Document:

Exhibit 10.1

Exhibit 10.1

AGREEMENT FOR THE PURCHASE AND SALE OF STOCK

by and among

Sycamore Films, Inc., a Nevada corporation;

ImaRx Therapeutics, Inc., a Delaware corporation;

Sweet Spot Productions, Inc., a California corporation;

and those persons specified on that schedule attached to this Agreement identified as the

“Sellers Schedule”

(as shareholders of Sycamore Films, Inc.)

THIS AGREEMENT FOR THE PURCHASE AND SALE OF STOCK (“Agreement”) is entered into in multiple
counterparts effective as of the 17th day of March, 2010, by and among Sycamore Films, Inc., a
Nevada corporation (“Sycamore”); ImaRx Therapeutics, Inc., a Delaware corporation (the “Company”);
Sweet Spot Productions, Inc., a California corporation (“Sweet Spot”); and those persons specified
on the Sellers Schedule (together, the “Sellers” and each, a “Seller”) each a shareholder of
Sycamore, and provides for a process pursuant to which Sycamore will become a wholly owned
subsidiary of the Company.

RECITALS

	 	A.	 	The Company is a reporting issuer pursuant to the Securities Exchange Act of
1934 (the “Exchange Act”).

	 
	 	B.	 	Sycamore is a privately held
corporation.

	 
	 	C.	 	Sweet Spot is a privately held corporation.

	 
	 	D.	 	Sycamore and Sweet Spot have entered into an agreement and plan of merger
(“Merger Agreement”) whereby Sweet Spot will be merged with and into Sycamore in
exchange for shares of Sycamore’s common stock and which such merger shall be effective
immediately prior to the closing of the transaction contemplated by this Agreement (the
“Merger”). As a result of the Merger, the shareholders of Sweet Spot will become
shareholders of Sycamore.

	 
	 	E.	 	The Company believes that it is desirable and in the best interest of the
Company that, upon the closing of the Merger, the Company acquire all of the issued and
outstanding shares of Sycamore’s common stock $0.001 par value, which are held by the
Sellers as set forth opposite each such Seller’s name on the Sellers Schedule (the
“Exchange Shares”), in exchange for the issuance by the Company to the Sellers of an
aggregate of 79,376,735 shares of the Company’s $0.0001 par value common stock (the
“Subject Shares”) pursuant to (i) Section 4(2) of the Securities Act (as defined below)
and Rule 506 of Regulation D promulgated thereunder, and (ii) Regulation S, on the
terms and subject to the conditions and limitations specified in this
Agreement.

 

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	 	F.	 	The Sellers believe that it is desirable and in their best interests and the
best interests of Sycamore and Sweet Spot that, upon the closing of the Merger, the
Exchange Shares be acquired by the Company in exchange for the Company’s issuance of
the Subject Shares to the Sellers pursuant to (i) Section 4(2) of the Securities Act
and Rule 506 of Regulation D promulgated thereunder and (ii) Regulation S promulgated
under the Securities Act, on the terms and subject to the conditions and limitations
specified in the Agreement.

	 
	 	G.	 	The Company is not prepared or willing to proceed with the transaction
contemplated by the provisions of this Agreement without the support, agreements,
warranties, and representations of Sycamore, Sweet Spot, and the Sellers specified in
this Agreement, and the Company is proceeding in reliance upon such support,
agreements, representations, and warranties.

	 
	 	H.	 	Sycamore is not prepared or willing to proceed with the transaction
contemplated by the provisions of this Agreement without the support, agreements,
warranties, and representations of the Company, Sweet Spot, and the Sellers specified
in this Agreement, and Sycamore is proceeding in reliance upon such support,
agreements, representations, and warranties.

	 
	 	I.	 	Sweet Spot is not prepared or willing to proceed with the transaction
contemplated by the provisions of this Agreement without the support, agreements,
warranties, and representations of the Company, Sycamore, and the Sellers specified in
this Agreement, and Sweet Spot is proceeding in reliance upon such support, agreements,
representations, and warranties.

	 
	 	J.	 	The Sellers are not prepared or willing to proceed with the transaction
contemplated by the provisions of this Agreement without the support, agreements,
warranties, and representations of the Company, Sweet Spot, and Sycamore, and the
Sellers are proceeding in reliance upon such support, agreements, representations, and
warranties.

NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS SPECIFIED ABOVE THAT SHALL BE DEEMED TO BE A
SUBSTANTIVE PART OF THIS AGREEMENT, AND THE MUTUAL COVENANTS, PROMISES, UNDERTAKINGS, AGREEMENTS,
REPRESENTATIONS AND WARRANTIES SPECIFIED IN THIS AGREEMENT AND OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, WITH THE INTENT TO BE
OBLIGATED LEGALLY AND EQUITABLY, THE PARTIES DO HEREBY COVENANT, PROMISE, AGREE, REPRESENT AND
WARRANT AS FOLLOWS:

 

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ARTICLE I

DEFINITIONS

As used in this Agreement, in addition to terms defined elsewhere in this Agreement, the terms
specified below in this Article I shall have the definitions and meanings specified immediately
after those terms, unless a different and common meaning of a particular term is clearly indicated
by the context, and variants and derivatives of the following terms shall have correlative
meanings. To the extent that certain of the definitions and meanings specified below suggest,
indicate, or express agreements between or among parties to this Agreement, or specify
representations or warranties or covenants of a party, the parties to this Agreement agree to the
same, by execution of this Agreement. The parties to this Agreement agree that agreements,
representations, warranties, and covenants expressed in any part or provision of this Agreement
shall, for all purposes of this Agreement, be treated in the same manner as other such agreements,
representations, warranties, and covenants specified elsewhere in this Agreement, and the article
or section of this Agreement within which such an agreement, representation, warranty, or covenant
is specified shall have no separate meaning or effect on the same.

1.1. Accumulated Funding Deficiency. An “accumulated funding deficiency” as defined by the
provisions of Section 302(a)(2) of ERISA or the last two sentences of Section 412(a)(2) of the
Code, or, in either case, successor provisions to such provisions adopted by amendments to ERISA or
the Code, as the case may be, and including, in each case, other provisions of ERISA, the Code or
other law, and regulations adopted pursuant to ERISA or the Code or such other law, modifying,
amending, interpreting or otherwise affecting the application of such provisions, either in general
or as applied to the nature or circumstances of a particular person that is a party to, or is
affected by, or is involved in, the Transaction and with respect to which person the use of the
term in this Agreement, or in the particular provision of this Agreement, is relevant.

1.2. Affiliate. When used with respect to a person, an “affiliate” of that person is a person
Controlling, Controlled by, or under common Control with that person.

1.3. Agreement. This Agreement For The Purchase and Sale of Stock, including the respective
Disclosure Documents, the Sellers Schedule, and all other documents specifically referred to in
this Agreement that have been or are to be delivered by a party to this Agreement to another such
party in connection with the Transaction or this Agreement, and including all duly adopted
amendments, modifications, and supplements to or of this Agreement and such Disclosure Documents
and other documents.

1.4. Auditors. Independent certified public accountants currently retained by the Company or Sweet
Spot, as the case may be, for the purpose of auditing the financial statements of the Company.

1.5. Business Day. Any day that is not a Saturday, Sunday, or a day on which banks in Dover,
Delaware are authorized to close.

1.6. Closing. The completion and consummation of the Transaction, to occur as contemplated by the
provisions of Section 2.4 of this Agreement.

1.7. Closing Date. The date on which the Closing actually occurs, which shall be April 20, 2010,
unless otherwise agreed by the parties to this Agreement, but shall not in any event be prior to
satisfaction or waiver of the conditions to Closing specified by the provisions of Article VII of
this Agreement.

 

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1.8. Code. The Internal Revenue Code of 1986, as amended and in effect as of the date hereof.

1.9. Company. ImaRx Therapeutics, Inc., a Delaware corporation.

1.10. Company Audited Financial Statements. The balance sheets, income statements, statements of
stockholders equity, and statements of cash flows or, in each instance, as of (i) December 31, 2007
and (ii) December 31, 2008, as reported on by the Auditors, and included in the Company’s Form
10-K, including any amendments, filed with the SEC for the year ended on December 31, 2008.

1.11. Company Balance Sheet. The most recent balance sheet included in the Company Unaudited
Financial Statements.

1.12. Company Directors. Richard Love, Richard Otto, Thomas W. Pew, Philip Ranker, and James M.
Strickland.

1.13. Company Disclosure Document. The document delivered by the Company to Sycamore and
Sweet Spot setting forth certain exceptions to the representations and warranties made by the
Company in this Agreement.

1.14. Company Unaudited Financial Statements. The balance sheets, income statements, statements of
stockholders’ equity and statements of cash flows or equivalent statements of the Company as set
forth in the Company’s Forms 10-Q as filed with the SEC for the quarters ended (i) March 31, 2009;
(ii) June 30, 2009; and (iii) September 30, 2009.

1.15. Complete Withdrawal. A “complete withdrawal” from a Multiemployer Plan as defined by the
provisions of Section 4203 of ERISA or successor provisions to such provision adopted by amendments
to ERISA and including other provisions of ERISA or of other law and regulations adopted pursuant
to ERISA or such other law, modifying, amending, interpreting or otherwise affecting the
application of such provision, either in general or as applied to the nature or circumstances of a
particular person that is a party to, or is affected by, or is involved in, the Transaction and
with respect to which person the use of the term in this Agreement, or in the particular provision
of this Agreement, is relevant.

1.16. Control. Generally, the power to direct the management or affairs of a person.

1.17. Consideration. 79,376,735 shares of the Company’s $.0001 par value common stock, which
shares may be referred to in this Agreement as the “Subject Shares” and such other obligations of
the Company as set forth in this Agreement.

1.18. Employment Agreements. Those written employment agreements by and among the Company and
Sycamore, on the one hand, and Scotti and Takats, and each of them, in the other hand, in
substantially the form and substance of Exhibit B and Exhibit C attached to the Merger Agreement.

 

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1.19. ERISA. The Employee Retirement Income Security Act of 1974, as amended and in effect at as of
the date hereof.

1.20. Exchange Act. The Securities Exchange Act of 1934, as amended to the date as which any
reference thereto is relevant pursuant to this Agreement, including any substitute or replacement
statue adopted in place or lieu thereof.

1.21. Facilities. All warehouses, stores, plants, production facilities, manufacturing facilities,
equipment, processing facilities, fixtures, and improvements owned or leased by any party or
otherwise used by such party in connection with the operation of its business or leased or
subleased by such party to other persons.

1.22. GAAP. Generally accepted accounting principles, as in effect on the date of any statement,
report or determination that purports to be, or is required to be, prepared or made in accordance
with GAAP. All references in this Agreement to financial statements prepared in accordance with
GAAP shall be defined and mean in accordance with GAAP consistently applied throughout the periods
to which reference is made.

1.23. Intellectual Property Right. Any patent, patent right, trademark, trademark right, trade
name, trade name right, service mark, service mark right, copyright and other proprietary
intellectual property right and computer program.

1.24. Inventories. The stock of raw materials, work-in-process and finished goods, including, but
not limited to, finished goods purchased for resale, held for manufacturing, assembly, processing,
repairing, finishing, sale, or resale to others, from time to time in the ordinary course of the
business in the form in which such inventories then are held or after manufacturing, assembling,
finishing, processing, incorporating with other goods or items, refining, repairing, or similar
processes.

1.25. IRS. The Internal Revenue Service.

1.26. JRT. JRT Productions, Inc., a California corporation, and a Seller.

1.27. Knowledge. “Knowledge of the Company” or “to the Company’s knowledge” means the actual
knowledge of the Company Directors of a particular fact, circumstance, event or matter, or
knowledge of such fact, circumstance, event or matter that would have been obtained after making
reasonable inquiry. “Knowledge of Sycamore” or “to Sycamore’s Knowledge” means the actual
knowledge of Edward Sylvan, Terry Sylvan, or Michael Doban of a particular fact, circumstance,
event or matter, or knowledge of such fact, circumstance, event or matter that would have been
obtained after making reasonable inquiry. “Knowledge of Sweet Spot” or “to Sweet Spot’s Knowledge”
means the actual knowledge of Joseph Takats (“Takats”) and Donald J. Scotti (“Scotti”) of a
particular fact, circumstance, event or matter, or knowledge of such fact, circumstance, event or
matter that would have been obtained after making reasonable inquiry.

 

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1.28. Liabilities. At any point in time (“Determination Time”), the obligations of a person,
whether known or unknown, contingent or absolute, recorded on such person’s books or not, arising
or resulting in any way from facts, events, agreements, obligations or occurrences that existed or
transpired at a prior point in time, or resulted from the passage of time to the Determination
Time, but not including obligations accruing or payable after the Determination Time to the extent
(but only to the extent) that such obligations (i) result from previously existing agreements for
services, benefits, or other considerations, and (ii) accrue or become payable with respect to
services, benefits, or other considerations received by the person after the Determination Time.

1.29. Material Adverse Effect. “Material Adverse Effect” means any change, development, event,
state of facts, or occurrence that has, or could reasonably be expected to have, individually or in
the aggregate, a material adverse effect on (i) the business, condition (financial or otherwise),
operations or prospects of Sycamore, Sweet Spot, or the Company, as applicable, or (ii) the ability
of Sycamore, Sweet Spot, the Sellers, or the Company, as applicable, to perform its or their
respective obligations under this Agreement or to consummate the Transaction; provided,
however, that in no event shall any of the following occurring after the date hereof, alone
or in combination, be deemed to constitute a Material Adverse Effect (i) any change in any legal
requirement (to the extent Sycamore, Sweet Spot, or the Company, as applicable, is not
disproportionately affected by such change in legal requirement relative to similarly situated
companies in similar industries) or GAAP after the date hereof; (ii) any effect that results from
changes affecting the United States economy generally (to the extent such effect is not
disproportionate with respect to Sweet Spot, Sycamore, or the Company, as applicable); (iii) any
effect that results from changes affecting general worldwide economic or capital market conditions
(to the extent such effect is not disproportionate with respect to Sweet Spot, Sycamore, or the
Company, as applicable); (iv) any effect resulting from compliance with the terms and conditions of
this Agreement; and (v) any declaration of war, military crisis or conflict, civil unrest, act of
terrorism, or act of God.

1.30. Multiemployer Plan. A “multiemployer plan,” as defined by the provisions of Section 3(37) of
ERISA or Section 414(f) of the Code, or, in either case, successor provisions to such provisions
adopted by amendments to ERISA or the Code, as the case may be, and including, in each case, other
provisions of ERISA, the Code or other law, and regulations adopted pursuant to ERISA or the Code
or such other law, modifying, amending, interpreting, or otherwise affecting the application of
such provisions, either in general or as applied to the nature or circumstances of a particular
person that is a party to, or is affected by, or is involved in, the Transaction and with respect
to which person the use of the term in this Agreement, or in the particular provision of this
Agreement, is relevant.

1.31. Optionees. Red Cat and JRT for purposes of those Put Rights specified by the provisions
Section 7.6 of this Agreement. Each, an “Optionee.”

1.32. Partial Withdrawal. A “partial withdrawal” from a Multiemployer Plan, as defined in Section
4205 of ERISA or successor provisions to such provision adopted by amendments to ERISA and
including other provisions of ERISA or of other law, and regulations adopted pursuant to ERISA or
such other law, modifying, amending, interpreting or otherwise affecting the application of such
provision, either in general or as applied to the nature or circumstances of a particular person
that is a party to, or is affected by, or is involved in, the Transaction and with respect to which
person the use of the term in this Agreement, or in the particular provision of this Agreement, is
relevant.

 

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1.33. Payables. Liabilities of a party resulting from the borrowing of money or the incurring of
obligations for merchandise or goods purchased.

1.34. PBGC. The Pension Benefit Guaranty Corporation.

1.35. Pension Plan. A “pension plan” or “employee pension benefit plan,” as defined in Section 3(2)
of ERISA or successor provisions to such provision adopted by amendments to ERISA and including
other provisions of ERISA or of other law, and regulations adopted pursuant to ERISA or such other
law, modifying, amending, interpreting, or otherwise affecting the application of such provision,
either in general or as applied to the nature or circumstances of a particular person that is a
party to, or is affected by, or is involved in, the Transaction and with respect to which person
the use of the term in this Agreement, or in the particular provision of this Agreement, is
relevant.

1.36. Plan Termination. A termination of a Pension Plan, whether partial or complete, within the
meaning of Title IV of ERISA.

1.37. Pledge and Security Agreements. Those Pledge and Security Agreements executed by the
Company, on the one hand, in favor of JRT and Red Cat, on the other hand, securing the Company’s
obligations pursuant to the Promissory Notes, in substantially the form and substance of Exhibit F
attached to the Merger Agreement.

1.38. Prohibited Transaction. A “prohibited transaction,” as defined in Section 406 of ERISA or
Section 4975(c) of the Code, or, in either case, successor provisions to such provisions adopted by
amendments to ERISA or the Code, as the case may be, and including, in each case, other provisions
of ERISA, of the Code or of other law, and regulations adopted pursuant to ERISA or the Code or
such other law, modifying, amending, interpreting, or otherwise affecting the application of such
provisions, either in general or as applied to the nature or circumstances of a particular person
that is a party to, or is affected by, or is involved in, the Transaction and with respect to which
person the use of the term in this Agreement, or in the particular provision of this Agreement, is
relevant.

1.39. Promissory Notes. Those Promissory Notes executed by the Company and Sycamore in favor of
JRT and Red Cat pursuant to the provisions of this Agreement and the Merger Agreement. Each, a
“Promissory Note.”

1.40. Put Rights. Those rights of Red Cat and JRT to require the Company to purchase those Subject
Shares owned by Red Cat and JRT pursuant to the provisions of Section 7.6 of this
Agreement.

1.41. Receivables. Accounts receivable, notes receivable, and other obligations appearing as assets
on the books of the Company, Sycamore, or Sweet Spot, respectively, and customarily specified as
assets in balance sheets prepared in accordance with GAAP.

