Document:

Exhibit 10.2

    
       

      No.
                                 
Vancouver
        Registry

      IN THE SUPREME
        COURT OF BRITISH COLUMBIA

      IN THE MATTER OF THE COMPANIES’ CREDITORS
        ARRANGEMENTACT, R.S.C.
1985, c. C-36

      AND

      IN THE MATTER OF QUEST CANADA
        CORP.

      PETITIONER

      INITIAL
        ORDER

       

      	
              BEFORE
                THE HONOURABLE 

            	
              )

              )

              )

            	
              FRIDAY,
                THE 23RD DAY OF 

               

              FEBRUARY,
                2007

            

      THE APPLICATION of the Petitioner coming
        on
        for hearing ex parte at Vancouver, British Columbia, on the
        23rd day of February 2007 (the “Filing Date”); AND ON HEARING Robert
        Millar and Kimberley Robertson counsel for the Petitioner; AND UPON READING
        the
        material filed, including the Affidavit #1 of James Panther II sworn February
        23, 2007 and Affidavit #1 of Kimberley Robertson sworn February 23, 2007;
        AND
        pursuant to the Companies’ Creditors Arrangement Act, R.S.C. 1985 c. C-36
        (the “CCAA”), Rules 3, 10, 12, 13(1), 13(6), 14 and 44 of the Rules of Court and
        the inherent jurisdiction of this Honourable Court:

      JURISDICTION

      1.                 
THIS COURT ORDERS AND
        DECLARES that the Petitioner is a company to which the
        CCAA applies.

      PETITION HEARING

      2.                 
THIS COURT-ORDERS that
        the hearing of the Petition in this proceeding be held at
        the Courthouse at 800 Smithe Street, Vancouver, British Columbia at 9:00
        a.m. on
        Friday, the 23rd day of March, 2007, provided that the service referred to
        in
        paragraph 44 of this Order occur no later than March 1, 2007.

      3.                 
THIS COURT ORDERS that
        all of the relief provided for in the subsequent
        paragraphs of this Order is granted to the Petitioner on an interim basis
        only,
        and that the relief made in the subsequent paragraphs will expire at 11:59
        p.m.
        (local Vancouver time) on March 23, 2007, unless extended by this Court at
        the
        hearing of the Petition which will occur on that date.

      POSSESSION OF PROPERTY AND
        OPERATIONS

      4.                 
THIS COURT ORDERS that,
        subject to this Order and any further Order of this
        Court, the Petitioner shall remain in possession and control of its current
        and
        future assets, undertakings and properties of every nature and kind whatsoever,
        and wherever situate including all proceeds thereof (the “Property”), and
        continue to carry on its business in the ordinary course and in a manner
        consistent with the preservation of its business (the “Business”) and Property.
        The Petitioner shall be authorized and empowered to continue to retain and
        employ the employees, consultants, agents, experts, accountants, counsel
        and
        such other persons (collectively “Assistants”) currently retained or employed by
        it, with liberty to retain such further Assistants as it deems reasonably
        necessary or desirable in the ordinary course of business or for carrying
        out
        the terms of this Order.

      5.                 
THIS COURT ORDERS that
        the Petitioner shall be entitled, but not required, to
        pay the following expenses which may have been incurred prior to the Filing
        Date: 

      (a)               
all outstanding wages, salaries, employee
        and pension benefits (including long
        and short term disability payments), vacation pay, bonuses and expenses (but
        excluding severance pay) payable before or after the Filing Date, in each
        case
        incurred in the ordinary course of business and consistent with the relevant
        compensation policies and arrangements existing at the time incurred
        (collectively “Wages”); and

      (b)              
        the fees and disbursements of any Assistants retained or employed by the
        Petitioner in respect of these proceedings, at their standard rates and charges,
        including payment of the fees and disbursements of legal counsel retained
        by the
        Petitioner, whenever and wherever incurred, in respect of:

      (i)                 
these proceedings or any other similar
        proceedings in other jurisdictions in
        which the Petitioner or any subsidiaries or affiliated companies of the
        Petitioner are domiciled;

      (ii)               
any litigation in which the Petitioner
        is named as a party, whether commenced
        before or after the Filing Date; and

      (iii)              
any related corporate matters;

      necessary to assist in the restructuring
        of the Petitioner.

      6.                 
THIS COURT ORDERS that,
        except as otherwise provided herein, the Petitioner
        shall be entitled to pay all expenses reasonably incurred by the Petitioner
        in
        carrying on the Business in the ordinary course following the Filing Date,
        and
        in carrying out the provisions of this Order, which expenses shall include,
        without limitation:

      (a)               
all expenses reasonably incurred for
        the preservation of the Property or the
        Business including, without limitation, payments on account of insurance
        (including directors’ and officers’ insurance), maintenance and security
        services;

      (b)              
all capital expenditures reasonably
        incurred for the preservation of the
        Property or the Business as approved by the Monitor, as hereinafter defined
        in
        paragraph 30; 

      (c)               
all obligations incurred by the Petitioner
        after the Filing Date, including
        without limitation, with respect to goods and services actually supplied
        to the
        Petitioner following the date of this Order (including those under purchase
        orders outstanding at the Filing Date but excluding any interest on the
        Petitioner’s obligations incurred prior to the Filing Date);

      (d)              
amounts outstanding to creditors for
        goods and services provided prior to the
        Filing Date where expressly authorized by this Order or any further Order
        of
        this Court; and

      (e)               
fees and disbursements of the kind referred
        to in paragraph 5(b) which may be
        incurred after the Filing Date.

      7.                 
THIS COURT ORDERS that
        the Petitioner is authorized to remit, in accordance with
        legal requirements, or pay:

      (a)               
any statutory deemed trust amounts in
        favour of the Crown in right of Canada or
        of any Province thereof or any other taxation authority which are required
        to be
        deducted from Wages, including, without limitation, amounts in respect of
        (i)
        employment insurance, (ii) Canada Pension Plan, (iii) Quebec Pension Plan,
        and
        (iv) income taxes or any such claims which are to be paid pursuant to Section
        18.2 of the CCAA; 

      (b)              
all goods and services or other applicable
        sales taxes (collectively, “Sales
        Taxes”) required to be remitted by the Petitioner in connection with the sale of
        goods and services by the Petitioner, but only where such Sales Taxes are
        accrued or collected after the date of this Order, or where such Sales Taxes
        were accrued or collected prior to the date of this Order but not required
        to be
        remitted until on or after the date of this Order; and

      (c)               
any amount payable to the Crown in right
        of Canada or of any Province thereof or
        any political subdivision thereof or any other taxation authority in respect
        of
        municipal property taxes, municipal business taxes or other taxes, assessments
        or levies of any nature or kind which may at law be payable in priority to
        claims of secured creditors and which are attributable to or in respect of
        the
        carrying on of the Business by the Petitioner.

      8.                 
THIS COURT ORDERS that
        until such time as the Petitioner repudiates a real
        property lease or crown lease in accordance with paragraph 12(b)(iv) of this
        Order, the Petitioner may pay all amounts constituting rent or payable as
        rent
        under real property leases (including, for greater certainty, common area
        maintenance charges, utilities and realty taxes and any other amounts payable
        as
        rent to the landlord under the lease), based on the terms of existing lease
        arrangements or as otherwise may be negotiated by the Petitioner from time
        to
        time, for the period commencing from and including the date of this Order
        (“Rent”), plus any crown royalties owing with respect of any leased properties,
        but shall not pay any rent in arrears. 

      9.                 
THIS COURT ORDERS that
        until such time as the Petitioner repudiates any
        equipment lease in accordance with paragraph 12(b)(v) of this Order, and
        provided that the equipment lease is a true lease and not a financing lease
        creating a security interest, the Petitioner may pay all amounts or payable
        under such leases based on the terms of existing lease arrangements or as
        otherwise may be negotiated by the Petitioner from time to time, for the
        period
        commencing from and including the date of this Order, but shall not pay any
        amount with respect to pre-Filing Date arrears.

      10.             
THIS COURT ORDERS that,
        except as specifically permitted herein, the Petitioner
        is hereby directed, until further Order of this Court:

      (a)               
to make no payments of principal, interest
        or otherwise on account of amounts
        owing by the Petitioner to any of its creditors as of the Filing Date except
        as
        authorized by this Order;

      (b)              
to grant no security interests, trust,
        mortgages, liens, charges or encumbrances
        upon or in respect of any of its Property, nor become a guarantor or surety,
        nor
        otherwise become liable in any manner with respect to any other person or
        entity
        except as authorized by this Order; and 

      (c)               
to grant credit only to the customers
        of its business and then only for goods
        and services actually supplied to those customers and on payment terms
        ordinarily granted by the Petitioner in the usual course of its business,
        and
        only upon the customer agreeing that there is no right of set-off in respect
        of
        amounts owing for such goods and services against any debt owing by the
        Petitioner to such customers as of the Filing Date.

      FINANCIAL ARRANGEMENTS

      11.             
THIS COURT ORDERS that
        notwithstanding any other provision in this Order:

      (a)               
the Petitioner is hereby authorized
        and empowered to borrow, repay and reborrow
        from a lender (the “Lender”) such amounts from time to time as the Petitioner
        considers necessary, and the Lender shall be entitled to revolve its operating
        loan facility (the “Lender Loan Facility”) and collect interest, fees and costs
        on the Lender Loan Facility, subject to such amendments as are agreed between
        the Lender and the Petitioner;

      (b)              
the Lender Loan Facility shall be secured
        by the same charge (the “Lender
        Charge”) as secured the Lender Loan Facility as at the Filing Date; and

      (c)               
the Petitioner is authorized to deal
        with the Lender in respect of the Lender
        Loan Facility on such terms as may be negotiated and agreed upon between
        the
        Petitioner and the Lender.

