstances, which lead it to believe
that it will file for reorganization or liquidation under the bankruptcy or
reorganization laws of any jurisdiction within one year from the date of the
Commitment Closing.  The SEC Reports set forth as of the dates thereof
all outstanding secured and unsecured Indebtedness of the Company or any
Subsidiary, or for which the Company or any Subsidiary has
commitments.  Neither the Company nor any Subsidiary is in default
with respect to any Indebtedness.

       

      (bb)      
Tax
Status.  The Company and each of its Subsidiaries has made or
filed all federal, state and foreign income and all other tax returns, reports
and declarations required by any jurisdiction to which it is subject (unless and
only to the extent that the Company and each of its Subsidiaries has set aside
on its books provisions reasonably adequate for the payment of all unpaid and
unreported taxes) and has paid all taxes and other governmental assessments and
charges that are material in amount, shown or determined to be due on such
returns, reports and declarations, except those being contested in good faith
and has set aside on its books provisions reasonably adequate for the payment of
all taxes for periods subsequent to the periods to which such returns, reports
or declarations apply.  There are no unpaid taxes in any material
amount claimed to be due by the taxing authority of any jurisdiction, and the
officers of the Company know of no basis for any such claim.  The
Company has not executed a waiver with respect to the statute of limitations
relating to the assessment or collection of any foreign, federal, statue or
local tax.  None of the Company’s tax returns is presently being
audited by any taxing authority.

       

      
        
          
          

        

        
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      (cc)      
No General
Solicitation or Advertising.  Neither the Company nor, to the
knowledge of the Company, any of its directors or officers (i) has conducted or
will conduct any general solicitation (as that term is used in Rule 502(c) of
Regulation D) or general advertising with respect to the sale of the Securities,
or (ii) made any offers or sales of any security or solicited any offers to buy
any security under any circumstances that would require registration of the
Securities under the Act or made any “directed selling efforts” as defined in
Rule 902 of Regulation S.

       

      (dd)      
Foreign Corrupt
Practices.  Neither the Company, nor to the knowledge of the
Company, any agent or other person acting on behalf of the Company, has (i)
directly or indirectly, used any corrupt funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political
parties or campaigns from corporate funds, (iii) failed to disclose fully any
contribution made by the Company (or made by any person acting on its behalf of
which the Company is aware) which is  in violation of law, or (iv)
violated in any material respect any provision of the Foreign Corrupt Practices
Act of 1977, as amended.

       

      (ee)      
Acknowledgment
Regarding Investor’s Purchase of Securities.  The Company
acknowledges and agrees that Investor is acting solely in the capacity of arm’s
length purchaser with respect to this Agreement and the transactions
contemplated hereby.  The Company further acknowledges that Investor
is not acting as a financial advisor or fiduciary of the Company (or in any
similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any statement made by Investor or any of its
representatives or agents in connection with this Agreement and the transactions
contemplated hereby is not advice or a recommendation and is merely incidental
to Investor’s purchase of the Securities.  The Company further
represents to Investor that the Company’s decision to enter into this Agreement
has been based solely on the independent evaluation of the Company and its
representatives.

       

      (ff)       
Accountants.  The
Company’s accountants are set forth in the SEC Reports and such accountants are
an independent registered public accounting firm as required by the
Act.

       

      (gg)     
No
Disagreements with Accountants and Lawyers.  There are no
disagreements of any kind presently existing, or reasonably anticipated by the
Company to arise, between the accountants and lawyers formerly or presently
employed by the Company, and the Company is current with respect to any fees
owed to its accountants and lawyers, except for any past-due amounts that may be
owed in the ordinary course of business.

       

      
        
          
          

        

        
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      (hh)   
   Registration Statements and
Prospectuses.

       

      (i)           The
offer and sale of the Common Shares as contemplated hereby complies with the
requirements of Rule 415 under the Act.

       

      (ii)         
The Company has not, directly or indirectly, used or referred to any “free
writing prospectus” (as defined in Rule 405 under the Act) except in compliance
with Rules 164 and 433 under the Act.

       

      (iii)        The
Company is not an “ineligible issuer” (as defined in Rule 405 under the Act) as
of the eligibility determination date for purposes of Rules 164 and 433 under
the Act with respect to the offering of the Common Shares contemplated by any
Registration Statement filed or to be filed, without taking into account any
determination by the SEC pursuant to Rule 405 under the Act that it is not
necessary under the circumstances that the Company be considered an “ineligible
issuer.”

       

      (ii)         Section 5 Compliance.
No representation or warranty or other statement made by Company in the
Transaction Documents contains any untrue statement or omits to state a material
fact necessary to make any of them, in light of the circumstances in which it
was made, not misleading. The Company
is not aware of any facts or circumstances that would cause the transactions
contemplated by the Transaction Documents, when consummated, to violate Section
5 of the Act or other federal or state securities laws or
regulations.

       

      9.2       
Representations
and Warranties of Investor. Investor hereby represents and warrants as of
the Effective Date as follows:

       

      (a)         Organization;
Authority.  Investor is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization with full right, company power and authority to enter into and to
consummate the transactions contemplated by the Transaction Documents and
otherwise to carry out its obligations thereunder.  The execution,
delivery and performance by Investor of the transactions contemplated by this
Agreement have been duly authorized by all necessary company or similar action
on the part of Investor.  Each Transaction Document to which it is a
party has been (or will be) duly executed by Investor, and when delivered by
Investor in accordance with the terms hereof, will constitute the valid and
legally binding obligation of Investor, enforceable against it in accordance
with its terms, except (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable
law.

       

      (b)         Investor
Status.  At the time Investor was offered the Securities, it
was, and at the Effective Date it is an “accredited investor” as defined in Rule
501(a) under the Act.

       

      
        
          
          

        

        
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      (c)         Experience of
Investor.  Investor, either alone or together with its
representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of
the prospective investment in the Securities, and has so evaluated the merits
and risks of such investment.  Investor is able to bear the economic
risk of an investment in the Securities and, at the present time, is able to
afford a complete loss of such investment.

       

      (d)         General
Solicitation.  Investor is not purchasing the Securities as a
result of any advertisement, article, notice or other communication regarding
the Securities published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement.

       

      The
Company acknowledges and agrees that Investor does not make or has not made any
representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in this Section
4.2.

       

      ARTICLE 10

      OTHER AGREEMENTS OF THE
PARTIES

       

      10.1  
    Transfer
Restrictions

       

      (a)         The
Securities may only be disposed of in compliance with state and federal
securities laws.  In connection with any transfer of Securities other
than (i) pursuant to an effective Registration Statement or Rule 144, (ii) to
the Company, (iii) to an Affiliate of Investor, or (iv) in connection with a
pledge as contemplated in Section
5.1(b), the Company may require the transferor thereof to
provide to the Company an opinion of Luce Forward Hamilton & Scripps LLP
(“Luce
Forward”), or other counsel selected by the transferor and reasonably
acceptable to the Company, to the effect that such transfer does not require
registration of such transferred Securities under the Act.

       

      (b)         Investor
agrees to the imprinting, so long as is required by this Section
5.1, of the following legend, or substantially similar
legend, on any certificate evidencing Securities other than DWAC
Shares:

      NEITHER
THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

       

      
        
          
          

        

        
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      The
Company agrees to cause such legend to be removed immediately upon effectiveness
of a Registration Statement, or when any Common Shares are eligible for sale
under Rule 144.  Company further acknowledges and agrees that Investor
may from time to time pledge pursuant to a bona fide margin agreement with a
registered broker-dealer or grant a security interest in some or all of the
Securities to a financial institution that is an “accredited investor” as
defined in Rule 501(a) under the Act and who agrees to be bound by the
provisions of this Agreement and, if required under the terms of such
arrangement, Investor may transfer pledged or secured Securities to the pledgees
or secured parties.  Such a pledge or transfer would not be subject to
approval of the Company and no legal opinion of legal counsel of the pledgee,
secured party or pledgor shall be required in connection
therewith.  Further, no notice shall be required of such
pledge.  At Investor’s reasonable expense, the Company will execute
and deliver such documentation as a pledgee or secured party of Securities may
reasonably request in connection with a pledge or transfer of the
Securities.

       

      10.2     
Furnishing of
Information.  As
long as Investor owns Securities, the Company covenants to timely file (or
obtain extensions in respect thereof and file within the applicable grace
period) all reports required to be filed by the Company after the Effective Date
pursuant to the Exchange Act.  Upon the request of Investor, the
Company shall deliver to Investor a written certification of a duly authorized
officer as to whether it has complied with the preceding sentence. As long as
Investor owns Securities, if the Company is not required to file reports
pursuant to such laws, it will prepare and furnish to Investor and make publicly
available in accordance with Rule 144(c) such information as is required for
Investor to sell the Securities under Rule 144.  The Company further
covenants that it will take such further action as any holder of Securities may
reasonably request, all to the extent required from time to time to enable such
Person to sell such Securities without registration under the Act within the
limitation of the exemptions provided by Rule 144.

       

      10.3      Integration.  The
Company shall not sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the Act) that
would be integrated with the offer or sale of the Securities in a manner that
would require the registration under the Act of the sale of the Securities to
Investor or that would be integrated with the offer or sale of the Securities
for purposes of the rules and regulations of any Trading Market such that it
would require stockholder approval prior to the closing of such other
transaction unless stockholder approval is obtained before the closing of such
subsequent transaction.

      
        
           

        

        
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      10.4      
Securities Laws
Disclosure; Publicity.  The
Company shall timely file a Current Report on Form 8-K as required by this
Agreement, and in the Company’s discretion shall file a press release, in each
case reasonably acceptable to Investor, disclosing the material terms of the
transactions contemplated hereby.  The Company and Investor shall
consult with each other in issuing any press releases with respect to the
transactions contemplated hereby, and neither the Company nor Investor shall
issue any such press release or otherwise make any such public statement without
the prior consent of the Company, with respect to any such press release of
Investor, or without the prior consent of Investor, with respect to any such
press release of the Company, which consent shall not unreasonably be withheld
or delayed, except if such disclosure is required by law or Trading Market
regulations, in which case the disclosing party shall promptly provide the other
party with prior notice of such public statement or
communication.  Notwithstanding the foregoing, the Company shall not
publicly disclose the name of Investor, or include the name of Investor in any
filing with the SEC or any regulatory agency or Trading Market, without the
prior written consent of Investor, except (i) as contained in the Current Report
on Form 8-K and press release described above, (ii) as required by federal
securities law in connection with any registration statement under which the
Common Shares are registered, (iii) to the extent such disclosure is required by
law or Trading Market regulations, in which case the Company shall provide
Investor with prior notice of such disclosure, or (iv) to the extent such
disclosure is required in any SEC Report filed by the Company.

       

      10.5       Shareholders Rights
Plan.  No
claim will be made or enforced by the Company or, to the knowledge of the
Company, any other Person that Investor is an “Acquiring Person” under any
shareholders rights plan or similar plan or arrangement in effect or hereafter
adopted by the Company, or that Investor could be deemed to trigger the
provisions of any such plan or arrangement, by virtue of receiving Securities
under the Transaction Documents or under any other agreement between the Company
and Investor. The Company shall conduct its business in a manner so that it will
not become subject to the Investment Company Act of 1940, as
amended.

       

      10.6      
Non-Public
Information.  The
Company covenants and agrees that neither it nor any other Person acting on its
behalf will provide Investor or its agents or counsel with any information that
the Company believes or reasonably should believe constitutes material
non-public information, unless prior thereto Investor shall have executed a
written agreement regarding the confidentiality and use of such
information.  On and after the Effective Date, neither Investor nor
any Affiliate Investor shall have any duty of trust or confidence that is owed
directly, indirectly, or derivatively, to the Company or the shareholders of the
Company, or to any other Person who is the source of material non-public
information regarding the Company.  The Company understands and
confirms that Investor shall be relying on the foregoing in effecting
transactions in securities of the Company.

      
        
           

        

        
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      10.7      
Reimbursement.  If
Investor becomes involved in any capacity in any proceeding by or against any
Person who is a stockholder of the Company (except as a result of sales,
pledges, margin sales and similar transactions by Investor to or with any
current stockholder), solely as a result of Investor’s acquisition of the
Securities under this Agreement, the Company will reimburse Investor for its
reasonable legal and other expenses (including the cost of any investigation
preparation and travel in connection therewith) incurred in connection
therewith, as such expenses are incurred, or will assume the defense of Investor
in such matter.  The reimbursement obligations of the Company under
this Section
5.7 shall be in addition to any liability which the Company may otherwise
have, shall extend upon the same terms and conditions to any Affiliates of
Investor who are actually named in such action, proceeding or investigation, and
partners, directors, agents, employees and controlling persons (if any), as the
case may be, of Investor and any such Affiliate, and shall be binding upon and
inure to the benefit of any successors, assigns, heirs and personal
representatives of the Company, Investor and any such Affiliate and any such
Person.  The Company also agrees that neither Investor nor any such
Affiliates, partners, directors, agents, employees or controlling persons shall
have any liability to the Company or any Person asserting claims on behalf of or
in right of the Company solely as a result of acquiring the Securities under
this Agreement.

       

      10.8      
Indemnification
of Investor

       

      (a)         Company Indemnification
Obligation.  Subject to the provisions of this Section 5.8, the
Company will indemnify and hold Investor and any Warrant holder, their
Affiliates and attorneys, and each of their directors, officers, shareholders,
partners, employees, agents, and any person who controls Investor within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act
(collectively, the “Investor Parties” and
each an “Investor
Party”), harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and
costs of investigation (collectively, “Losses”) that any
Investor Party may suffer or incur as a result of or relating to (i) any breach
of any of the representations, warranties, covenants or agreements made by the
Company in this Agreement or in the other Transaction Documents, (ii) any action
instituted against any Investor Party, or any of them or their respective
Affiliates, by any stockholder of the Company who is not an Affiliate of an
Investor Party, with respect to any of the transactions contemplated by the
Transaction Documents (unless such action is based upon a breach of Investor’s
representations, warranties or covenants under the Transaction Documents or any
agreements or understandings Investor may have with any such stockholder or any
violations by Investor of state or federal securities laws or any conduct by
Investor which constitutes fraud, gross negligence, willful misconduct or
malfeasance), (iii)  any untrue statement or alleged untrue statement
of a material fact contained in a Registration Statement (or in a Registration
Statement as amended by any post-effective amendment thereof by the Company) or
arising out of or based upon any omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and/or (iv) any untrue statement or alleged untrue
statement of a material fact included in any Prospectus ( or any amendments or
supplements to any Prospectus ), in any free writing prospectus, in any “issuer
information” (as defined in Rule 433 under the Act) of the Company, or in any
Prospectus together with any combination of one or more of the  free
writing prospectuses, if any, or arising out of or based upon any omission or
alleged omission to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

      
        
           

        

        
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      (b)         Indemnification
Procedures.  If any action shall be brought against an Investor
Party in respect of which indemnity may be sought pursuant to this Agreement,
such Investor Party shall promptly notify the Company in writing, and the
Company shall have the right to assume the defense thereof with counsel of its
own choosing.  The Investor Parties shall have the right to employ
separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of the Investor
Parties except to the extent that (i) the employment thereof has been
specifically authorized by the Company in writing, (ii) the Company has failed
after a reasonable period of time to assume such defense and to employ counsel
or (iii) in such action there is, in the reasonable opinion of such separate
counsel, a material conflict with respect to the dispute in question on any
material issue between the position of the Company and the position of the
Investor Parties such that it would be inappropriate for one counsel to
represent the Company and the Investor Parties.  The Company will not
be liable to the Investor Parties under this Agreement (i) for any settlement by
an Investor Party effected without the Company’s prior written consent, which
shall not be unreasonably withheld or delayed; or (ii) to the extent, but only
to the extent that a loss, claim, damage or liability is either attributable to
Investor’s breach of any of the representations, warranties, covenants or
agreements made by Investor in this Agreement or in the other Transaction
Documents.