 

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1.42. Red Cat. Red Cat Productions, Inc., a California corporation, and a Seller.

1.43. Registration. Registration pursuant to the Securities Act.

1.44. Registration Rights Agreement. The Registration Rights Agreement granting to JRT and Red Cat
certain registration rights as specified in this Agreement and the Merger Agreement, in
substantially the form and substance of Exhibit H attached to the Merger Agreement.

1.45. Reportable Event. A “reportable event,” as defined in Section 4043(b) of ERISA or
successor provisions to such provision adopted by amendments to ERISA and including other
provisions of ERISA or of other law, and regulations adopted pursuant to ERISA or such other law,
modifying, amending, interpreting, or otherwise affecting the application of such provision, either
in general or as applied to the nature or circumstances of a particular person that is a party to,
or is affected by, or is involved in, the Transaction and with respect to which person the use of
the term in this Agreement, or in the particular provision of this Agreement, is relevant.

1.46. Reverse Stock Split. That one-for-two (1:2) reverse stock split which the Company shall
cause to occur after the closing of the Transaction, pursuant to the provisions of which 1 share of
the Company’s $.0001 par value common stock shall be issued in exchange for 2 shares of that common
stock issued and outstanding on the effective date of the Reverse Stock Split, as specified by the
provisions of Section 13.3 of this Agreement.

1.47. Scotti. Donald J. Scotti, the holder of 100% of the issued and outstanding shares of no par
common stock of Red Cat.

1.48. SEC. The Securities and Exchange Commission.

1.49. SEC Reports. All reports, schedules, forms, statements and other documents filed or required
to be filed by the Company with the SEC pursuant to Sections 13(a) and 15(d) of the Exchange Act.

1.50. Securities Act. The Securities Act of 1933, as amended to the date as of which any reference
thereto is relevant pursuant to this Agreement, including any substitute or replacement statute
adopted in place or lieu thereof.

1.51. Sellers. Those persons specified on the Sellers Schedule, and each a “Seller”.

1.52. Sweet Spot. Sweet Spot Productions, Inc., a California corporation.

1.53. Sweet Spot Balance Sheet. The most recent balance sheet included in the Unaudited Financial Statements of Sweet Spot.

1.54. Sweet Spot Disclosure Document. The document delivered by Sweet Spot to Sycamore and the
Company setting forth certain exceptions to the representations and warranties made by Sweet Spot
in this Agreement.

 

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1.55. Sweet Spot Unaudited Financial Statements. The balance sheet, income statement, statement of
stockholders’ equity and statement of cash flows or equivalent statements of Sweet Spot as commonly
prepared, as of December 31, 2009.

1.56. Sycamore. Sycamore Films, Inc., a Nevada corporation.

1.57. Sycamore Disclosure Document. The document delivered by Sycamore to the Company and Sweet
Spot setting forth certain exceptions to the representations and warranties made by Sycamore in
this Agreement.

1.58. Takats. Joseph Takats, the holder of 100% of the issued and outstanding no par value common
stock of JRT.

1.59. Transaction. The acquisition by the Company from the Sellers of all of the Exchange Shares
and the issuance by the Company to the Sellers of the Subject Shares.

1.60. U.S. Person. The meaning given to such term under Rule 902(k)(1) of Regulation S promulgated
under the Securities Act.

1.61. Welfare Plan. A “welfare plan” or an “employee welfare benefit plan” defined in Section 3(1)
of ERISA or successor provisions to such provision adopted by amendments to ERISA and including
other provisions of ERISA or of other law, and regulations adopted pursuant to ERISA or such other
law, modifying, amending, interpreting, or otherwise affecting the application of such provision,
either in general or as applied to the nature or circumstances of a particular person that is a
party to, or is affected by, or is involved in, the Transaction and with respect to which person
the use of the term in this Agreement, or in the particular provision of this Agreement, is
relevant.

ARTICLE II

THE TRANSACTION

2.1. The Transaction. On the Closing Date, subject in all instances to each of the terms,
conditions, provisions and limitations specified in this Agreement, the Sellers shall surrender and
sell, transfer, convey, assign and deliver their Exchange Shares, free and clear of all liens, to
the Company and, as consideration and in exchange for those shares, the Company shall issue to the
Sellers the Subject Shares and shall agree to perform the obligations of the Company as set forth
in this Agreement.

2.2. Allocation of Subject Shares. Pursuant to the Transaction, each Seller shall be entitled to
receive, from and after the Closing, in respect of the Exchange Shares issued and outstanding
immediately prior to the Closing Date owned by such Seller (and upon surrender of the
certificate(s) evidencing and representing those shares, duly endorsed and in all respects in
proper form for transfer), such Seller’s pro rata share of the Subject Shares as set forth on the
Sellers Schedule.

 

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2.3. Additional Consideration Paid to JRT Productions, Inc. and Red Cat Productions, Inc. In
addition to the issuance to Red Cat and JRT of their proportionate number of the Subject Shares and
to satisfy the consideration owing to Red Cat and JRT in connection with the Merger, at the
Closing, the Company and Sycamore shall execute and deliver to each of Red Cat and JRT a promissory
note in the principal amount of $200,000.00 substantially in the form and substance set forth in
Exhibit G attached to the Merger Agreement (the “Promissory Notes”). The indebtedness evidenced by
the provisions of each Promissory Note shall be secured by a first priority perfected security
interest in 50% of the Exchange Shares pursuant to a pledge and security agreement substantially in
the form and substance set forth in Exhibit F attached to the Merger Agreement (the “Pledge and
Security Agreements”).

2.4. Closing. The Closing of the Transaction shall take place at the offices of Mitchell Silberberg
& Knupp LLP, 11377 West Olympic Boulevard, Los Angeles, California 90064, no later than April 20,
2010, at 10:00 a.m., or at such other place, time and date as Sycamore, Sweet Spot, the Sellers
holding a majority of the Exchange Shares, and the Company may agree upon, which other date shall
then be the Closing Date.

2.5 Implementation of Transaction. No later than 4 business days after the date hereof (i)
Sycamore shall deliver or cause to be delivered to the Company and Sweet Spot the Sycamore
Disclosure Document; (ii) the Company shall deliver or cause to be delivered to Sycamore, Sweet
Spot, and the Sellers the Company Disclosure Document; and (iii) Sweet Spot shall deliver or cause
to be delivered to the Company, Sycamore, and the Sellers the Sweet Spot Disclosure Document.

2.6. Parties to the Agreement and Transaction. By executing this Agreement, each of the Sellers
agrees to be obligated by the provisions of this Agreement and by any amendment, modification, or
change in or to this Agreement or any of its provisions that is accepted by such Seller in writing.

 

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ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SYCAMORE

Sycamore hereby represents and warrants to the Company the following:

3.1. Organization And Qualification. Sycamore is a corporation duly organized, validly existing,
and in good standing pursuant to the laws of its jurisdiction of incorporation and has the
requisite corporate power and authority to conduct its business as that business is now being
conducted. Sycamore is, or will prior to the Closing be, duly qualified as a foreign corporation
to do business, and in good standing, in each jurisdiction where the character of the properties
owned or leased by it, or the nature of its activities, is such that qualification as a foreign
corporation in those jurisdictions is required by law except where any failure to be so qualified
would not have a Material Adverse Effect.

3.2. Capitalization. The authorized capital stock of Sycamore consists of 100,000,000 shares of
common stock, $.001 par value. There is no other capital stock of Sycamore authorized for
issuance. As of the date hereof, 86,000,000 shares of Sycamore’s $.001 par value common stock were
validly issued and outstanding, fully paid, and nonassessable, as set forth on the Sellers
Schedule. As of the date hereof, no shares of Sycamore’s $.001 par value common stock were held in
Sycamore’s treasury; and no such shares are reserved for issuance. No restrictions on transfer,
repurchase options, preemptive rights or rights of first refusal exist with respect to the Exchange
Shares, and no such rights arise by virtue or in connection with the Transactions. There are no
proxies, voting rights, shareholders agreements or other agreements or understandings with respect
to the voting of the Exchange Shares. All Exchange Shares have been issued in compliance with any
preemptive rights, rights of first refusal or other requirements set forth in applicable contracts.
Sycamore is not obligated to redeem or otherwise acquire any of the Exchange Shares. Immediately
following the consummation of the Transaction, the Exchange Shares will be owned beneficially and
of record by the Company; provided, however, that the Exchange Shares shall be subject to first
priority perfected security interests securing the indebtedness evidenced by the Promissory Notes,
pursuant to the Pledge and Security Agreements.

3.3. Authority Relative to This Agreement. Sycamore has the requisite corporate power and authority
to enter into this Agreement and to perform its obligations created by this Agreement. The
execution and delivery of this Agreement and the consummation of the Transaction have been duly
authorized and approved by the requisite corporate authority of Sycamore and no other corporate
proceedings on the part of Sycamore are necessary to approve and adopt this Agreement or to approve
the consummation of the Transaction. This Agreement has been duly and validly executed and
delivered by Sycamore and constitutes a valid and binding obligation of Sycamore, enforceable in
accordance with its terms.

3.4. Absence of Breach; No Consents. The execution, delivery, and performance of this Agreement,
and the performance by Sycamore of its obligations created by this Agreement, do not (i) conflict
with or result in a breach of any of the provisions of the Articles of Incorporation (or similar
charter document) or Bylaws (or similar governing document) of Sycamore; (ii) contravene any law,
ordinance, rule, or regulation of any state or political subdivision of either or of the United

 

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States or of any applicable foreign jurisdiction, or contravene any order, writ, judgment,
injunction, decree, determination, or award of any court or other authority having jurisdiction, or
cause the suspension or revocation of any authorization, consent, approval, or license, presently
in effect, which affects or obligates Sycamore or any of its material properties, except in any
event when such contravention will not have a Material Adverse Effect on the business, condition
(financial or otherwise), operations or prospects of Sycamore, and will not have a Material Adverse
Effect on the validity of this Agreement or on the validity of the consummation the Transaction;
(iii) conflict with or result in a material breach of or default pursuant to any material indenture
or loan or credit agreement or any other material agreement or instrument to which Sycamore is a
party or by which Sycamore may be affected or obligated; (iv) require the authorization, consent,
approval, or license of any third party; or (v) constitute any reason for the loss or suspension of
any permits, licenses, or other authorizations used in the business of Sycamore.

3.5. Brokers. No broker, finder, or investment banker is entitled to any brokerage, finder’s, or
other fee or commission in connection with this Agreement or the Transaction or any related
transaction based upon any agreements, written or oral, made by or on behalf of Sycamore.

3.6. No Undisclosed Liabilities. Sycamore has no Liabilities, which are not specified on the
Sycamore Disclosure Document.

3.7. No Material Adverse Change, Etc. Except as specified on the Sycamore Disclosure Document,
since the date of Sycamore’s incorporation, other than as contemplated or caused by this Agreement,
there has not been (i) any Material Adverse Effect with respect to Sycamore; (ii) any entry into or
termination of any material commitment, contract, agreement, or transaction (including, without
limitation, any material borrowing or capital expenditure or sale or other disposition of any
material asset or assets) by or involving Sycamore, other than this Agreement, the Merger Agreement
and agreements executed in the ordinary course of business; (iii) any redemption, repurchase, or
other acquisition for value of its capital stock by Sycamore, or any dividend or distribution
declared, set aside, or paid on capital stock of Sycamore; (iv) any transfer of any right granted
pursuant to any material lease, license, agreement, patent, trademark, trade name, or copyright of
Sycamore; (v) any sale or other disposition of any asset of Sycamore, or any mortgage, pledge, or
imposition of any lien or other encumbrance on any asset of Sycamore, other than in the ordinary
course of business, or any agreement relating to any of the foregoing; of (vi) any default or
breach by Sycamore in any material respect pursuant to any contract, license or permit. Except as
specified on the Sycamore Disclosure Document, Sycamore has conducted its business only in the
ordinary and usual course, and, without limiting the foregoing, no changes have been made in (i)
executive compensation amounts, (ii) the manner in which other employees of Sycamore are
compensated, (iii) supplemental benefits provided to any such executives or other employees, or
(iv) inventory amounts in relation to sales amounts, except, in any such event, in the ordinary
course of business and, in any event, without Material Adverse Effect with respect to Sycamore.

3.8 Banking Relationships. The Sycamore Disclosure Document specifies the names and locations of
all banks, trust companies, savings and loans associations and other financial institutions at
which Sycamore maintains its safe deposit boxes or accounts of any nature and the names of all
persons authorized to have access there to, draw thereon or make withdrawals therefrom. On the
Closing Date, Sycamore will deliver to the Company copies of all records regarding those accounts
and safe deposit boxes, including all signatures or authorization cards and the keys pertaining to
safe deposit boxes.

 

12

 

3.9 Books and Records. No later than the Closing Date Sycamore shall deliver to the Company the
books of account, Minute Book, stock record books, and other records of Sycamore, which shall be
complete and correct and have been maintained in accordance with competent business practices. The
Minute Book of Sycamore shall contain accurate and complete records of all meetings held of, and
corporate actions taken by, the stockholders, the Boards of Directors, and committees of the Board
of Directors of Sycamore, and no meeting or action of any such stockholders, Board of Directors, or
committee has been held for which minutes have not been prepared and will not be contained in such
minute book.

3.10. Taxes. Except as specified on the Sycamore Disclosure Document, Sycamore has properly filed
or caused to be filed all federal, state, local, and foreign income and other tax returns, reports,
and declarations that are required by applicable law to be filed by it and has paid, or made full
and adequate provision for the payment of, all federal, state, local, and foreign income and other
taxes properly due for the periods contemplated by such returns, reports, and declarations.

3.11. Litigation. Except as specified on the Sycamore Disclosure Document, no investigation
or review by any governmental entity with respect to Sycamore is pending or threatened (other than
inspections and reviews customarily made of businesses such as those similar to that Sycamore), nor
has any governmental entity indicated to Sycamore an intention to conduct any such investigation or
review. Except as specified on the Sycamore Disclosure Document, there is no action, litigation or
proceeding pending or threatened against or affecting Sycamore, at law or in equity, or before any
federal, state, municipal, or other governmental department, commission, board, bureau, agency, or
instrumentality.

3.12. Employees. Sycamore has no employees.

3.13. Compliance With Laws. Except as specified on the Sycamore Disclosure Document, Sycamore is
in compliance with all, and has received no notice of any violation of any, laws or regulations
applicable to its operations, including, without limitation, the laws and regulations relevant to
the use or utilization of premises, or with respect to which compliance is a condition of engaging
in any aspect of the business of Sycamore, and Sycamore has all permits, licenses, zoning rights,
and other governmental authorizations necessary to conduct its business as presently conducted.

3.14. Ownership of Assets. Except as specified on the Sycamore Disclosure Document, Sycamore has
good, marketable, and insurable title to, or valid, effective, and continuing leasehold rights in
all personal property owned or leased by Sycamore, in the conduct of its business in such a manner
as to create the appearance or reasonable expectation that such property is owned or leased by it,
free and clear of all liens, claims, encumbrances, and charges, except liens for taxes not yet due
and minor imperfections of title and encumbrances, if any, which singularly and in the aggregate
are not
substantial in amount and do not materially detract from the value of the property subject thereto
or materially impair the use thereof. Except as specified on the Sycamore Disclosure Document, to
Sycamore’s Knowledge, there is no potential action by any person, and no proceedings with respect
thereto have been instituted of which Sycamore has notice, that would materially affect Sycamore’s
ability to use and to utilize each of Sycamore’s assets in its business.

 

13

 

3.15. Intellectual Property. Except as specified on the Sycamore Disclosure Document, Sycamore
possesses full and complete ownership of, or adequate and enforceable long-term licenses or other
rights to use (without payment), all of its Intellectual Property Rights; Sycamore has not received
any notice of conflict which asserts the rights of any other person with respect thereto; and
Sycamore has in all material respects performed all of the obligations required to be performed by
it and is not in default in any material respect, pursuant to any agreement relating to any such
Intellectual Property Right.

3.16. Subsidiaries, Etc. Sycamore has no subsidiaries.

3.17. Trade Names. Sycamore does not conduct, and never conducted, its business using any trade
name, fictitious business name, or similar name.

3.18. Pension and Welfare Plans. Sycamore is not, and has never been, a party to a Pension Plan or
Welfare Plan.

3.19. Facilities. Sycamore has no Facilities.

3.20. Accounts Receivable. Except as specified on the Sycamore Disclosure Document, all accounts
receivable of Sycamore, represent transactions in the ordinary course of business and are current
and collectible.

3.21. Inventories. Sycamore has no Inventories.

3.22. Contracts. The Sycamore Disclosure Document specifies all contracts, agreements, or
understandings, whether express or implied, written or verbal, to which Sycamore is a party. The
Sycamore Disclosure Document, also, specifies a brief summary of each such contract, agreement or
understanding identified therein. Without in any respect limiting the foregoing, the Sycamore
Disclosure Document specifies a description of all leases of properties by Sycamore, including all
amendments, supplements, extensions and modification thereof, identifying, inter alia, the date
each such document was executed and its effective period. Except as specified on the Sycamore
Disclosure Document, Sycamore is not a party to any executory contract to sell or transfer any part
of any leasehold interest of Sycamore. True and accurate copies of all leases, and of all
amendments, supplements, extensions, and modifications thereof, shall be delivered to the Company
by Sycamore prior to the Closing. With respect to all agreements set forth or required to be set
forth on the Sycamore Disclosure Document (i) each such agreement is legal, valid, binding,
enforceable and in full force and effect; (ii) each such agreement will continue to be legal,
valid, binding, enforceable and in full force and effect on identical terms following the
consummation of the Transaction; (iii) no party is in breach or default, and no event has occurred
that with notice or lapse of time would
constitute a breach or default, or permit termination, modification, or acceleration, under any
such agreement; and (iv) no party has repudiated any provision of any such agreement.