      RESTRUCTURING

      12.             
THIS COURT ORDERS that,
        subject to the terms of this Order, the Petitioner shall
        remain in possession of its Property and Business, provided that:

      (a)               
it shall not sell or otherwise dispose
        of any of its Property or Business
        outside of the ordinary course of business except pursuant to this paragraph
        or
        as may be authorized by an Order of the Court; and

      (b)              
it shall have the right, subject to
        the consent of the Monitor, to proceed with
        an orderly downsizing of the Business and operations, including without
        limitation, the right to:

      (i)                 
permanently or temporarily cease,
        downsize or shut down any of its Business or
        operations, and to dispose of redundant or non-material assets not exceeding
        a
        value of $50,000 in any one transaction or $250,000 in the aggregate;

      (ii)               
terminate the employment of such of
        its employees or temporarily lay off such of
        its employees as it deems appropriate on such terms as may be agreed upon
        between the Petitioner and such employee, or failing such agreement, to deal
        with the consequences thereof in the Plan;

      (iii)              
terminate such of its supplier arrangements
        as it deems appropriate;

      (iv)             
        in accordance with paragraphs 13 and 14 of this Order, vacate, abandon or
        quit
        any leased premises and/or repudiate any real property lease or crown lease
        and
        any ancillary agreements relating to any leased premises, on such terms as
        may
        be agreed upon between the Petitioner and such landlord, or failing such
        agreement, to deal with the consequences thereof in the Plan;

      (v)               
        repudiate such leases of equipment as it deems to be unnecessary for its
        business, on such terms as may be agreed upon between the Petitioner and
        the
        lessor of such equipment, or failing such agreement, to deal with the
        consequences thereof in the Plan;

      (vi)             
terminate or repudiate such of its
        arrangements or agreements of any nature
        whatsoever as the Petitioner deems appropriate, on such terms as may be agreed
        upon between the Petitioner and such counter-parties, or failing such agreement,
        to deal with the consequences thereof in the Plan; and

      (vii)            
pursue all sources of refinancing
        and offers for material parts of its Business
        or Property, in whole or part, subject to prior approval of this Court being
        obtained before any material refinancing or any sale, except as permitted
        by
        subparagraph (b)(i) above;

      all of the foregoing to permit the Petitioner
        to proceed with an orderly restructuring of the Business (the
“Restructuring”).

      13.             
        THIS COURT ORDERS that the Petitioner shall provide each of the relevant
        landlords with notice of the Petitioner’s intention to remove any fixtures from
        any leased premises at least seven (7) days prior to the date of the intended
        removal. The relevant landlord shall be entitled to have a representative
        present on the leased premises to observe such removal and, if the landlord
        disputes the Petitioner’s entitlement to remove any such fixture under the
        provisions of the lease, such fixture shall remain on the premises and shall
        be
        dealt with as agreed between any secured creditors who claim a security interest
        in the fixtures, such landlord and the Petitioner, or by further Order of
        this
        Court upon application by the Petitioner on at least two (2) clear days’ notice
        to such landlord and any such secured creditors. If the Petitioner repudiates
        the lease governing such leased premises in accordance with paragraph 12(b)(iv)
        of this Order, it shall not be required to pay Rent under such lease pending
        resolution of any such dispute with respect to the fixtures, and the repudiation
        of the lease shall be without prejudice to the Petitioner’s claim to the
        fixtures in dispute.

      14.             
        THIS COURT ORDERS that if a lease is repudiated by the Petitioner in accordance
        with paragraph 12(b)(iv) of this Order, then at the effective time of the
        repudiation, the relevant landlord shall be entitled to take possession of
        any
        such leased premises without waiver of or prejudice to any claims or rights
        such
        landlord may have against the Petitioner in respect of such lease or leased
        premises and such landlord shall be entitled to notify the Petitioner of
        the
        basis on which it is taking possession and to gain possession of and re-lease
        such leased premises to any third party or parties on such terms as such
        landlord considers advisable, provided that nothing herein shall relieve
        such
        landlord of its obligation to mitigate any damages claimed in connection
        therewith.

      15.             
THIS COURT ORDERS that,
        subject to the other provisions of this Order (including
        the payment of Rent as herein provided) and any further Order of this Court,
        the
        Petitioner shall be permitted to dispose of any or all of the Property located
        (or formerly located) on such leased premises without any interference of
        any
        kind from the landlord (notwithstanding the terms of any leases) and, for
        greater certainty, the Petitioner shall have the right to realize upon the
        Property in such manner and at such leased premises, as it deems suitable
        or
        desirable for the purpose of maximizing the proceeds and recovery
        therefrom.

      16.             
THIS COURT DECLARES that,
        pursuant to Section 7(3)(c) of the Personal
        Information Protection and Electronics Documents Act, S.C. 2000, c. 5 and
        Section 18(1)(o) of the Personal Information Protection Act, S.B.C. 2003,
        c. 63, and any regulations promulgated under authority of either Act, as
        applicable (the “Relevant Enactment”), the Petitioner is permitted, in the
        course of these proceedings, to disclose personal information of identifiable
        individuals in its possession or control to stakeholders, its advisors,
        prospective investors, financiers, buyers or strategic partners (collectively,
        “Third Parties”), but only to the extent desirable or required to negotiate and
        complete the Restructuring or to prepare and implement the Plan or transactions
        for that purpose; provided that the Third Parties to whom such personal
        information is disclosed enter into confidentiality agreements with the
        Petitioner binding them in the same manner and to the same extent with respect
        to the collection, use and disclosure of that information as if they were
        an
        organization as defined under the Relevant Enactment, and limiting the use
        of
        such information to the extent desirable or required to negotiate and complete
        the Restructuring or to prepare and implement the Plan or transactions for
        that
        purpose, and attorning to the jurisdiction of this Court for the purposes
        of
        that agreement. Upon the completion of the use of personal information for
        the
        limited purposes set out herein, the Third Parties shall return the personal
        information to the Petitioner or destroy it. If the Third Parties acquire
        personal information as part of the Restructuring or the preparation and
        implementation of the Plan or transactions in furtherance thereof, such Third
        Parties may, subject to this paragraph and any Relevant Enactment, continue
        to
        use the personal information in a manner which is in all respects identical
        to
        the prior use thereof by the Petitioner,

      NO PROCEEDINGS AGAINST THE PETITIONER
        OR MONITOR

      17.             
THIS COURT ORDERS that
        until and including March 23, 2007, or such later date as
        this Court may order (the “Stay Period”), no action, suit or proceeding in any
        court or tribunal (each, a “Proceeding”) shall be commenced or continued against
        or in respect of the Petitioner, or affecting the Business or the Property,
        except with the written consent of the Petitioner or with leave of this Court,
        and any and all Proceedings currently under way against or in respect of
        the
        Petitioner or affecting the Business or the Property are hereby stayed and
        suspended during the Stay Period pending further Order of this Court.

      18.             
THIS COURT ORDERS that
        during the Stay Period, no Proceeding shall be commenced
        against or in respect of the Monitor, in its capacity as Monitor, except
        with
        the written consent of the Monitor or with leave of this Court,

      NO EXERCISE OF RIGHTS OR
        REMEDIES

      19.             
THIS COURT ORDERS that
        during the Stay Period, all rights and remedies of any
        individual, firm, corporation, governmental body or agency, or any other
        persons
        or entities having notice of this Order (all of the foregoing, collectively
        being “Persons” and each being a “Person”) against or in respect of the
        Petitioner or the Monitor, or affecting the Business or the Property, are
        hereby
        stayed and suspended except with the written consent of the Petitioner and
        the
        Monitor or leave of this Court, provided that nothing in this paragraph shall
        (i) empower the Petitioner to carry on any business which the Petitioner
        is not
        lawfully entitled to carry on, (ii) affect the rights and remedies of a
        regulatory body with respect to any investigation in respect of the Petitioner,
        Property or the Business or Proceeding taken or to be taken by a regulatory
        body
        against the Petitioner or with respect to the Property or Business, except
        when
        it is seeking, directly or indirectly, to enforce any of its rights as a
        secured
        creditor or an unsecured creditor, (iii) prevent the filing of any registration
        to preserve or perfect a mortgage, charge or security interest (subject to
        the
        provisions of Section 18.5 of the CCAA relating to the priority of statutory
        Crown securities) or (iv) prevent the registration or filing of a lien or
        claim
        for lien or the commencement of a Proceeding to protect lien or other rights
        that might otherwise be barred or extinguished by the effluxion of time,
        provided that no further step shall be taken in respect of such lien, claim
        for
        lien or Proceeding except for service of the initiating documentation on
        the
        Petitioner. 

      20.             
THIS COURT ORDERS that
        the rights and remedies hereby stayed shall include all
        rights or remedies relating to mortgages, charges, trusts, security interests,
        securities, instruments, debentures, notes or bonds issued by or on behalf
        of
        the Petitioner, including the right to appoint or continue the appointment
        of a
        Receiver or Receiver Manager.