       

      10.9      
Reservation of
Securities.  The
Company shall maintain a reserve from its duly authorized shares of Common Stock
for issuance pursuant to the Transaction Documents in such amount as may be
required to fulfill its obligations in full under the Transaction
Documents.

       

      10.10    
Prospectus
Availability and Changes.  The
Company will make available to Investor upon request, and thereafter from time
to time will furnish Investor, as many copies of any Prospectus (or of the
Prospectus as amended or supplemented if the Company shall have made any
amendments or supplements thereto after the effective date of the applicable
Registration Statement) as Investor may request for the purposes contemplated by
the Act; and in case Investor is required to deliver  a prospectus
after the nine-month period referred to in Section 10(a)(3) of the Act in
connection with the sale of the Common Shares, or after the time a
post-effective amendment to the applicable Registration Statement is required
pursuant to Item 512(a) of Regulation S-K under the Act, the Company will
prepare, at its expense, promptly upon request such amendment or amendments to
the Registration Statement and the Prospectus as may be necessary to permit
compliance with the requirements of Section 10(a)(3) of the Act or Item 512(a)
of Regulation S-K under the Act, as the case may be.

       

      The
Company will advise Investor promptly of the happening of any event within the
time during which a Prospectus is required to be delivered under the Act which
could require the making of any change in the Prospectus then being used so that
the Prospectus would not include an untrue statement of material fact or omit to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they are made, not misleading, and to
advise Investor promptly if, during such period, it shall become necessary to
amend or supplement any Prospectus to cause such Prospectus to comply with the
requirements of the Act, and in each case, during such time, to prepare and
furnish, at the Company’s expense, to Investor promptly such amendments or
supplements to such Prospectus as may be necessary to reflect any such change or
to effect such compliance.

      
        
           

        

        
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      10.11   
Required
Approval.  No
transactions contemplated under this Agreement or the Transaction Documents
shall be consummated for an amount that would require approval by any Trading
Market or Company stockholders under any approval provisions, rules or
regulations of any Trading Market applicable to the Company, unless and until
such approval is obtained.  Company shall use best efforts to obtain
any required approval as soon as possible.

       

      10.12    
Activity
Restrictions.  For
so long as Investor or any of its Affiliates holds any Preferred Shares,
Commitment Fee Shares, Warrant, Warrant Shares, or DWAC Shares, neither Investor
nor any Affiliate will:  (i) vote any shares of Common Stock owned or
controlled by it, solicit any proxies, or seek to advise or influence any Person
with respect to any voting securities of the Company; (ii) engage or participate
in any actions, plans or proposals which relate to or would result in (a)
acquiring additional securities of the Company, alone or together with any other
Person, which would result in beneficially owning or controlling more than 9.99%
of the total outstanding Common Stock or other voting securities of the Company,
(b) an extraordinary corporate transaction, such as a merger, reorganization or
liquidation, involving Company or any of its subsidiaries, (c) a sale or
transfer of a material amount of assets of the Company or any of its
subsidiaries, (d) any change in the present board of directors or management of
the Company, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the board, (e) any material
change in the present capitalization or dividend policy of the Company, (f) any
other material change in the Company’s business or corporate structure,
including but not limited to, if the Company is a registered closed-end
investment company, any plans or proposals to make any changes in its investment
policy for which a vote is required by Section 13 of the Investment Company Act
of 1940, (g) changes in the Company’s charter, bylaws or instruments
corresponding thereto or other actions which may impede the acquisition of
control of the Company by any Person, (h) causing a class of securities of the
Company to be delisted from a national securities exchange or to cease to be
authorized to be quoted in an inter-dealer quotation system of a registered
national securities association, (i) a class of equity securities of the Company
becoming eligible for termination of registration pursuant  to Section
12(g)(4) of the Act, or (j) any action, intention, plan or arrangement similar
to any of those enumerated above; or (iii) request the Company or its directors,
officers, employees, agents or representatives to amend or waive any provision
of this Section 5.12.

       

      10.13    
Registration
Statements and Prospectuses.

       

      (a)         Unless
its shelf registration statement is then effective, the Company will use its
best efforts to file within 30 calendar days after the Effective Date (or as
soon as possible thereafter), to cause to become effective as soon as possible
thereafter, and to remain effective until all Common Shares have been sold or
are Rule 144 Eligible, a Registration Statement for the resale of all Common
Shares issued or issuable hereunder (including without limitation all Warrant
Shares underlying the Warrant and any Common Shares that may be issued to
Investor in payment of the Commitment Fee).  Each Registration
Statement shall comply when it becomes effective, and, as amended or
supplemented, at the time of any Tranche Notice Date, Tranche Closing Date, or
issuance of any Common Shares, and at all times during which a prospectus is
required by the Act to be delivered in connection with any sale of Common
Shares, will comply, in all material respects, with the requirements of the
Act.

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

    

      (b)     Each
Registration Statement, as of its respective effective time, will not, as
applicable, 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.

       

      (c)     Each
Prospectus will comply, as of its date and the date it  will be filed
with the SEC,  and, at the time of any Tranche Notice Date, Tranche
Closing Date, or issuance of any Common Shares, and at all times during which a
prospectus is required by the Act to be delivered in connection with any sale of
Common Shares, will comply, in all material respects, with the requirements of
the Act.

       

      (d)     
At no time during the period that begins on the date a Prospectus is filed with
the SEC and ends at the time a Prospectus is no longer required by the Act to be
delivered in connection with any sale of Common Shares will any such Prospectus,
as then amended or supplemented, include an untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

       

      (e)     
Each Registration Statement will meet, and the offering and sale of the Common
Shares as contemplated hereby will comply with, the requirements of Rule 415
under the Act.

       

      (f)     The
Company will not, directly or indirectly, use or refer to any “free writing
prospectus” (as defined in Rule 405 under the Act) except in compliance with
Rules 164 and 433 under the Act.

       

      (g)     The
Company will not be an “ineligible issuer” (as defined in Rule 405 under the
Act) as of the eligibility determination date for purposes of Rules 164 and 433
under the Act with respect to the offering of the Common Shares contemplated by
any Registration Statement that is filed, without taking into account any
determination by the SEC pursuant to Rule 405 under the Act that it is not
necessary under the circumstances that the Company be considered an “ineligible
issuer.”

       

      10.14     Investor
Due Diligence.  Investor shall have the right and opportunity
to conduct due diligence, at its own expense, with respect to any Registration
Statement or Prospectus in which the name of Investor or any Affiliate of
Investor appears.

       

      
        
          
             

          

          
            31

            
              

            

          

          
             

          

        

      

       

      ARTICLE 11

      MISCELLANEOUS

       

      11.1     Fees and
Expenses.  Except
for the $20,000.00 non-refundable document preparation
fee previously paid by the Company to counsel for Investor, the receipt of which
is hereby acknowledged, and the $5,000.00 non-refundable administrative fee
payable to counsel for Investor at each Tranche Closing, or as may be otherwise
provided in this Agreement, each party shall pay the fees and expenses of its
own advisers, counsel, accountants and other experts, if any, and all other
expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of the Transaction Documents.  The
Company acknowledges and agrees that Luce Forward solely represents Investor,
and does not represent the Company or its interests in connection with the
Transaction Documents or the transactions contemplated thereby.  The
Company shall pay all stamp and other taxes and duties levied in connection with
the sale of the Securities, if any.

       

      11.2     Notices.  Unless
a different time of day or method of delivery is set forth in the Transaction
Documents, any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given
and effective on the earliest of:  (a) the date of transmission, if
such notice or communication is delivered via facsimile or electronic mail prior
to 5:30 p.m. Eastern time on a Trading Day and an electronic confirmation of
delivery is received by the sender, (b) the next Trading Day after the date of
transmission, if such notice or communication is delivered later than 5:30 p.m.
Eastern time or on a day that is not a Trading Day, (c) three Trading Days
following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (d) upon actual receipt by the party to whom such notice is
required to be given.  The addresses for such notices and
communications are those set forth following the signature page hereof, or such
other address as may be designated in writing hereafter, in the same manner, by
such Person.

       

      11.3     Amendments;
Waivers.  No
provision of this Agreement may be waived or amended except in a written
instrument signed, in the case of an amendment, by the Company and Investor or,
in the case of a waiver, by the party against whom enforcement of any such
waiver is sought.  No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a
waiver of any other provision, condition or requirement hereof, nor shall any
delay or omission of either party to exercise any right hereunder in any manner
impair the exercise of any such right.

       

      11.4     Headings.  The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof

       

      
        
          
             

          

          
            32

            
              

            

          

          
             

          

        

      

       

      11.5     Successors
and Assigns.  This
Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns.  The Company may not assign
this Agreement or any rights or obligations hereunder without the prior written
consent of Investor, which consent shall not be unreasonably withheld or
delayed.  Investor may assign any or all of its rights under this
Agreement (a) to any Affiliate, or (b) to any Person to whom Investor assigns or
transfers any Securities.

       

      11.6     No
Third-Party Beneficiaries.  This
Agreement is intended for the benefit of the parties hereto and their respective
successors and permitted assigns and is not for the benefit of, nor may any
provision hereof be enforced by, any other Person, except as otherwise set forth
in Section
5.8.

      11.7     Governing
Law; Dispute Resolution.  All
questions concerning the construction, validity, enforcement and interpretation
of the Transaction Documents shall be governed by and construed and enforced in
accordance with the laws of the State of New York, without regard to the
principles of conflicts of law that would require or permit the application of
the laws of any other jurisdiction.  Each party agrees that all legal
proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement and any other Transaction Documents
(whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced exclusively in
the state and federal courts sitting in the City of New York.  Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the City of New York, borough of Manhattan for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to
the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper or inconvenient venue for such
proceeding.  Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law.  The
parties hereby waive all rights to a trial by jury.  If either party
shall commence an action or proceeding to enforce any provisions of the
Transaction Documents, then the prevailing party in such action or proceeding
shall be reimbursed by the other party for its reasonable attorneys’ fees and
other costs and expenses reasonably incurred in connection with the
investigation, preparation and prosecution of such action or
proceeding.

       

      11.8     Survival.  The
representations and warranties contained herein shall survive the Closing and
the delivery and exercise of the Securities.

       

      
        
           

        

        
          33

          
            

          

        

        
           

        

      

       

      11.9     Execution.  This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile signature page
were an original thereof.

       

      11.10     Severability.  If
any provision of this Agreement is held to be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the
parties will attempt to agree upon a valid and enforceable provision that is a
reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Agreement.

       

      11.11     Replacement
of Securities.  If
any certificate or instrument evidencing any Securities is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation thereof, or in lieu of and
substitution therefor, a new certificate or instrument, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or
destruction and customary and reasonable indemnity, if requested.  The
applicants for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs associated with the issuance of such
replacement Securities.

       

      11.12     Remedies.  In
addition to being entitled to exercise all rights provided herein or granted by
law, including recovery of damages, each of Investor and the Company will be
entitled to specific performance under the Transaction Documents.  The
parties agree that monetary damages may not be adequate compensation for any
loss incurred by reason of any breach of obligations described in the foregoing
sentence and hereby agrees to waive in any action for specific performance of
any such obligation the defense that a remedy at law would be
adequate.

       

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

       

      11.14     Liquidated
Damages.  The
Company’s obligations to pay any partial liquidated damages
or other amounts owing under the Transaction Documents is a continuing
obligation of the Company and shall not terminate until all unpaid partial
liquidated damages and other amounts have been paid notwithstanding the fact
that the instrument or security pursuant to which such partial liquidated
damages or other amounts are due and payable shall have been
cancelled.

       

      
        
           

        

        
          34

          
            

          

        

        
           

        

      

       

      11.15     Time of
the Essence.  Time
is of the essence with respect to all provisions of this Agreement that specify
a time for performance.

       

      11.16     Construction.  The
parties agree that each of them and/or their respective counsel has reviewed and
had an opportunity to revise the Transaction Documents and, therefore, the
normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation
of the Transaction Documents or any amendments hereto. 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.

       

      11.17     Entire
Agreement.  This
Agreement, together with the Exhibits, Appendices and Schedules hereto, contains
the entire agreement and understanding of the parties, and supersedes all prior
and contemporaneous agreements, term sheets, letters, discussions,
communications and understandings, both oral and written, which the parties
acknowledge have been merged into this Agreement.  No party,
representative, attorney or agent has relied upon any collateral contract,
agreement, assurance, promise, understanding or representation not expressly set
forth hereinabove.  The parties hereby expressly waive all rights and
remedies, at law and in equity, directly or indirectly arising out of or
relating to, or which may arise as a result of, any Person’s reliance on any
such assurance.

       

      
        
          
             

          

          
            35

            
              

            

          

          
             

          

        

      

       

      IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized signatories as of the date first
indicated above.

      

      
        
          
            
              
                
                  	
                          MEDCLEAN
      TECHNOLOGIES, INC.

                        	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                          By:

                        	
                          /s/ David J. Laky

                        	 
      
	
                          Name:

                        	
                          David
      J. Laky

                        	 
      
	
                          Title:

                        	
                          President
      and Chief Executive Officer

                        	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                          By:

                        	
                          /s/    Cheryl K. Sadowski
      

                        	 
      
	
                          Name:

                        	
                          Cheryl
      K. Sadowski

                        	 
      
	
                          Title:

                        	
                          Treasurer
      and Chief Financial Officer

                        	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                          SOCIUS
      LIFE SCIENCES CAPITAL GROUP, LLC

                        	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                          By:

                        	
                          /s/ Terry Peizer

                        	 
      
	
                          Name:

                        	
                          Terry
      Peizer

                        	 
      
	
                          Title:

                        	
                          Managing
      Director

                        	 
      

                

              

            

          

        

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Addresses
for Notice

      

      
        
          	
                  To
      Company:

                	 
      
	 
      	 
      
	
                  MedClean
      Technologies, Inc.

                	 
      
	
                  1812
      Front Street

                	 
      
	
                  Scotch
      Plains, New Jersey 07076

                	 
      
	
                  Attention:
      David J. Laky

                	 
      
	
                  Fax
      No.: (908) 663-2443

                	 
      
	
                  Email:
      dlaky@medcleantechnologies.com

                	 
      
	 
      	 
      
	
                  with
      a copy to:

                	 
      
	 
      	 
      
	
                  Macpherson
      Counsel LLP

                	 
      
	
                  168
      Sunset Hill Road

                	 
      
	
                  Redding,
      Connecticut 06896

                	 
      
	
                  Attention:
      Sean Macpherson, Esq.