 

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3.23. Accounts Payable. The Sycamore Disclosure Documents specifies all amounts owed by Sycamore
in respect of trade accounts due and other Payables, and the actual Liabilities of Sycamore in
respect of such obligations were not, and will not be, on any of such dates, in excess of the
amounts so specified on the Sycamore Disclosure Document..

3.24. Labor Matters. Except as specified on the Sycamore Disclosure Document, there are no
activities or controversies, including, without limitation, any labor organizing activities,
election petitions or proceedings, proceedings preparatory thereto, unfair labor practice
complaints, labor strikes, disputes, slowdowns, or work stoppages, pending or, to the best of the
knowledge of Sycamore, threatened, against Sycamore.

3.25. Insurance. Sycamore has no insurance policies in effect.

3.26. Real Properties. Sycamore does not utilize, and has never utilized, real properties in
connection with the operation of Sycamore’s business.

3.27. Full Disclosure. The documents, certificates, and other writings furnished or to be furnished
by or on behalf of Sycamore to the Company pursuant to this Agreement, including, but not limited
to, the Sycamore Disclosure Document, considered together in the aggregate, do not and will not
contain any untrue statement of a material fact, or omit to specify any material fact necessary to
make the statements made, considering the circumstances pursuant to which they are made, not
misleading.

3.28. Options, Warrants and Other Rights and Agreements Affecting Sycamore’s Capital Stock.
Sycamore has no authorized or outstanding options, warrants, calls, subscriptions, rights,
convertible securities or other securities (“Sycamore Derivative Securities”), or any commitments,
agreements, arrangement or understandings of any manner or nature whatsoever obligating Sycamore,
in any event, to issue shares of capital stock or other securities or securities convertible into
or evidencing the right to purchase shares of capital stock or Sycamore Derivative Securities,
except as specified on the Sycamore Disclosure Document. Except as specified on the Sycamore
Disclosure Document, neither Sycamore nor any officer, director, or shareholder of Sycamore is a
party to any agreement, understanding, arrangement or commitment, or obligated by any provision
which creates any rights in any person with respect to the authorization, issuance, voting, sale or
transfer of any shares of Sycamore’s capital stock or Sycamore Derivative Securities.

3.29. Questionable Payments. Neither Sycamore, nor any director, officer, agent, employee, or
other person associated with or acting on behalf of Sycamore has, directly or indirectly, used any
corporate funds for unlawful contributions, gifts, entertainment, or other unlawful expenses
relating to political activity; made any unlawful payment to foreign and domestic political parties
or campaigns, from corporate funds; violated any provision of the Foreign Corrupt Practices Act of
1977, as amended; established or maintained any unlawful or unrecorded fund of corporate monies or
other assets; made any false or fictitious entry on the books or records of Sycamore; made any
bribe, rebate, payoff, influence payment, kickback, or other unlawful payment; given any favor or
gift which is not deductible for federal income tax purposes; or made any bribe, or kickback, or
other payment of a similar or comparable nature, whether lawful or not, to any person or entity,
private, or public, regardless of form, whether in money, property, or services, to obtain
favorable services, to obtain favorable treatment in securing business or to obtain special
concessions, or to pay for favorable treatment for business secured or for special concessions
already obtained.

 

15

 

3.30. Relationships with Related Persons. Except as specified on the Sycamore Disclosure Document,
no Affiliate or shareholder of Sycamore or any Affiliate or related person of any shareholder of
Sycamore has or has had any interest in any property (whether real, personal, or mixed and whether
tangible or intangible), used in or pertaining to Sycamore’s business. Except as specified on the
Sycamore Disclosure Document, no Affiliate or shareholder of Sycamore or any Affiliate or related
person of any shareholder of Sycamore owns or has owned (of record or as a beneficial owner) an
equity interest or any other financial or profit interest in, a person that has (i) had business
dealings or a material financial interest in any transaction with Sycamore, or (ii) engaged in
competition with Sycamore with respect to any of the products or services of Sycamore or Sweet Spot
in any market presently served by Sycamore. Except as specified on the Sycamore Disclosure
Document, no shareholder or Affiliate of Sycamore or any Affiliate or related person of any
shareholder of Sycamore is a party to any contract or other understanding with, or has any claim or
right against, Sycamore.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SWEET SPOT

Sweet Spot hereby represents and warrants to the Company the following:

4.1. Organization And Qualification. Through the closing of the Merger, Sweet Spot is a
corporation duly organized, validly existing, and in good standing pursuant to the laws of its
jurisdiction of incorporation and has the requisite corporate power and authority to conduct its
business as that business is now being conducted. Through the closing of the Merger with Sycamore,
Sweet Spot is duly qualified as a foreign corporation to do business, and in good standing, in each
jurisdiction where the character of the properties owned or leased by it, or the nature of its
activities, is such that qualification as a foreign corporation in those jurisdictions is required
by law except where any failure to be so qualified would not have a Material Adverse Effect.

4.2. Capitalization. The authorized capital stock of Sweet Spot consists of 1,000,000 shares of
common stock, no par value. There is no other capital stock of Sweet Spot authorized for issuance.
As of the date hereof, 1,000,000 shares of Sweet Spot’s no par value common stock were validly
issued and outstanding, fully paid, and nonassessable. As of the date hereof, no shares of Sweet
Spot’s par value common stock are reserved for issuance.

4.3. Authority Relative to This Agreement. Through the closing of the Merger, Sweet Spot has the
requisite corporate power and authority to enter into this Agreement and to perform its obligations
created by this Agreement. The execution and delivery of this Agreement and the consummation of
the Transaction have been duly authorized and approved by the requisite corporate
authority of Sweet Spot and no other corporate proceedings on the part of Sweet Spot are necessary
to approve and adopt this Agreement or to approve the consummation of the Transaction. This
Agreement has been duly and validly executed and delivered by Sweet Spot and constitutes a valid
and binding obligation of Sweet Spot, enforceable in accordance with its terms.

 

16

 

4.4. Absence of Breach; No Consents. The execution, delivery, and performance of this Agreement,
and the performance by Sweet Spot of its obligations created by this Agreement, do not (i) conflict
with or result in a breach of any of the provisions of the Articles of Incorporation (or similar
charter document) or Bylaws (or similar governing document) of Sweet Spot; (ii) contravene any
law, ordinance, rule, or regulation of any state or political subdivision of either or of the
United States or of any applicable foreign jurisdiction, or contravene any order, writ, judgment,
injunction, decree, determination, or award of any court or other authority having jurisdiction, or
cause the suspension or revocation of any authorization, consent, approval, or license, presently
in effect, which affects or obligates Sweet Spot or any of its material properties, except in any
event when such contravention will not have a Material Adverse Effect on the business, condition
(financial or otherwise), operations or prospects of Sweet Spot, and will not have a Material
Adverse Effect on the validity of this Agreement or on the validity of the consummation the
Transaction; (iii) conflict with or result in a material breach of or default pursuant to any
material indenture or loan or credit agreement or any other material agreement or instrument to
which Sweet Spot is a party or by which Sweet Spot may be affected or obligated; (iv) require the
authorization, consent, approval, or license of any third party; or (v) constitute any reason for
the loss or suspension of any permits, licenses, or other authorizations used in the business of
Sweet Spot.

4.5. Brokers. No broker, finder, or investment banker is entitled to any brokerage, finder’s, or
other fee or commission in connection with this Agreement or the Transaction or any related
transaction based upon any agreements, written or oral, made by or on behalf of Sweet Spot.

4.6. No Undisclosed Liabilities. Except as specified on the Sweet Spot Disclosure Document, Sweet
Spot has no Liabilities which are not adequately presented or reserved against on the Sweet Spot
Balance Sheet, except Liabilities incurred since the date of the Sweet Spot Balance Sheet in the
ordinary course of business and consistent with past practice. Without limiting the foregoing, (a)
there are no unpaid leasehold improvements at any of Sweet Spot’s Facilities or locations for which
Sweet Spot is or will be responsible, and (b) there are no deferred rents due to lessors at or with
respect to any of such Facilities or locations.

4.7. No Material Adverse Change, Etc. Except as specified on the Sweet Spot Disclosure Document,
since the date of the Sweet Spot Balance Sheet, other than as contemplated or caused by this
Agreement and the Merger Agreement, there has not been (i) any Material Adverse Effect with respect
to Sweet Spot; (ii) any entry into or termination of any material commitment, contract, agreement,
or transaction (including, without limitation, any material borrowing or capital expenditure or
sale or other disposition of any material asset or assets) by or involving Sweet Spot, other than
this Agreement, the Merger Agreement, and agreements executed in the ordinary course of business;
(iii) any redemption, repurchase, or other acquisition for value of its capital stock by Sweet
Spot, or any dividend or distribution declared, set aside, or paid on capital stock of Sweet Spot;
(iv) any transfer of any right granted pursuant to any material lease, license, agreement, patent,
trademark, trade name, or copyright of Sweet Spot; (v) any sale or other disposition of any asset
of Sweet Spot; or any mortgage, pledge, or imposition of any lien or other encumbrance on any asset
of Sweet Spot, other than in the ordinary course of business, or any agreement relating to any of
the

 

17

 

foregoing; of (vi) any default or breach by Sweet Spot in any material respect pursuant to any
contract, license or permit. Except as specified on the Sweet Spot Disclosure Document, since the
date of the Sweet Spot Balance Sheet, Sweet Spot has conducted its business only in the ordinary
and usual course, and, without limiting the foregoing, no changes have been made in (i) executive
compensation amounts, (ii) the manner in which other employees of Sweet Spot are compensated, (iii)
supplemental benefits provided to any such executives or other employees, or (iv) inventory amounts
in relation to sales amounts, except, in any such event, in the ordinary course of business and, in
any event, without causing a Material Adverse Effect with respect to Sweet Spot.

4.8 Banking Relationships. The Sweet Spot Disclosure Document specifies the names and locations of
all banks, trust companies, savings and loans associations and other financial institutions at
which Sweet Spot maintains its safe deposit boxes or accounts of any nature and the names of all
persons authorized to have access there to, draw thereon or make withdrawals therefrom.

4.9 Books and Records. No later than the Closing Date Sweet Spot shall deliver to Sycamore, in
accordance with the Merger Agreement, the books of account, Minute Books, stock record books, and
other records of Sweet Spot, which shall be complete and correct and have been maintained in
accordance with competent business practices through the Merger of Sweet Spot into Sycamore. The
Minute Book of Sweet Spot shall contain accurate and complete records of all meetings held of, and
corporate actions taken by, the stockholders, the Boards of Directors, and committees of the Boards
of Directors of Sweet Spot, and no meeting or action of any such stockholders, Board of Directors,
or committee has been held for which minutes have not been prepared and will not be contained in
such minute books.

4.10. Taxes. Except as specified on the Sweet Spot Disclosure Document, Sweet Spot has properly
filed or caused to be filed all federal, state, local, and foreign income and other tax returns,
reports, and declarations that are required by applicable law to be filed by it and has paid, or
made full and adequate provision for the payment of, all federal, state, local, and foreign income
and other taxes properly due for the periods contemplated by such returns, reports, and
declarations, except such taxes, if any, as are adequately reserved against in the Sweet Spot
Balance Sheet.

4.11. Litigation. Except as specified on the Sweet Spot Disclosure Document, no
investigation or review by any governmental entity with respect to Sweet Spot is pending or, to
Sweet Spot’s Knowledge, threatened (other than inspections and reviews customarily made of
businesses such as those similar to Sweet Spot), nor has any governmental entity indicated to Sweet
Spot an intention to conduct any such investigation or review. Except as specified on the Sweet
Spot Disclosure Document, there is no action, litigation or proceeding pending or, to Sweet Spot’s
Knowledge, threatened against or affecting Sweet Spot, at law or in equity, or before any federal,
state, municipal, or other governmental department, commission, board, bureau, agency, or
instrumentality.

4.12. Employees. Sweet Spot Disclosure Document specifies complete and accurate information for
each employee and director of Sycamore, including each employee on leave of absence or layoff
status, which information includes name, job title, current compensation paid or payable and any
change in compensation since his or her date of employment by Sweet Spot, vacation accrued, and
service credited for purposes of vesting and eligibility to participate pursuant to any Sweet Spot

 

18

 

pension, retirement, profit-sharing, thrift-savings, deferred compensation, stock bonus, stock
option, cash bonus, employee stock ownership severance pay, insurance, medical, welfare, or
vacation plan, other Pension Plan or Welfare Plan, or any other employee benefit plan or any
director plan. The Sweet Spot has no retired employees or directors.

4.13. Compliance With Laws. Except as specified on the Sweet Spot Disclosure Document, Sweet Spot
is in compliance with all, and has received no notice of any violation of any, laws or regulations
applicable to Sweet Spot’s operations, including, without limitation, the laws and regulations
relevant to the use or utilization of premises, or with respect to which compliance is a condition
of engaging in any aspect of the business of Sweet Spot, and Sweet Spot has all permits, licenses,
zoning rights, and other governmental authorizations necessary to conduct its business as presently
conducted.

4.14. Ownership of Assets. Except as specified on the Sweet Spot Disclosure Document, Sweet Spot
has good, marketable, and insurable title to, or valid, effective, and continuing leasehold rights
in all personal property owned or leased by or used by Sweet Spot, in the conduct of its business
in such a manner as to create the appearance or reasonable expectation that such property is owned
or leased by it, free and clear of all liens, claims, encumbrances, and charges, except liens for
taxes not yet due and minor imperfections of title and encumbrances, if any, which singularly and
in the aggregate are not substantial in amount and do not materially detract from the value of the
property subject thereto or materially impair the use thereof. Except as specified on the Sweet
Spot Disclosure Document, to Sweet Spot’s Knowledge, there is no potential action by any person,
and no proceedings with respect thereto have been instituted of which Sweet Spot has notice, that
would materially affect Sweet Spot’s ability to use and to utilize each of Sweet Spot’s assets in
its business.

4.15. Intellectual Property. Except as specified on the Sweet Spot Disclosure Document, Sweet Spot
possesses full and complete ownership of, or adequate and enforceable long-term licenses or other
rights to use (without payment), all of its Intellectual Property Rights; Sweet Spot has not
received any notice of conflict which asserts the rights of any other person with respect thereto;
and Sweet Spot has in all material respects performed all of the obligations required to be
performed by them and are not in default in any material respect, pursuant to any agreement
relating to any such Intellectual Property Right.

4.16. Subsidiaries, Etc. Sweet Spot has no subsidiaries.

4.17. Trade Names. The Sweet Spot Disclosure Document identifies each trade name, fictitious
business name, or other similar name pursuant to which Sweet Spot has conducted any part of its
business or Sweet Spot has utilized any of its assets.

4.18. Pension and Welfare Plans. Except as specified on the Sweet Spot Disclosure Document,

4.18.1 All Pension Plans and Welfare Plans of Sweet Spot (including any such plans assumed in
connection with the Merger) have been administered in substantial compliance with their terms,
ERISA and, where applicable, the Code. If applicable, the IRS has issued a favorable determination
letter with respect to the qualification of each such Pension Plan and the exemption of any
corresponding trust. A copy of the most recent determination letter for each Pension Plan, if any,
has been furnished to Sweet Spot, and nothing has occurred since the date of any such determination
letter that could cause the relevant Pension Plan or trust to lose such qualification or exemption.

 

19

 

4.18.2 With respect to each Pension Plan and each Welfare Plan (including any such plans
assumed in connection with the Merger); (i) there is no fact, including, without limitation, any
Reportable Event, that exists that would constitute a reason for termination of such Plan by the
PBGC or for the appointment by the appropriate United States District Court of a trustee to
administer such Plan, in each case as contemplated by ERISA; (ii) neither Sweet Spot, nor any
fiduciary, trustee or administrator of any Pension Plan or Welfare Plan, has engaged in a
Prohibited Transaction that could subject Sweet Spot to any material tax or any material penalty
imposed by ERISA or the Code; (iii) Sweet Spot has not incurred any material liability to the PBGC
(other than for payment of premiums); and (iv) there is no material Accumulated Funding Deficiency
with respect to any Pension Plan, whether or not waived.

4.18.3 There has been no Plan Termination that has occurred during the 5 year period ending
on the date hereof.

4.18.4 Sweet Spot has no knowledge of any material liability being incurred pursuant to Title
IV of ERISA by Sweet Spot with respect to any Pension Plan maintained by a trade or business
(whether or not incorporated) which is under common control with, or part of a controlled group of
corporations with, Sweet Spot, within the meaning of Section 414 subdivisions (b) and (c) of the
Code.

4.18.5 No Welfare Plan is funded with a trust or other funding method, other than insurance
policies.

4.18.6 There has occurred no Complete Withdrawal or Partial Withdrawal with respect to any
Multiemployer Plan that could cause Sweet Spot to incur any material Liability pursuant to or as a
result of ERISA, other than to the extent previously paid or fully provided for in the Sweet Spot
Balance Sheet, and all payments required to be made to any such Plan by Sweet Spot pursuant to any
applicable collective bargaining agreements have been made.

4.19. Facilities. The Facilities of Sweet Spot are (as to physical plant and structure)
structurally sound and none of those Facilities, nor any of the vehicles or other equipment used by
Sweet Spot in connection with its business, has any material defects and all of them are in all
material respects in good operating condition and repair and are adequate for the uses to which
they are utilized; none of those Facilities, vehicles or other equipment is in need of maintenance
or repairs, except for ordinary, routine maintenance and repairs which are not material in nature
or cost. Sweet Spot is not in breach, violation, or default of any lease with respect to or as a
result of which the other party (whether lessor, lessee, sublessor, or sublessee) thereto has the
right to terminate the same, and Sweet Spot has not received notice of any claim or assertion that
it is or may be in any such breach, violation, or default.

4.20. Accounts Receivable. Except as specified on the Sweet Spot Disclosure Document, all
accounts receivable of Sweet Spot, whether or not specified in the Sweet Spot Balance Sheet,
represent transactions in the ordinary course of business and are current and collectible net of
any reserves specified on the Sweet Spot Balance Sheet (which reserves are adequate and were
calculated consistent with past practice).