      NO INTERFERENCE WITH
        RIGHTS

      21.             
THIS COURT ORDERS that
        during the Stay Period, no Person shall discontinue, fail
        to honour, alter, interfere with, repudiate, terminate or cease to perform
        any
        right, renewal right, contract, agreement, licence or permit in favour of
        or
        held by the Petitioner, except with the written consent of the Petitioner
        and
        the Monitor or leave of this Court. 

      CONTINUATION OF
        SERVICES

      22.             
THIS COURT ORDERS that
        during the Stay Period, all Persons having agreements
        with the Petitioner or mandates under an enactment for the supply of goods
        and/or services, including without limitation all computer software,
        communication and other data services, centralized banking services, payroll
        services, insurance, transportation, services, utility or other services
        to the
        Business or the Petitioner, are hereby restrained until further Order of
        this
        Court from discontinuing, altering, interfering with, breaching or terminating
        any such agreement for the supply of such goods or services as may be required
        by the Petitioner, and that the Petitioner shall be entitled to the continued
        use of its current premises, telephone numbers, facsimile numbers, internet
        addresses and domain names, provided in each case that the normal prices
        or
        charges (excluding amounts outstanding as at the Filing Date) for all such
        goods
        or services received by the Petitioner after the date of this Order are paid
        by
        the Petitioner in accordance with normal payment practices of the Petitioner
        or
        such other arrangements as may be agreed upon by the supplier or service
        provider and the Petitioner, or as may be ordered by this Court.

      23.             
THIS COURT ORDERS that
        during the Stay Period and subject to the other
        provisions of this Order, no creditor of or other person who has dealt or
        may
        deal with the Petitioner shall be under any obligation after the date of
        this
        Order to enter into new or renewed arrangements with the Petitioner except
        that:

      (a)               
any person who has provided policies
        of insurance or indemnity at the request of
        the Petitioner shall be required to continue or to renew such policies of
        insurance or indemnities following the date of this Order provided that the
        Petitioner makes payment of the premiums (other than premiums outstanding
        as at
        the Filing Date) on the usual commercial terms (as if these proceedings had
        not
        been commenced) and otherwise complies with the provisions of such policies;
        and

      (b)              
any person who has supplied goods and/or
        services to the Petitioner essential to
        the operations of the Petitioner shall be required to continue or to renew
        any
        contracts or agreements or otherwise continue the arrangement for the provision
        of such supply or service, provided that the Petitioner pays the prices or
        charges under the agreements for such goods or services (excluding amounts
        outstanding as at the Filing Date) incurred after the Filing Date concurrently
        with such supply, or alternatively when the same become due in accordance
        with
        the payment terms negotiated between the Petitioner and such person subsequent
        to the Filing Date, and provided that such terms shall be the usual or common
        commercial terms charged by such person to others for the same or similar
        supplies and services and, in any event, such terms to be no more onerous
        than
        those which applied to the Petitioner before these proceedings had been
        commenced for such supplies and services.

      24.             
THIS COURT ORDERS that,
        notwithstanding any provision in this Order, no creditor
        of the Petitioner shall be under any obligation after the making of this
        Order
        to advance or re-advance any monies or otherwise extend any credit to the
        Petitioner.

      25.             
The Petitioner may, by
        written advice from its counsel of record herein and with
        the written consent of the Monitor, agree to waive any of the protections
        provided to it herein.

      PROCEEDINGS AGAINST DIRECTORS AND
        OFFICERS

      26.             
THIS COURT ORDERS that
        during the Stay Period, and except as permitted by
        subsection 11.5(2) of the CCAA, no Proceeding may be commenced or continued
        against any of the current or future directors and officers of the Petitioner
        with respect to any claim against the directors and officers that arose before
        the date hereof and that relates to any obligations of the Petitioner whereby
        the directors and officers are alleged under any law to be liable in their
        capacity as directors and officers for the payment or performance of such
        obligations.

      DIRECTORS AND OFFICERS INDEMNIFICATION
        AND CHARGE

      27.             
        THIS COURT ORDERS that the Petitioner is permitted to indemnify its present
        and
        future directors and officers and each of them from all claims, costs, charges
        and expenses relating to the failure of the Petitioner, after the date hereof,
        to make payments of such obligations which they sustain or incur by reason
        of or
        in relation to their respective capacities as directors and officers of the
        Petitioner (and irrespective of whether such obligations of the Petitioner
        arose
        before or after the Filing Date), provided that such indemnity shall apply
        only
        to the extent that the directors and officers have acted honestly and in
        good
        faith with a view to the best interests of the Petitioner, have not committed
        wilful misconduct or gross negligence, have not breached their related fiduciary
        duties, and have not authorized actions or conduct inconsistent with the
        terms
        of this Order or any other order subsequently pronounced in these
        proceedings.

      28.             
THIS COURT ORDERS that
        the directors and officers of the Petitioner shall be
        entitled to the benefit of and are hereby granted a charge (the “Directors’
Charge”) on the Property, which charge shall not exceed an aggregate amount of
        $25,000, as security for the indemnity provided in paragraph  27 of this
        Order, The Directors’ Charge shall have the priority set out in paragraphs 39
        and 41 herein.

      29.             
THIS COURT ORDERS that,
        notwithstanding any language in any applicable insurance
        policy to the contrary, (a) no insurer shall be entitled to be subrogated
        to or
        claim the benefit of the Directors’ Charge, and (b) the Petitioner’s directors
        and officers shall only be entitled to the benefit of the Directors’ Charge to
        the extent that they do not have coverage under any directors’ and officers’
insurance policy, or to the extent that such coverage is insufficient to
        pay
        amounts indemnified in accordance with paragraph 27 of this Order. The
        Petitioner shall not allow such directors and officers insurance, if any,
        to
        lapse, or reduce coverage under or fail to renew such insurance, save with
        the
        consent of the Monitor.

      APPOINTMENT OF MONITOR

      30.             
        THIS COURT ORDERS that Deloitte & Touche Inc. is hereby appointed pursuant
        to the CCAA as the monitor (the “Monitor”), an officer of this Court, to monitor
        the Property and the Petitioner’s conduct of the Business with the powers and
        obligations set out in the CCAA or set forth herein, and that the Petitioner
        and
        its shareholders, officers, directors, and Assistants shall cooperate fully
        with
        the Monitor in the exercise of its powers and rights and discharge of its
        obligations.

      31.             
THIS COURT ORDERS that
        the Monitor, in addition to its rights and obligations
        specifically set out in the CCAA, is hereby directed and empowered to:

      (a)               
monitor the Petitioner’s receipts and disbursements;

      (b)              
report to this Court and the creditors
        at such times and intervals as the
        Monitor may deem appropriate with respect to matters relating to the Property,
        the Business, the Restructuring and such other matters as may be relevant
        to the
        proceedings herein;

      (c)               
advise the Petitioner as to the preparation
        of the Petitioner’s cash flow
        statements and reporting and such financial and other information as required
        by
        the Lender;

      (d)              
advise the Petitioner as to the development
        of any Plan authorized to be
        presented to the creditors, and any amendments to the Plan;

      (e)               
have full and complete access to the
        Property, books, records and management,
        employees and advisors of the Petitioner, to the extent required to perform
        its
        duties arising under this Order;

      (f)                
be at liberty to engage independent
        legal counsel or such other persons as the
        Monitor deems necessary or advisable respecting the exercise of its powers
        and
        performance of its obligations under this Order;

      (g)               
perform such other duties as are required
        by this Order or by this Court from
        time to time;

      (h)               
take all reasonable steps to ensure
        that the Petitioner makes payment of all
        required amounts from its bank accounts or otherwise in the manner directed
        in
        this Order; and

      (i)                 
provide assistance to the Petitioner
        with respect to the Restructuring and the
        downsizing.

      32.             
THIS COURT ORDERS that
        the Monitor shall not take possession of the Property and
        shall take no part whatsoever in the management or supervision of the management
        of the Business and shall not, by fulfilling its obligations hereunder, or
        by
        inadvertence in relation to the due exercise of powers or performance of
        duties
        under this Order, be deemed to have taken or maintained possession or control
        of
        the Business or Property, or any part thereof, and nothing in this Order
        shall
        be construed as resulting in the Monitor being an employer or a successor
        employer, within the meaning of any statute, regulation or rule of law or
        equity, for any purpose whatsoever.

      33.             
THIS COURT ORDERS that
        the Monitor shall provide the Lender and any other
        creditor of the Petitioner with information provided by the Petitioner in
        response to reasonable requests for information made in writing by the Lender
        or
        such creditor addressed to the Monitor. The Monitor shall not have any
        responsibility or liability with respect to the information provided by it
        pursuant to this paragraph. In the case of information that the Monitor has
        been
        advised by the Petitioner is confidential, the Monitor shall not provide
        such
        information to the Lender or the creditors unless otherwise directed by this
        Court or on such terms as the Monitor and the Petitioner may agree.

      34.             
THIS COURT ORDERS that,
        in addition to the rights and protections specifically
        afforded to the Monitor under the CCAA or which the Monitor possesses as
        an
        officer of this Court, the Monitor shall incur no liability or obligation
        as a
        result of its appointment or the carrying out of the provisions of this Order,
        save and except for any gross negligence or wilful misconduct on its part.
        Nothing in this Order shall derogate from the rights and protections given
        to
        the Monitor by any applicable legislation. 

      35.             
THIS COURT ORDERS that
        the Monitor need not file security with this Court for
        the due and proper exercise and performance of its powers and duties as
        Monitor.