                	 
      
	
                  Fax
      No.: (203) 286-1289

                	 
      
	
                  Email:
      smaclaw@optonline.net

                	 
      
	 
      	 
      
	 
      	
                  To
      Investor:

                
	 	 
	 
      	
                  Socius
      Life Sciences Capital Group, LLC

                
	 
      	
                  11150
      Santa Monica Boulevard, Suite 1500

                
	 
      	
                  Los
      Angeles, California 90025

                
	 
      	
                  Fax
      No.:  (310) 444-5300

                
	 
      	
                  Email:
      info@sociuscg.com

                
	 
      	 
      
	 
      	
                  with
      a copy to:

                
	 
      	 
      
	 
      	
                  Luce
      Forward Hamilton & Scripps LLP

                
	 
      	
                  601
      South Figueroa Street, Suite 3900

                
	 
      	
                  Los
      Angeles, California 90017

                
	 
      	
                  Attention:  John
      C. Kirkland, Esq.

                
	 
      	
                  Fax
      No.:  (213) 452-8035

                
	 
      	
                  Email:  jkirkland@luce.com

                

        

      

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      Exhibit
A

       

      Form
of Warrant

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      Exhibit
B

       

      Certificate
of Designations

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      Exhibit
C

       

      Transfer
Agent Instructions

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      [Date]

       

      Securities
Transfer Corporation

      2591
Dallas Parkway

      Frisco,
Texas 75034

      

      Re:  MedClean
Technologies, Inc.

       

      Ladies
and Gentlemen:

       

      In
accordance with the Preferred Stock Purchase Agreement (“Purchase Agreement”),
dated December 4, 2009, by and between MedClean Technologies, Inc., a Delaware
corporation (“Company”), and Socius
Life Sciences Capital Group, LLC, a Delaware limited liability company (“Buyer”), pursuant to
which Company may issue and deliver shares of Common Stock, par value $0.0001
per share, in payment of the Commitment Fee payable thereunder (the “Commitment Fee
Shares”), and a warrant (the “Warrant”) to purchase
additional shares of Common Stock (the “Warrant Shares”) (the
Commitment Fee Shares and Warrant Shares, collectively, the “Common Shares”), this
shall serve as our irrevocable authorization and direction to you (provided that
you are the transfer agent of the Company at such time) to issue the Commitment
Fee Shares and, in the event the holder of the Warrant elects or has elected to
exercise all or any portion of the Warrant, from time to time, upon surrender to
you of a notice of exercise of the Warrant, the Warrant Shares. Capitalized
terms used herein without definition shall have the respective meanings ascribed
to them in the Purchase Agreement.

       

      Specifically,
this shall constitute an irrevocable instruction to you to process any notice of
exercise of the Warrant in accordance with the terms of these instructions as
soon as practicable. Upon your receipt of a copy of the executed notice of
exercise of the Warrant, you shall use your best efforts to, within one (1)
Trading Day following the date of receipt of the notice of exercise, (A) issue
and surrender to a common carrier for overnight delivery to the address as
specified in the notice of exercise a certificate, registered in the name of the
Buyer or its designee, for the number of shares of Common Stock to which the
Buyer is entitled upon exercise of the Warrant as set forth in the notice of
exercise, or (B) provided you are participating in The Depository Trust Company
(DTC) Fast Automated Securities Transfer (FAST) Program, upon the request of the
Buyer, credit such aggregate number of shares of Common Stock to which the Buyer
is entitled to the Buyer’s or its designee’s balance account with DTC through
its Deposit Withdrawal At Custodian (DWAC) system provided the Buyer causes its
bank or broker to initiate the DWAC transaction.

       

      The
Company hereby confirms that the Common Shares should not be subject to any
stop-transfer restrictions and shall otherwise be freely transferable on the
books and records of the Company.  If the Common Shares are
certificated, the certificates shall not bear any legend restricting transfer of
the shares represented thereby.

       

      The
Company hereby confirms and you acknowledge that, in the event counsel to the
Company does not issue any opinion of counsel required to issue any Common
Shares free of legend, the Company authorizes you to accept an opinion of
counsel from Luce Forward Hamilton & Scripps LLP.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      The
Company hereby confirms that no instructions other than as contemplated herein
will be given to you by the Company with respect to the Common Shares. The
Company hereby agrees that it shall not replace you as the Company’s transfer
agent, until such time as the Company provides written notice to you and Buyer
that a suitable replacement has agreed to serve as transfer agent and to be
bound by the terms and conditions of this letter agreement regarding Irrevocable
Transfer Agent Instructions (this “Agreement”).

       

      The
Company and you hereby acknowledge and confirm that complying with the terms of
this Agreement does not and shall not prohibit you from satisfying any and all
fiduciary responsibilities and duties you may owe to the Company.

       

      The
Company and you acknowledge that the Buyer is relying on the representations and
covenants made by the Company and you hereunder and that such representations
and covenants are a material inducement to the Buyer to enter into the Purchase
Agreement. The Company and you further acknowledge that without such
representations and covenants made hereunder, the Buyer would not enter into the
Purchase Agreement and purchase Securities pursuant thereto.

       

      Each
party hereto specifically acknowledges and agrees that a breach or threatened
breach of any provision hereof will cause irreparable damage and that damages at
law would be an inadequate remedy if this Agreement were not specifically
enforced.  Therefore, in the event of a breach or threatened breach by
a party hereto, including, without limitation, the attempted termination of the
agency relationship created by this instrument, in addition to all other rights
or remedies, an injunction restraining such breach and granting specific
performance of the provisions of this Agreement should issue without any
requirement to show any actual damage or to post any bond or other
security.

       

      You may
at any time resign as transfer agent hereunder by giving fifteen (15) days prior
written notice of resignation to the Company and the Buyer. Prior to the
effective date of the resignation as specified in such notice, the Company will
issue to you instructions authorizing delivery of Common Shares to a substitute
transfer agent selected by, and in the sole discretion of, the Company. If no
successor transfer agent is named by the Company, you may apply to a court of
competent jurisdiction in the State of Delaware for appointment of a successor
transfer agent and for an order to deposit Common Shares with the clerk of any
such court.

       

      The
Company must keep its bill current with you – if the Company is not current and
is on suspension, the Buyer will have the right to pay the Company’s outstanding
bill, in order for you to act upon this Agreement. If the outstanding bill is
not paid by the Company or the Buyer, you have no further obligation under this
Agreement.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the parties have caused this letter agreement regarding
Irrevocable Transfer Agent Instructions to be duly executed and delivered as of
the date first written above.

       

      
        
          
            
              
                
                  
                    
                      	 
      	
                              MEDCLEAN
      TECHNOLOGIES, INC.

                            
	 
      	 
      	 
	 
      	
                              By:

                            	
                                

                            	 
	 
      	
                              Name:

                            	
                                

                            	 
	 
      	
                              Title:

                            	
                                

                            	 

                    

                  

                

              

            

          

        

      

       

      THE
FOREGOING INSTRUCTIONS ARE ACKNOWLEDGED AND AGREED TO:

       

      
        
          	
                  SECURITIES
      TRANSFER CORPORATION

                	 
      
	 
      	 
      
	
                  By:

                	
                    

                	 
      	 
      
	
                  Name:

                	
                    

                	 
      	 
      
	
                  Title:

                	
                    

                	 
      	 
      

        

      

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      Exhibit
D

       

      Opinion

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                [LETTERHEAD
      OF ________________]

              

      

       

      December
4, 2009

       

      Socius
Life Sciences Capital Group, LLC

      11150
Santa Monica Boulevard, Suite 1500

      Los
Angeles, CA 90025

       

      Re::
MedClean Technologies,
Inc.

      

      Ladies
and Gentlemen:

       

      We are
counsel to MedClean Technologies, Inc., a Delaware corporation (“Company”), in
connection with the sale and issuance of (a) up to 750 shares of its Series C
Preferred Stock, par value $0.0001 per share (“Preferred Shares”), along with
(b) shares (“Commitment Fee
Shares”) of the Company’s common stock, par value $0.0001 per share
(“Common
Stock”), (c)
warrants (the “Warrant”) to purchase
shares of Common Stock, and (d) shares of Common Stock issuable upon exercise of
the Warrant (the “Warrant Shares,” and
together with the Preferred Shares and the Warrant, the “Securities”), to
Socius Life Sciences Capital Group, LLC, a Delaware limited liability company
(“Investor”), pursuant to the terms of the Preferred Stock Purchase Agreement
dated as of December 4, 2009 (“Agreement”), by and between Company and
Investor.  Capitalized terms not otherwise defined herein have the
meanings set forth in the Agreement.

       

      In
reaching the opinion stated in this letter, we have reviewed originals or copies
of the Agreement, the Company’s Certificate of Incorporation and Bylaws, the
resolutions of the Board of Directors authorizing the Purchase Agreement and the
issuance of the Securities, the Certificate of Designations for the Preferred
Shares, and such other documents as we have considered relevant.

       

      Based
upon the foregoing, we are of the opinion that, as of the date
hereof:

       

      1.     Company
is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Delaware.

      

      2.     The
Securities are duly authorized, the Preferred Shares, Commitment Fee Shares and
Warrant are, and when issued in accordance with the terms and conditions of the
Agreement the Warrant Shares will be, validly issued, fully paid and
non-assessable.  The issuance of the Securities will not be subject to
any statutory or contractual preemptive rights of any stockholder of the
Company.

      

      3.     Company
has the corporate power and authority to (a) execute, deliver and perform all of
its obligations under the Agreement and the Transaction Documents, and (b)
issue, sell and deliver each of the Securities.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      4.     The
execution, delivery and performance of the Agreement and the Transaction
Documents have been duly authorized by all necessary corporate action on the
part of Company, and have been duly executed and delivered by
Company.

      

      5.     The
execution and delivery of the Transaction Documents by Company does not, and
Company’s performance of its obligations thereunder will not (a) violate the
certificate or articles of incorporation, articles of association, bylaws, or
other organizational or governing documents of Company, as in effect on the date
hereof, (b) violate in any material respect any federal or state law, rule or
regulation, or judgment, order or decree of any state or federal court or
governmental or administrative authority, in each case that, to our knowledge,
is applicable to Company or its properties or assets and which could have a
material adverse effect on Company’s business, properties, assets, financial
condition or results of operations or prevent the performance by Company of any
material obligation under the Agreement, or (c) require the authorization,
consent, approval of or other action of, notice to or filing or qualification
with, any state or federal governmental authority, except as have been, or will
be, made or obtained.

      

      
        
          
            
              
                
                  	 
      	
                          Very
      truly yours,

                        
	 	 
	 
      	 
      	
                          [___________________________]

                        
	 
      	 
      	 
      
	 
      	 
      	
                          By:

                        	 	 

                

              

            

          

        

      

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      Exhibit
E

       

      Use
of Proceeds Certificate

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      MEDCLEAN
TECHNOLOGIES, INC.

       

      USE OF
PROCEEDS CERTIFICATE

       

      The
undersigned,
[                         
] and
[                          
], hereby certify that:

       

      1.     They
are the
[                            
] and
[                        
], respectively, of MedClean Technologies, Inc., a Delaware corporation (the
“Company”).

       

      2.     This
Use of Proceeds Certificate (this “Certificate”) is being delivered to
Socius
Capital Group, LLC doing business as Socius Life Sciences Capital Group, LLC
(“Investor”),
by the Company, to fulfill the requirement under Section 2.3(d)(iii) of the
Preferred Stock Purchase Agreement, dated as of December 4, 2009, between
Investor and the Company (the “Purchase
Agreement”).  Terms used and not defined in this Certificate
have the meanings set forth in the Purchase Agreement.

       

      3.     On
or prior to the date hereof, the Company has delivered to Investor a Tranche
Notice for the purchase by Investor of Tranche Shares upon payment by the
Company to Investor of the Tranche Purchase Price.

       

      The
undersigned do hereby certify that the Tranche Purchase Price will be used for
the following purpose or purposes:

      

      [                                                                                   ].

      

      IN
WITNESS WHEREOF, the undersigned have executed this Certificate this[__] day of
_________, 2009.

      

      
        
          
            
              	
                      By:

                    	
                       

                    	 
      
	
                      Name:

                    	 
      	 
      
	
                      Title:

                    	 
      	 
      
	
                       
      

                    	 
      	 
      
	
                      By:

                    	
                       

                    	 
      
	
                      Name:

                    	 
      	 
      
	
                      Title:

                    	 
      	 
      

            

          

        

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      Exhibit
F

       

      Tranche
Notice

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      Dated:
[________], 20[__]

      

      Socius
Life Sciences Capital Group, LLC

      11150
Santa Monica Boulevard, Suite 1500

      Los
Angeles, CA 90025

       

           Re:     Tranche
Notice

       

      Ladies
& Gentlemen:

       

      Pursuant
to the December 4, 2009 Preferred Stock Purchase Agreement (“Agreement”) between
MedClean Technologies, Inc., a Delaware corporation (“Company”), and Socius
Life Sciences Capital Group, LLC (“Investor”), Company
hereby elects to exercise a Tranche.  Capitalized terms not otherwise
defined herein shall have the meanings defined in the Agreement.

       

      At the
Tranche Closing, Company will sell to Investor [___________] Preferred Shares at
$10,000.00 per
share for a Tranche Amount of $[___________].

       

      On behalf
of Company, the undersigned hereby certifies to Investor as
follows:

       

           The
undersigned is a duly authorized officer of Company;

       

           The
above Tranche Amount does not exceed the Maximum Tranche Amount;
and

       

           All
of the conditions precedent to the right of the Company to deliver a Tranche
Notice set forth in Section 2.3(d) of the
Agreement have been satisfied.

       

      IN
WITNESS WHEREOF, the Company has executed and delivered this Tranche Notice as
of the date first written above.

       

      
        	 
      	
                MEDCLEAN
      TECHNOLOGIES, INC.

              
	 
      	 
      
	 
      	
                By:

              	
                   

              
	 
      	
                Name:

              	
                   

              
	 
      	
                Title:

              	
                   

              

      

      
        
           

        

        
          6Exhibit 10.2

    

    TEUCRIUM COMMODITY
TRUST

    MARKETING
AGENT AGREEMENT

    

    MARKETING
AGENT AGREEMENT (the “Agreement”) made as of ______________, 2009, by and among
Teucrium Commodity Trust, a Delaware statutory trust (the “Trust”), Teucrium
Trading, LLC (the “Sponsor”) and ALPS Distributors, Inc., a Colorado corporation
(the “Marketing Agent”).

    

    WITNESSETH:

    

    WHEREAS,
the Trust will be governed by an Amended and Restated Declaration of Trust and
Trust Agreement, which grants full management control to the Sponsor (“Trust
Agreement”);

    

    WHEREAS,
the Trust is organized as a series statutory trust pursuant to Section 3804(a)
and 3806(b)(2) of the Delaware Statutory Trust Act, and the Teucrium Corn Fund
(the “Fund”) is a series of the Trust;

    

    WHEREAS,
the Trust, on behalf of the Fund, has filed with the Securities and Exchange
Commission (the “Commission” or “SEC”) a registration statement on Form S-1
(Registration No. 333-162033) and amendments thereto, including as part thereof
a prospectus (the
“Prospectus”), under the Securities Act of 1933, as amended (the “1933
Act”), the forms of which have heretofore been delivered to the Marketing
Agent;

    

    WHEREAS,
as described in the Prospectus and
the authorized purchaser agreements to be entered into by the Sponsor and
certain broker dealers from time to time in the form attached hereto as Exhibit
A (each such agreement, an “Authorized Purchaser Agreement”), units of
fractional undivided beneficial interest in the net assets of the Fund (the
“Units”) may be created or redeemed by an Authorized Purchaser in aggregations
of one hundred thousand (100,000) Units (each aggregation, a “Creation Basket”
or “Redemption Basket,” respectively; and collectively, “Baskets”);
and

    

    WHEREAS,
consistent with the Trust Agreement, the Sponsor wishes to retain the Marketing
Agent to provide certain assistance with respect to the marketing of the Units
and in connection with the creation or redemption of the Baskets;

    

    NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement,
the Sponsor, the Trust and the Marketing Agent hereby agree as
follows:

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    SECTION
1

    DEFINITIONS

    

    1.1       Definitions. In addition to
the other terms that are defined in this Agreement, the following terms shall
have the following meanings assigned to them. All other capitalized terms used
herein, but not otherwise defined herein, shall have the meanings assigned to
such terms in the Trust Agreement.