 

20

 

4.21. Inventories. All Inventories of Sweet Spot, whether or not specified in the Sweet Spot
Balance Sheet, are of a quality and quantity usable and saleable in the ordinary course of
business, except for obsolete items and items of below-standard quality, all of which, in the
aggregate, are immaterial in amount. Except as specified on the Sweet Spot Disclosure Document,
items included in such Inventories are specified on the books of Sweet Spot have, and are valued on
the Sweet Spot Balance Sheet, at the lower of cost or market and, in any event, at not greater than
their net realizable value, on an item by item basis, after appropriate deduction for costs of
completion, marketing costs, transportation expense, and allocation of overhead.

4.22. Contracts. The Sweet Spot Disclosure Document specifies all contracts, agreements, or
understandings, whether express or implied, written or verbal, to which Sweet Spot is a party. The
Sweet Spot Disclosure Document also specifies a brief summary of each such contract, agreement or
understanding identified therein. Without in any respect limiting the foregoing, the Sweet Spot
Disclosure Document specifies a description of all leases of properties by Sweet Spot, including
all amendments, supplements, extensions and modification thereof, identifying, inter alia, the date
each such document was executed and its effective period. Except as specified on the Sweet Spot
Disclosure Document, Sweet Spot is not a party to any executory contract to sell or transfer any
part of any leasehold interest of Sweet Spot. True and accurate copies of all leases, and of all
amendments, supplements, extensions, and modifications thereof, shall be delivered to the Company
by Sweet Spot prior to the Closing. With respect to all agreements set forth or required to be set
forth on the Sweet Spot Disclosure Document; (i) each such agreement is legal, valid, binding,
enforceable and in full force and effect; (ii) each such agreement will continue to be legal,
valid, binding, enforceable and in full force and effect on identical terms following the
consummation of the transactions contemplated hereby; (iii) no party is in breach or default, and
no event has occurred that with notice or lapse of time would constitute a breach or default, or
permit termination, modification, or acceleration, under any such agreement; and (iv) no party has
repudiated any provision of any such agreement.

4.23. Accounts Payable. Except as specified on the Sweet Spot Disclosure Document, the accounts
payable specified on the Sweet Spot Balance Sheet do, and those specified on the books of Sweet
Spot at the time of the Closing will, specify all amounts owed by Sweet Spot in respect of trade
accounts due and other Payables, and the actual Liabilities of Sweet Spot in respect of such
obligations were not, and will not be, on any of such dates, in excess of the amounts so specified
on the balance sheets or the books and records of Sweet Spot.

4.24. Labor Matters. Except as specified on the Sweet Spot Disclosure Document, there are no
activities or controversies, including, without limitation, any labor organizing activities,
election petitions or proceedings, proceedings preparatory thereto, unfair labor practice
complaints, labor strikes, disputes, slowdowns, or work stoppages, pending or, to the best of the knowledge of Sweet
Spot, threatened, against Sweet Spot.

 

21

 

4.25. Insurance. Sweet Spot owns or holds policies of insurance in amounts providing reasonably
adequate coverage against all risks customarily insured against by companies in business similar to
Sweet Spot. The Sweet Spot Disclosure Document specifies a list of all material insurance policies
(including directors’ and officers’ liability insurance and fiduciary liability insurance)
maintained by Sweet Spot, including the premiums payable in connection therewith. All insurance
policies maintained by Sweet Spot are in full force and effect (and were in full force and effect
during the periods of time such insurance policies were purported to be in effect) and all premiums
due and payable thereon have been paid; and Sweet Spot is not in breach or default of any of the
insurance policies, and Sweet Spot has not taken any action or failed to take any action that,
with notice or the lapse of time, would constitute such a breach or default or permit termination
or modification of any of those insurance policies. Sweet Spot has not received any notice of
termination or cancellation or denial of coverage with respect to any insurance policy.

4.26. Real Properties. Sweet Spot does not own any real property.

4.27. Financial Statements. All of the historical financial statements contained in the Sweet Spot
Unaudited Financial Statements were prepared from the books and records of Sweet Spot. The Sweet
Spot Unaudited Financial Statements were prepared in accordance with GAAP, and fairly and
accurately specify the financial situation and condition of Sweet Spot as at the dates and for the
periods indicated. Without limited the foregoing, at the date of the Sweet Spot Balance Sheet,
Sweet Spot owned each of the assets included in preparation of the Sweet Spot Balance Sheet, and
the valuation of such assets in the Sweet Spot Balance Sheet is not more than their fair saleable
value (on an item-by-item basis) at that date; and Sweet Spot had no Liabilities, other than those
specified in the Sweet Spot Balance Sheet, nor any Liabilities in amounts in excess of the amounts
included for them in the Sweet Spot Balance Sheet. From the date hereof through the Closing Date
Sweet Spot will continue to prepare financial statements on the same basis that it and Sweet Spot
have done so in the past, and Sweet Spot will promptly deliver those financial statements to the
Company, and the foregoing representations and warranties will be applicable to each financial
statement so prepared and delivered.

4.28. Full Disclosure. The documents, certificates, and other writings furnished or to be furnished
by or on behalf of Sweet Spot to the Company pursuant to this Agreement, including, but not limited
to, the Sweet Spot Disclosure Document, considered together in the aggregate, do not and will not
contain any untrue statement of a material fact, or omit to specify any material fact necessary to
make the statements made, considering the circumstances pursuant to which they are made, not
misleading.

4.29. Options, Warrants and Other Rights and Agreements Affecting Sweet Spot’s Capital Stock.
Sweet Spot has no authorized or outstanding options, warrants, calls, subscriptions, rights,
convertible securities or other securities (“Sweet Spot Derivative Securities”), or any
commitments, agreements, arrangement or understandings of any manner or nature whatsoever
obligating Sweet Spot, in any event, to issue shares of capital stock or other securities or
securities convertible into or evidencing the right to purchase shares of capital stock or Sweet
Spot Derivative Securities, except as specified on the Sweet Spot Disclosure Document. Except as specified on the Sweet Spot
Disclosure Document, neither Sweet Spot nor any officer, director, or shareholder of Sweet Spot is
a party to any agreement, understanding, arrangement or commitment, or obligated by any provision
which creates any rights in any person with respect to the authorization, issuance, voting, sale or
transfer of any shares of Sweet Spot’s capital stock or Sweet Spot Derivative Securities.

 

22

 

4.30. Questionable Payments. Neither Sweet Spot, nor any director, officer, agent, employee, or
other person associated with or acting on behalf of Sweet Spot has, directly or indirectly, used
any corporate funds for unlawful contributions, gifts, entertainment, or other unlawful expenses
relating to political activity; made any unlawful payment to foreign and domestic political parties
or campaigns, from corporate funds; violated any provision of the Foreign Corrupt Practices Act of
1977, as amended; established or maintained any unlawful or unrecorded fund of corporate monies or
other assets; made any false or fictitious entry on the books or records of Sweet Spot; made any
bribe, rebate, payoff, influence payment, kickback, or other unlawful payment; given any favor or
gift which is not deductible for federal income tax purposes; or made any bribe, or kickback, or
other payment of a similar or comparable nature, whether lawful or not, to any person or entity,
private, or public, regardless of form, whether in money, property, or services, to obtain
favorable services, to obtain favorable treatment in securing business or to obtain special
concessions, or to pay for favorable treatment for business secured or for special concessions
already obtained.

4.31. Relationships with Related Persons. Except as specified on the Sweet Spot Disclosure
Document, no Affiliate or shareholder of Sweet Spot or any Affiliate or related person of any
shareholder of Sweet Spot has or has had any interest in any property (whether real, personal, or
mixed and whether tangible or intangible), used in or pertaining to Sweet Spot’s business. Except
as specified on the Sweet Spot Disclosure Document, no Affiliate or shareholder of Sweet Spot or
any Affiliate or related person of any shareholder of Sweet Spot owns or has owned (of record or as
a beneficial owner) an equity interest or any other financial or profit interest in, a person that
has (i) had business dealings or a material financial interest in any transaction with Sweet Spot,
or (ii) engaged in competition with Sweet Spot with respect to any of the products or services of
Sweet Spot in any market presently served by Sweet Spot. Except as specified on the Sweet Spot
Disclosure Document, no shareholder or Affiliate of Sweet Spot or any Affiliate or related person
of any shareholder of Sweet Spot is a party to any contract or other understanding with, or has any
claim or right against, Sweet Spot.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

OF THE COMPANY

The Company represents and warrants to Sycamore, Sweet Spot, and the Sellers as follows:

5.1. Organization And Qualification. The Company is a corporation duly organized, validly existing,
and in good standing pursuant to the laws of its jurisdiction of incorporation and has the
requisite corporate power and authority to conduct its business as that business is now conducted.
The Company is, or will prior to the Closing be, duly qualified as a foreign corporation to do
business, and in good standing, in each jurisdiction where the character of the properties owned or
leased by the Company, or the nature of its activities, is such that qualification as a foreign
corporation in those jurisdictions is required by law, except where the failure to so qualify would
not have a Material Adverse Effect.

 

23

 

5.2. Capitalization. The authorized capital stock of the Company consists of (i) 100,000,000 shares
of common stock, $.0001 par value, and (ii) 5,000,000 shares of preferred stock, $.0001 par value.
There is no other capital stock authorized for issuance by the Company. As of the date hereof, the
Company has issued and outstanding (i) 11,665,733 shares of its $.0001 par value common stock; (ii)
warrants to purchase 834,126 shares of the Company’s $.0001 par value common stock; and (iii)
options to purchase 421,935 shares of the Company’s $.0001 par value common stock (as disclosed in
the Company Disclosure Document). Immediately after the Closing, (i) 91,042,468 shares of the
Company’s $.0001 par value common stock will be validly issued and outstanding, fully paid, and
nonassessable; (ii) no shares of the Company’s $.0001 par value preferred stock will be issued and
outstanding; (iii) warrants to purchase 834,126 shares of the Company’s $.0001 par value common
stock will be issued and outstanding; and (iv) options to purchase 421,935 shares of the Company’s
$.0001 par value common stock will be issued and outstanding. No shares of the Company’s $.0001
par value capital stock are held in the Company’s treasury, and no such shares are reserved for
issuance.

5.3. Authority Relative to This Agreement. The Company has the requisite corporate power and
authority to enter into this Agreement and to carry out its obligations created by this Agreement.
Except as specified on the Company Disclosure Document, the execution and delivery of this
Agreement and the consummation of the Transaction have been duly authorized and approved by the
requisite corporate authority of the Company and no other corporate proceedings on the part of the
Company are necessary to approve and adopt this Agreement or to approve the consummation of the
Transaction, including issuance of the Subject Shares. Except as specified on the Company
Disclosure Document, this Agreement has been duly and validly executed and delivered by the Company
and constitutes a valid and binding obligation of the Company, enforceable in accordance with its
terms.

5.4. Absence of Breach; No Consents. Except as specified on the Company Disclosure Document, the
execution, delivery, and performance of this Agreement, and the performance by the Company of its
obligations created by this Agreement, do not (i) conflict with or result in a breach of any of the
provisions of the Certificate of Incorporation (or similar charter document) or Bylaws (or similar
governing document) of the Company; (ii) contravene any law, ordinance, rule, or regulation of any
state or political subdivision of either or of the United States or of any applicable foreign
jurisdiction, or contravene any order, writ, judgment, injunction, decree, determination, or award
of any court or other authority having jurisdiction, or cause the suspension or revocation of any
authorization, consent, approval, or license, presently in effect, which affects or obligates, the
Company or any of its material properties, except in any event when such contravention will not
have a Material Adverse Effect on the business, condition (financial or otherwise), operations or
prospects of the Company, and will not have a Material Adverse Effect on the validity of this
Agreement or on the validity of the consummation the Transaction; (iii) conflict with or result in
a material breach of or default pursuant to any material indenture or loan or credit agreement or
any other material agreement or instrument to which the Company is a party or by which the Company may
be affected or obligated; (iv) require the authorization, consent, approval, or license of any
third party; or (v) constitute any reason for the loss or suspension of any permits, licenses, or
other authorizations used in the business of the Company.

 

24

 

5.5. Brokers. Except as specified in the Company Disclosure Document, no broker, finder, or
investment banker is entitled to any brokerage, finder’s, or other fee or commission in connection
with this Agreement or the Transaction or any related transaction based upon any agreements,
written or oral, made by or on behalf of the Company. The Company does not have any obligation to
pay finder’s or broker’s fees or commissions in connection with the exercise of options to renew or
extend real estate leases to which the Company is a party.

5.6. Financial Statements. All of the historical financial statements contained in the Company
Audited Financial Statements and the Company Unaudited Financial Statements were prepared from the
books and records of the Company. The Company Audited Financial Statements were prepared in
accordance with GAAP, and fairly and accurately specify the financial situation and condition of
the Company as at the dates and for the periods indicated. The Company Unaudited Financial
Statements were prepared in a manner consistent with the basis of presentation used in the Company
Audited Financial Statements and fairly present the financial situation and condition of the
Company as at and for the periods indicated, subject to normal year-end adjustments, none of which
will be material. Without limited the foregoing, at the date of the Company’s Balance Sheet, the
Company owned each of the assets included in preparation of the Company Balance Sheet, and the
valuation of such assets in the Company Balance Sheet is not more than their fair saleable value
(on an item-by-item basis) at that date; and the Company had no Liabilities, other than those
specified in the Company Balance Sheet, nor any Liabilities in amounts in excess of the amounts
included for them in the Company Balance Sheet. From the date hereof through the Closing Date the
Company will continue to prepare financial statements on the same basis that it has done so in the
past, and the Company will promptly deliver those financial statements to Sycamore, and the
foregoing representations and warranties will be applicable to each financial statement so prepared
and delivered.

5.7. No Undisclosed Liabilities. Except as set forth in the Company Disclosure Document, the
Company has no Liabilities which are not adequately presented or reserved against on the Company
Balance Sheet, except Liabilities incurred since the date of the Company Balance Sheet in the
ordinary course of business and consistent with past practice. Without limiting the foregoing, (a)
there are no unpaid leasehold improvements at any of the Company’s’ Facilities or locations for
which the Company is or will be responsible, and (b) there are no deferred rents due to lessors at
or with respect to any of such Facilities or locations.

5.8. No Material Adverse Change, Etc. Except as specified on the Company Disclosure Document,
since the date of the Company Balance Sheet, other than as contemplated or caused by this
Agreement, there has not been (i) any Material Adverse Effect with respect to the Company; (ii) any
entry into or termination of any material commitment, contract, agreement, or transaction
(including, without limitation, any material borrowing or capital expenditure or sale or other
disposition of any material asset or assets) by or involving the Company, other than this Agreement
and agreements executed in the ordinary course of business; (iii) any redemption, repurchase, or
other acquisition for value of its capital stock by the Company, or any dividend or distribution
declared, set aside, or paid on capital stock of the Company; (iv) any transfer of or right granted
pursuant to any material lease, license, agreement, patent, trademark, trade name, or copyright of
the Company; (v) any sale or other disposition of any asset of the Company, or any mortgage,
pledge, or imposition of any lien or other encumbrance on any asset of the Company, other than in
the ordinary course of business, or any agreement relating to any of the foregoing; of (vi) any
default or breach by the Company in any material respect pursuant to any contract, license or
permit. Except as

 

25

 

specified on the Company Disclosure Document, since the date of the Company
Balance Sheet, the Company has conducted its business only in the ordinary and usual course, and,
without limiting the foregoing, no changes have been made in (i) executive compensation amounts,
(ii) the manner in which other employees of the Company are compensated, (iii) supplemental
benefits provided to any such executives or other employees, or (d) inventory amounts in relation
to sales amounts, except, in any event, in the ordinary course of business and, in any event,
without Material Adverse Effect to the Company.

5.9. Taxes. Except as specified on the Company Disclosure Document, the Company has properly filed
or caused to be filed all federal, state, local, and foreign income and other tax returns, reports,
and declarations that are required by applicable law to be filed by it, and has paid, or made full
and adequate provision for the payment of, all federal, state, local, and foreign income and other
taxes properly due for the periods contemplated by such returns, reports, and declarations, except
such taxes, if any, as are adequately reserved against in the Company Balance Sheet, and except to
the extent where any failure to file, any delinquency in filing, any inaccuracies in any such
filings, or any failure to pay, individually or in the aggregate, have not had and would not
reasonably be expected to have, a Material Adverse Effect.

5.10. Litigation. Except as specified on the Company Disclosure Document, no material
investigation or review by any governmental entity with respect to the Company is pending or, to
the Knowledge of the Company, threatened (other than inspections and reviews customarily made of
businesses such as that of the Company), nor has any governmental entity indicated to the Company
an intention to conduct the same. Except as specified on the Company Disclosure Document, there is
no action, litigation or proceeding pending or, to the Knowledge of the Company, threatened against
or affecting the Company, at law or in equity, or before any federal, state, municipal, or other
governmental department, commission, board, bureau, agency, or instrumentality, that could, if
there were an unfavorable decision, individually or in the aggregate, have or reasonably be
expected to have a Material Adverse Effect.

5.11. Employees. The Company Disclosure Document specifies complete and accurate information for
each current employee, officer, and director of the Company, including name, job title and current
compensation payable.

5.12. Compliance With Laws. Except as specified on the Company Disclosure Document, the Company is
in substantial compliance with all, and has received no notice of any violation of any, laws or
regulations applicable to its operations, including, without limitation, the use of premises
occupied by it, or with respect to which compliance is a condition of engaging in any aspect of the
business of the Company, except for instances of noncompliance that, individually or in the
aggregate, have not had and would not reasonably be expected to have, a Material Adverse Effect,
and the Company has all permits, licenses, zoning rights, and other governmental authorizations
necessary to conduct its business as presently conducted, except where the failure to obtain such
permits, licenses, zoning rights and other governmental authorizations has not had and would not
reasonably be expected to have a Material Adverse Effect.