      36.             
THIS COURT ORDERS that
        the Monitor shall be at liberty to post any report
        relating to the subject matter of this proceeding on the Monitor’s web site at
        www.deloittes.com/ca/quest in lieu of mailing such reports to creditors of
        the Petitioner or to any other interested parties.

      ADMINISTRATION CHARGE

      37.             
THIS COURT ORDERS that
        the Monitor, counsel to the Monitor, if any, and counsel
        to the Petitioner shall be paid their reasonable fees and disbursements,
        in each
        case at their standard rates and charges, by the Petitioner as part of the
        cost
        of these proceedings. The Petitioner is hereby authorized and directed to
        pay
        the accounts of the Monitor, counsel to the Monitor and counsel to the
        Petitioner on a periodic basis and, in addition, the Petitioner is hereby
        authorized to pay to the Monitor, counsel to the Monitor, and counsel to
        the
        Petitioner, retainers in the amount[s] of $25,000 [respectively] to be held
        by
        them as security for payment of their respective fees and disbursements
        outstanding from time to time.

      38.             
THIS COURT ORDERS that
        the Monitor and its legal counsel shall pass their
        accounts from time to time, and for this purpose the accounts of the Monitor
        and
        its legal counsel are hereby referred to a judge of the British Columbia
        Supreme
        Court and may be heard on a summary basis.

      39.             
        THIS COURT ORDERS that the Monitor, counsel to the Monitor, if any, and counsel
        to the Petitioner shall be entitled to the benefits of, and are hereby granted,
        a charge (the “Administration Charge”) on the Property, which charge shall not
        exceed an aggregate amount of $200,000 as security for payment of their
        respective fees and disbursements incurred at the standard rates and charges
        of
        the Monitor and such counsel, both before and after the making of this Order
        in
        respect of these proceedings. The Administration Charge shall have the priority
        set out in paragraphs 40 and 42 hereof. 

      VALIDITY AND PRIORITY OF CHARGES
        CREATED BY THIS ORDER

      40.             
        THIS COURT ORDERS that the priorities of the Administration Charge and the
        Directors’ Charge, as between them, shall be as follows:

      First — Administration Charge (to the
        maximum amount of $200,000);

Second — Directors’ Charge (to the maximum
        amount of $25,000). 

      41.             
        THIS COURT ORDERS that the filing, recording, registration or perfection
        of the
        Administration Charge and the Directors’ Charge (collectively, the “Charges”)
        shall not be required, and the Charges shall, notwithstanding any lack of
        filing, recording, registering or perfection, be valid and enforceable for
        all
        purposes, including as against any right, title or interest filed, recorded,
        registered or perfected before or after the Charges come into
        existence.

      42.             
        THIS COURT ORDERS that each of the Administration Charge and the Directors’
Charge (as constituted and defined herein) shall constitute a charge on the
        Property and such Charges shall rank in priority to all other security
        interests, trusts, liens, mortgages, charges and encumbrances, statutory
        or
        otherwise (collectively, “Encumbrances”), in favour of any Person.

      43.             
THIS COURT ORDERS that
        except as otherwise expressly provided herein, or as may
        be approved by this Court, the Petitioner shall not grant any Encumbrances
        over
        any Property that rank in priority to, or pari passu with the Charges,
        unless the Petitioner obtains the prior written consent of the Monitor and
        the
        beneficiaries of the Charges (collectively, the “Chargees”).

      44.             
THIS COURT ORDERS that
        the Charges shall not be rendered invalid or
        unenforceable and the rights and remedies of the Chargees shall not otherwise
        be
        limited or impaired in any way by (a) the pendency of these proceedings and
        the
        declarations of insolvency made herein; (b) any application(s) for bankruptcy
        order(s) issued pursuant to Bankruptcy and Insolvency Act (“BIA”), or any
        bankruptcy order made pursuant to such applications; (c) the filing of any
        assignments for the general benefit of creditors made pursuant to the BIA;
        or
        (d) any negative covenants, prohibitions or other similar provisions or lack
        of
        consent with respect to borrowings, incurring debt or the creation of
        Encumbrances, contained in any existing loan document, lease, mortgage, security
        agreement, debenture, sublease, offer to lease or other agreement (collectively,
        an “Agreement”) which binds the Petitioner; and notwithstanding any provision to
        the contrary in any Agreement:

      (a)               
neither the creation of the Charges
        nor the execution, delivery, perfection,
        registration or performance of any documents relating thereto shall create
        or be
        deemed to constitute a breach by the Petitioner of any Agreement to which
        it is
        a party; and

      (b)              
none of the Chargees shall have any
        liability to any Person whatsoever as a
        result of any breach of any Agreement caused by or resulting from the creation
        of the Charges.

      SERVICE AND NOTICE

      45.             
        THIS COURT ORDERS that the Petitioner be at liberty to serve this Order,
        the
        Petition, the Notice of Hearing of Petition, the Affidavit #1 of Phillip
        C.
        Scott, Affidavit #1 of Kimberley Robertson and any other pleadings in this
        proceeding on any creditor or shareholder of the Petitioner, or any other
        interested party, and in particular has leave to serve interested parties
        outside of British Columbia pursuant to Rule 13 of the Rules of Court, other
        than employees and creditors to which the Petitioner owes less than
        $250.00:

      (a)               
by delivering a copy of same to the
        last address known to the Petitioner, if
        any, communicated by such creditor, shareholder or party to the Petitioner;
        and

      (b)              
by causing an advertisement to be placed
        in one edition of each of the Vancouver
        Sun and the Calgary Herald describing these proceedings; and

      (c)               
by posting a copy of the pleadings on
        the Monitor’s website.

      The Monitor is relieved of its obligation
        under Section 11(5) of the CCAA to provide similar notice, other than to
        supervise this process.

      46.             
THIS COURT ORDERS that
        counsel of record who provide an email address in an
        Appearance filed in these proceedings shall be deemed to have consented to
        delivery of documents by any party by email unless objection is made before
        or
        at the time of the hearing of the Petition.

      47.             
        THIS COURT ORDERS that the Petitioner and the Monitor be at liberty to serve
        the
        documents referred to in paragraph 45 of this Order, any other materials
        and
        orders in these proceedings, any notices or other correspondence, by forwarding
        true copies thereof by prepaid ordinary mail, courier, personal delivery
        or fax
        transmission to the Petitioner’s creditors at their respective addresses as last
        shown on the records of the Petitioner, and any such service or notice by
        courier, personal delivery or fax transmission shall be deemed to be received
        on
        the next business day following the date of forwarding thereof, or if sent
        by
        ordinary mail, on the third business day after mailing.

      48.             
THIS COURT ORDERS that
        notwithstanding paragraphs 45 and 47 of this Order,
        service of the Petition, the Notice of Hearing, the Affidavit #1 of Phillip
        C.
        Scott, Affidavit #1 of Kimberley Robertson, this Order and any other pleadings
        in this proceeding, shall be made on the federal and British Columbia Crowns
        in
        accordance with the Crown Liability and Proceedings Act, R.S.C. 1985, c.
        C-5O, and regulations thereto, in respect of the federal Crown, and the Crown
        Proceeding Act, R.S.B.C. 1996, c. 89, in respect of the British Columbia
        Crown. 

      GENERAL

      49.             
THIS COURT ORDERS that
        the Petitioner or the Monitor may from time to time apply
        to this Court for advice and directions in the discharge of their respective
        powers, duties and obligations hereunder.

      50.             
THIS COURT ORDERS that
        nothing in this Order shall prevent the Monitor from
        acting as an interim receiver, a receiver, a receiver and manager, or a trustee
        in bankruptcy of the Petitioner, the Business or the Property.

      51.             
THIS COURT ORDERS that
        this Order and any other orders in these proceedings
        shall have full force and effect in all provinces and territories of Canada
        and
        shall be binding on all creditors of the Petitioner(s), wherever situate.
        This
        Court seeks and requests the aid and recognition of other Canadian and foreign
        Courts and administrative bodies including any Court or administrative tribunal
        of any Federal or State Court or administrative body in the United States
        of
        America, to act in aid of and to be complementary to this Court in carrying
        out
        the terms of this Order where required.

      52.             
THIS COURT ORDERS that
        each of the Petitioner and the Monitor be at liberty and
        is hereby authorized and empowered to apply to any court, tribunal, regulatory
        or administrative body, wherever located, for the recognition of this Order
        and
        for assistance in carrying out the terms of this Order. In particular, the
        Monitor shall be authorized as a foreign representative of the Petitioner
        to
        apply to the United States Bankruptcy Court for relief pursuant to Chapter
        15 of
        the United States Bankruptcy Code, 11 U.S.C. §§ 101-1330, as amended, if
        required.

      53.             
THIS COURT FURTHER ORDERS
        that the Petitioner may (subject to the provisions of
        the CCAA and the BIA) at any time file a voluntary assignment in bankruptcy
        or a
        proposal pursuant to the commercial reorganization provisions of the BIA
        if and
        when the Petitioner determines that such a filing is appropriate.

      54.             
THIS COURT FURTHER ORDERS
        that the Petitioner is hereby at liberty to apply for
        such further interim or interlocutory relief as to it may be advisable within
        the time for the filing of an Appearance by the creditors of the Petitioner
        in
        this proceeding.