    

    “Authorized Purchaser” means the
broker-dealer who enters into an Authorized Purchaser Agreement with the General
Partner, including the initial Authorized Purchaser, Kellogg Capital Group
LLC.

    

    “Business Day” means any day other than a day on which the
NYSE Arca, Inc., the Chicago Board of Trade, or the New York Stock Exchange is
closed for regular trading.

    

    “Control” means, with respect to any
Person, the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

    

    “Governmental Entity” means any
supranational, national, state, local, foreign, political subdivision, court,
administrative agency, commission or department or other governmental authority
or instrumentality.

    

    “Law” means any law, statute, treaty,
rule, directive, regulation or guideline or Order of any Governmental
Entity.

    

    “Orders” means judgments, writs,
decrees, compliance agreements, injunctions or orders of any Governmental Entity
or arbitrator.

    

    “Person” shall be construed broadly and
shall include an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization or another entity, including a Governmental Entity
(or any department, agency or political subdivision thereof).

    

    “Preliminary Prospectus” means the
preliminary prospectus relating to the Units and any other prospectus dated
prior to effectiveness of the Registration Statement relating to the Units that
is provided to prospective Fund investors.

    

    “Prospectus” means, except when
otherwise specified, the prospectus, in the form filed by the Trust on behalf of
the Fund with the Commission on or before the second business day after the date
thereof (or such
earlier time as may be required under the 1933 Act) or, if no such filing is
required, the form of final prospectus included in the Registration Statement at
the time it became effective.

    

    “Representative” means officers,
directors, employees, agents, attorneys, accountants and financial advisors of a
Person, as the case may be.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Registration Statement” means, except
when otherwise specified, the registration statement on Form S-1 (File No.
333-162033) filed by the Trust with the Commission as amended when it becomes
effective under the 1933 Act, including all documents filed as a part
thereof.

    

    SECTION
2

    

    REPRESENTATIONS
AND WARRANTIES

    OF THE
SPONSOR

    

    2.1      Representations and Warranties of the
Sponsor. The Sponsor, on its own behalf and in its capacity as Sponsor of
the Fund, represents and warrants to, and agrees with, the Marketing Agent as
follows.

    

    
      	
               
      

            	
              (a)

            	
              At
      the time of purchase of a Creation Basket by an Authorized Purchaser under
      the Authorized Purchaser Agreement, the Registration Statement shall have
      become effective and no stop order of the SEC with respect thereto has
      been issued and no proceedings for such purpose have been instituted or,
      to the Sponsor’s knowledge, is contemplated by the SEC; any Preliminary
      Prospectus provided to prospective investors, at the time of filing
      thereof, complied in all material respects with the requirements of the
      1933 Act; the Registration Statement will comply when it becomes effective
      and at the time of purchase of a Creation Basket by an Authorized
      Purchaser in all material respects with the requirements of the 1933 Act
      and the Prospectus will comply, as of its date and at the time of purchase
      of a Creation Basket by an Authorized Purchaser, in all material respects
      with the requirements of the 1933 Act and any statutes, regulations,
      contracts or other documents that are required to be described in the
      Registration Statement or the Prospectus or to be filed as exhibits to the
      Registration Statement have been and will be so described or filed; the
      conditions to the use of Form S-1 have been satisfied; the Registration
      Statement will not when it becomes effective and at the time of purchase
      of a Creation Basket by an Authorized Purchaser contain an untrue
      statement of a material fact or omit to state a material fact required to
      be stated therein or necessary to make the statements therein not
      misleading and the Prospectus will not, as of its date and at the time of
      purchase of the Creation Baskets by the Authorized Purchaser, contain an
      untrue statement of a material fact or omit to state a material fact
      required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading;
      provided, however, that the Sponsor makes no warranty or representation
      with respect to any statement contained in any Preliminary Prospectus, the
      Registration Statement or any Prospectus in reliance upon and in
      conformity with information concerning the Marketing Agent and furnished
      in writing by or on behalf of the Marketing Agent to the Sponsor expressly
      for use in the Registration Statement or such Prospectus; and the Sponsor
      has not distributed nor will distribute, prior to the effective date of
      the Registration Statement or any subsequent registration statement for
      the registration of additional Units, any offering material in connection
      with the offering or creation of the Baskets by the Authorized Purchaser
      other than any Preliminary Prospectus unless such offering material and
      its distribution complies with Rule 433 under the 1933 Act or any other
      applicable SEC rule.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              the
      statement of financial position as set forth in the section of the
      Registration Statement and the Prospectus entitled “Statement of Financial
      Condition of the Fund” accurately reflects the financial condition of the
      Fund as of the date specified in such statement of financial
      position;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      Trust has been duly formed and is validly existing as a statutory trust
      under the laws of the State of Delaware and the Fund has been duly
      established as a series of the Trust, as described in the Registration
      Statement and the Prospectus;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      Sponsor has been duly organized and is validly existing as a limited
      liability company in good standing under the laws of the State of
      Delaware, with full power and authority to conduct its business as
      described in the Registration Statement and the Prospectus, and has all
      requisite power and authority to execute and deliver this
      Agreement;

            

    

    

    
      	
               
      

            	
              (e)

            	
              each
      of the Trust and the Sponsor is duly qualified and is in good standing in
      each jurisdiction where the conduct of its business requires such
      qualification;

            

    

    

    
      	
               
      

            	
              (f)

            	
              at
      the time of purchase of a Creation Basket by an Authorized Purchaser, the
      Units in a Creation Basket will have been duly and validly authorized and,
      when issued and delivered against payment therefor, will be duly and
      validly issued, fully paid and non-assessable and free of statutory and
      contractual preemptive rights, rights of first refusal and similar
      rights;

            

    

    

    
      	
               
      

            	
              (g)

            	
              at
      the time of purchase of a Creation Basket by an Authorized Purchaser, the
      Units will conform in all material respects to the description thereof
      contained in the Registration Statement and the Prospectus and the holders
      of the Units will not be subject to personal liability by reason of being
      such holders, except as set forth in the Trust Agreement as in effect at
      that time;

            

    

    

    
      	
               
      

            	
              (h)

            	
              this
      Agreement has been duly authorized, executed and delivered by the Sponsor
      and constitutes the valid and binding obligations of the Sponsor,
      enforceable against the Sponsor in accordance with its
    terms;

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (i)

            	
              the
      Sponsor is not in breach or violation of or in default under (nor has any
      event occurred which with notice, lapse of time or both would result in
      any breach or violation of, constitute a default under or give the holder
      of any indebtedness (or a Person acting on such holder’s behalf) the right
      to require the repurchase, redemption or repayment of all or a part of
      such indebtedness) its respective constitutive documents, or any
      indenture, mortgage, deed of trust, bank loan or credit agreement or other
      evidence of indebtedness by which the Sponsor or any of its properties may
      be bound or affected, and the execution, delivery and performance of this
      Agreement, the issuance and sale of Units in Creation Baskets to the
      Authorized Purchaser and the consummation of the transactions contemplated
      hereby will not conflict with, result in any breach or violation of or
      constitute a default under (nor constitute any event which with notice,
      lapse of time or both would result in any breach or violation of or
      constitute a default under), respectively, the amended and restated
      limited liability company agreement of the Sponsor, or any indenture,
      mortgage, deed of trust, bank loan or credit agreement or other evidence
      of indebtedness, or any license, lease, contract or other agreement or
      instrument to which the Sponsor is a party or by which, respectively, the
      Sponsor or any of its properties may be bound or affected, or any federal,
      state, local or foreign law, regulation or rule or any decree, judgment or
      order applicable to the Sponsor;

            

    

    

    
      	
               
      

            	
              (j)

            	
              no
      approval, authorization, consent or order of or filing with any federal,
      state, local or foreign governmental or regulatory commission, board,
      body, authority or agency is required to be obtained by the Sponsor, the
      Trust or the Fund in connection with the issuance and sale of the Units
      other than registration of the Units under the 1933 Act, the registration
      of the Sponsor as a Commodity Pool Operator with the National Futures
      Association (the “NFA”) under the Commodities Exchange Act (the “CEA”),
      the filing of the Prospectus with the NFA and any necessary qualification
      under the securities or blue sky laws of the various jurisdictions in
      which the Units are being offered or any requirements for listing under
      the rules and regulations of the NYSE Arca, Inc. (“NYSE
      Arca”);

            

    

    

    
      	
               
      

            	
              (k)

            	
              except
      as set forth in the Registration Statement and the Prospectus (i) no
      Person has the right, contractual or otherwise, to cause the Trust to
      issue or sell to it any Units or other equity interests of the Fund, and
      (ii) no Person has the right to act as an underwriter to the Trust in
      connection with the offer and sale of the Units, in the case of each of
      the foregoing clauses (i) and (ii), whether as a result of the filing or
      effectiveness of the Registration Statement or the sale of the Units as
      contemplated thereby or otherwise; no Person has the right, contractual or
      otherwise, to cause the Trust to register under the 1933 Act any other
      equity interests of the Fund, or to include any such units or interests in
      the Registration Statement or the offering contemplated thereby, whether
      as a result of the filing or effectiveness of the Registration Statement
      or the sale of the Units as contemplated thereby or
    otherwise;

            

    

    

    
      	
               
      

            	
              (l)

            	
              at
      the time of purchase of a Creation Basket by an Authorized Purchaser under
      an Authorized Purchaser Agreement, the Sponsor will have all necessary
      licenses, authorizations, consents and approvals and will have made all
      necessary filings required under any federal, state, local or foreign law,
      regulation or rule, and will have obtained all necessary authorizations,
      consents and approvals from other Persons, in order to conduct its
      respective business; the Sponsor will not be in violation of, or in
      default under, or have received notice of any proceedings relating to
      revocation or modification of, any such license, authorization, consent or
      approval or any federal, state, local or foreign law, regulation or rule
      or any decree, order or judgment applicable to the
  Sponsor;

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
            	
              (m)

            	
              at
      the time of purchase of a Creation Basket by an Authorized Purchaser under
      an Authorized Purchaser Agreement, all legal or governmental proceedings,
      affiliate transactions, off-balance sheet transactions, contracts,
      licenses, agreements, leases or documents of a character required to be
      described in the Registration Statement or the Prospectus or to be filed
      as exhibits to the Registration Statement will have been so described or
      filed as required;

            

    

    

    
      	
               
      

            	
              (n)

            	
              except
      as set forth in the Registration Statement and the Prospectus, there are
      no actions, suits, claims, investigations or proceedings pending or
      threatened or, to the Sponsor’s knowledge after due inquiry, contemplated
      to which the Sponsor, or (to the extent that is or could be material in
      the context of the offering and sale of the Baskets to the Authorized
      Purchaser) any of the Sponsor’s directors or officers, is or would be a
      party or of which any of their respective properties are or would be
      subject at law or in equity, before or by any federal, state, local or
      foreign governmental or regulatory commission, board, body, authority or
      agency;

            

    

    

    
      	
               
      

            	
              (o)

            	
              Rothstein
      Kass, whose report on the audited financial statements of the Fund is
      filed with the Commission as part of the Registration Statement and the
      Prospectus, are independent public accountants as required by the 1933
      Act;

            

    

    

    
      	
               
      

            	
              (p)

            	
              the
      audited financial statements of the Fund included in the Prospectus,
      together with the related notes and schedules, present fairly the
      financial position of the Fund as of the date indicated and have been
      prepared in compliance with the requirements of the 1933 Act and in
      conformity with generally accepted accounting principles; there are no
      financial statements (historical or pro forma) that are required to be
      included in the Registration Statement and the Prospectus that are not
      included as required; and the Fund does not have any material liabilities
      or obligations, direct or contingent (including any off-balance sheet
      obligations), not disclosed in the Registration Statement and the
      Prospectus;

            

    

    

    
      	
               
      

            	
              (q)

            	
              to
      the reasonable belief of the Sponsor, the Fund is not and, after giving
      effect to the offering and sale of the Baskets, will not be an “investment
      company” or an entity “controlled” by an “investment company,” as such
      terms are defined in the Investment Company Act of 1940, as amended (the
      “Investment Company Act”);

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (r)

            	
              (i)
      except as set forth in the Registration Statement and the Prospectus, the
      Sponsor and the Fund own, or have obtained valid and enforceable licenses
      for, or other rights to use, the inventions, patent applications, patents,
      trademarks (both registered and unregistered), tradenames, copyrights,
      trade secrets and other proprietary information described in the
      Registration Statement and the Prospectus as being owned or licensed by
      them or which are necessary for the conduct of their respective businesses
      (collectively, “Intellectual Property”); (ii) except as set forth in the
      Registration Statement and the Prospectus, to the knowledge of the Sponsor
      or the Trust, there are no third parties who have or will be able to
      establish rights to any Intellectual Property, except for the ownership
      rights of the owners of the Intellectual Property which is licensed to the
      Sponsor or the Fund; (iii) to the knowledge of the Sponsor or the Trust,
      there is no infringement by third parties of any Intellectual Property
      owned by or licensed to the Sponsor or the Fund; (iv) to the knowledge of
      the Sponsor or the Trust, there is no pending or threatened action, suit,
      proceeding or claim by others challenging the Sponsor’s or the Fund’s
      rights in or to any Intellectual Property, and the Sponsor and the Trust
      are unaware of any facts which could form a reasonable basis for any such
      claim; (v) to the knowledge of the Sponsor or the Trust, there is no
      pending or threatened action, suit, proceeding or claim by others
      challenging the validity or scope of any Intellectual Property; (vi) to
      the knowledge of the Sponsor or the Trust, there is no pending or
      threatened action, suit, proceeding or claim by others that the Sponsor or
      the Fund infringes or otherwise violates any patent, trademark, copyright,
      trade secret or other proprietary rights of others, and the Sponsor and
      the Trust are unaware of any facts which could form a reasonable basis for
      any such claim; (vii) to the knowledge of the Sponsor or the Trust, there
      is no patent or patent application that contains claims that interfere
      with any issued or pending claims of any of the Intellectual Property
      owned or licensed to the Sponsor or the Fund; and (viii) to the knowledge
      of the Sponsor or the Fund, there is no prior art that may render any
      patent or patent application owned by or licensed to the Sponsor
      unpatentable, invalid or
unenforceable;

            

    

    

    
      	
               
      

            	
              (s)

            	
              all
      tax returns required to be filed by the Sponsor have been filed, and all
      taxes and other assessments of a similar nature (whether imposed directly
      or through withholding) including any interest, additions to tax or
      penalties applicable thereto due or claimed to be due from such entities
      have been paid; and no tax returns or tax payments are due with respect to
      the Fund as of the date of this
Agreement;

            

    

    

    
      	
               
      

            	
              (t)

            	
              the
      Sponsor has not sent or received any communication regarding termination
      of, or intent not to renew, any of the contracts or agreements referred to
      or described in, or filed as an exhibit to, the Registration Statement,
      and no such termination or non-renewal has been threatened by the Sponsor
      or any other party to any such contract or
  agreement;

            

    

    

    
      	
               
      

            	
              (u)

            	
              at
      the time of purchase of a Creation Basket by an Authorized Purchaser under
      an Authorized Purchaser Agreement, the Sponsor, on behalf of the Fund,
      will have established and will maintain disclosure controls and procedures
      (as such term is defined in Rule 13a-14 and 15d-14 under the Exchange Act
      of 1934, as amended (the “Exchange Act”), giving effect to the rules and
      regulations, and SEC staff interpretations thereunder); such disclosure
      controls and procedures will be designed to ensure that material
      information relating to the Fund, is made known to the Sponsor, and such
      disclosure controls and procedures will be effective to perform the
      functions for which they were established; on behalf of the Fund, the
      Sponsor will have disclosed to the Fund’s auditors when and to the extent
      required: (i) any significant deficiencies in the design or operation of
      internal controls which could adversely affect the Fund’s ability to
      record, process, summarize, and report financial data; and (ii) any fraud,
      whether or not material, that involves management or other employees who
      have a role in the Fund’s internal
controls;

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (v)

            	
              any
      statistical and market-related data included in the Registration Statement
      and the Prospectus will be based on or derived from sources that the
      Sponsor believes to be reliable and accurate, and the Sponsor will have
      obtained the written consent to the use of such data from such sources to
      the extent required; and

            

    

    

    
      	
            	
              (w)

            	
              neither
      the Sponsor, nor any of the Sponsor’s directors, members, officers,
      affiliates or controlling Persons has taken, directly or indirectly, any
      action designed, or which has constituted or might reasonably be expected
      to cause or result in, under the Exchange Act or otherwise, the
      stabilization or manipulation of the price of any security or asset of the
      Fund to facilitate the sale or resale of the Units; and to the Sponsor’s
      knowledge after due inquiry, there are no affiliations or associations
      between any member of the NYSE Arca and any of the Sponsor’s officers,
      directors or 5% or greater securityholders, except as may be set forth in
      the Registration Statement and the
Prospectus.