 

26

 

5.13. Ownership of Assets. Except as specified on the Company Disclosure Document, the Company has
good, marketable, and insurable title to, or valid, effective, and continuing leasehold rights in
the case of leased property, in all personal property owned or leased by it or used by it in the
conduct of its business in such a manner as to create the appearance or reasonable expectation that
such property is owned or leased by it, free and clear of all liens, claims, encumbrances, and
charges, except liens for taxes not yet due and except for liens, claims encumbrances and charges
that, in the aggregate, do not and will not materially interfere with the ability of the Company to
conduct business as currently conducted. Except as specified on the Company Disclosure Document,
to the Company’s Knowledge, no actions are pending or threatened that would materially affect the
ability of the Company to use and to utilize each of such assets in its business.

5.14. Intellectual Property. The Company has full and complete ownership of, or adequate and
enforceable long-term licenses or other rights to use (without payment), all Intellectual Property
Rights owned by or registered in the name of the Company, or used in the business of the Company as
conducted on the date hereof. No claims are pending or, to the Knowledge of the Company,
threatened that the Company is infringing or otherwise adversely affecting the rights of any person
with regard to any Intellectual Property Right.

5.15. Subsidiaries, Etc. The Company has no subsidiaries.

5.16. Trade Names. The Company Disclosure Document identifies each trade name, fictitious business
name, or other similar name pursuant to which the Company has conducted any part of the Company’s
business or in which the Company has utilized any of the assets of the Company.

5.17. Pension Plans. Except as specified on the Company Disclosure Document,

5.17.1 All Pension Plans and Welfare Plans of the Company have been administered in
substantial compliance with their terms, ERISA and, where applicable, the Code. With respect to
each Pension Plan that is intended to be qualified under Section 401 of the Code, the Pension Plan
is being maintained through the use of a prototype plan document or volume submitter plan document
as to which the IRS has issued an opinion letter on the qualification of the form of the document
to the prototype plan or volume submitter plan sponsor.

5.17.2 With respect to each Pension Plan and each Welfare Plan; (i) there is no fact,
including, without limitation, any Reportable Event, that exists that would constitute a reason for
termination of such Plan by the PBGC or for the appointment by the appropriate United States
District Court of a trustee to administer such Plan, in each case as contemplated by ERISA; (ii) to
the Knowledge of the Company, neither the Company, nor any fiduciary, trustee or administrator of
any Pension Plan or Welfare Plan, has engaged in a Prohibited Transaction that could subject the
Company to any material tax or any material penalty imposed by ERISA or the Code; (iii) the Company
has not incurred any material liability to the PBGC (other than for payment of premiums); and (iv)
there is no material Accumulated Funding Deficiency with respect to any Pension Plan, whether or
not waived.

5.17.3 There has been no Plan Termination under Title IV of ERISA that has occurred during
the 5 year period ending on the Effective Date.

 

27

 

5.17.4 The Company has no Knowledge of any material liability being incurred pursuant to
Title IV of ERISA by the Company with respect to any Pension Plan maintained by a trade or business
(whether or not incorporated) which is under common control with, or part of a controlled group of
corporations with, the Company, within the meaning of Section 414 subdivisions (b) and (c) of the
Code.

5.17.5 No Welfare Plan is funded with a trust or other funding method, other than insurance
policies.

5.17.6 There has occurred no Complete Withdrawal or Partial Withdrawal with respect to any
Multiemployer Plan that could cause the Company to incur any material Liability pursuant to or as a
result of ERISA, other than to the extent previously paid or fully provided for in the Company
Balance Sheet, and all payments required to be made to any such Plan by the Company pursuant to any
applicable collective bargaining agreements have been made.

5.18. Facilities. The Company has no Facilities.

5.19. Accounts Receivable. Except as specified on the Company Disclosure Document, all accounts
receivable of the Company, whether or not specified in the Company Balance Sheet, represent
transactions in the ordinary course of business, and are current and collectible net of any
reserves specified on the Company Balance Sheet (which reserves are adequate and were calculated
consistent with past practice).

5.20. Contracts. Except as disclosed on the Company Disclosure Document, there are no contracts
that are material to the business, properties, assets, condition (financial or otherwise), results
of operations or prospects of the Company taken as a whole. With respect to each such material
contract of the Company (i) such contract is legal, valid, binding, enforceable and in full force
and effect; (ii) such contract will continue to be legal, valid, binding, enforceable and in full
force and effect on identical terms following the consummation of the transactions contemplated
hereby; (iii) no party is in breach or default, and no event has occurred that with notice or lapse
of time would constitute a breach or default, or permit termination, modification, or acceleration,
under any such contract; and (iv) no party has repudiated any provision of any such contract.

5.21. Accounts Payable. Except as specified on the Company Disclosure Document, the accounts
payable specified on the Company Balance Sheet do, and those specified on the books of the Company
at the time of the Closing will, specify all amounts owed by the Company in respect of
trade accounts due and other Payables, and the actual Liabilities of the Company in respect of such
obligations were not, and will not be, on any of such dates, in excess of the amounts so specified
on the balance sheets or the books and records of the Company.

5.22. Labor Matters. Except as specified on the Company Disclosure Document, there are no
activities or controversies, including, without limitation, any labor organizing activities,
election petitions or proceedings, proceedings preparatory thereto, unfair labor practice
complaints, labor strikes, disputes, slowdowns, or work stoppages, pending or, to the best of the
Knowledge of the Company, threatened, among the Company and any of its employees.

 

28

 

5.23. Insurance. The Company owns or holds policies of insurance in amounts providing reasonably
adequate coverage against all risks customarily insured against by companies in business similar to
the Company, except when any failure to maintain such coverage would not have a Material Adverse
Effect. The Company Document Disclosure specifies a list of all material insurance policies
(including directors’ and officers’ liability insurance and fiduciary liability insurance)
maintained as of the Closing by the Company, including the premiums payable in connection
therewith. All insurance policies maintained by the Company are in full force and effect (and were
in full force and effect during the periods of time such insurance policies were purported to be in
effect) and all premiums due and payable thereon have been paid; and the Company is not in breach
or default of any of the insurance policies, and the Company has not taken any action or failed to
take any action that, with notice or the lapse of time, would constitute such a breach or default
or permit termination or modification of any of those insurance policies. The Company has not
received any notice of termination or cancellation or denial of coverage with respect to any
insurance policy.

5.24. Full Disclosure. Except as disclosed in Company Disclosure Document, the documents,
certificates, and other writings furnished or to be furnished by or on behalf of the Company to
Sycamore, Sweet Spot, and the Sellers, either directly or by the Company pursuant to this
Agreement, including, but not limited to, the Company Disclosure Document, taken together in the
aggregate, do not and will not contain any untrue statement of a material fact, or omit to specify
any material fact necessary to make the statements made, considering the circumstances pursuant to
which they are made, not misleading.

5.25. Options, Warrants and Other Rights and Agreements Affecting Capital Stock. Except as
disclosed in the Company Disclosure Document, the Company has no authorized or outstanding options,
warrants, calls, subscriptions, rights, convertible securities or other securities, as defined by
the provisions of the Securities Act (collectively, “Company Derivative Securities”), or any
commitments, agreements, arrangement or understandings of any manner or nature whatsoever
obligating the Company, in any event, to issue shares of capital stock or other securities or
securities convertible into or evidencing the right to purchase shares of the capital stock or
Company Derivative Securities. Except as disclosed in the Company Disclosure Document, neither the
Company, nor any officer, director, or shareholder of the Company is a party to any agreement,
understanding, arrangement or commitment, or obligated by an provision which creates any rights in
any person with respect to the authorization, issuance, voting, sale or transfer of any shares of
capital stock or Company Derivative Securities.

5.26. SEC Filings. The Company has filed with and furnished to and will continue to file with and
furnish to the SEC all forms, documents and reports (including exhibits) required to be filed or
furnished prior to the Closing Date by the Company with the SEC. As of their respective dates, or,
if amended prior to the Closing Date, as of the date of the last such amendment, the SEC Reports
comply and will comply in all material respects with the requirements of the Securities Act and the
Exchange Act, as the case may be, and the applicable rules and regulations promulgated pursuant
thereto, and none of the SEC Reports specify or will specify any untrue statement of a material
fact or omit to specify or incorporate by reference any material fact required to be specified or
incorporated by reference therein or necessary to make the information specified therein,
considering the circumstances pursuant to which that information is disclosed, not misleading. The
Company

 

29

 

will make available to Sycamore correct and complete copies of all material correspondence
among the SEC, on the one hand, and the Company, on the other hand, occurring and prior to the
Closing Date. As of the date hereof, there are no outstanding or unresolved comments in comment
letters from the SEC staff with respect to any of the SEC Reports. As of the date hereof, to the
Knowledge of the Company, none of the SEC Reports is the subject of ongoing SEC review, outstanding
SEC comment or SEC investigation. The Financial Statements of the Company included in the SEC
Reports comply as to form in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto as in effect at the time of filing,
have been prepared in accordance with U.S. GAAP (except in the case of unaudited statements, as
permitted by the rules and regulations of the SEC) applied on a consistent basis during the periods
involved (except as may be indicated in the notes thereto), and fairly present the financial
position of the Company as of the dates thereof and its results of operations and cash flows for
the periods shown (subject, in the case of unaudited statements, to normal year-end audit
adjustments).

5.27. Questionable Payments. Except as specified on the Company Disclosure Document, neither the
Company, nor to the Company’s Knowledge any director, officer, agent, employee, or other person
associated with or acting on behalf of the Company has, directly or indirectly, used any corporate
funds for unlawful contributions, gifts, entertainment, or other unlawful expenses relating to
political activity; made any unlawful payment to foreign and domestic political parties or
campaigns, from corporate funds; violated any provision of the Foreign Corrupt Practices Act of
1977, as amended; established or maintained any unlawful or unrecorded fund of corporate monies or
other assets; made any false or fictitious entry on the books or records of the Company; made any
bribe, rebate, payoff, influence payment, kickback, or other unlawful payment; given any favor or
gift which is not deductible for federal income tax purposes; or made any bribe, or kickback, or
other payment of a similar or comparable nature, whether lawful or not, to any person or entity,
private, or public, regardless of form, whether in money, property, or services, to obtain
favorable services, to obtain favorable treatment in securing business or to obtain special
concessions, or to pay for favorable treatment for business secured or for special concessions
already obtained.

5.28. Status of the Company. The Company is not a “blank check company” (as that term is defined
by the provisions of Rule 419) promulgated pursuant to the provisions of the Securities Act. The
Company is not, and is not controlled by or under common control with an Affiliate of, an
“investment company” (as that term is defined by the provisions of the Investment Company Act of
1940, as amended).

5.29. Banking Relationships. The Company Disclosure Document specifies the names and locations of
all banks, trust companies, savings and loans associations and other financial institutions at
which the Company maintains its safe deposit boxes or accounts of any nature and the names of all
persons authorized to have access there to, draw thereon or make withdrawals therefrom.

5.30. Relationships with Related Persons. Except as disclosed in the Company Disclosure Document,
none of the officers or directors of the Company, and to the Knowledge of the Company, none of the
employees of the Company, has or has had any interest in any property (whether real, personal, or
mixed and whether tangible or intangible), used in or pertaining to the Company’s business. Except
as disclosed in the Company Disclosure Document, no officers or directors of the Company, and to
the Knowledge of the Company, none of the employees of the Company, owns or

 

30

 

has owned (of record or as a beneficial owner) an equity interest or any other financial or profit interest in, a person
that has (i) had business dealings or a material financial interest in any transaction with the
Company, or (ii) engaged in competition with the Company with respect to any of the products or
services of the Company in any market presently served by the Company. Except as disclosed in the
Company Disclosure Document, no officer or director of the Company, and to the Knowledge of the
Company, none of the employees of the Company, is a party to any contract or other understanding
with, or has any claim or right against, the Company.

ARTICLES VI

COVENANTS OF SYCAMORE

Sycamore hereby covenants with the Company the following:

6.1. Affirmative Covenants. From the date hereof through the Closing Date, Sycamore will take
every action reasonably required of it to satisfy the conditions to Closing set forth in this
Agreement and otherwise to ensure the prompt and expedient consummation of the Transaction
substantially as contemplated by the provisions of this Agreement, and will exert all reasonable
efforts to cause the Transaction to be consummated; provided, however that in all instances the
representations and warranties of the Company in this Agreement are and remain true and accurate
and that the covenants and agreements of the Company in this Agreement are performed and that the
conditions to the obligations of Sycamore set forth in this Agreement are not incapable of
satisfaction and subject, at all times, to the right and ability of the directors of Sycamore to
satisfy their fiduciary obligations.

6.2. Access and Information. Sycamore shall provide to the Company and to the Company’s
accountants, counsel and other representatives reasonable access during normal business hours
during the period prior to the Closing to all of its properties, books, contracts, commitments,
records (including, but not limited to, tax returns), and personnel, and, during such period,
Sycamore shall furnish promptly to the Company (i) all written communications to its directors or
to its shareholders generally, (ii) internal monthly financial statements when and as available,
and (iii) all other information concerning its business, properties, and personnel as the Company
may request, but no investigation pursuant to this section shall affect any representations or
warranties of Sycamore, or the conditions to the obligations of the Company to consummate the
Transaction. In the event of the termination of this Agreement, Sycamore will, and will cause its representatives to, deliver to the
Company or destroy all documents, work papers, and other material, and all copies thereof, obtained
by Sycamore or on its behalf from the Company as a result of this Agreement or in connection with
this Agreement, whether so obtained before or after the execution of this Agreement, and Sycamore
will hold in confidence all confidential information, that has been designated as such by the
Company in writing or by appropriate and obvious notation, and will not use any such confidential
information, except in connection with the Transaction, until such time as such information is
otherwise publicly available. Sycamore and its representatives shall assert their rights pursuant
to this Agreement in such manner as to minimize interference with the business of the Company.

6.3. Conduct of Business Pending the Closing of the Transaction. Prior to the consummation of the
Transaction or the termination of this Agreement pursuant to its terms, unless the Company shall
otherwise consent in writing, and except as otherwise contemplated by this Agreement, Sycamore
shall comply with each of the following:

 

31

 

(1) The business of Sycamore shall be conducted only in the ordinary and usual course, Sycamore
shall use reasonable efforts to keep intact its business organization and goodwill, keep available
the services of its officers and employees and maintain good relationships with suppliers, lenders,
creditors, distributors, employees, customers, and other persons having business or financial
relationships with Sycamore, and Sycamore shall immediately notify the Company of any event or
occurrence or emergency material to, and not in the ordinary and usual course of business of,
Sycamore.

(2) Sycamore shall not (a) amend its Articles of Incorporation (or similar charter document) or
Bylaws (or similar governing document), or (b) split, combine, or reclassify any of its outstanding
securities or declare, set aside, or pay any dividend or other distribution on or make or agree or
commit to make any exchange for or redemption of any such securities payable in cash, stock, or
property.

(3) Sycamore shall not (a) issue or agree to issue any additional shares of, or rights of any kind
to acquire any shares of, its capital stock of any class, or (b) enter into any contract,
agreement, commitment, or arrangement with respect to any of the foregoing.

(4) Sycamore shall not create, incur, or assume any long-term or short-term indebtedness for money
borrowed or make any capital expenditures or commitment for capital expenditures, except in the
ordinary course of business and consistent with past practice.

(5) Sycamore shall not (a) adopt, enter into, or amend any bonus, profit-sharing, compensation,
stock option, warrant, pension, retirement, deferred compensation, employment, severance,
termination, or other employee benefit plan, agreement, trust fund, or arrangement for the benefit
or welfare of any officer, director or employee; or (b) agree to any material (in relation to
historical compensation) increase in the compensation payable or to become payable to, or any
increase in the contractual term of employment of, any officer, director, or employee, except, with
respect to employees who are not officers or directors, in the ordinary course of business in
accordance with past practice.

(6) Sycamore shall not sell, lease, mortgage, encumber, or otherwise dispose of or grant any
interest in any of Sycamore’s assets or properties, except for sales, encumbrances, and other
dispositions or grants in the ordinary course of business and consistent with past practice and
except for liens for taxes not yet due or liens or encumbrances that are not material in amount or
effect and do not impair the use of Sycamore’s property, or as specifically provided for or
permitted in this Agreement.

(7) Sycamore shall not enter into, or terminate, any material contract, agreement, commitment, or
understanding.

(8) Sycamore shall not enter into any agreement, commitment, or understanding, whether in writing
or otherwise, with respect to any of the matters referred to in Paragraphs (1) through (7),
inclusive, of this section.

 

32

 

(9) Sycamore will file properly and promptly when due all federal, state, local, foreign and other
tax returns, reports, and declarations required to be filed by Sycamore and will pay, or make full
and adequate provision for the payment of, all taxes and governmental charges due from or payable
by Sycamore.

(10) Sycamore will comply with all laws and regulations applicable to Sycamore and Sycamore’s
operations.

6.4. Expenses. Whether or not the Transaction is consummated, all costs and expenses incurred by
Sycamore in connection with this Agreement and the Transaction shall be paid by Sycamore.

6.5. Publicity. Prior to the Closing any written news releases by Sycamore pertaining to this
Agreement or the Transaction shall be submitted to the Company for review and approval prior to
release by Sycamore, and shall be released only in a form approved by the Company; provided,
however, that such review and approval shall not be required of releases by Sycamore if prior
review and approval would prevent the timely and accurate dissemination of such press release as
required to comply, in the judgment of counsel for the Company, with any applicable law, rule or
policy.

6.6. Updating of Sycamore Disclosure Document. Sycamore shall notify the Company of any changes,
additions or events which may cause any change in or addition to the Sycamore Disclosure Document
promptly after the occurrence of the same and at the Closing by the delivery of appropriate updates
to the Sycamore Disclosure Document. No notification made pursuant to this section shall be deemed
to cure any breach of any representation or warranty made in this Agreement, unless the Company
specifically agrees thereto in writing nor shall any such notification be considered to constitute
or result in a waiver by the Company of any condition set forth in this Agreement.