      55.             
THIS COURT FURTHER ORDERS
        that any interested Person or creditor of the
        Petitioner may file an Appearance in this proceeding and the time limited
        for
        filing such an Appearance for such person or creditor of the Petitioner outside
        of British Columbia shall be 14 days from the date of service upon such Person
        or creditor.

      56.             
THIS COURT FURTHER ORDERS
        that liberty is reserved to any interested person or
        party to apply to this Court on two (2) clear days’ notice to the Petitioner and
        such persons who have filed Appearances for such further Order of this Court
        or
        for variation of this Order or otherwise as may be advised.

      57.             
THIS COURT FURTHER ORDERS
        that short leave is hereby granted to allow the
        hearing of an application on two (2) clear days’ notice after delivery of the
        Notice of Motion, affidavits in support and Notice of Hearing, subject to
        the
        Court in its discretion further abridging or extending the time for service.
        Outlines, Responses and Chambers Records shall not be required to be exchanged
        by counsel or filed in this proceeding.

      58.             
THIS COURT FURTHER ORDERS
        that endorsement of this Order by counsel appearing on
        this application is hereby dispensed with. 

      59.             
THIS COURT ORDERS that
        this Order and all of its provisions are effective as of
        12:01 a.m. local Vancouver time, the date of this Order. 

       

      	
               

            	
              BY
                THE COURT

               

               

               

               

            
	
               

            	
              DISTRICT
                REGISTRAR

            

       

       

      	
              APPROVED
                AS TO FORM:

            
	
               

            
	
              Counsel
                for the PetitionerExhibit 10.1

    
      

    

    Exhibit
      10.1

    
       

      STOCK
        PURCHASE AGREEMENT

      

      

      This
        STOCK
        PURCHASE AGREEMENT
        (the
“Agreement”),
        dated
        as of February 22, 2007 (the “Closing
        Date”),
        is
        entered into by and among PacificHealth Laboratories, Inc., a Delaware
        corporation, with an office located at 100 Matawan Road, Suite 420, Matawan,
        New
        Jersey (the “Company”),
        and
        Aquifer Opportunity Fund, L.P. and Marc Particelli (each a “Buyer”,
        and
        together, the “Buyers”).

      

      WHEREAS:

      

      A. The
        Company and the Buyers are executing and delivering this Agreement in reliance
        upon an exemption from securities registration afforded by the Securities
        Act of
        1933, as amended (the “Securities
        Act”);

      

      B. The
        Buyers wish to purchase, and the Company wishes to sell, upon the terms and
        conditions stated in this Agreement, shares of the Company’s Common Stock, par
        value $.0025 per share, for an aggregate purchase price of US $450,000.

      

      

      NOW
        THEREFORE,
        intending to be legally bound hereby the Company and the Buyers hereby agree
        as
        follows:

      

      1. PURCHASE
        AND SALE OF COMMON SHARES 

      

      a. Purchase
        of Common Shares.
        The
        Company hereby issues and sells to the Buyers and the Buyers hereby purchase
        from the Company such number of shares of the Company’s Common Stock
set
        forth
        opposite such Buyer’s name on Schedule A
        hereto
        (the “Common
        Shares”)
        for
        the purchase price of $1.85 per share based on 10-day average closing price
        looking back from February 15, 2007, for an aggregate purchase price of $450,000
        (the “Purchase
        Price”).

      

      b. Form
        of Payment.
        Simultaneously with the execution and delivery of this Agreement, each Buyer
        shall pay the Purchase Price for the Common Shares, by wire transfer or such
        form of payment as the Company shall accept, and (ii) upon receipt of such
        payment, the Company shall issue irrevocable instructions to its transfer
        agent
        and thereafter promptly deliver to each Buyer a stock certificate (the
“Common
        Share Certificate”)
        representing the Common Shares of such Buyer, duly executed on behalf of
        the
        Company and registered in the name of such Buyer. 

      

      2. BUYERS’
        REPRESENTATIONS AND WARRANTIES.

      

      As
        a
        material inducement to the issuance of the Common Shares by the Company,
        each
        Buyer represents and warrants to that: 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      a. Investment
        Purpose.
        Buyer
        is acquiring the Common Shares for its own account for investment only and
        not
        with a view towards, or for resale in connection with, the public sale or
        distribution thereof;

      

      b. Accredited
        Investor Status.
        Buyer
        is an "accredited investor" as that term is defined in Rule 501(a)(3) of
        Regulation D under the Securities Act. 

      

      c. Reliance
        on Exemptions.
        Buyer
        understands that the Common Shares are being offered and sold to it in reliance
        on specific exemptions from the registration requirements of United States
        federal and state securities laws and that the Company is relying in part
        upon
        the truth and accuracy of, and Buyer's compliance with, the representations,
        warranties, agreements, acknowledgments and understandings of Buyer set forth
        herein in order to determine the availability of such exemptions and the
        eligibility of Buyer to acquire the Common Shares.

      

      d. Information.
        Buyer
        has reviewed the Company’s Annual Report on Form 10-KSB for the fiscal year
        ended December 31, 2005, as filed with the United States Securities and Exchange
        Commission (the “Commission”)
        and
        any filings which have been made subsequently by the Company. Buyer and his
        advisors, if any, have been afforded the opportunity to ask questions of
        the
        Company and receive additional information regarding the Company, its business,
        finances and affairs. Buyer has such knowledge and expertise in financial
        and
        business matters that Buyer is capable of evaluating the merits and risks
        involved in an investment in the Common Shares. Buyer is relying upon its
        own
        investigation of the Company and the terms of the offer of Common Shares,
        and is
        not relying upon any representation or warranty of the Company. Buyer is
        not
        depending upon liquidity in the investment in the Common Shares and has
        sufficient financial resources to enable Buyer to bear the risk of investment
        in
        the Common Shares for an indefinite period of time. Buyer understands that
        its
        investment in the Common Shares involves risk. Buyer has sought such accounting,
        legal and tax advice as it considered necessary to make an informed investment
        decision with respect to its acquisition of the Common Shares.

      

      e. No
        Governmental Review.
        Buyer
        understands that no United States federal or state agency or any other
        government or governmental agency has passed on or made any recommendation
        or
        endorsement of the Common Shares or the fairness or suitability of the
        investment in the Common Shares nor have such authorities passed upon or
        endorsed the merits of the offering of the Common Shares.

      

      f. Transfer
        or Resale.
        Buyer
        understands that: (i) except as set forth in Section 5, the sale of the Common
        Shares by the Company to Buyer has not been and will not be registered under
        the
        Securities Act or any state securities laws, and the Common Shares may not
        be
        offered for sale, sold, assigned or transferred by the Buyer unless (A) the
        offer or sale of the Common Shares by the Buyer is registered under the
        Securities Act, or (B) Buyer shall have delivered to the Company an opinion
        of
        counsel, in a form reasonably acceptable to Company counsel, to the effect
        that
        the Common Shares to be sold, assigned or transferred may be sold, assigned
        or
        transferred pursuant to an exemption from such registration, or (C) Buyer
        provides the Company with reasonable assurance that such Common Shares have
        been
        or are to be sold, assigned or transferred pursuant to Rule 144 promulgated
        under the Securities Act, as amended, (or a successor rule thereto)
        (“Rule
        144”);
        and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (ii)
        any
        sale of the Common Shares made in reliance on Rule 144 may be made only in
        accordance with the terms of Rule 144 and further, and if Buyer intends to
        utilize Rule 144 but Rule 144 is not applicable to such resale, any resale
        of
        the Common Shares under circumstances in which the seller (or the person
        through
        whom the sale is made) may be deemed to be an underwriter (as that term is
        defined in the Securities Act) may require compliance with some other exemption
        under the Securities Act or the rules and regulations of the Commission
        thereunder.

       

      g. Validity;
        Enforcement.
        This
        Agreement has been duly authorized by all necessary corporate, partnership
        or
        limited liability company action on behalf of each Buyer which is an entity,
        and
        is a valid and binding agreement of Buyer enforceable against Buyer in
        accordance with its terms, subject as to enforceability to general principles
        of
        equity and to applicable bankruptcy, insolvency, reorganization, moratorium,
        liquidation and other similar laws relating to, or affecting generally, the
        enforcement of applicable creditors’ rights and remedies. No consent or approval
        of any governmental agency is necessary for the execution, delivery and
        performance of this Agreement by Buyer.

      

      3. REPRESENTATIONS
        AND WARRANTIES OF THE COMPANY.

      

      The
        Company represents and warrants to each Buyer that:

      

      a. Authorization;
        Enforcement; Validity.
        (i) The
        Company has the requisite corporate power and authority to enter into and
        perform this Agreement, and to issue the Common Shares in accordance with
        the
        terms hereof and thereof, (ii) the execution and delivery of this Agreement
        and
        the issuance of the Common Shares by the Company have been duly authorized
        by
        the Company's Board of Directors and no further consent or authorization
        is
        required by the Company, its Board of Directors or its stockholders, (iii)
        this
        Agreement has been duly executed and delivered by the Company, and (iv) this
        Agreement constitutes the valid and binding obligation of the Company
        enforceable against the Company in accordance with its terms, except as such
        enforceability may be limited by general principles of equity or applicable
        bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
        laws
        relating to, or affecting generally, the enforcement of creditors’ rights and
        remedies.