            

    

    

    SECTION
3

    REPRESENTATIONS
OF THE MARKETING AGENT

    

    The
Marketing Agent represents and warrants and covenants the
following:

    

    3.1.      The
Marketing Agent (a) is either (i) registered as a broker-dealer under the
Exchange Act, and is a member in good standing of the Financial Industry
Regulatory Authority (“FINRA”), or (ii) exempt from being, or otherwise is not
required to be, licensed as a broker-dealer or a member of FINRA, and in either
case is qualified to act as a broker or dealer in the states or other
jurisdictions where the nature of its business so requires; and (b) has all
other necessary licenses, authorizations, consents and approvals and has made
all necessary filings required under any federal, state, local or foreign law,
regulation or rule, and has obtained all necessary authorizations, consents and
approvals from other Persons, in order to conduct its activities as contemplated
by this Agreement. The Marketing Agent will maintain any such registrations,
qualifications and membership in good standing and in full force and effect
throughout the term of this Agreement. The Marketing Agent will comply with all
applicable federal laws, including but not limited to, federal securities and
commodities laws, the laws of the states or other jurisdictions concerned, and
the rules and regulations promulgated thereunder, and with the Constitution,
By-Laws and Conduct Rules of FINRA (if it is a FINRA member) and, to the extent
applicable, the rules and regulations of the NFA, and is solely responsible for
determining the application of any such laws or regulations in all cases at its
own expense.  The Marketing Agent will not directly or indirectly
offer, sell or deliver Baskets in or from any state or jurisdiction where they
may not lawfully be offered, sold and/or delivered;

    

    3.2.      If
the Marketing Agent is offering or selling Units in jurisdictions outside the
several states, territories and possessions of the United States, the Marketing
Agent will (i) observe the applicable laws of the jurisdiction in which such
offer and/or sale is made, (ii) comply with the full disclosure requirements of
the 1933 Act, and the rules and regulations promulgated thereunder, and (iii) if
the Marketing Agent is not otherwise required to be registered, qualified or a
member of FINRA as set forth in Section 3.1 above, conduct its business in
accordance with the spirit of FINRA Conduct Rules;

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    3.3.      The
Marketing Agent is in compliance with the money laundering and related
provisions of the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “PATRIOT
Act”), and the regulations promulgated thereunder, if the Marketing Agent is
subject to the requirements of the PATRIOT Act;

    

    3.4.      The Marketing Agent agrees to comply
with the prospectus delivery and disclosure requirements of the 1933 Act, as
well as the disclosure delivery requirements under the CEA;

    

    3.5.      The
Marketing Agent (i) has been duly organized and is validly existing as a
corporation in good standing under the laws of the State of Colorado, with full
power and authority to conduct its business and has all requisite power and
authority to execute and deliver this Agreement and (ii) is duly qualified and
is in good standing in each jurisdiction where the conduct of its business
requires such qualification; and

    

    3.6.      This
Agreement has been duly authorized, executed and delivered by the Marketing
Agent and constitutes the valid and binding obligations of the Marketing Agent,
enforceable against the Marketing Agent in accordance with its
terms.

    

    SECTION
4

    EXCLUSIVE
MARKETING AGENT AND STRUCTURE OF THE FUND

    

    4.1       Appointment. The Sponsor and
the Trust hereby appoints the Marketing Agent as the exclusive marketing agent
for Units on the terms and for the periods set forth in this Agreement, and as
set forth in the Authorized Purchaser Agreements as may be entered into from
time to time.  The Marketing Agent hereby accepts such appointment and
agrees to act in such capacity hereunder.

    

    4.2     
Marketing Agent Fee. The
Marketing Agent shall be paid by the Fund for the services of the Marketing
Agent as marketing agent to the Fund hereunder, a fee for its services
hereunder, calculated daily and payable monthly, equal to the greater of
$100,000 per year or an annual rate of 0.10% of the Fund’s average daily net
assets (the “Fee”).

    

    The
above Fee does not include the following expenses, which will be billed
separately to the Fund: cost of placing Fund advertisements in various
periodicals; printing, production and mailing of various Fund marketing
materials and regulatory documents; or FINRA filing fees.  If there
has been a change in control of the Sponsor and this agreement is terminated by
the Trust prior to the expiration of its Term (as defined in Section 8
hereof) other than pursuant to Section 8.2 or is renegotiated during such period
so that Marketing Agent will no longer provide active marketing services, the
Fund shall, in lieu of money damages, pay a lump sum fee equal to the monthly
fees paid under the contract over eighteen (18) months.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    4.3      Expenses. Except as otherwise
expressly provided in this Agreement or agreed to in writing by the parties,
each party hereto shall bear its own fees and expenses incurred in connection
with this Agreement and the transactions contemplated hereby and thereby
(including, without limitation, the legal, accounting and due diligence fees,
costs and expenses incurred by such party).

    

    4.4      Fee Payable by Fund Only. Any
payment obligation of the Fund hereunder shall be enforceable against the assets
of the Fund only, and not against the assets of the Trust generally or of any
other series of the Trust.

    

    SECTION
5

    COVENANTS
OF THE SPONSOR

    

    5.1      Certain Covenants of the
Sponsor. The Sponsor, on its own behalf and in its capacity as Sponsor of
the Fund, covenants and agrees:

    

    
      	
               
      

            	
              (a)

            	
              to
      furnish such information as may be required and otherwise to cooperate in
      qualifying the Units for offering and sale under any applicable securities
      or blue sky laws of such states and foreign jurisdictions as the Marketing
      Agent may reasonably designate and to maintain such qualifications in
      effect so long as the Marketing Agent may request during the term of this
      Agreement; provided that the Fund shall not be required to qualify as a
      foreign corporation or to consent to the service of process under the laws
      of any such jurisdiction (except service of process with respect to the
      offering and sale of the Units); and to promptly advise the Marketing
      Agent of the receipt by the Sponsor or the Fund of any notification with
      respect to the suspension of the qualification of the Units for sale in
      any jurisdiction or the initiation or threatening of any proceeding for
      such purpose;

            

    

    

    
      	
               
      

            	
              (b)

            	
              to
      take all necessary action to register the Units under the 1933 Act in
      order to sell the initial Creation Basket and take, from time to time,
      such steps, including payment of the related filing fees, as may be
      necessary to register additional Units under the 1933 Act to the end that
      all Units sold in additional Creation Baskets will be properly registered
      under the 1933 Act and to keep the Registration Statement effective and
      current during the term of this
Agreement;

            

    

    

    
      	
               
      

            	
              (c)

            	
              to
      make available to the Marketing Agent, as soon as practicable after the
      Registration Statement becomes effective, and thereafter from time to
      time, furnish to the Marketing Agent, as many copies of the Prospectus (or
      of the Prospectus as amended or supplemented if any amendments or
      supplements have been made thereto after the effective date of the
      Registration Statement) as the Marketing Agent may request for the
      purposes contemplated by the 1933
Act;

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (d)

            	
              to
      advise the Marketing Agent promptly and, if requested by the Marketing
      Agent, to  confirm such advice in writing when the Registration
      Statement and any post-effective amendment thereto has become effective,
      and upon receipt of request from the Marketing Agent therefore and to the
      extent legally permissible, to file a post-effective amendment removing
      any reference to the Marketing Agent
thereunder;

            

    

    

    
      	
               
      

            	
              (e)

            	
              to
      prepare, at the expense of the Fund, such amendments or supplements to the
      Registration Statement or the Prospectus and to file such amendments or
      supplements with the Commission, when and as required, by the 1933 Act,
      the Exchange Act, and the rules and regulations of the Commission
      thereunder, including if requested by the Marketing Agent; to advise the
      Marketing Agent promptly of any proposal to amend or supplement the
      Registration Statement or the Prospectus and to provide the Marketing
      Agent and the Marketing Agent’s counsel with copies of any such documents
      for review and comment within a reasonable amount of time prior to any
      proposed filing and to file no such amendment or supplement to which the
      Marketing Agent or its counsel shall reasonably object in writing; and to
      advise the Marketing Agent promptly, confirming such advice in writing, of
      any request by the Commission for amendments or supplements to the
      Registration Statement or the Prospectus or for additional information
      with respect thereto, or of notice of institution of proceedings for, or
      the entry of a stop order suspending the effectiveness of the Registration
      Statement and, if the Commission should enter a stop order suspending the
      effectiveness of the Registration Statement, to use its best efforts to
      obtain the lifting or removal of such order as soon as
      possible;

            

    

    

    
      	
               
      

            	
              (f)

            	
              to
      file promptly all reports and any information statement required to be
      filed by the Fund with the Commission in order to comply with the Exchange
      Act and the CEA subsequent to the date of the Prospectus and for so long
      as the term of this Agreement;

            

    

    

    
      	
               
      

            	
              (g)

            	
              if
      necessary or appropriate, to file a registration statement pursuant to
      Rule 462(b) under the 1933 Act;

            

    

    

    
      	
               
      

            	
              (h)

            	
              to
      advise the Marketing Agent promptly of the happening of any event during
      the term of this Agreement which could require the making of any change in
      the Prospectus then being used so that such Prospectus would not include
      an untrue statement of material fact or omit to state a material fact
      necessary to make the statements therein, in the light of the
      circumstances under which they are made, not misleading, and, during such
      time, to prepare and furnish, at the expense of the Fund, to the Marketing
      Agent promptly such amendments or supplements to such Prospectus as may be
      necessary to reflect any such
change;

            

    

    

    
      	
               
      

            	
              (i)

            	
              to
      furnish to the holders of the Fund’s Units as soon as practicable after
      the end of each fiscal year an annual report (including a balance sheet
      and statements of income and cash flow of the Fund for such fiscal year,
      accompanied by a copy of the certificate or report thereon of nationally
      recognized independent certified public
  accountants);

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (j)

            	
              to
      furnish to the Marketing Agent a copy of the Registration Statement, as
      initially filed with the Commission, and of all amendments thereto
      (including all exhibits thereto);

            

    

    

    
      	
               
      

            	
              (k)

            	
              to
      (1) furnish to the Marketing Agent promptly during the term of this
      Agreement (i) copies of any reports, proxy statements, or other
      communications which are sent to the holders of the Fund’s Units or shall
      from time to time publish or publicly disseminate, (ii) copies of all
      annual, quarterly and current reports filed with the Commission on Forms
      10-K, 10-Q and 8-K, or such other similar forms as may be designated by
      the Commission, (iii) copies of documents or reports filed with the NYSE
      Arca, (iv) copies of documents or reports filed with the NFA and with the
      Commodity Futures Trading Commission, and (v) such other information as
      the Marketing Agent may reasonably request regarding the Fund; and (2)
      make available for inspection by the Marketing Agent, its attorneys,
      accountants and other advisors or agents, all financial and other records,
      pertinent corporate documents and properties, and cause the officers,
      directors and employees of the Sponsor and independent accountants to
      supply all information reasonably requested by the Marketing Agent, its
      attorneys, accountants and other advisors and
  agents;

            

    

    

    
      	
               
      

            	
              (l)

            	
              to
      use its best efforts to cause the Units to be listed on the NYSE
      Arca;

            

    

    

    
      	
            	
              (m)

            	
              to
      furnish to the Marketing Agent (i) at the time of the purchase of the
      initial Creation Basket by the Initial Authorized Purchaser and (ii) if
      requested by the Marketing Agent, at the time of the purchase of the first
      Creation Basket subsequent to the registration of additional Units, an
      opinion of Sutherland Asbill & Brennan LLP, counsel for the Sponsor,
      addressed to the Marketing Agent and substantially in the form attached
      hereto as Exhibit B;

            

    

    

    
      	
               
      

            	
              (n)

            	
              to
      cause Rothstein Kass to deliver to the Marketing Agent upon the request of
      the Marketing Agent (i) at the time of filing of any pre-effective or
      post-effective amendment to the Registration Statement or a new
      Registration Statement filed to register additional Units in reliance on
      Rule 429 or any amendment thereto, if in any such case the Registration
      Statement or amendment includes or incorporates by reference financial
      information not previously included or incorporated by reference in a
      Registration Statement or amendment, and (ii) at the time of effectiveness
      of any such Registration Statement or amendment, letters dated such dates
      and addressed to the Marketing Agent, containing statements and
      information of the type ordinarily included in accountants’ letters to
      underwriters with respect to the financial statements and other financial
      information contained in or incorporated by reference into the
      Registration Statement and the
Prospectus;

            

    

    

    
      	
               
      

            	
              (o)

            	
              to
      deliver to the Marketing Agent (i) at the time of purchase of the initial
      Creation Basket by the Initial Authorized Purchaser, and (ii) if requested
      by the Marketing Agent, at the time of the purchase of the first Creation
      Basket subsequent to the registration of additional Units, an officer’s
      certificate substantially in the form attached as Exhibit D
      hereto;

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (p)

            	
              to
      furnish to the Marketing Agent (i) at the time of purchase of the initial
      Creation Basket by the Initial Authorized Purchaser, (ii) if requested by
      the Marketing Agent, at the time of the purchase of the first Creation
      Basket subsequent to the registration of additional Units, and (iii) at
      such other times as the Marketing Agent reasonably requests, such other
      documents and certificates as of such dates as the Marketing Agent may
      reasonably request; and

            

    

    

    
      	
               
      

            	
              (q)

            	
              to
      cause the Trust to file a supplement to the Registration Statement on or
      about the same time that the Trust files a quarterly or annual report
      pursuant to Section 13 or 15(d) of the Exchange Act (including the
      information contained in such report), until such time as the Trust’s
      reports filed pursuant to Section 13 or 15(d) of the Exchange Act are
      incorporated by reference in the Registration
  Statement.