ARTICLE VII

COVENANTS OF THE COMPANY

The Company, covenants with Sycamore, Sweet Spot and the Sellers as follows:

7.1. Affirmative Covenants. From the date hereof through the Closing Date, the Company will take
every action reasonably required of it to satisfy the conditions to Closing set forth in this
Agreement and otherwise to ensure the prompt and expedient consummation of the Transaction
substantially as contemplated by the provisions of this Agreement, and will exert all reasonable
efforts to cause the Transaction to be consummated; provided however, that in all instances
representations and warranties of Sycamore, Sweet Spot, and the Sellers in this Agreement are and
remain true and accurate and that the covenants and agreements of Sycamore, Sweet Spot, and the
Sellers in this Agreement are performed and that the conditions to the obligations of the Company
set forth in this Agreement are not incapable of satisfaction and subject, at all times, to the
right and ability of the directors of the Company to satisfy their fiduciary obligations.

 

33

 

7.2. Access and Information. The Company shall provide to (i) Sycamore and to Sycamore’s
accountants, counsel and other representatives and (ii) Sweet Spot and Sweet Spot’s accountants,
counsel and other representatives reasonable access during normal business hours during the period
prior to the Closing to all of the properties, books, contracts, commitments, records (including,
but not limited to, tax returns), and personnel, and, during such period, the Company shall furnish
promptly to Sycamore and Sweet Spot (a) all written communications to its directors or to its
shareholders generally, (b) internal monthly financial statements when and as available, and (c)
all other information concerning the business, properties, and personnel of the Company as Sycamore
or Sweet Spot may request, but no investigation pursuant to this section shall affect any
representations or warranties of the Company, or the conditions to the obligations of Sycamore,
Sweet Spot, or the Sellers to consummate the Transaction. In the event of the termination of this
Agreement, the Company will, and will cause its representatives to, deliver to Sycamore and Sweet
Spot, as the case may be, or destroy all documents, work papers, and other material, and all copies
thereof, obtained by the Company or on its behalf from Sycamore and Sweet Spot as a result of this
Agreement or in connection with this Agreement, whether so obtained before or after the execution
of this Agreement, and the Company will hold in confidence all confidential information, that has
been designated as such by Sycamore or Sweet Spot in writing or by appropriate and obvious
notation, and will not use any such confidential information, except in connection with the
Transaction, until such time as such information is otherwise publicly available. The Company and
its representatives shall assert their rights pursuant to this Agreement in such manner as to
minimize interference with the businesses of Sycamore and Sweet Spot.

7.3. No Solicitation.

(1) For and during that period which ends thirty (30) days after the date hereof, the Company, and
those acting on behalf of any of the Company, will not, and the Company will use its best efforts
to cause its officers, employees, agents, and representatives (including any investment banker)
not, directly or indirectly, to solicit, encourage, or initiate any discussions with, or negotiate
or otherwise deal with, or provide any information to, any person other than Sycamore and its
officers, employees, and agents, concerning any merger, sale of substantial assets, or similar
transaction involving the Company or any sale of any of its capital stock. The Company will notify
Sycamore immediately upon receipt of any inquiry, offer or proposal relating to any of the
foregoing. None of the foregoing shall prohibit providing information to others in a manner in
keeping with the ordinary conduct of the Company’s business, or providing information to government
authorities.

(2) Notwithstanding the foregoing or any other provision of this Agreement, at any time prior to
the Closing, in the event that the Company Directors determine in good faith by a majority vote,
based on the advice of its outside legal counsel, that there is a reasonable basis requiring the
Company to consider a Favorable Third Party Proposal (as defined below) to comply with its
fiduciary duties, the Company may furnish non-public information with respect to the Company to the
person who made the Favorable Third Party Proposal pursuant to a confidentiality agreement and
participate in discussions or negotiations with such person regarding the Favorable Third Party
Proposal. In the event the Company Directors receive a Favorable Third Party Proposal, which they
determine is more favorable to the Company’s shareholders than the terms and conditions of the
Transaction, no later than the third (3) business day following the date upon which the Company
Directors determine
that such Favorable Third Party Proposal is a more favorable proposal than the Transaction provide

 

34

 

written notice to Sycamore and Sweet Spot that specifies the material terms and conditions of that
Favorable Third Party Proposal. Sycamore and Sweet Spot shall have the option for ten (10)
business days after receipt of such notice to amend the terms and conditions of the Transaction to
cause this Transaction to be no less favorable than the Favorable Third Party Proposal. In the
event that Sycamore and Sweet Spot do not agree to the modification of the terms and conditions of
the Transaction at the end of that ten (10) business day period, the Company Directors may, with
written notice to Sycamore and Sweet Spot, and payment of a termination fee of $50,000.00,
terminate this Agreement (and concurrently with such termination, if they so determine, cause the
Company to enter into any agreement with respect to that Favorable Third Party Proposal) (the
“Termination Fee”). The Termination Fee shall be allocated and shared by Sycamore and Sweet Spot
(each, a “Recipient”) each in that amount which is equal to that percentage which the total fees
and costs paid by such Recipient in connection with the Transaction bears to the total amount of
fees and costs paid by both Recipients in connection with the Transaction and the Merger, and each
of them.

(3) As used in this Agreement, “Favorable Third Party Proposal” means a written proposal
from a credible, bona fide third party relating to any direct or indirect acquisition or purchase
of 50% or more of the equity securities of the Company, any tender offer or exchange offer that if
consummated would result in any person beneficially owning 50% or more of the combined voting power
of the Company’s voting equity securities, or any merger, consolidation, business combination,
share exchange, recapitalization, liquidation, dissolution or similar transaction involving the
Company or combined voting power of the Company, and otherwise on terms which the Company Directors
determine in their good faith judgment, taking into account legal, financial, regulatory and other
aspects of the proposal deemed appropriate by the Company Directors, to be more favorable to the
stockholders of the Company than the Transaction (taking into account any changes to the terms and
conditions regarding the Transaction and amendments to this Agreement proposed by Sycamore or
Sweet Spot in response to the receipt by Sycamore and Sweet Spot of information about that
Favorable Third Party Proposal).

(4) Nothing contained in this section shall (i) prohibit the Company from at any time taking and
disclosing to its stockholders a position contemplated by Rule 14d-9 or Rule 14e-2 promulgated
under the Exchange Act or making any disclosure required by Rule 14a-9 promulgated under the
Exchange Act.

7.4. Promissory Notes. In addition to the Subject Shares to be issued to JRT and Red Cat, on the
Closing Date, the Company and Sycamore shall execute and deliver to JRT and Red Cat the Promissory
Notes.

7.5. Adjustment of Shares of the Company’s Common Stock issued to JRT and Red Cat. In the event
the Company issues additional shares of its common stock prior to the Closing Date at any price
less than $0.15 per share, the number of shares of the Subject Stock to be issued to JRT and Red
Cat on the Closing Date shall be adjusted upward so that on the Closing Date JRT and Red Cat shall
each be issued that number of shares of the Company’s Common Stock equal to 2 1/2% of the Company’s
common stock issued and outstanding on the Closing Date and after the closing of the Transaction.

 

35

 

7.6. Option to put the Company’s stock. Beginning on that date which is six (6) months after the
Closing Date, and continuing for a two year period immediately thereafter (the “Put Period”), JRT
and Red Cat, and each of them (collectively, “Optionees,” and each individually, “Optionee”) shall
have the right to require that, during any 90-day period following the first day of the Put Period,
the Company purchase from each Optionee up to 25% of the Subject Shares received by that Optionee
on the Closing Date (“Put Right”). An Optionee may exercise the Put Right, in whole or in part, at
any time or from time to time during the Put Period, by delivering to the Company a thirty (30) day
written notice of Optionee’s intent to exercise its Put Right, which notice shall specify the
number of the Subject Shares to be purchased by the Company. If during any 90-day period an
Optionee elects not to exercise the Put Right with respect to any of 25% of the Subject Shares
which the Optionee is entitled to put, such Subject Shares may be put during the following 90-day
period in addition to 25% of Subject Shares that the Optionee is entitled to put during such 90-day
period. As such, at the beginning of the fourth 90-day period, each Optionee shall have the right
to exercise the Put Right with respect to any and all of Subject Shares held by that Optionee as of
the Closing Date. The price at which the Company shall be required to purchase Subject Shares
shall equal to (i) $0.16 per share, in the event that the Put Right is exercised prior to the
Reverse Stock Split, and (ii) $0.32 per share, in the event that the Put Right is exercised after
the Reverse Stock Split. The purchase price for the Subject Shares so put shall be paid by the
Company within ten (10) Business Days following the expiration of the 30-day notice period. The
provisions of this Section 7.6 notwithstanding, if at any time during the Put Period the Company
decides to raise funds for a particular project, whether by a public or private sale of shares of
the Company’s $.0001 par value common stock or by any other form of financing transaction, and
determines in good faith that Optionees’ exercise of Put Rights may interfere with such fundraising
efforts, the Company may suspend Optionees’ rights to exercise their Put Rights by delivering to
Optionees a written notice of suspension, which notice shall set forth the planned fundraising
activity and the anticipated duration of the suspension period. The Put Period shall be extended
for the duration of such suspension period. Upon Optionees’ receipt of the notice of suspension
and during the suspension period, the Optionees (i) shall not exercise their Put Rights, and (ii)
shall not exercise rights granted under the Registration Rights Agreement at a time or in a manner
that will interfere with the efforts of the Company to raise funds. The suspension period shall
terminate and the Optionees shall be able to exercise the suspended rights to the full extent
provided by this Agreement and the documents related hereto upon the earlier of (i) completion of
the Company’s fundraising campaign; or (ii) the Company’s determination that the necessary funds
cannot be raised within immediate future, not to exceed twelve (12) months.

7.7. Registration Rights. Until such time as JRT and Red Cat may sell their respective Subject
Shares freely and without restrictions regarding quantity or manner of sale under Rule 144
promulgated under the Securities Act, JRT and Red Cat, and each of them, shall be provided with
registration rights for those shares as set forth in a registration rights agreement substantially
in the form and substance set forth in Exhibit H attached to the Merger Agreement (the
“Registration Rights Agreement”).

7.8. Employment Agreements with Scotti and Takats. On the Closing Date the Company and Sycamore
shall enter into and execute the Employment Agreements.

 

36

 

7.9. Number of members of the Board of Directors. During that time that JRT and Red Cat each owns
not less than 250,000 shares of the Company’s common stock prior to Reverse Stock Split or not
less than 125,000 shares after the Reverse Stock Split, as the case may be, and to the extent
permissible under applicable laws and listing regulations, Scotti and Takats, and each of them,
shall be nominated annually as members of the Board of Directors of the Company. Additionally,
during that time that Scotti and Takats are members of the Company’s Board of Directors, the number
of members of that Board of Directors shall not be more than 7.

7.10. Pledge and Security Agreements. On the Closing Date, the Company shall execute and deliver
to JRT and Red Cat the Pledge and Security Agreements.

7.11. Conduct of Business Pending the Closing of the Transaction. Prior to the consummation of the
Transaction or the termination of this Agreement pursuant to its terms, unless Sycamore and Sweet
Spot shall otherwise consent in writing, and except as otherwise contemplated by this Agreement,
the Company will comply with each of the following:

(1) The business of the Company shall be conducted only in the ordinary and usual course, the
Company shall use reasonable efforts to use reasonable efforts to keep intact its business
organization and goodwill, keep available the services of its officers and employees and maintain
good relationships with creditors, employees and other persons having business or financial
relationships with the Company, and the Company shall immediately notify Sycamore and Sweet Spot of
any event or occurrence or emergency material to, and not in the ordinary and usual course of
business of, the Company.

(2) The Company shall not (a) amend its Certificate of Incorporation (or similar charter document)
or Bylaws (or similar governing document), or (b) split, combine, or reclassify any of its
outstanding securities or declare, set aside, or pay any dividend or other distribution on or make
or agree or commit to make any exchange for or redemption of any such securities payable in cash,
stock, or property.

(3) The Company shall not (a) issue or agree to issue any additional shares of, or rights of any
kind to acquire any shares of, its capital stock of any class, or (b) enter into any contract,
agreement, commitment, or arrangement with respect to any of the foregoing.

(4) The Company shall not create, incur, or assume any long-term or short-term indebtedness for
money borrowed or make any capital expenditures or commitment for capital expenditures, except in
the ordinary course of business and consistent with past practice.

(5) The Company shall not (a) adopt, enter into, or amend any bonus, profit-sharing, compensation,
stock option, warrant, pension, retirement, deferred compensation, employment, severance,
termination, or other employee benefit plan, agreement, trust fund, or arrangement for the benefit
or welfare of any officer, director or employee; or (b) agree to any material (in relation to
historical compensation) increase in the compensation payable or to become payable to, or any
increase in the contractual term of employment of, any officer, director, or employee, except, with
respect to
employees who are not officers or directors, in the ordinary course of business in accordance with
past practice.

 

37

 

(6) The Company shall not sell, lease, mortgage, encumber, or otherwise dispose of or grant any
interest in any of their assets or properties, except for sales, encumbrances, and other
dispositions or grants in the ordinary course of business and consistent with past practice and
except for liens for taxes not yet due or liens or encumbrances that are not material in amount or
effect and do not impair the use of their property, or as specifically provided for or permitted in
this Agreement.

(7) The Company shall not enter into, or terminate, any material contract, agreement, commitment,
or understanding.

(8) The Company shall not enter into any agreement, commitment, or understanding, whether in
writing or otherwise, with respect to any of the matters referred to in Paragraphs (1) through (7),
inclusive, of this section.

(9) The Company will continue promptly and properly to file when due all federal, state, local,
foreign and other tax returns, reports, and declarations required to be filed by the Company, and
will pay, or make full and adequate provision for the payment of, all taxes and governmental
charges due from or payable by the Company.

(10) The Company will comply with all laws and regulations applicable to the Company and its
operations.

(11) The Company will maintain in full force and effect insurance coverage of a type and amount
customary in its business, but not less than that presently in effect.

7.12. Expenses. Whether or not the Transaction is consummated, all costs and expenses incurred by
the Company in connection with this Agreement and the Transaction shall be paid by the Company.

7.13. Publicity. Except to the extent necessary or appropriate for the Company to comply with its
obligations under the Exchange Act (including but not limited to the filing of a Current Report on
Form 8-K in connection with the execution of this Agreement), prior to the Closing, any written
news releases by the Company pertaining to this Agreement or the Transaction shall be submitted to
Sycamore and Sweet Spot for review and approval prior to release by the Company, and shall be
released only in a form approved by Sycamore and Sweet Spot; provided, however, that (i) such
approval shall not be unreasonably withheld and (ii) such review and approval shall not be required
of releases by the Company, if prior review and approval would prevent the timely and accurate
dissemination of such press release as required to comply, in the judgment of counsel, with any
applicable law, rule, or policy.

7.14. Updating of Company Disclosure Document. The Company shall notify Sycamore, Sweet Spot and
the Sellers of any changes, additions, or events which may cause any change in or addition to the
Company Disclosure Document promptly after the occurrence of the same and again at the
Closing by delivery of appropriate updates to the Company Disclosure Document. No such
notification made pursuant to this section shall be deemed to cure any breach of any representation
or warranty made in this Agreement, unless Sycamore, Sweet Spot, and the Sellers specifically agree
thereto in writing nor shall any such modification be considered to constitute or result in a
waiver by Sycamore, Sweet Spot, or any of the Sellers of any condition specified in this Agreement.

 

38

 

7.15. Issuance and delivery of the Subject Shares. At or within 10 days following the Closing, the
Company shall issue or cause to be issued certificates evidencing and representing the Subject
Shares.

7.16. Resales of Subject Shares. The Company shall refuse to register on its books any resale of
Subject Shares unless such transfer is made pursuant to a Registration or unless the Company or its
counsel agrees that such transfer is permissible pursuant to an exemption from Registration or
pursuant to Regulation S promulgated under the Securities Act.

ARTICLES III

COVENANTS OF SWEET SPOT

Sweet Spot hereby covenants with the Company, Sycamore and the Sellers the following:

8.1. Affirmative Covenants. From the date hereof through the closing of the Merger with Sycamore,
Sweet Spot will take every action reasonably required of it to satisfy the conditions to Closing
set forth in this Agreement and otherwise to ensure the prompt and expedient consummation of the
Transaction substantially as contemplated by the provisions of this Agreement, and will exert all
reasonable efforts to cause the Transaction to be consummated; provided, however that in all
instances the representations and warranties of the Company, Sycamore, and the Sellers in this
Agreement are and remain true and accurate and that the covenants and agreements of the Company,
Sycamore, and the Sellers in this Agreement are performed and that the conditions to the
obligations of Sweet Spot set forth in this Agreement are not incapable of satisfaction and
subject, at all times, to the right and ability of the directors of Sweet Spot to satisfy their
fiduciary obligations.

8.2. Access and Information. Through the closing of the Merger with Sycamore, Sweet Spot shall
provide to the Company and to the Company’s accountants, counsel and other representatives
reasonable access during normal business hours during the period prior to the Closing to all of its
properties, books, contracts, commitments, records (including, but not limited to, tax returns),
and personnel, and, during such period, Sweet Spot shall, furnish promptly to the Company (i) all
written communications to its directors or to its shareholders generally, (ii) internal monthly
financial statements when and as available, and (iii) all other information concerning its
business, properties, and personnel as the Company may request, but no investigation pursuant to
this section shall affect any representations or warranties of Sweet Spot, or the conditions to the
obligations of the Company to consummate the Transaction. In the event of the termination of this
Agreement, Sweet Spot will, and will cause its representatives to, deliver to the Company or
destroy all documents, work papers, and other material, and all copies thereof, obtained by Sweet
Spot or on its behalf from the Company as a result of this Agreement or in connection with this
Agreement, whether so obtained before or
after the execution of this Agreement, and Sweet Spot will hold in confidence all confidential
information, that has been designated as such by the Company in writing or by appropriate and
obvious notation, and will not use any such confidential information, except in connection with the
Transaction, until such time as such information is otherwise publicly available. Sweet Spot and
its representatives shall assert their rights pursuant to this Agreement in such manner as to
minimize interference with the business of the Company.