      

      b.
        Issuance
        of Securities.
        The
        Common Shares are duly authorized and, upon issuance in accordance with the
        terms hereof, shall be (i) validly issued, fully paid and non-assessable
        and
        (ii) free from all liens, charges, voting restrictions, transfer restrictions
        (other than those imposed by securities law), pre-emptive rights and rights
        of
        first refusal, other than those which may have been caused by action of the
        Buyers.

      

      c.
        Corporate
        Organization.
        The
        Company is a corporation duly organized, validly existing and in good standing
        under the laws of the State of Delaware with full corporate power and authority
        to carry on its business as it is now being conducted, to own or hold under
        lease the properties and assets which it owns or holds under lease and perform
        all its obligations under the agreements and instruments to which it is a
        party
        or by which it is bound.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      d.
        No
        Violations.
        The
        execution and delivery of this Agreement by the Company will not violate
        (a) the
        Company’s Certificate of Incorporation or By-laws, (b) any material agreement,
        instrument or indenture to which the Company is a party or by which the
        Company’s assets may be bound, or (c) any order or decree of any court of
        competent jurisdiction or any administrative agency to which the Company
        is a
        party or by which its assets may be bound. Assuming the accuracy of the
        representations and warranties of Buyer contained in this Agreement, no approval
        or consent of any United States federal or state governmental authority,
        or the
        OTCBB, is necessary for the execution, delivery of and performance of this
        Agreement by the Company, other than the requirement that the Company file
        a
        Notice on SEC Form D within fifteen days after the date of this
        Agreement.

      

      5. REGISTRATION
        RIGHTS.

      

      a.
        Restrictive
        Legend.
        (i)
        Each certificate representing the Common Shares shall, except as otherwise
        provided in this Section 5(a)(i) or in Section 5(a)(ii), be stamped or
        otherwise imprinted with legends substantially in the following
        form:

      

      “THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
        THE
        SECURITIES ACT OF 1933 AND MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF
        UNLESS THEY HAVE BEEN REGISTERED UNDER THAT ACT OR AN EXEMPTION FROM
        REGISTRATION IS AVAILABLE.”

      

      (ii)
        The
        Company shall, at the request of Buyer (or any affiliate of Buyer to which
        any
        of the Common Shares may have been transferred as contemplated by Section
        5(b)),
        remove from each certificate evidencing the Common Shares the legend described
        in Section 5(a)(i) if in the opinion of counsel satisfactory to the Company
        the
        securities evidenced thereby may be publicly sold without registration under
        the
        Securities Act.

      

      b.
        Notice
        of Proposed Transfer.
        Prior
        to any proposed transfer of any Common Shares, the holder thereof shall give
        written notice to the Company of its intention to effect such transfer. Each
        such notice shall describe the manner of the proposed transfer and, if requested
        by the Company, shall be accompanied by an opinion of counsel satisfactory
        to
        the Company to the effect that the proposed transfer may be effected without
        registration under the Securities Act, whereupon the holder of such Common
        Shares shall be entitled to transfer such Common Shares in accordance with
        the
        terms of its notice, subject in any event to the restrictions in this Section
        5;
provided,
        however,
        that no
        such opinion of counsel shall be required for a transfer to one or more partners
        of the transferor (in the case of a transferor that is a partnership) or
        to an
        affiliated corporation (in the case of a transferor that is a corporation).
        Each
        certificate for Common Shares transferred as above provided shall bear the
        legend set forth in Section 5(a)(i), except that such certificate shall not
        bear such legend if (x) such transfer is in accordance with the provisions
        of Rule 144 of the Securities Act (or any other rule permitting public sale
        without registration under the Securities Act) or (y) the opinion of
        counsel referred to above is to the further effect that the transferee and
        any
        subsequent transferee (other than an affiliate of the Company) would be entitled
        to transfer such securities in a public sale without registration under the
        Securities Act. The restrictions provided for in this Section 5(b) shall
        not apply to securities that are not required to bear the legend prescribed
        by
        Section 5(a)(i) in accordance with the provisions of Section
        5(a).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      c.
        Registration.
        (i)
        Subject to Section 5(g), if at any time the Company determines that it
        shall file a registration statement under the Securities Act for the
        registration of the Company’s Common Stock (other than a registration statement
        on a Form S-4 or S-8 or filed in connection with an exchange offer or an
        offering of securities solely to the Company’s existing stockholders) on any
        form that would also permit the registration of the Shares and such filing
        is to
        be on its behalf or on behalf of selling holders of its securities for the
        general registration of the Company’s Common Stock to be sold for cash, the
        Company shall each such time promptly give the Buyers written notice of such
        determination setting forth the date on which the Company proposes to file
        such
        registration statement, which date shall be no earlier than 15 days from
        the
        date of such notice, and advising each Buyer of its right to have Common
        Shares
        included in such registration. Upon the written request of any holder of
        the
        Common Shares received by the Company no later than 15 days after the date
        of
        the Company’s notice, the Company shall use all reasonable efforts to cause to
        be registered under the Securities Act all of the Common Shares that each
        such
        holder has so requested to be registered. 

      

      (ii)
        If,
        in the written opinion of the managing underwriter (or, in the case of a
        non-underwritten offering, in the written opinion of the Company), the total
        amount of such securities to be so registered pursuant to subparagraph (i),
        including such Common Shares, will exceed the maximum amount of the Company’s
        securities which can be marketed (x) at a price reasonably related to the
        then current market value of such securities, or (y) without otherwise
        materially and adversely affecting the entire offering, then the Company
        shall
        be entitled to reduce the number of shares of the Company’s Common Stock to be
        sold in such offering by the holders and any other stockholder of the Company
        hereafter granted incidental registration rights in proportion (as nearly
        as
        practicable) to the amount of the Company’s Common Stock requested to be
        included by each holder of Common Shares and each other stockholder at the
        time
        of filing the registration statement.

      

      (iii) If,
        within two years after the Closing Date, Adam Mizel shall cease to be a member
        of the Company’s board of directors, Aquifer Opportunity Fund, L.P. (”Aquifer”)
        may demand that the Company register the Registrable Securities held by Aquifer
        (a “Demand Request”), which Demand Request shall (x) specify the number of
        Registrable Securities that Aquifer intends to sell or dispose of and (y)
        state
        the intended method or methods of sale or disposition of the Registrable
        Securities. The other holders shall have the rights given in subparagraph
        (i) to
        be included in such registration 

      

      (iv)
         In
        the
        event of a demand Request, the Company shall cause to be filed, as soon as
        practicable, but within ninety (90) days of the date of delivery to the Company
        of the Demand Request, a Registration Statement covering such Registrable
        Securities that the Company has been so requested to register by the holder
        and
        other Persons, providing for the registration under the Securities Act of
        such
        Registrable Securities to the extent necessary to permit the disposition
        of such
        Registrable Securities in accordance with the intended method of distribution
        specified in the Demand Request and use its best efforts to have such
        Registration Statement declared effective by the SEC as soon as practicable
        thereafter,

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      d.
        Obligations
        of the Company.
        Whenever required under Section 5(c) to use all reasonable efforts to
        effect the registration of any Common Shares, the Company shall, as
        expeditiously as possible:

      

      (i)
        prepare and file with the Commission a registration statement with respect
        to
        such Common Shares, and use all reasonable efforts to cause such registration
        statement to become and remain effective for the period of the distribution
        contemplated thereby determined as provided hereafter; provided
        that the
        Company shall not be required to keep any registration statement described
        in
        subparagraph (i) effective more than 120 days nor to keep any registration
        statement filed pursuant to subparagraph (iii) effective more than 240
        days.

      

      (ii)
        prepare and file with the Commission such amendments and supplements to such
        registration statement and the prospectus used in connection therewith as
        may be
        necessary to comply with the provisions of the Securities Act with respect
        to
        the disposition of all shares of the Company’s Common Stock covered by such
        registration statement and as may be necessary to keep such registration
        statement effective for a reasonable period not to exceed 120 days and promptly
        notify the holders of any Common Shares covered by the registration statement
        of
        any stop order issued or, to the Company’s knowledge, threatened to be issued by
        the Commission and take all reasonable actions required to prevent the entry
        of
        such stop order or to remove it if entered;

      

      (iii) furnish
        to the holders of Common Shares covered by the registration statement such
        numbers of copies of the registration statement and the prospectus included
        therein (including each preliminary prospectus and any amendments or supplements
        thereto in conformity with the requirements of the Securities Act any exhibits
        filed therewith and such other documents and information as they may reasonably
        request;

      

      (iv) use
        all
        reasonable efforts to register or qualify the Common Shares covered by such
        registration statement under such other securities or blue sky laws of such
        jurisdiction within the United States and Puerto Rico as shall be reasonably
        appropriate for the distribution of the Common Shares covered by the
        registration statement; provided,
        however,
        that
        the Company shall not be required in connection therewith or as a condition
        thereto to qualify to do business in or to file a general consent to service
        of
        process in any jurisdiction wherein it would not but for the requirements
        of
        this Section 5(d)(iv) be obligated to do so; and provided,
        further,
        that
        the Company shall not be required to qualify such Common Shares in any
        jurisdiction in which the securities regulatory authority requires that any
        holder submit any Common Shares to the terms, provisions and restrictions
        of any
        escrow, lockup or similar agreement(s) for consent to sell shares of the
        Company
        Common Stock covered by the registration statement in such jurisdiction unless
        such holder agrees to do so;

      