            

    

    

    For the purposes of this Section 5.1,
the term “Registration Statement” shall mean the Registration Statement as
amended or supplemented from time to time up to and including the date as of
which the relevant covenant is fulfilled, and the term “Prospectus” shall mean
the Prospectus as amended or supplemented from time to time to and including the
date as of which the relevant covenant is fulfilled.

    

    SECTION
6

    MARKETING
PLAN DEVELOPMENT

    AND
MARKETING AGENT COVENANTS

    

    6.1      Pre-Launch
Development.

    

    
      	
               
      

            	
              (a)

            	
              The
      Sponsor and the Marketing Agent will develop the Fund’s marketing plan
      prior to the effective date of the Registration Statement in accordance
      with the provisions of this Section 6.1 and the marketing strategy as
      described in Exhibit C.

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      Sponsor and the Marketing Agent will use commercially reasonable efforts
      and commit sufficient resources to finalize the Registration Statement,
      the governing documents of the Trust and the Fund, and agreements with the
      Fund’s service providers, communicate with the Commission to obtain
      approval of the Registration Statement and communicate with the NYSE Arca
      to obtain approval of the listing of the Units on the NYSE
      Arca.

            

    

    

    6.2      Post-Launch
Activities.

    

    
      	
               
      

            	
              (a)

            	
              The
      Sponsor and the Marketing Agent will market the Fund and the Units on an
      ongoing basis after the Registration Statement is declared effective and
      the Units have been listed on the NYSE Arca in accordance with the
      provisions of this Section 6.2.

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (b)

            	
              Subject
      to necessary regulatory approvals and compliance with all applicable legal
      and regulatory requirements, the Marketing Agent shall, in good faith and
      subject to existing market conditions, use its best efforts to market the
      Fund; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      Marketing Agent shall provide the Sponsor with copies of all written
      marketing materials distributed by it connected with the
    Fund.

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      Marketing Agent shall process orders for Baskets as set forth in the
      Authorized Purchaser Agreement.

            

    

    

    6.3      Joint Reviews.

    

    
      	
               
      

            	
              (a)

            	
              In
      order to oversee the pre-launch development and post-launch performance of
      the Fund on a regular basis, the parties
shall:

            

    

    

    
      	
               
      

            	
              (i)

            	
              conduct
      at least once each calendar quarter in which the annual review described
      in clause (ii) below is not conducted, a review of the performance of the
      Fund, with such review to include the senior management of the Sponsor and
      the senior management of the Marketing Agent and to cover such topics as
      asset growth/decline, sales strategy, new business efforts, new product
      initiatives and stock exchange trading activity;
  and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              conduct
      at least once each calendar year, a review of the overall performance of
      the Fund, which will include a review of the most recent quarterly period,
      with such review to include the chief executive officer of the Sponsor and
      senior management of the Marketing Agent and to cover such topics as
      strategic direction and new business
  initiatives.

            

    

    -

    
      	
               
      

            	
              (b)

            	
              Prior
      to each of the quarterly and annual reviews which will take place pursuant
      to this Section 6.3, the Sponsor and the Marketing Agent will jointly
      prepare and circulate among the parties, a report covering the quarterly
      or annual period which is the subject of each review, with such report to
      cover such topics described above.

            

    

    

    6.4      Delivery of Prospectus. The
Marketing Agent shall deliver copies of the Prospectus to Authorized Purchasers
that purchase Units, except where such delivery is not required by applicable
law.  In addition, the Marketing Agent shall: (i) ensure that all
requests to the Marketing Agent for Prospectuses are fulfilled, and (ii) provide
NYSE Arca, Inc. (and any other national securities exchange on which the Units
may be listed) with copies of the Prospectus for delivery to purchasers in the
secondary market as may be required by applicable law.

    

    6.5      Marketing Materials. The
Marketing shall not distribute any material including the name of the Trust or
the Fund without the prior consent of the Sponsor (which shall not be
unreasonably withheld); provided, however, that the Sponsor hereby approves all
lawful uses of the names of the Trust and Fund in any required regulatory
filings of the Marketing Agent that merely refer in accurate terms to the
appointment of the Marketing Agent hereunder, or that are required by the SEC,
FINRA or any state regulatory authority.  In addition, appropriate
personnel of the Marketing Agent shall review all sales and marketing materials
and presentations relating to the Fund for compliance with applicable laws, file
such materials with FINRA to the extent necessary or appropriate, and seek FINRA
comment on such materials.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    6.6       Information Provided to Marketing
Agent. In performing its duties hereunder, the Marketing Agent shall be
entitled to rely on and shall not be responsible in any way for information
provided to it by the Sponsor and its service providers and shall not be liable
or responsible for the errors and omissions of such service providers, provided
that the foregoing shall not be construed to protect the Marketing Agent against
any liability to the Sponsor or the Fund to which the Marketing Agent would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of its duties or by reason of its reckless
disregard of its obligations and duties under this Agreement.

    

    6.7       Conditions to Marketing Agent’s
Obligations. The obligations of the Marketing Agent hereunder are subject
in the Marketing Agent’s discretion, to the condition that (i) all
representations and warranties and other statements of the Sponsor herein or
delivered pursuant hereto be true and correct (a) at and as of the date made,
(b) at the time of the purchase of the Baskets by the Authorized Purchaser, (c)
at each time the Registration Statement or the Prospectus is amended or
supplemented, (d) at each time the Fund files any report, statement or other
document pursuant to Section 13, 14 or 15(d) of the Exchange Act (excluding
filings under Rule 12b-25), (e) at each time the Fund issues any Baskets and (f)
at such other times the Marketing Agent reasonably requests, in each case as
though made at and as of such dates, and the Sponsor agrees that all such
representations, warranties and other statements are expressly made on and as of
such dates (except, in all cases, that such representations, warranties and
statements relating to the Registration Statement and the Prospectus shall be
deemed to relate to the Registration Statement and the Prospectus as amended and
supplemented to such date) and (ii) the Sponsor shall have performed all of its
covenants, agreements and obligations hereunder theretofore to be performed in
all respects. The respective indemnities, agreements, representations,
warranties and other statements by the Sponsor set forth in or made pursuant to
this Agreement shall remain in full force and effect regardless of any
investigation (or any statement as to the results thereof) made by or on behalf
of the Marketing Agent or any controlling Person of the Marketing Agent, or the
Sponsor, or any officer or director or any controlling Person thereof, and shall
survive the execution, delivery, performance and termination of this
Agreement.

    

    SECTION
7

    INDEMNIFICATION

    

    7.1       Indemnification of Marketing
Agent. The Sponsor agrees to indemnify, defend and hold harmless the
Marketing Agent, its partners, stockholders, members, directors, officers and
employees of the foregoing, and the successors and assigns of all of the
foregoing Persons, from and against any loss, damage, expense, liability or
claim (including the reasonable cost of investigation) which the Marketing Agent
or any such Person may incur under the 1933 Act, the Exchange Act, the common
law or otherwise, insofar as such loss, damage, expense, liability or claim
arises out of or is based upon:

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (a)

            	
              any
      untrue statement or alleged untrue statement of a material fact contained
      in the Registration Statement (or in the Registration Statement as amended
      or supplement) or in a Prospectus (the term Prospectus for the purpose of
      this Section 7 being deemed to include the Prospectus and the Prospectus
      as amended or supplemented), or arises out of or is based upon any
      omission or alleged omission to state a material fact required to be
      stated in either such Registration Statement or such Prospectus or
      necessary to make the statements made therein not misleading, except
      insofar as any such loss, damage, expense, liability or claim arises out
      of or is based upon any untrue statement or alleged untrue statement of a
      material fact contained in and in conformity with information concerning
      the Marketing Agent furnished in writing by or on behalf of the Marketing
      Agent to the Sponsor expressly for use in such Registration Statement or
      such Prospectus;

            

    

    

    
      	
               
      

            	
              (b)

            	
              any
      untrue statement or alleged untrue statement of a material fact or breach
      by the Sponsor of any representation or warranty contained in Section 2
      hereof or in any certificate delivered by the Sponsor pursuant to
      paragraph (o) of Section 5.1
hereof;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      failure by the Sponsor to perform when and as required any agreement or
      covenant contained herein;

            

    

    

    
      	
               
      

            	
              (d)

            	
              any
      untrue statement of any material fact contained in any audio or visual
      materials provided by the Sponsor or based upon written information
      furnished by or on behalf of the Sponsor including, without limitation,
      slides, videos, films or tape recordings used in connection with the
      marketing of the Units;

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      Marketing Agent’s performance of its duties under this Agreement except in
      the case of this clause (e), for any loss, damage, expense, liability or
      claim resulting from the gross negligence or willful misconduct of the
      Marketing Agent; provided, however, that the indemnity agreement contained
      in clause (a) above with respect to any amended Preliminary Prospectus
      shall not inure to the benefit of the Marketing Agent (or to the benefit
      of any Person controlling the Marketing Agent) if the Prospectus corrected
      any such alleged untrue statement or omission in any case where the
      Marketing Agent was required to send or give a copy of the Prospectus to
      such Person by the 1933 Act, the Sponsor had notified the Marketing Agent
      of the amendment or supplement prior to the sending of the written
      confirmation of sale and the Marketing Agent failed to send or give a copy
      of the Prospectus to such Person, unless the failure is the result of
      noncompliance by the Sponsor with paragraph (c) of Section 5.1
      hereof.

            

    

    

    In no
case is the indemnity of the Sponsor in favor of the Marketing Agent and such
other Persons as are specified in this Section 7.1 to be deemed to protect the
Marketing Agent and such Persons against any liability to the Sponsor or the
Fund to which the Marketing Agent would otherwise be subject by reason of
willful misfeasance, bad faith or gross negligence in the performance of its
duties or by reason of its reckless disregard of its obligations and duties
under this Agreement.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    If any
action, suit or proceeding (each, a “Proceeding”) is brought against the
Marketing Agent or any such Person in respect of which indemnity may be sought
against the Sponsor pursuant to the foregoing paragraphs, the Marketing Agent or
such Person shall promptly notify the Sponsor in writing of the institution of
such Proceeding and the Sponsor shall have the right, by providing notice to the
Marketing Agent or such Person within twenty (20) Business Days thereafter, to
assume the defense of such Proceeding, including the employment of counsel
reasonably satisfactory to such indemnified party and payment of all fees and
expenses; provided, however, that the omission to so notify the Sponsor shall
not relieve the Sponsor from any liability which it may have to the Marketing
Agent or any such Person except to the extent that it has been materially
prejudiced by such failure and has not otherwise learned of such Proceeding. If
the Sponsor assumes the defense of the Proceeding, the Marketing Agent or such
Person shall have the right to employ its or their own counsel in any such case,
but the fees and expenses of such counsel shall be at the expense of the
Marketing Agent or of such Person unless the employment of such counsel shall
have been authorized in writing by the Sponsor in connection with the defense of
such Proceeding or the Sponsor shall not have, within a reasonable period of
time in light of the circumstances, employed counsel to have charge of the
defense of such Proceeding or such indemnified party or parties shall have
reasonably concluded that there may be defenses available to it or them which
are different from, additional to or in conflict with those available to the
Sponsor (in which case the Sponsor shall not have the right to direct the
defense of such Proceeding on behalf of the indemnified party or parties), in
any of which events such fees and expenses shall be borne by the Sponsor and
paid as incurred (it being understood, however, that the Sponsor shall not be
liable for the expenses of more than one separate counsel (in addition to any
local counsel) in any one Proceeding or series of related Proceedings in the
same jurisdiction representing the indemnified parties who are parties to such
Proceeding).

    

    The
Sponsor shall not be liable for any settlement of any Proceeding effected
without the Sponsor’s written consent but if settled with the Sponsor’s written
consent, the Sponsor agrees to indemnify and hold harmless the Marketing Agent
and any such Person from and against any loss or liability by reason of such
settlement. Notwithstanding the foregoing sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel as contemplated by the second
sentence of this paragraph, then the indemnifying party agrees that it shall be
liable for any settlement of any Proceeding effected without its written consent
if (i) such settlement is entered into more than 60 days after receipt by such
indemnifying party of the aforesaid request, (ii) such indemnifying party shall
not have fully reimbursed the indemnified party in accordance with such request
prior to the date of such settlement and (iii) such indemnified party shall have
given the indemnifying party at least 30 days’ prior notice of its intention to
settle. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened Proceeding
in respect of which any indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party, unless
such settlement includes an unconditional release of such indemnified party from
all liability on claims that are the subject matter of such Proceeding and does
not include an admission of fault, culpability or a failure to act, by or on
behalf of such indemnified party.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    7.2       The
Marketing Agent agrees to indemnify, defend and hold harmless each of the Trust,
the Fund, the Sponsor, their partners, members, directors, officers and
employees, holders of Units, and any Person who controls the Sponsor within the
meaning of Section 15 of the 1933 Act or Section 20 of the Exchange Act, and the
successors and assigns of all of the foregoing Persons, from and against any
loss, damage, expense, liability or claim (including the reasonable cost of
investigation) which the Sponsor any such Person may incur under the 1933 Act,
the Exchange Act, the common law or otherwise, insofar as such loss, damage,
expense, liability or claim arises out of or is based upon any untrue statement
or alleged untrue statement of a material fact contained in and in conformity
with information furnished in writing by or on behalf of the Marketing Agent to
the Sponsor expressly for use in the Registration Statement (or in the
Registration Statement as amended or supplemented by any post-effective
amendment thereof) or in a Prospectus, or arises out of or is based upon any
omission or alleged omission to state a material fact in connection with such
information required to be stated in such Registration Statement or such
Prospectus or necessary to make such information not misleading.

    

    The
Marketing Agent will also indemnify the Sponsor as stated above insofar as such
loss, damage, expense, liability or claim arises out of or is based upon the
Marketing Agent’s performance of its duties under this Agreement, except in the
case of any loss, damage, expense, liability or claim resulting from the gross
negligence or willful misconduct of the Sponsor.  In no case is the
indemnity of the Marketing Agent in favor of the Sponsor to be deemed to protect
the Sponsor and such Persons against any liability to the Marketing Agent to
which the Sponsor would otherwise be subject by reason of willful misfeasance,
bad faith or gross negligence in the performance of its duties or by reason of
its reckless disregard of its obligations and duties under this
Agreement.