 

39

 

8.3. Conduct of Business Pending the Closing of the Transaction. Prior to the consummation of the
Merger of Sweet Spot with Sycamore, unless the Company and Sycamore shall otherwise consent in
writing, and except as otherwise contemplated by this Agreement, Sweet Spot shall comply with each
of the following:

(1) The business of Sweet Spot shall be conducted only in the ordinary and usual course, Sweet Spot
shall use reasonable efforts to keep intact its business organization and goodwill, keep available
the services of its officers and employees and maintain good relationships with suppliers, lenders,
creditors, distributors, employees, customers, and other persons having business or financial
relationships with Sweet Spot, and Sweet Spot shall immediately notify the Company and Sycamore of
any event or occurrence or emergency material to, and not in the ordinary and usual course of
business of, Sweet Spot.

(2) Sweet Spot shall not (a) amend its Articles of Incorporation (or similar charter document) or
Bylaws (or similar governing document), or (b) split, combine, or reclassify any of its outstanding
securities or declare, set aside, or pay any dividend or other distribution on or make or agree or
commit to make any exchange for or redemption of any such securities payable in cash, stock, or
property.

(3) Sweet Spot shall not (a) issue or agree to issue any additional shares of, or rights of any
kind to acquire any shares of, its capital stock of any class, or (b) enter into any contract,
agreement, commitment, or arrangement with respect to any of the foregoing.

(4) Sweet Spot shall not create, incur, or assume any long-term or short-term indebtedness for
money borrowed or make any capital expenditures or commitment for capital expenditures, except in
the ordinary course of business and consistent with past practice.

(5) Sweet Spot shall not (a) adopt, enter into, or amend any bonus, profit-sharing, compensation,
stock option, warrant, pension, retirement, deferred compensation, employment, severance,
termination, or other employee benefit plan, agreement, trust fund, or arrangement for the benefit
or welfare of any officer, director or employee; or (b) agree to any material (in relation to
historical compensation) increase in the compensation payable or to become payable to, or any
increase in the contractual term of employment of, any officer, director, or employee, except, with
respect to employees who are not officers or directors, in the ordinary course of business in
accordance with past practice.

(6) Sweet Spot shall not sell, lease, mortgage, encumber, or otherwise dispose of or grant any
interest in any of Sweet Spot’s assets or properties, except for sales, encumbrances, and other
dispositions or
grants in the ordinary course of business and consistent with past practice and except for liens
for taxes not yet due or liens or encumbrances that are not material in amount or effect and do not
impair the use of Sweet Spot’s property, or as specifically provided for or permitted in this
Agreement.

 

40

 

(7) Sweet Spot shall not enter into, or terminate, any material contract, agreement, commitment, or
understanding.

(8) Sweet Spot shall not enter into any agreement, commitment, or understanding, whether in writing
or otherwise, with respect to any of the matters referred to in Paragraphs (1) through (7),
inclusive, of this section.

(9) Sweet Spot will file properly and promptly when due all federal, state, local, foreign and
other tax returns, reports, and declarations required to be filed by Sweet Spot and will pay, or
make full and adequate provision for the payment of, all taxes and governmental charges due from or
payable by Sweet Spot.

(10) Sweet Spot will comply with all laws and regulations applicable to Sweet Spot’s operations.

8.4. Expenses. Except as may be otherwise agreed by the parties, whether or not the Transaction is
consummated, all costs and expenses incurred by Sweet Spot in connection with this Agreement and
the Transaction shall be paid by Sweet Spot.

8.5. Publicity. Prior to the closing of the Merger with Sycamore, any written news releases by
Sweet Spot pertaining to this Agreement or the Transaction shall be submitted to the Company and
Sycamore for review and approval prior to release by Sweet Spot, and shall be released only in a
form approved by the Company and Sycamore; provided, however, that such review and approval shall
not be required of releases by Sweet Spot or Sycamore if prior review and approval would prevent
the timely and accurate dissemination of such press release as required to comply, in the judgment
of counsel for the Company, with any applicable law, rule or policy.

8.6. Updating of Sweet Spot Disclosure Document. Sweet Spot shall notify the Company and Sycamore
of any changes, additions or events which may cause any change in or addition to the Sweet Spot
Disclosure Document promptly after the occurrence of the same and at the Closing by the delivery of
appropriate updates to the Sweet Spot Disclosure Document. No notification made pursuant to this
section shall be deemed to cure any breach of any representation or warranty made in this
Agreement, unless the Company and Sycamore specifically agree thereto in writing nor shall any such
notification be considered to constitute or result in a waiver by the Company or Sycamore of any
condition set forth in this Agreement.

8.7. Audited Financial Statements, 8-K Filing. On the Closing, Sweet Spot shall deliver to the
Company those audited financial statements of Sweet Spot necessary and appropriate to enable the
Company to prepare and file with the SEC an appropriate current report on Form 8-K regarding the
Transaction and shall have received an audit report from an independent audit firm that is
registered with the Public Company Accounting Oversight Board for the two most recently completed
fiscal years of Sweet Spot. The form and substance of those audited financial statements shall be
satisfactory to the Company in its sole and absolute discretion. In addition, Sweet Spot shall
have provided the Company with reasonable assurances that it will provide to the Company any and
all information reasonably requested by the Company or its representatives necessary for the
Company to be able to comply with its obligation to file that current report on Form 8-K within
four (4) business days following the Closing containing the requisite financial statements of Sweet
Spot and the requisite Form 10 required disclosure regarding Sweet Spot, and Sweet Spot shall
provide any and all information reasonably requested by the Company or its representatives
necessary to prepare that current report on Form 8-K.

 

41

 

ARTICLE IX

CONDITIONS TO CLOSING

9.1. Conditions to Obligation of the Sellers. The obligation of the Sellers to close the
Transaction shall be subject to the performance at or prior to the Closing of the following
conditions, unless the Sellers shall, by a majority in interest of the Sellers, waive such
fulfillment in writing:

(1) This Agreement and the Transaction shall have received all approvals, consents, authorizations,
and waivers from governmental and other regulatory agencies and other third parties (including
lenders, holders of debt securities and lessors) required to consummate the Transaction.

(2) There shall not be in effect a preliminary or permanent injunction or other order by any
federal or state court which prohibits the consummation of the Transaction.

(3) The Company shall have performed in all material respects each of its agreements and
obligations specified in this Agreement and required to be performed on or prior to the Closing and
shall have complied with all material requirements, rules, and regulations of all regulatory
authorities having jurisdiction relating to the Transaction.

(4) No Material Adverse Effect with respect to the Company shall, in the judgment of a majority in
interest of the Sellers, have taken place since the date hereof, other than those, if any, that
result from the changes permitted by the Transaction and the provisions of this Agreement.

(5) The representations and warranties of the Company set forth in this Agreement shall be true in
all material respects as of the date hereof and, except in such respects as, in the judgment of
Sellers holding a majority of the Exchange Shares, would not result in a Material Adverse Effect
with respect to the Company as of the Closing Date, as if those representations and warranties were
made as of the Closing Date.

(6) Sycamore and Sweet Spot shall have received from the Company an officers’ certificate, executed
by the Chairman of the Board of the Company, dated the Closing Date, as to the satisfaction of the
conditions in Paragraphs (3), (4), and (5) of this section.

(7) Richard E. Otto, James M. Strickland, Philip C. Ranker, and Thomas W. Pew, and each of them,
shall resign as officers, as appropriate, and from the Board of Directors, of the Company.

(8) On the Closing, Richard L. Love, in his capacity as Chairman of the Board of Directors of the
Company, shall appoint Scotti, Takats, Edward Sylvan, Terry Sylvan, and Michael Doban, and each of
them, as members of the Board of Directors of the Company, to serve as such until their successors
are appointed or elected and duly qualified. Immediately after Richard L. Love appoints Scotti,
Takats, Edward Sylvan, Terry Sylvan, and Michael Doban as members of the Board of Directors of the
Company, Richard L. Love shall resign as an officer, and a member of the Board of Directors, of the
Company.

 

42

 

(9) Sycamore shall have received from Stoel Rives LLP, counsel for the Company, an opinion, dated
the date of the Closing, in form and substance as set forth in Exhibit A attached hereto.

(10) Each of the Company Directors shall have entered into a lock-up agreement substantially in the
form set forth in Exhibit B attached hereto.

(11) The Company, on the one hand, and JRT and Red Cat, on the other hand, shall have entered into
the Registration Rights Agreement.

(12) The Company, on the one hand, and JRT and Red Cat, on the other hand, shall have entered into
the Employment Agreements.

(13) The Company, on the one hand, and JRT and Red Cat, on the other hand, shall have entered into
the Promissory Notes.

(14) The Company, on the one hand, and JRT and Red Cat, on the other hand, shall have entered into
the Pledge and Security Agreements

9.2. Conditions to Obligation of the Company. The obligation of the Company to close the
Transaction shall be subject to the performance at or prior to the Closing of the following
conditions, unless the Company shall waive such fulfillment in writing:

(1) This Agreement and the Transaction shall have received all approvals, consents,
authorizations, and waivers from governmental and other regulatory agencies and other third parties
(including lenders, holders of debt securities and lessors) required by law to consummate the
Transaction.

(2) There shall not be in effect a preliminary or permanent injunction or other order by any
federal or state authority which prohibits the consummation of the Transaction.

(3) Sycamore shall have performed in all material respects its agreements and obligations specified
in this Agreement required to be performed on or prior to the Closing and shall have complied with
all material requirements, rules, and regulations of all regulatory authorities having jurisdiction
relating to the Transaction.

(4) No Material Adverse Effect with respect to Sycamore shall, in the reasonable judgment of the
Company, have taken place since the date hereof, other than those, if any, that result from changes
permitted by the Transaction and the provisions of this Agreement.

(5) The representations and warranties of Sycamore set forth in this Agreement shall be true in all
material respects as of the date hereof and, except in such respects as, in the reasonable judgment
of the Company, would not result in a Material Adverse Effect with respect to Sycamore as of the
Closing Date as if those representations and warranties were made as of the Closing Date.

 

43

 

(6) The Company shall have received from Sycamore an officers’ certificate, executed by the Chief
Financial Officer and the Chief Executive Officer of Sycamore (in their capacities as such), dated
the Closing Date, as to the satisfaction of the conditions of Paragraphs (3), (4) and (5) of this
section.

(7) Sweet Spot shall have performed in all material respects its agreements and obligations
specified in this Agreement required to be performed on or prior to the Closing and shall have
complied with all material requirements, rules, and regulations of all regulatory authorities
having jurisdiction relating to the Transaction.

(8) No Material Adverse Effect with respect to Sweet Spot shall, in the reasonable judgment of the
Company, have taken place since the date hereof, other than those, if any, that result from changes
permitted by the Transaction and the provisions of this Agreement.

(9) The representations and warranties of Sweet Spot set forth in this Agreement shall be true in
all material respects as of the date hereof and, in except in such respects as, in the reasonable
judgment of the Company, would not result in the Material Adverse Effect with respect to Sweet Spot
as of the Closing Date as if those representations and warranties were made as of the Closing Date.

(10) The Company shall have received from Sweet Spot, prior to the filing of the Articles of
Merger, an officers’ certificate, executed by the appropriate officers of Sweet Spot , dated the
Closing Date, as to the satisfaction of the conditions of Paragraph’s (7), (8), and (9) of this
section through the closing of the Merger with Sycamore.

(11) The Company shall have received from Stepp Law Corporation, counsel for Sycamore, an opinion,
dated the date of the Closing, in form and substance as set forth in Exhibit C attached hereto.

(12) The Company shall have received from each Seller certificate(s) representing the Exchange
Shares held by such Seller, accompanied by duly executed instrument of transfer for transfer by
such Seller of its Exchange Shares.

(13) Sycamore and Sweet Spot shall have executed and delivered the Merger Agreement and any and all
other agreements, documents, and instruments necessary or appropriate to close the Merger.

(14) Sycamore shall have delivered to the Company a certified copy of the Certificate or Articles
of Merger filed with the applicable jurisdictions evidencing the effectiveness of the Merger.

(15) Each Seller shall have completed and executed the certification attached hereto as Exhibit D.

(16) Sweet Spot and Sycamore shall deliver to the Company copies of their audited financial
statements, which shall be appropriate for filing with the SEC in a current report on Form 8-K
regarding the Transaction and shall have received an audit report from an independent audit firm
that is registered with the Public Company Accounting Oversight Board for the two most recently
completed fiscal years of Sweet Spot. The form and substance of those audited financial statements
shall be satisfactory to the Company in its sole and absolute discretion. In addition, Sycamore
and Sweet Spot shall have provided any and all information reasonably requested by the Company or
its representatives necessary to file that current report on Form 8-K within four (4) business days
of the Closing.

 

44

 

ARTICLE X

SUBJECT SHARES; SELLERS

10.1. Sellers’ Ownership Representations. Each of the Sellers represents and warrants to the
Company, severally and not jointly, that, at the Closing (i) such Seller, owns the Exchange Shares
set forth opposite such Seller’s name on the Sellers Schedule, to be delivered to the Company at
the Closing pursuant to the terms of this Agreement, free and clear of any and all liens, claims,
encumbrances, and rights of others; and (ii) such Seller is not a party to any option, warrant,
purchase right or other contract or commitment (other than this Agreement and the Merger Agreement)
that could require such Seller to sell, transfer or otherwise dispose of any of its Exchange
Shares; and (iii) such Seller is fully and freely authorized and entitled to sell, transfer,
assign, deliver, set over, and convey to the Company free and clear title to those shares, without
any additional approval or authorization being required.

10.2. Absence of Breach; No Consents. The performance by the Sellers, severally and not jointly, of
their obligations created by this Agreement, do not (i) conflict with or result in a material
breach of or default pursuant to any material indenture or loan or credit agreement or any other
material agreement or instrument to which such Seller is a party or by which it may be affected or
obligated; or (ii) require the authorization, consent, approval, or license of any third party.

10.3. Non Registration of Subject Shares. The Sellers, and each of them, understand and acknowledge
that the Subject Shares will be issued to those Sellers that are (i) U.S. Persons (as set forth on
the Sellers Schedule) without Registration in a transaction that is exempt from Registration
pursuant to Section 4(2) of the Securities Act and Rule 506 of Regulation D promulgated pursuant
thereto and/or (ii) Non-U.S. Persons (as set forth in the Sellers Schedule) in a transaction that
is exempt from Registration is pursuant to Regulation S. Each Seller understands that the Subject
Shares are characterized as “restricted securities” under the Securities Act inasmuch as this
Agreement contemplates that, if acquired by such Seller pursuant hereto, the Subject Shares would
be acquired in a transaction not involving a public offering. Each Seller further acknowledges
that if the Subject Shares are issued to such Seller in accordance with the provisions of this
Agreement, such Seller shall not resell any such Subject Shares without Registration, the existence
of an
exemption from the Securities Act or in accordance with Regulation S promulgated thereunder. Each
Seller represents that it is familiar with Rule 144 promulgated under the Securities Act, as
presently in effect, and understands the resale limitations imposed thereby and by the Securities
Act. Each Seller further represents and covenants that it will not engage in any hedging
transactions with respect to any Subject Shares that it acquires under this Agreement unless such
transactions comply with the Securities Act.

10.4. Information on Sellers. Each Seller hereby represents and warrants that at the time such
Seller was offered the Subject Shares, it was, and at the date hereof it is, and on the Closing
Date it either (i) will be an “accredited investor”, as such term is defined in Rule 501(a) under
the Securities Act and/or (ii) will not be a “U.S. Person,” as such term is defined in Rule
902(k)(1) of Regulation S

 

45

 

promulgated under the Securities Act. Additionally, each such Seller
which is a Non-U.S. Person hereby represents and warrants that at the time such Seller was offered
the Subject Shares, it was, and at the date hereof it is, and on the Closing Date, it will be
outside the United States and that such Seller is not purchasing for the account or benefit of a
U.S. Person. Each Seller further represents and warrants that the information set forth on
Exhibit D, as completed by such Seller is accurate. In addition, each Seller represents and
warrants that it is not a registered broker-dealer under Section 15 of the Securities Act and that,
either alone or together with his or her purchaser representative, has such knowledge and
experience in financial and business matters that he or she is capable of evaluating the merits and
risks of an investment in the Subject Shares.

10.5. Investment Intent. Each Seller hereby represents and warrants that it is acquiring the
Subject Shares as principal for its own account for investment purposes only and not with a view to
or for distributing or reselling such Subject Shares or any part thereof, without prejudice,
however, to such Seller’s right at all times to sell or otherwise dispose of all or any part of
such Subject Shares in compliance with applicable federal and state securities laws. Such Seller is
acquiring the Subject Shares hereunder in the ordinary course of its business. Such Seller does not
have any agreement or understanding, directly or indirectly, with any person to distribute any of
the Subject Shares.

10.6. Access to Information. Each Seller hereby acknowledges that it has reviewed the SEC Reports
and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and
to receive answers from, representatives of the Company concerning the terms and conditions of the
offering of the Subject Shares and the merits and risks of investing in the Subject Shares; (ii)
access to information about the Company and its financial condition, results of operations,
business, properties, management and prospects sufficient to enable it to evaluate its investment;
and (iii) the opportunity to obtain such additional information that the Company possesses or can
acquire without unreasonable effort or expense that is necessary to make an informed investment
decision with respect to the investment.