      (v) promptly
        notify each holder for whom such Common Shares are covered by such registration
        statement, at any time when a prospectus relating thereto is required to
        be
        delivered under the Securities Act, of the happening of any event as a result
        of
        which the prospectus included in such registration statement, as then in
        effect,
        includes an untrue statement of a material fact or omits to state any material
        fact required to be stated therein or necessary to make the statements therein
        not misleading in light of the circumstances under 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      which
        they were made, and at the request of any such holder promptly prepare and
        furnish to such holder a reasonable number of copies of a supplement to or
        an
        amendment of such prospectus as may be necessary so that, as thereafter
        delivered to the purchasers of such securities, such prospectus shall not
        include 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 in light of the circumstances under which they were made. In the
        event the Company shall give such notice, the Company shall extend the period
        during which such registration statement shall be maintained effective as
        provided in Section 5(d)(i) by the number of days during the period from
        and
        including the date of the giving of such notice to the date when the Company
        shall make available to the holders such supplemented or amended
        prospectus;

      

      (vi)
        furnish, at the request of any holder requesting registration of Common Shares
        pursuant to Sections 5(c), if the method of distribution is by means of an
        underwriting, on the date that the Common Shares are delivered to the
        underwriters for sale pursuant to such registration, or if such Common Shares
        are not being sold through underwriters, on the date that the registration
        statement with respect to such Common Shares becomes effective, (x) a
        signed opinion, dated such date, of the independent legal counsel representing
        the Company for the purpose of such registration, addressed to the underwriters,
        if any, and if such Common Shares are not being sold through underwriters,
        then
        to the holders making such request, as to such matters as such underwriters
        or
        the holders holding a majority of the Company’s Common Stock included in such
        registration, as the case may be, may reasonably request and as would be
        customary in such a transaction; and (y) letters dated such date and the
        date the offering is priced from the independent certified public accountants
        of
        the Company, addressed to the underwriters, if any, and if such Common Shares
        not being sold through underwriters, then to the holders making such request
        and, if such accountants refuse to deliver such letters to such holders,
        then to
        the Company (i) stating that they are independent certified public
        accountants within the meaning of the Securities Act and that, in the opinion
        of
        such accountants, the financial statements and other financial data of the
        Company included in the registration statement or the prospectus, or any
        amendment or supplement thereto, comply as to form in all material respects
        with
        the applicable accounting requirements of the Securities Act and
        (ii) covering such other financial matters (including information as to the
        period ending not more than five business days prior to the date of such
        letters) with respect to the registration in respect of which such letter
        is
        being given as such underwriters or the holders holding a majority of the
        Company’s Common Stock included in such registration, as the case may be, may
        reasonably request and as would be customary in such a transaction;

      

      (vii)
        enter into customary agreements (including if the method of distribution
        is by
        means of an underwriting, an underwriting agreement in customary form) and
        take
        such other actions as are reasonably required in order to expedite or facilitate
        the disposition of the Common Shares to be so included in the registration
        statement; 

      

      (viii) otherwise
        use all reasonable efforts to comply with all applicable rules and regulations
        of the Commission, and make available to its security holders, as soon as
        reasonably practicable, but not later than 18 months after the effective
        date of
        the registration statement, an earnings statement covering the period of
        at
        least 12 months beginning with the first full month after the effective date
        of
        such registration statement, which earnings statements shall satisfy the
        provisions of Section 11(a) of the Securities Act; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (ix) use
        all
        reasonable efforts to list the Common Shares covered by such registration
        statement with any securities exchange on which the Company’s Common Stock is
        then listed.

      

      For
        purposes of Sections 5(d)(i) and 5(d)(ii), the period of distribution of
        Common Shares in a firm commitment underwritten public offering shall be
        deemed
        to extend until each underwriter has completed the distribution of all
        securities purchased by it, and the period of distribution of Common Shares
        in
        any other registration shall be deemed to extend until the earlier of the
        sale
        of all the Company’s Common Stock covered thereby and 120 days after the
        effective date thereof.

      

      e.
        Furnish
        Information.
        It
        shall be a condition precedent to the obligations of the Company to take
        any
        action pursuant to this Agreement that the holders of the Common Shares shall
        furnish to the Company such information regarding themselves, the Shares
        held by
        them, and the intended method of disposition of such securities as the Company
        shall reasonably request and as shall be required in connection with the
        action
        to be taken by the Company.

      

      f.
        Expenses
        of Registration.
        All
        expenses incurred in connection with each registration pursuant to
        Section 5(c)(i) of this Agreement, excluding underwriters' discounts and
        commissions, but including without limitation all registration, filing and
        qualification fees, word processing, duplicating, printers' and accounting
        fees
        (including the expenses of any special audits or "cold comfort" letters required
        by or incident to such performance and compliance), fees of the National
        Association of Securities Dealers, Inc. or listing fees, messenger and delivery
        expenses, all fees and expenses of complying with state securities or blue
        sky
        laws, and the fees and disbursements of counsel for the Company, shall be
        paid
        by the Company. The holders shall bear and pay the underwriting commissions
        and
        discounts applicable to securities offered for their account and the fees
        and
        disbursements of their counsel in connection with any registrations, filings
        and
        qualifications made pursuant to this Agreement. The holders shall bear 50%
        of
        their proportionate share of the expenses incurred in connection with a
        registration pursuant to Section 5(c)(iii) of this Agreement other than
        listing fees, in based on the ratio of the number of Common Shares held by
        such
        holder to the total number of shares being registered at that time.

      

      g.
        Underwriting
        Requirements.
        In
        connection with any underwritten offering, the Company shall not be required
        under Section 5(c) to include Common Shares in such underwritten offering
        unless the holders of such Common Shares accept the terms of the underwriting
        of
        such offering that have been reasonably agreed upon between the Company and
        the
        underwriters.

      

      h.
        Indemnification.
        In the
        event any Common Shares are included in a registration statement under this
        Agreement:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      (i)
        the
        Company shall indemnify and hold harmless each holder, such holder's directors
        and officers, each person who participates in the offering of such Common
        Shares, including underwriters (as defined in the Securities Act), and each
        person, if any, who controls such holder or participating person within the
        meaning of the Securities Act, against any losses, claims, damages or
        liabilities, joint or several, to which they may become subject under the
        Securities Act or otherwise, insofar as such losses, claims, damages or
        liabilities (or proceedings in respect thereof) arise out of or are based
        on any
        untrue or alleged untrue statement of any material fact contained in such
        registration statement on the effective date thereof (including any prospectus
        filed under Rule 424 under the Securities Act or any amendments or
        supplements thereto) or arise out of or are based upon the omission or alleged
        omission to state therein a material fact required to be stated therein or
        necessary to make the statements therein not misleading, and shall reimburse
        each such holder, such holder's directors and officers, such participating
        person or controlling person for any legal or other expenses reasonably incurred
        by them (but not in excess of expenses incurred in respect of one counsel
        for
        all of them) in connection with investigating or defending any such loss,
        claim,
        damage, liability or action; provided,
        however,
        that
        the indemnity agreement contained in this Section 5(h) shall not apply to
        amounts paid in settlement of any such loss, claim, damage, liability or
        action
        if such settlement is effected without the consent of the Company; provided,
        further,
        that
        the Company shall not be liable to any holder, such holder's directors and
        officers, participating person or controlling person in any such case for
        any
        such loss, claim, damage, liability or action to the extent that it arises
        out
        of or is based upon an untrue statement or alleged untrue statement or omission
        or alleged omission made in connection with such registration statement,
        preliminary prospectus, final prospectus or amendments or supplements thereto,
        in reliance upon and in conformity with written information furnished expressly
        for use in connection with such registration by any such holder, such holder's
        directors and officers, participating person or controlling person. Such
        indemnity shall remain in full force and effect regardless of any investigation
        made by or on behalf of any such holder, such holder's directors and officers,
        participating person or controlling person, and shall survive the transfer
        of
        such securities by such holder.

      

      (ii)
        Each
        holder requesting or joining in a registration severally and not jointly
        shall
        indemnify and hold harmless the Company, each of its directors and officers,
        each person, if any, who controls the Company within the meaning of the
        Securities Act, and each agent and any underwriter for the Company (within
        the
        meaning of the Securities Act) against any losses, claims, damages or
        liabilities, joint or several, to which the Company or any such director,
        officer, controlling person, agent or underwriter may become subject, under
        the
        Securities Act or otherwise, insofar as such losses, claims, damages or
        liabilities (or proceedings in respect thereof) arise out of or are based
        upon
        any untrue statement or alleged untrue statement of any material fact contained
        in such registration statement on the effective date thereof (including any
        prospectus filed under Rule 424 under the Securities Act or any amendments
        or supplements thereto) or arise out of or are based upon the omission or
        alleged omission to state therein a material fact required to be stated therein
        or necessary to make the statements therein not misleading, in each case
        to the
        extent, but only to the extent, that such untrue statement or alleged untrue
        statement or omission or alleged 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      omission
        was made in such registration statement, preliminary or final prospectus,
        or
        amendments or supplements thereto, in reliance upon and in conformity with
        written information furnished by or on behalf of such holder expressly for
        use
        in connection with such registration; and each such holder shall reimburse
        any
        legal or other expenses reasonably incurred by the Company or any such director,
        officer, controlling person, agent or underwriter (but not in excess of expenses
        incurred in respect of one counsel for all of them) in connection with
        investigating or defending any such loss, claim, damage, liability or action;
        provided,
        however,
        that
        the indemnity agreement contained in this Section 5(h)(ii) shall not apply
        to amounts paid in settlement of any such loss, claim, damage, liability
        or
        action if such settlement is effected without the consent of such holder,
        and
provided,
        further,
        that
        the liability of each holder hereunder shall be limited to the proportion
        of any
        such loss, claim, damage, liability or expense which is equal to the proportion
        that the net proceeds from the sale of the shares sold by such holder under
        such
        registration statement bears to the total net proceeds from the sale of all
        securities sold thereunder, but not in any event to exceed the net proceeds
        received by such holder from the sale of Common Shares covered by such
        registration statement.