    

    If any
Proceeding is brought against the Sponsor or any Person referred to in the
preceding paragraphs in respect of which indemnity may be sought against the
Marketing Agent pursuant to the foregoing paragraph, the Sponsor or such Person
shall promptly notify the Marketing Agent in writing of the institution of such
Proceeding and the Marketing Agent shall have the right, by providing notice to
the Sponsor or such Person within twenty (20) Business Days thereafter, to
assume the defense of such Proceeding, including the employment of counsel
reasonably satisfactory to such indemnified party and payment of all fees and
expenses; provided, however, that the omission to so notify the Marketing Agent
shall not relieve the Marketing Agent from any liability which it may have to
the Sponsor or any such Person except to the extent that it has been materially
prejudiced by such failure and has not otherwise learned of such
Proceeding.  If the Marketing Agent assumes the defense of such
Proceeding, the Sponsor or such Person shall have the right to employ their own
counsel in any such case, but the fees and expenses of such counsel shall be at
the expense of the Sponsor or such Person unless the employment of such counsel
shall have been authorized in writing by the Marketing Agent in connection with
the defense of such Proceeding or the Marketing Agent shall not have, within a
reasonable period of time in light of the circumstances, employed counsel to
defend such Proceeding or such indemnified party or parties shall have
reasonably concluded that there may be defenses available to it or them which
are different from or additional to or in conflict with those available to the
Marketing Agent (in which case the Marketing Agent shall not have the right to
direct the defense of such Proceeding on behalf of the indemnified party or
parties, but the Marketing Agent may employ counsel and participate in the
defense thereof but the fees and expenses of such counsel shall be at the
expense of the Marketing Agent), in any of which events such fees and expenses
shall be borne by the Marketing Agent and paid as incurred (it being understood,
however, that the Marketing Agent shall not be liable for the expenses of more
than one separate counsel (in addition to any local counsel) in any one
Proceeding or series of related Proceedings in the same jurisdiction
representing the indemnified parties who are parties to such
Proceeding).

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

    The
Marketing Agent shall not be liable for any settlement of any such Proceeding
effected without the written consent of the Marketing Agent but if settled with
the written consent of the Marketing Agent, the Marketing Agent agrees to
indemnify and hold harmless the Sponsor and any such Person from and against any
loss or liability by reason of such settlement. Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel as contemplated by the second sentence of this paragraph, then the
indemnifying party agrees that it shall be liable for any settlement of any
Proceeding effected without its written consent if (i) such settlement is
entered into more than 60 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall not have reimbursed the
indemnified party in accordance with such request prior to the date of such
settlement and (iii) such indemnified party shall have given the indemnifying
party at least 30 days’ prior notice of its intention to settle. No indemnifying
party shall, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened Proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such Proceeding and does not include an admission
of fault, culpability or a failure to act, by or on behalf of such indemnified
party.

    

    7.3         The
indemnity agreements contained in this Section 7 and the covenants, warranties
and representations of the Sponsor contained in this Agreement shall remain in
full force and effect regardless of any investigation made by or on behalf of
the Marketing Agent, its partners, stockholders, members, directors, officers,
employees and or any Person (including each partner, stockholder, member,
director, officer or employee of such Person) who controls the Marketing Agent
within the meaning of Section 15 of the 1933 Act or Section 20 of the Exchange
Act, or by or on behalf of each of the Sponsor, the Trust, the Fund, their
partners, stockholders, members, directors, officers, employees or any Person
who controls the Sponsor, the Trust or the Fund within the meaning of Section 15
of the 1933 Act or Section 20 of the Exchange Act, and shall survive any
termination of this Agreement or the initial issuance and delivery of the Units.
The Sponsor and the Marketing Agent agree promptly to notify each other of the
commencement of any Proceeding against it and, in the case of the Sponsor,
against any of the Sponsor’s officers or directors in connection with the
issuance and sale of the Units, or in connection with the Registration Statement
or the Prospectus.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    

    SECTION
8

    DURATION

    

    8.1         This
Agreement shall become effective on the date hereof and continue for an initial
term of two (2) years from the date of this Agreement or the earlier termination
of this Agreement in accordance with its terms (the “Term”).  Upon and
after the completion of the such Term, either the Marketing Agent, on the one
hand, or the Sponsor, on the other hand, may elect to terminate this Agreement
at any time upon 90 days’ notice thereof to the other
party.  

     

    8.2         Notwithstanding
the foregoing, this Agreement may be terminated by any party upon written notice
to the other parties if (a) the Fund is terminated, (b) any other party becomes
insolvent or bankrupt or files a voluntary petition, or is subject to an
involuntary petition, in bankruptcy or attempts to or makes an assignment for
the benefit of its creditors or consents to the appointment of a trustee or
receiver, provided that the Sponsor may not terminate this Agreement pursuant to
this provision if the event relates to the Sponsor or the Fund or (c) any other
party willfully and materially breaches its obligations under this Agreement and
such breach has not been cured to the reasonable satisfaction of the
non-breaching party prior to the expiration of ninety (90) days after notice by
the non-breaching party to the breaching party of such breach.

    

    SECTION
9

    CONFIDENTIALITY

    

    9.1      Confidentiality.

    

    
      	
               
      

            	
              (a)

            	
              The
      Sponsor and the Marketing Agent shall during the Term and for one (1) year
      thereafter maintain in confidence, use only for the purposes provided for
      in this Agreement, and not disclose to any third party, without first
      obtaining the other party’s consent in writing, any and all Confidential
      Information (as defined below) such party receives from the other party;
      provided, however, that either party may disclose Confidential Information
      received from the other party to those of its Representatives as may be
      necessary for such party to carry out its obligations under this
      Agreement.

            

    

    

    
      	
               
      

            	
              “Confidential
      Information” shall mean all information or data of a party that is
      disclosed to or received by the other party, whether orally, visually or
      in writing, in any form, including, without limitation, information or
      data which relates to such party’s business or operations, research and
      development, marketing plans or activities, or actual or potential
      products.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      the provisions of this Agreement to the contrary, a party shall have no
      liability to the other party for the disclosure or use of any Confidential
      Information of the other party if the Confidential
      Information:

            

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (i)

            	
              is
      known to such party at the time of disclosure other than as the result of
      a breach of this Section 9 by such
party;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              has
      been or becomes publicly known, other than as the result of a breach of
      this Section 9 by such party, or has been or is publicly disclosed by the
      other party;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              is
      received by such party after the date of this Agreement from a third party
      (unless such third party breaches an obligation of confidentiality to the
      other party); or

            

    

    

    
      	
               
      

            	
              (iv)

            	
              is
      required to be disclosed by Law or similar compulsion or in connection
      with any legal proceeding, provided that such party shall promptly inform
      the other party in writing of such requirement and that such disclosure
      shall be limited to the extent so required and, except to the extent
      prohibited by Law, such party shall reasonably cooperate with the other
      party (at the expense of the other party) in seeking a protective order or
      other suitable confidentiality
protections.

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      parties recognize and acknowledge that a breach or threatened breach by a
      party of the provisions of this Section 9 may cause irreparable and
      material loss and damage to the other party which cannot be adequately
      remedied at law and that, accordingly, in addition to, and not in lieu of,
      any damages or other remedy to which the non-breaching party may be
      entitled, the issuance of an injunction or other equitable remedy (without
      the requirement that a bond or other security be posted) is an appropriate
      remedy for the non-breaching party for any breach or threatened breach of
      the obligations set forth in this Section
9.

            

    

    

    
      	
               
      

            	
              (d)

            	
              Each
      party agrees that it will use the same degree of care, but no less than a
      reasonable degree of care, in safeguarding the Confidential Information of
      the other party as it uses for its own Confidential Information of a
      similar nature. Each party shall promptly notify the other party in
      writing of any misuse, misappropriation or unauthorized disclosure of the
      Confidential Information of the other party which may come to such party’s
      attention.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Upon
      the termination of this Agreement, if requested in writing by a party, the
      other party shall, at such party’s option, promptly destroy or return to
      the party all Confidential Information received from the other party, all
      copies and extracts of such Confidential Information and all documents or
      other media containing any such Confidential
  Information.

            

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    SECTION
10

    MISCELLANEOUS

    

    10.1     No Third Party Beneficiaries.
This Agreement shall not confer any rights or remedies upon any Person other
than the parties hereto, the indemnities referred to in this Agreement and their
respective successors and assigns.

    

    10.2     Entire Agreement. This
Agreement (including any schedules and exhibits attached hereto and thereto)
contains all of the agreements among the parties hereto and thereto with respect
to the transactions contemplated hereby and thereby and supersedes all prior
agreements or understandings, whether written or oral, among the parties with
respect thereto.

    

    10.3     Amendment and Modification.
This Agreement may be amended, modified or supplemented only by a written
instrument executed by all the parties.

    

    10.4     Successors and Assigns;
Assignment. All the terms and provisions of this Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors and permitted assigns. This Agreement shall not be assigned by any
party without the prior written consent of the other parties and any assignment
without such consent shall be null and void.

    

    10.5     Waiver of Compliance. Except
as otherwise provided in this Agreement, any failure of any of the parties to
comply with any obligation, covenant, agreement or condition herein may be
waived by the party entitled to the benefits thereof only by a written
instrument signed by the party granting such waiver, but any such waiver, or the
failure to insist upon strict compliance with any obligation, covenant,
agreement or condition herein, shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure or breach.

    

    10.6     Severability. The parties
hereto desire that the provisions of this Agreement be enforced to the fullest
extent permissible under the Law and public policies applied in each
jurisdiction in which enforcement is sought. Accordingly, in the event that any
provision of this Agreement would be held in any jurisdiction to be invalid,
prohibited or unenforceable for any reason, such provision, as to such
jurisdiction, shall be ineffective, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction. Notwithstanding the foregoing, if such
provision could be more narrowly drawn so as not to be invalid, prohibited or
unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so
narrowly drawn, without invalidating the remaining provisions of this Agreement
or affecting the validity or enforceability of such provision in any other
jurisdiction.

    

    10.7     Notices. All notices, waivers,
or other communications pursuant to this Agreement shall be in writing and shall
be deemed to be sufficient if delivered personally, by facsimile (and, if sent
by facsimile, followed by delivery by nationally-recognized express courier),
sent by nationally-recognized express courier or mailed by registered or
certified mail (return receipt requested), postage prepaid, to the parties at
the following addresses (or at such other address for a party as shall be
specified by like notice):

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (a)       if
to Sponsor or the Trust, to:

    

    Teucrium Trading LLC

    232 Hidden Lake Road

    Building A

    Brattleboro, Vermont 05301

    

    (b)      if to
the Marketing Agent, to:

    

    ALPS Distributors,
Inc.

    1290 Broadway, Suite
1100

    Denver, CO 80203

    Attention: General
Counsel

    

    All such notices and other
communications shall be deemed to have been delivered and received (i) in the
case of Personal delivery or delivery by facsimile or e-mail, on the date of
such delivery if delivered during business hours on a Business Day or, if not
delivered during business hours on a Business Day, the first Business Day
thereafter, (ii) in the case of delivery by nationally-recognized express
courier, on the first Business Day following dispatch, and (iii) in the case of
mailing, on the third Business Day following such mailing.

    

    10.8    Governing Law;
Jurisdiction.

    

    
      	
               
      

            	
              (a)

            	
              All
      questions concerning the construction, interpretation and validity of this
      Agreement shall be governed by, and construed and enforced in accordance
      with, the domestic laws of the State of New York, without giving effect to
      any choice or conflict of law provision or rule (whether in the State of
      New York or any other jurisdiction) that would cause the application of
      the laws of any jurisdiction other than the State of New York. In
      furtherance of the foregoing, the internal law of the State of New York
      will control the interpretation and construction of this Agreement, even
      if under such jurisdiction’s choice of law or conflict of law analysis,
      the substantive law of some other jurisdiction would ordinarily or
      necessarily apply.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Each
      party irrevocably consents and agrees, for the benefit of the other
      parties, that any legal action, suit or proceeding against it with respect
      to its obligations, liabilities or any other matter arising out of or in
      connection with this Agreement may be brought in the courts of the State
      of New York and hereby irrevocably consents and submits to the
      non-exclusive jurisdiction of each such court in personam, generally and
      unconditionally with respect to any action, suit or proceeding for itself
      and in respect of its properties, assets and revenues. Each party
      irrevocably waives any immunity to jurisdiction to which it may otherwise
      be entitled or become entitled (including sovereign immunity and immunity
      to pre-judgment attachment and execution) in any legal suit, action or
      proceeding against it arising out of or based on this Agreement or the
      transactions contemplated hereby or thereby which is instituted in any
      court of the State of New York.

            

    

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

    The
provisions of this Section 10.8 shall survive any termination of this Agreement,
in whole or in part.

    

    10.9     No Partnership. Nothing in
this Agreement is intended to, or will be construed to constitute the Sponsor or
the Fund, on the one hand, and the Marketing Agent, on the other hand, as
partners or joint venturers; it being intended that the relationship between
them will at all times be that of independent contractors.

    

    10.10   Force Majeure. Neither party
will be liable to any other party for any delay or failure to perform its
obligations under this Agreement if such delay or failure arises from or is due
to any cause or causes beyond the reasonable control of the party affected which
impedes, delays or aggravates any obligation under this Agreement, including,
without limitation, acts of God, acts of any Governmental Entity, labor
disturbances, act of terrorism or act of public enemy due to war, the outbreak
or escalation of hostilities, riot, fire, flood, civil commotion, insurrection,
severe or adverse weather conditions, power failure or computer or
communications line failure.

    

    10.11   Interpretation. The article
and section headings contained in this Agreement are solely for the purpose of
reference, are not part of the agreement of the parties and shall not in any way
affect the meaning or interpretation of this Agreement.

    

    10.12   No Strict Construction. The
language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent, and no rule of strict construction will
be applied against any party.

    

    10.13   Counterparts; Facsimile
Signatures. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.  Facsimile counterpart
signatures to this Agreement shall be acceptable and binding.

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the
day and year first written above.

    

    
      
        
          	
                  TEUCRIUM
      COMMODITY TRUST

                
	 
      	 
      
	
                  By:

                	 
      
	
                  Name:

                	 
      
	
                  Title:

                	 
      
	 
      	 
      
	
                  TEUCRIUM TRADING
      LLC

                
	
                  as
      Sponsor

                
	 
      	 
      
	
                  By:

                	 
      
	
                  Name:

                	 
      
	
                  Title:

                	 
      
	 
      	 
      
	
                  ALPS
      DISTRIBUTORS, INC.

                
	 
      	 
      
	
                  By:

                	 
      
	
                  Name:

                	 
      
	
                  Title:

                	 
      

        

      

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    FORM OF

    TEUCRIUM
COMMODITY TRUST

    AUTHORIZED PURCHASER
AGREEMENT

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    EXHIBIT
B

    FORM
OF SUTHERLAND ASBILL & BRENNAN LLP OPINION

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    EXHIBIT
C

    MARKETING
STRATEGY OF

    ALPS
DISTRIBUTORS, INC. (“ALPS”)

    

    ALPS
agrees to carry out the following duties.

    

    
      	
               
      

            	
              (a)

            	
              ALPS
      senior management will:

            

    

    

    
      	
               
      

            	
              ·

            	
              Develop
      an overall strategic sales and marketing plan with the National Accounts
      Manager of ALPS, the Fund and the specialist
  firm.

            

    

    
      	
               
      

            	
              ·

            	
              Supervise
      sales related activities.

            

    

    
      	
               
      

            	
              ·

            	
              Participate
      in field sales activities.

            

    

    

    
      	
               
      

            	
              (b)

            	
              ALPS
      will provide a shared National Accounts Manager who
  will:

            

    

    

    
      	
               
      

            	
              ·

            	
              Implement
      a tactical sales strategy.

            

    

    
      	
               
      

            	
              ·

            	
              Establish
      home office contacts with targeted
  broker/dealers.

            

    

    
      	
               
      

            	
              ·

            	
              Develop
      product education presentations.

            

    

    
      	
               
      

            	
              ·

            	
              Conduct
      product education presentations with fee based financial
      advisors.

            

    

    
      	
               
      

            	
              ·

            	
              Attend
      major fee based advisor
conferences.

            

    

    

    (c)          ALPS
will provide ten shared External Wholesalers who will:

    

    
      	
               
      

            	
              ·

            	
              Assist
      the National Accounts Manager in implementing the tactical sales
      strategy.