      

      (iii)
        Promptly after receipt by an indemnified party under this Section 5(h) of
        notice
        of the commencement of any action, such indemnified party shall, if a claim
        in
        respect thereof is to be made against any indemnifying party under this Section
        5(h), notify the indemnifying party in writing of the commencement thereof
        and
        the indemnifying party shall have the right to participate in and assume
        the
        defense thereof with counsel selected by the indemnifying party and reasonably
        satisfactory to the indemnified party (unless (x) such indemnified party
        reasonably objects to such assumption on the grounds that there may be defenses
        available to it which are different from or in addition to those available
        to
        such indemnifying party and counsel would have a conflict as a consequence
        of
        such different or additional defenses, (y) the indemnifying party and such
        indemnified party shall have mutually agreed to the retention of such counsel
        or
        (z) in the reasonable opinion of such indemnified party representation of
        such indemnified party by the counsel retained by the indemnifying party
        would
        be inappropriate due to actual or potential differing interests between such
        indemnified party and any other party represented by such counsel in such
        proceeding, in which case the indemnified party shall be reimbursed by the
        indemnifying party for the reasonable expenses incurred in connection with
        retaining separate legal counsel); provided,
        however,
        that an
        indemnified party shall have the right to retain its own counsel, with all
        fees
        and expenses thereof to be paid by such indemnified party, and to be apprised
        of
        all progress in any proceeding the defense of which has been assumed by the
        indemnifying party. The failure to notify an indemnifying party promptly
        of the
        commencement of any such action shall not relieve the indemnifying party
        from
        any liability in respect of such action which it may have to such indemnified
        party on account of the indemnity contained in this Section 5(h), unless
        (and
        only to the extent) the indemnifying party was prejudiced by such failure,
        and
        in no event shall such failure relieve the indemnifying party from any other
        liability which it may have to such indemnified party. No indemnifying party
        shall, without the prior written consent of the indemnified party, effect
        any
        settlement of any claim or pending or threatened proceeding in respect of
        which
        the 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 arising
        out of such claim or proceeding.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      (iv)
        (A)
        To the extent any indemnification by an indemnifying party is prohibited
        or
        limited by law, the indemnifying party, in lieu of indemnifying such indemnified
        party, shall contribute to the amount paid or payable by such indemnified
        party
        as a result of such losses, claims, damages or liabilities in such proportion
        as
        is appropriate to reflect the relative fault of the indemnifying party and
        indemnified party in connection with the actions which resulted in such losses,
        claims, damages or liabilities, as well as any other relevant equitable
        considerations. The relative fault of such indemnifying party and indemnified
        party shall be determined by reference to, among other things, whether any
        action in question, including any untrue or alleged untrue statement of material
        fact or omission or alleged omission to state a material fact, has been made
        by,
        or relates to information supplied by, such indemnifying party or indemnified
        party, and the parties’ relative intent, knowledge, access to information and
        opportunity to correct or prevent such action. The amount paid or payable
        by a
        party as a result of the losses, claims, damages or liabilities referred
        to
        above shall be deemed to include any legal or other fees or expenses reasonably
        incurred by such party in connection with any investigation or
        proceeding.

       

      (B)
        The
        parties hereto agree that it would not be just and equitable if contribution
        pursuant to this Section 5(h) were determined by pro rata allocation or by
        any other method of allocation which does not take account of the equitable
        considerations referred to in the immediately preceding paragraph. No person
        guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
        of the Securities Act) shall be entitled to contribution from any person
        who was
        not guilty of such fraudulent misrepresentation.

      

      i.
        Lockup.
        Each
        holder shall, in connection with any registration of Common Shares, upon
        the
        request of the Company or the underwriters managing any underwritten offering
        of
        the Company’s Common Stock, agree in writing not to effect any sale, disposition
        or distribution of any Common Shares (other than that included in the
        registration) without the prior written consent of the Company or such
        underwriters, as the case may be, for such period of time from 30 days prior
        to
        the effective date of such registration as the Company or the underwriters
        may
        specify; provided,
        however,
        that
        (x) all executive officers and directors of the Company shall also have
        agreed not to effect any sale, disposition or distribution of any the Company’s
        Common Stock under the circumstances and pursuant to the terms set forth
        in this
        Section 5(i) and (y) in no event shall the holders be required to not
        effect any sale, disposition or distribution for longer than 180 days after
        the
        registration statement becomes effective. The obligations under this Section
        5(i) shall terminate on the second anniversary of the date of this
        Agreement.

      

      j.
        Termination.
        All of
        the Company’s obligations to register shares of the Company’s Common Stock under
        Sections 5(c) shall terminate upon the removal from each certificate evidencing
        the Common Shares the legend described in Section 5(a)(i) per an opinion
        of
        counsel satisfactory to the Company that the securities evidenced thereby
        may be
        publicly sold without registration under the Securities Act.

      

      6. GOVERNING
        LAW; MISCELLANEOUS.

      

      a. Governing
        Law.
        This
        Agreement shall be governed by and construed in all respects by the internal
        laws of the State of Delaware (except for the proper application of the United
        States federal securities laws), without giving effect to any choice of law
        or
        conflict of law provision or rule (whether of the State of Delaware or any
        other
        jurisdictions) that would cause the application of the laws of any jurisdictions
        other than the State of Delaware. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      b. Counterparts.
        This
        Agreement may be executed in two or more identical counterparts, all of which
        shall be considered one and the same agreement and shall become effective
        when
        counterparts have been signed by each party and delivered to the other party;
        provided that a facsimile signature shall be considered due execution and
        shall
        be binding upon the signatory thereto with the same force and effect as if
        the
        signature were an original, not a facsimile signature.

      

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

      

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

      

      e. Entire
        Agreement; Amendments.
        This
        Agreement supersedes all other prior oral or written agreements between the
        Buyers, the Company, their affiliates and persons acting on their behalf
        with
        respect to the matters discussed herein, and this Agreement and the instruments
        referenced herein contain the entire understanding of the parties with respect
        to the matters covered herein and therein and, except as specifically set
        forth
        herein or therein, neither the Company nor the Buyers makes any representation,
        warranty, covenant or undertaking with respect to such matters. No provision
        of
        this Agreement may be amended other than by an instrument in writing signed
        by
        the Company and the Buyers, and no provision hereof may be waived other than
        by
        an instrument in writing signed by the party against whom enforcement is
        sought.

      

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

      

      If
        to the
        Company:

      

      100
        Matawan Road, Suite 420

      Matawan,
        New Jersey

      Facsimile: 732-739-4360

      Attention: President

      

      If
        to the
        Buyers, at such address shown for such Buyer on Schedule
        A
        hereto.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      or
        at
        such other address and/or facsimile number and/or to the attention of such
        other
        person as the recipient party has specified by written notice given to each
        other party five days prior to the effectiveness of such change.

      

      g. Successors
        and Assigns.
        This
        Agreement shall be binding upon and inure to the benefit of the parties and
        their respective successors and assigns. Neither party may assign this Agreement
        or any rights or obligations hereunder without the prior written consent
        of the
        other. 

      

      h. No
        Third Party Beneficiaries.
        This
        Agreement is intended for the benefit of the parties hereto and their respective
        permitted successors and assigns, and is not for the benefit of, nor may
        any
        provision hereof be enforced by, any other person.

      

      i. Survival.
        The
        provisions of this Agreement shall survive closing.

      

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

      

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        the
        Buyers and the Company have caused this Stock Purchase Agreement to be duly
        executed as of the date first written above.

      

      COMPANY:

       

      PacificHealth
        Laboratories, Inc.  

      

      

      

      By:    
        /s/
        Robert
        Portman                                                               

      Robert
        Portman   

      President

      

      

      

      BUYERS:

      

      Aquifer
        Opportunity Fund, L.P.  

      

      

      

      By:    
        /s/
        Adam
        M.
        Mizel                                                               

      Adam
        M. Mizel  

      General
        Partner

      

      

        
         /s/ Marc
        Particelli                                                                 
  

      Marc
        Patricelli

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Schedule
        A

       

      Schedule
        of Investors

       

      
        	
                Name
                  and Address

              	 	
                Number
                  of

                Common
                  Shares Purchased

              	 	
                Total
                  Purchase

                Price
                  of Shares

              	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                Aquifer
                  Opportunity Fund, L.P.

                630
                  Fifth Ave, Suite 2400

                New
                  York, NY 10111

                Phone
                  - 212.258.1336

                Attn:
                  Adam M. Mizel

              	 	 	
                189,189

              	 	 	
                350,000

              	 
	
                Marc
                  Particelli

                15
                  Grove Lane

                Greenwich,
                  CT 06831

                Phone
                  - 203.629.7939 

              	 	 	
                54,054

              	 	 	
                100,000

              	 
	
                                    TOTAL

              	 	 	
                243,243

              	 	
                $

              	
                450,000

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