            

    

    
      	
               
      

            	
              ·

            	
              Establish
      regional relationships with wire houses and fee based
      advisors.

            

    

    
      	
               
      

            	
              ·

            	
              Deliver
      product education presentations.

            

    

    
      	
               
      

            	
              ·

            	
              Conduct
      product education presentations with wire house brokers and fee based
      financial advisors.

            

    

    
      	
               
      

            	
              ·

            	
              Attend
      major fee based advisor
conferences.

            

    

    

    (d)          ALPS
will provide five shared Internal Wholesalers who will:

    

    
      	
               
      

            	
              ·

            	
              Support
      the National Accounts Manager’s and Wholesaler’s field
      activities.

            

    

    
      	
               
      

            	
              ·

            	
              Telemarket
      to independent financial planners.

            

    

    
      	
               
      

            	
              ·

            	
              Coordinate
      conference participation.

            

    

    
      	
               
      

            	
              ·

            	
              Attend
      various conferences.

            

    

    

    
      	
               
      

            	
              (e)

            	
              ALPS
      will provide resources from its call center
to:

            

    

    

    
      	
               
      

            	
              ·

            	
              Place
      outbound follow-up calls on 100% of phone and internet requests for
      information.

            

    

    
      	
               
      

            	
              ·

            	
              Receive
      creation/redemption calls and communicate with authorized purchasers,
      advisors and the custodian.

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              ·

            	
              Transfer
      “hot” advisor leads to Internal
Wholesaler.

            

    

    
      	
               
      

            	
              ·

            	
              Support
      a dedicated Fund toll-free line for
advisors.

            

    

    

    
      	
               
      

            	
              (f)

            	
              ALPS
      will provide appropriate staff to:

            

    

    

    
      	
               
      

            	
              ·

            	
              Write,
      design and produce sales and marketing
  materials.

            

    

    
      	
               
      

            	
              ·

            	
              Create
      seminars and product presentations.

            

    

    
      	
               
      

            	
              ·

            	
              Coordinate
      advisor specific advertising with the advertising
  agency.

            

    

    
      	
               
      

            	
              ·

            	
              Manage
      marketing budget.

            

    

    
      	
               
      

            	
              ·

            	
              Create
      and maintain Sponsor and Fund
websites.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    EXHIBIT
D

    

    TEUCRIUM
TRADING LLC

    OFFICER’S
CERTIFICATE

    

    The undersigned, a duly authorized
officer of Teucrium Trading, LLC a Delaware limited liability company
(the “Sponsor”), and pursuant to Section 13(d) of the  Teucrium
Commodity Trust Marketing Agent Agreement (the “Agreement”), dated as of
_______________ by and between the Sponsor and ALPS Distributors, Inc.
(“Marketing Agent”) hereby certifies that:

    

    1.   Each of the
following representations and warranties of the Sponsor is true and correct in
all material respects as of the date hereof:

    

    (a)  the Prospectus does not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading; the
Registration Statement complies in all material respects with the requirements
of the 1933 Act and the Prospectus complies in all material respects with the
requirements of the 1933 Act and any statutes, regulations, contracts or other
documents that are required to be described in the Registration Statement or the
Prospectus or to be filed as exhibits to the Registration Statement have been so
described or filed; the conditions to the use of Form S-1 or S-3, if applicable,
have been satisfied; the Registration Statement does not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading and
the Prospectus does not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading; provided, however, that the Sponsor makes no warranty or
representation with respect to any statement contained in the Registration
Statement or any Prospectus in reliance upon and in conformity with information
concerning the Authorized Purchaser and furnished in writing by or on behalf of
the Authorized Purchaser to the Sponsor expressly for use in the Registration
Statement or such Prospectus; and neither the Sponsor nor any Person known to
the Sponsor acting on behalf of the Fund has distributed nor will distribute any
offering material other than the Registration Statement or the
Prospectus;

    

    (b)  the Trust has been duly
formed and is validly existing as a statutory trust under the laws of the State
of Delaware and the Fund has been duly established as a series of the Trust, as
described in the Registration Statement and the Prospectus, and is authorized to
issue and deliver, or to instruct the Marketing Agent to issue and deliver, the
Baskets to the Authorized Purchaser as described in the
Prospectus;

    

    (c)  the Sponsor has been duly
organized and is validly existing as a limited liability company in good
standing under the laws of the State of Delaware, with full power and authority
to conduct its business as described in the Registration Statement and the
Prospectus, and has all requisite power and authority to execute and deliver
this Agreement;

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    (d)  the Sponsor is duly
qualified and is in good standing in each jurisdiction where the conduct of its
business requires such qualification; and the Fund is not required to so qualify
in any jurisdiction;

    

    (e)  the outstanding Units
have been duly and validly issued and are fully paid and non-assessable and free
of statutory and contractual preemptive rights, rights of first refusal and
similar rights;

    

    (f)  the Units conform in all
material respects to the description thereof contained in the Registration
Statement and the Prospectus and the holders of the Units will not be subject to
personal liability by reason of being such holders;

    

    (g)  the Sponsor is not in
breach or violation of or in default under (nor has any event occurred which
with notice, lapse of time or both would result in any breach or violation of,
constitute a default under or give the holder of any indebtedness (or a Person
acting on such holder’s behalf) the right to require the repurchase, redemption
or repayment of all or a part of such indebtedness) its constitutive documents,
or any indenture, mortgage, deed of trust, bank loan or credit agreement or
other evidence of indebtedness to which the Sponsor is a party or by which the
Sponsor or any of its properties may be bound or affected, and the execution,
delivery and performance of the Agreement, the issuance and sale of Units to the
Authorized Purchaser hereunder and the consummation of the transactions
contemplated hereby do not conflict with, result in any breach or violation of
or constitute a default under (nor constitute any event which with notice, lapse
of time or both would result in any breach or violation of or constitute a
default under), respectively, the amended and restated limited liability company
agreement of the Sponsor, or any indenture, mortgage, deed of trust, bank loan
or credit agreement or other evidence of indebtedness, or any license, lease,
contract or other agreement or instrument to which the Sponsor is a party or by
which, respectively, the Sponsor or any of its properties may be bound or
affected, or any federal, state, local or foreign law, regulation or rule or any
decree, judgment or order applicable to the Sponsor;

    

    (h)  no approval,
authorization, consent or order of or filing with any federal, state, local or
foreign governmental or regulatory commission, board, body, authority or agency
is required to be obtained by the Sponsor, the Trust or the Fund in connection
with the issuance and sale of Baskets to the Authorized Purchaser hereunder or
the consummation by the Sponsor or the Fund of the transactions contemplated
hereunder other than registration of the Units under the 1933 Act, and any
necessary qualification under the securities or blue sky laws of the various
jurisdictions in which the Units are being offered;

    

    (i)  except as set forth in
the Registration Statement and the Prospectus (i) no Person has the right,
contractual or otherwise, to cause the Trust to issue or sell to it any Units or
other equity interests of the Fund, and (ii) no Person has the right to act as
an underwriter to the Trust in connection with the offer and sale of the Units,
in the case of each of the foregoing clauses (i) and (ii), whether as a result
of the filing or effectiveness of the Registration Statement or the sale of the
Units as contemplated thereby or otherwise; no Person has the right, contractual
or otherwise, to cause the Trust to register under the 1933 Act any other equity
interests of the Fund, or to include any such shares or interests in the
Registration  Statement or the offering contemplated thereby, whether
as a result of the filing or effectiveness of the Registration Statement or the
sale of the Units as contemplated thereby or otherwise;

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (j)  each of the Sponsor and
the Fund has all necessary licenses, authorizations, consents and approvals and
has made all necessary filings required under any federal, state, local or
foreign law, regulation or rule, and has obtained all necessary authorizations,
consents and approvals from other Persons, in order to conduct its respective
business; the Sponsor is not in violation of, or in default under, or has not
received notice of any proceedings relating to revocation or modification of,
any such license, authorization, consent or approval or any federal, state,
local or foreign law, regulation or rule or any decree, order or judgment
applicable to the Sponsor;

    

    (k)  all legal or governmental
proceedings, affiliate transactions, off-balance sheet transactions, contracts,
licenses, agreements, leases or documents of a character required to be
described in the Registration Statement or the Prospectus or to be filed as
exhibits to the Registration Statement have been so described or filed as
required;

    

    (l)  except as set forth in
the Registration Statement and the Prospectus, there are no actions, suits,
claims, investigations or proceedings pending or threatened or contemplated to
which the Sponsor or the Trust, or (to the extent that is or could be material
in the context of the offering and sale of the Baskets to the Authorized
Purchaser) any of the Sponsor’s directors or officers, is or would be a party or
of which any of their respective properties are or would be subject at law or in
equity, before or by any federal, state, local or foreign governmental or
regulatory commission, board, body, authority or agency;

    

    (m)  Rothstein Kass, whose
report on the audited financial statements of the Fund is filed with the SEC as
part of the Registration Statement and the Prospectus, are independent public
accountants as required by the 1933 Act;

    

    (n)  the audited financial
statement(s) of the Fund included in the Prospectus, together with the related
notes and schedules, presents fairly the financial position of the Fund as of
the date indicated and has been prepared in compliance with the requirements of
the 1933 Act and in conformity with generally accepted accounting principles;
there are no financial statements (historical or pro forma) that are required to
be included in the Registration Statement and the Prospectus that are not
included as required; and the Fund does not have any material liabilities or
obligations, direct or contingent (including any off-balance sheet obligations),
not disclosed in the Registration Statement and the
Prospectus;

    

    (o)  to the reasonable belief
of the Sponsor, the Fund is not and, after giving effect to the offering and
sale of the Units, will not be an “investment company” or an entity “controlled”
by an “investment company,” as such terms are defined in the Investment Company
Act;

    

    
      	
               
      

            	
              (p)

            	
              (i) except as set forth in the
      Registration Statement and the Prospectus, the Sponsor and the Fund own,
      or have obtained valid and enforceable licenses for, or other rights to
      use, the inventions, patent applications, patents, trademarks (both
      registered and unregistered), tradenames, copyrights, trade secrets and
      other proprietary information described in the Registration Statement and
      the Prospectus as being owned or licensed by them or which are necessary
      for the conduct of their respective businesses (collectively,
      “Intellectual
Property”);

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (ii) except as set forth in the
Registration Statement and the Prospectus, to the knowledge of the Sponsor or
the Trust, there are no third parties who have or will be able to establish
rights to any Intellectual Property, except for the ownership rights of the
owners of the Intellectual Property which is licensed to the Sponsor or the
Fund;

    

    (iii) to the knowledge of the Sponsor or
the Trust, there is no infringement by third parties of any Intellectual
Property owned or licensed to the Sponsor or the Fund;

    

    (iv) to the knowledge of the Sponsor or
the Trust, there is no pending or threatened action, suit, proceeding or claim
by others challenging the Sponsor or the Fund’s rights in or to any Intellectual
Property, and the Sponsor and the Fund are unaware of any facts which could form
a reasonable basis for any such claim;

    

    (v) to the knowledge of the Sponsor or
the Trust, there is no pending or threatened action, suit, proceeding or claim
by others challenging the validity or scope of any Intellectual
Property;

    

    (vi) to the knowledge of the Sponsor or
the Trust, there is no pending or threatened action, suit, proceeding or claim
by others that the Sponsor or the Fund infringes or otherwise violates any
patent, trademark, copyright, trade secret or other proprietary rights of
others, and the Sponsor and the Trust are unaware of any facts which could form
a reasonable basis for any such claim;

    

    (vii) to the knowledge of the Sponsor or
the Trust, there is no patent or patent application that contains claims that
interfere with the issued or pending claims of any of the Intellectual Property
owned or licensed to the Sponsor or the Fund; and

    

    (viii)  to the knowledge of
the Sponsor or the Trust, there is no prior art that may render any patent or
patent application owned by or licensed to the Sponsor unpatentable, invalid or
unenforceable.

    

    (r)  all tax returns required
to be filed by the Sponsor have been filed, and all taxes and other assessments
of a similar nature (whether imposed directly or through withholding) including
any interest, additions to tax or penalties applicable thereto due or claimed to
be due from such entities have been paid; and no tax returns or tax payments are
due with respect to the Fund as of the date of this
Certificate;

    

    (s)  the Sponsor has not sent
or received any communication regarding termination of, or intent not to renew,
any of the contracts or agreements referred to or described in, or filed as an
exhibit to, the Registration Statement, and no such termination or non-renewal
has been threatened by the Sponsor or any other party to any such contract or
agreement;

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (t)  on behalf of the Fund,
the Sponsor has established and maintains disclosure controls and procedures (as
such term is defined in Rule 13a-14 and 15d-14 under the Exchange Act, giving
effect to the rules and regulations, and SEC staff interpretations (whether or
not public), thereunder)); such disclosure controls and procedures are designed
to ensure that material information relating to the Fund, is made known to the
Sponsor, and such disclosure controls and procedures are effective to perform
the functions for which they were established; on behalf of the Fund, the
Sponsor has disclosed to the Fund’s auditors when and to the extent required:
(i) any significant deficiencies in the design or operation of internal controls
which could adversely affect the Fund’s ability to record, process, summarize,
and report financial data; and (ii) any fraud, whether or not material, that
involves management or other employees who have a role in the Fund’s internal
controls;

    

    (u)  any statistical and
market-related data included in the Registration Statement and the Prospectus
are based on or derived from sources that the Sponsor believes to be reliable
and accurate, and the Sponsor has obtained the written consent to the use of
such data from such sources to the extent required; and

    

    (v)  neither the Sponsor, nor
any of the Sponsor’s directors, members, officers, affiliates or controlling
Persons has taken, directly or indirectly, any action designed, or which has
constituted or might reasonably be expected to cause or result in, under the
Exchange Act or otherwise, the stabilization or manipulation of the price of any
security or asset of the Fund to facilitate the sale or resale of the
Units.

    

    For purposes hereof, the term
“Registration Statement” shall mean the Registration Statement as amended or
supplemented from time to time up to the date hereof, the term “Preliminary
Prospectus” shall mean the preliminary prospectus dated ______, 2009 relating to
the Units and any other prospectus dated prior to effectiveness of the
Registration Statement relating to the Units that is distributed to prospective
Fund investors, and the term “Prospectus” shall mean the Prospectus as amended
or supplemented from time to time up to the date hereof.

    

    2.   Each
of the obligations of the Sponsor to be performed by it on or before the date
hereof pursuant to the terms of the Agreement, and each of the provisions
thereof to be complied with by the Sponsor on or before the date hereof, has
been duly performed and complied with in all material respects.  Capitalized terms used, but not defined
herein shall have the meanings assigned to such terms in the
Agreement.

    

    IN WITNESS WHEREOF, I have hereunto, on
behalf of the Sponsor, subscribed my name this ___ day of
_________________.

    

    
      
        	
                By:

              	 
      
	 
      	
                Name:

              
	 
      	
                Title:

              

      

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    I, _______________, in my capacity as
[title], hereby certify that _______________ is the duly elected [title] of the
Sponsor, and that the signature set forth immediately above is [his/her] genuine
signature.

    

    IN WITNESS WHEREOF, I have hereunto set
my hand as of the date first set forth above.

    

    
      
        	
                By:

              	 
      
	 
      	
                Name:

              
	 
      	
                Title:

              

      

    

    
      
         

      

      
        6

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