10.7. Certain Trading Activities. Each Seller hereby represents and warrants that such Seller has
not directly or indirectly, nor has any person acting on behalf of or pursuant to any understanding
with such Seller, engaged in any transactions in the securities of the Company (including, without
limitation, any short sales involving the Company’s securities or any hedging transactions) since
the earlier to occur of (i) the time that such Seller was first contacted by the Company regarding
its acquisition of Subject Shares and (ii) the 30th day prior to the date hereof. Such
Seller covenants that neither it nor any person acting on its behalf or pursuant to any
understanding with it will engage in
any transactions in the securities of the Company (including short sales or hedging transactions)
prior to the time that the Transaction is publicly disclosed.

10.8. Independent Investment Decision. Each Seller hereby represents and warrants that such Seller
has independently evaluated the merits of its decision to purchase the Subject Shares pursuant to
this Agreement, and each such Seller confirms that it has not relied on the advice of any other
Seller’s business and/or legal counsel in making such decision.

10.9. Disclaimer of Representations and Warranties. Notwithstanding any statement to the contrary,
except as expressly set forth in this Agreement, each Seller understands and acknowledges that the
Company is not making any representation or warranty and the Company specifically disclaims any
representation and warranty, whether express or implied, regarding (i) any financial

 

46

 

projections or
expected yield or return from future operations of any business of the Company; (ii) the quality,
condition or operability of any current or future business of the Company; (iii) current or future
competition or market conditions affecting any current or future business of the Company; and (iv)
current or future legislation or changes in laws, regulations or rules affecting any current or
future business of the Company.

10.10. Legends. It is understood that the Subject Shares will bear the following legend or one
that is substantially similar to the following legend:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT
(1) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS, (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR (3) IN ACCORDANCE WITH REGULATION S
PROMULGATED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS AND. IN THE CASE OF ANY
OFFER, SALE, PLEDGE ASSIGNMENT OR OTHER TRANSFER PURSUANT TO CLAUSE (2) OR CLAUSE (3) ABOVE, THE
HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE COMPANY AN OPINION OF COUNSEL, WHICH COUNSEL
AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD,
PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED PURSUANT TO AN AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR IN ACCORDANCE WITH REGULATION
S PROMULGATED UNDER THE SECURITIES ACT AND, IN EITHER CASE, IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS.

Additionally, the Subject Shares will bear any legend required by the “Blue Sky” laws of any state
to the extent such laws are applicable to the Subject Shares.

ARTICLE XI

TERMINATION

This Agreement and the Transaction may be terminated at any time prior to the Closing:

(1) By mutual consent of Sycamore, Sweet Spot and the Sellers holding a majority of the Exchange
Shares, on the one hand, and the Company, on the other hand;

(2) By the Company pursuant to Section 7.3 of this Agreement; or

 

47

 

(3) By either Sycamore, Sweet Spot, and Sellers holding a majority of the Exchange Shares, on the
one hand, or the Company, on the other hand, upon written notice to the other, if the conditions to
such party’s obligations to consummate the Transaction, in the case of the Sellers, as specified in
Section 9.1 of this Agreement; or, in the case of the Company, as provided in Section 9.2 of this
Agreement, were not, or cannot reasonably be, satisfied on or before the [April 20], 2010, unless
the failure of condition is the result of the material breach of this Agreement by the party to
this Agreement seeking to terminate this Agreement.

ARTICLE XII

INDEMNIFICATION

12.1. Indemnification by the Company. The Company shall indemnify, save and hold harmless the
Sellers, Sweet Spot, Sycamore and their Affiliates, officers, employees, directors, accountants,
auditors, attorneys, partners, agents, and other representatives from and against any and all
costs, losses (including, without limitation, diminution in value), liabilities, damages, lawsuits,
deficiencies, adverse claims, taxes and expenses (whether or not resulting from third-party
claims), including, without limitation, interest, penalties, reasonable attorneys’ fees and all
amounts paid in investigation, defense or settlement of any of the foregoing (collectively,
“Damages”), incurred in connection with or resulting from any breach of any covenant or warranty,
or the inaccuracy of any representation made by the Company in or pursuant to this Agreement.

12.2. Indemnification by Sycamore. Sycamore shall indemnify, save and hold harmless the Company,
and its Affiliates, officers, employees, directors, accountants, auditors, attorneys, partners,
agents and other representatives, from and against any and all Damages incurred in connection with
or arising out of or resulting from any breach of any covenant or warranty, or the inaccuracy of
any representation, made by Sycamore or the Sellers in or pursuant to this Agreement.

12.3. Defense of Third-Party Claims. If any lawsuit or enforcement action is filed against any
party entitled to the benefit of indemnification pursuant to this Article X, written notice thereof
shall be given to the indemnifying party as promptly as practicable (and in any event no later than
fifteen (15) days after the service of the citation or summons); provided, however, that the
failure of any indemnified party to give timely notice shall not affect the rights to
indemnification contemplated by this Article X, except to the extent that the indemnifying party
demonstrates actual damage caused by such failure. After such notice, if the indemnifying party
shall acknowledge in writing to the indemnified party that the indemnifying party shall be
obligated pursuant to the terms of its
indemnification pursuant to this Article X in connection with such lawsuit or action, then the
indemnifying party shall be entitled, if such party so decides, to take control of the defense and
investigation of such lawsuit or action and to employ and engage attorneys of its own choice to
handle and defend the same, at the indemnifying party’s cost, risk and expense; provided, however,
that the indemnifying party and its counsel shall proceed with diligence and in good faith with
respect thereto. The indemnified party shall cooperate in all reasonable respects with the
indemnifying party and such attorneys in the investigation, trial and defense of such lawsuit or
action and any appeal resulting therefrom; provided, however, that the indemnified party may, at
its own cost, participate in the investigation, trial and defense of such lawsuit or action and any
appeal resulting therefrom.

 

48

 

ARTICLE XIII

POST-CLOSING ITEMS

13.1. Name Change. As soon as the practicable after the Closing, the Company shall cause its
name to be changed to Sycamore Entertainment, Inc.

13.2. Increase of the Authorized Number of Shares of Common Stock. As soon as the practicable
after the Closing, the Company shall cause its Certificate of Incorporation to be amended to
increase the authorized number of shares of the Company’s $.0001 par value common stock to
200,000,000.

13.3. Reverse Stock Split. As soon as the practicable after the Closing, the Company
shall cause to occur a one-for-two (1:2) reverse stock split of the issued and outstanding shares
of its $.0001 par value common stock.

13.4. Change of Domicile. As soon as the practicable after the Closing, the Company shall
change its situs of incorporation from Delaware to Nevada.

13.5. Proxy Rules. The Company shall comply with applicable proxy and other rules of the
SEC arising as a result of the Transaction and in connection with each of the foregoing actions
that require approval of the Company’s stockholders.

ARTICLE XIV

GENERAL PROVISIONS

14.1. Notice of Certain Events. Each of the parties hereto shall use reasonable efforts to
promptly notify the other parties of:

(a) the occurrence or nonoccurrence of any event the occurrence or nonoccurrence of that would
reasonably be expected to cause any representation or warranty of such party specified in this
Agreement to be untrue or inaccurate in any material respect;

(b) any failure of the Company or Sycamore to comply with or satisfy, or the occurrence or
nonoccurrence of any event, the occurrence or nonoccurrence of which would reasonably be expected
to cause the failure by such party to comply with or satisfy, any covenant, condition, or agreement
to be complied with or satisfied by it pursuant to this Agreement;

(c) the receipt by such party of any notice or other communication from any person alleging that
the consent of such person, which consent is or could reasonably be expected to be material to the
Company or Sycamore or the operation of their respective businesses, is or may be required in
connection with the Transaction;

(d) the receipt by such party of any notice or other communication from any governmental entity in
connection with the Transaction; or

 

49

 

(e) its learning of any actions, suits, claims, investigations or proceedings commenced against, or
affecting such party that, if they were pending on the date hereof, would have been required to be
disclosed pursuant to this Agreement or which relate to the consummation of the Transaction.

14.2. Notices. Any notice, direction or instruction required or permitted to be given pursuant to
this Agreement shall be given in writing by (a) telegram, facsimile transmission, electronic
transmission, or similar method, if confirmed by mail as provided in this Agreement, (b) mail, if
mailed postage prepaid, by certified mail, return receipt requested; or (iii) hand delivery to any
party to this Agreement at the address of such party specified below. If given by telegram,
facsimile transmission, electronic transmission, or similar method or by hand delivery, such
notice, direction or instruction shall be deemed to have been given or made on the day on which
such notice, direction or instruction was delivered, and if mailed, such notice, direction or
instruction shall be deemed to have been given or made on the second (2nd) business day following
the day after which such notice, direction or instruction was mailed. Any party to this Agreement
may, from time to time by similar notice, give notice of any change of address and, in such event,
the address of such party shall be deemed to be changed accordingly. The address, telephone number
and facsimile transmission number for the notice of each party are:

	 	 	 
	If to the Company:

	 	ImaRx Therapeutics, Inc.

c/o Stoel Rives LLP

201 S. Main Street

Suite 1100

Salt Lake City, Utah 84111-4904

Facsimile Machine: 801.578.6999

kjontiveros@stoel.com
	 
	 	 
	If to Sycamore:

	 	Sycamore Films, Inc.

c/o Stepp Law Corporation

15707 Rockfield Boulevard

Suite 101

Irvine, California 92618

Facsimile Machine: 949.660.9010

tes@stepplawgroup.com
	 
	 	 
	With a copy to:

	 	edwardsylvan@gmail.com

terry.sylvan@gmail.com
	 
	 	 
	If to the Sellers (except Red Cat and
JRT):

	 	edwardsylvan@gmail.com

terry.sylvan@gmail.com
	 
	 	 
	If to Sweet Spot and Red Cat and JRT

	 	Mitchell Silbergerg & Knopp LLP

11377 West Olympic Boulevard

Los Angeles, California 90064

dkb@msk.com

aek@msk.com
	 
	 	 
	With a copy to:

	 	don@sweetspotent.com

jtakats@sweetspotent.com

 

50

 

14.3. Recovery of Enforcement Costs. In the event any party to this Agreement shall institute any
action or proceeding to enforce any provision of this Agreement, to seek relief from any violation
of this Agreement, or to otherwise obtain any judgment or order relating to or arising from the
subject matter of this Agreement, each prevailing party in such action or proceeding shall be
entitled to receive from each losing party such prevailing party’s actual attorneys’ fees and costs
incurred to prosecute or defend such action or proceeding.

14.4. Assignment. No party to this Agreement shall have the right, without the consent of the
other parties to this Agreement, to assign, transfer, sell, pledge, hypothecate, delegate, or
otherwise transfer, whether voluntarily, involuntarily or by operation of law, any of such party’s
rights or obligations created by the provisions of this Agreement, nor shall the parties’ rights
created by the provisions of the Agreement be subject to encumbrance or the claim of creditors.
Any such purported assignment, transfer, or delegation shall be null and void.

14.5. Captions and Interpretations. Captions of the articles and sections of this Agreement are
for convenience and reference only, and the words specified therein shall in no way be held to
explain, modify, amplify or aid in the interpretation, construction, or meaning of the provisions
of this Agreement. The language in all parts to this Agreement, in all events, shall be construed
in accordance with the fair meaning of that language, as if prepared by all parties to this
Agreement and not strictly for or against any party to this Agreement. Each party to this
Agreement has reviewed and read this Agreement carefully. The rule of construction which requires
a court to resolve any ambiguities against the drafting party shall not apply in interpreting the
provisions of this Agreement.

14.6. Entire Agreement. This Agreement, the respective Disclosure Documents and the Sellers
Schedule, are the final written expression and the complete and exclusive statement of all the
agreements, conditions, promises, representations, warranties and covenants among the parties to
this Agreement with respect to the subject matter of this Agreement, and this Agreement supersedes
all prior or contemporaneous agreements, negotiations, representations, warranties, covenants,
understandings and discussions by and among those parties, their respective representatives, and
any other person, with respect to the subject matter specified in this Agreement. No provision of
any Disclosure Document shall supersede or annul the terms and provisions of this Agreement, unless
the matter specified in such Disclosure Document shall explicitly so provide to the contrary. In
the event of ambiguity in meaning or understanding among the provisions of this Agreement proper
and any Disclosure Document, the provisions of this Agreement shall prevail and control in all
instances.

14.7. Waiver and Modification. No modification, supplement or amendment of this Agreement or of
any covenant, representation, warranty, condition, or limitation specified in this Agreement shall
be valid unless the same is made in writing and duly executed by all parties to this Agreement. No
waiver of any covenant, representation, warranty, condition, or limitation specified in this
Agreement shall be valid, unless the same is made in writing and duly executed by the party making
the waiver. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a
waiver of any other provision of this Agreement, whether or not similar, nor shall any waiver of
any provision of this Agreement constitute a continuing waiver of that provision.

 

51

 

14.8. Further Assurances. The parties to this Agreement shall from time to time sign and deliver
any further instruments and take any further actions as may be necessary to effectuate the intent
and purposes of this Agreement.

14.9. Number and Gender. Whenever the singular number is used in this Agreement and, when required
by the context, the same shall include the plural, and vice versa; the masculine gender shall
include the feminine and the neuter genders, and vice versa, and the word “person” shall include
individual, company, sole proprietorship, corporation, joint venture, association, joint stock
company, fraternal order, cooperative, league, club, society, organization, trust, estate,
governmental agency, political subdivision or authority, firm, municipality, congregation,
partnership, or other form of entity, whether active or passive.

14.10. Successors and Assigns. This Agreement and each of its provisions shall obligate the heirs,
executors, administrators, successors, and assigns of each of the parties to this Agreement.
Nothing specified in this section, however, shall be a consent to the assignment or delegation by
any party of such party’s respective rights and obligations created by the provisions of this
Agreement.

14.11. Third Party Beneficiaries. Except as expressly specified by the provisions of this
Agreement, this Agreement shall not be construed to confer upon or give to any person, other than
the parties to this Agreement, any right, remedy or claim pursuant to, or by reason of, this
Agreement or of any term or condition of this Agreement.

14.12. Severability. In the event any part of this Agreement, for any reason, is determined by a
court of competent jurisdiction to be invalid, such determination shall not affect the validity of
any remaining portion of this Agreement, which remaining portion shall remain in full force and
effect as if this Agreement had been executed with the invalid portion thereof eliminated. It is
hereby declared the intention of the parties to this Agreement that those parties would have
executed the remaining portion of this Agreement without including any such part, parts, or portion
which, for any reason, may be hereafter determined to be invalid.

14.13. Governmental Rules and Regulations. The Transaction is and shall remain subject to any and
all present and future orders, rules and regulations of any duly constituted authority having
jurisdiction of the Transaction.

14.14. Execution in Counterparts. This Agreement may be prepared in multiple copies and forwarded
(by facsimile transmission or electronic transmission) to each of the parties for signature. The
signatures of the parties to this Agreement may be affixed to one copy or to separate copies of
this Agreement and when all such copies are received (by facsimile transmission or electronic
transmission) and signed by all of those parties, those copies shall constitute one agreement,
which is not otherwise separable or divisible.

 

52

 

14.15. Reservation of Rights. The failure of any party to this Agreement at any time or times to
require strict performance by any other party to this Agreement of any of the warranties,
representations, covenants, terms, conditions and provisions specified in this Agreement shall not
waive, affect or diminish any right of such party failing to require strict performance to demand
strict compliance and performance therewith and with any other provisions, warranties, terms, and
conditions specified in this Agreement.

14.16. Survival of Covenants, Representations and Warranties. All covenants, representations, and
warranties made by each party to this Agreement shall be deemed made for the purpose of inducing
the other parties to this Agreement to enter into and execute this Agreement. The representations,
warranties and covenants specified in this Agreement shall survive the Closing. The covenants,
representations, and warranties of the parties to this Agreement are made only to and for the
benefit of each other and shall not create or vest rights in other persons.

14.17. Concurrent Remedies. No right or remedy specified in this Agreement conferred on or
reserved to the parties to this Agreement is exclusive of any other right or remedy specified in
this Agreement or by law or equity provided or permitted; but each such right and remedy shall be
cumulative of, and in addition to, every other right and remedy specified in this Agreement or now
or hereafter existing at law or in equity or by statute or otherwise, and may be enforced
concurrently therewith or from time to time. The termination of this Agreement for any reason
whatsoever shall not prejudice any right or remedy which any party may have, either at law, in
equity, or pursuant to the provisions of this Agreement.

14.18. Governing Law. This Agreement shall be deemed to have been entered into in the State of
Delaware, and all questions concerning the validity, interpretation, or performance of any of the
terms, conditions and provisions of this Agreement or of any of the rights or obligations of the
parties shall be governed by, and resolved in accordance with, the laws of the State of Delaware,
without regard to conflicts of law principles.

14.19. Force Majeure. If any party to this Agreement is rendered unable, completely or partially,
by the occurrence of an event of “force majeure” (as that term is defined later in this section) to
perform such party’s obligations created by the provisions of this Agreement, such party shall give
to each other party to this Agreement prompt written notice of the event of “force majeure” with
reasonably complete particulars concerning such event; thereupon, the obligations of the party
giving such notice, so far as those obligations are affected by the event of “force majeure,” shall
be suspended during, but no longer than, the continuance of the event of “force majeure.” The
party to this Agreement affected by such event of “force majeure” shall use all reasonable
diligence to resolve, eliminate and terminate the event of “force majeure” as quickly as
practicable. The requirement that an event of “force majeure” shall be resolved with all
reasonable dispatch, as specified in this section, shall not require the settlement of strikes,
lockouts or other labor difficulties by the party involved, contrary to such party’s wishes, and
the resolution of any and all such difficulties shall be handled entirely within the discretion of
the party concerned. The term “force majeure” as used in this section shall be defined as and mean
any act of God, strike, civil disturbance, terrorism, lockout or other industrial disturbance, act
of the public enemy, war, blockade, public riot, earthquake, tornado, hurricane, lightning, fire,
public demonstration, storm, catastrophe, flood, snow, explosion, governmental action, governmental
delay, restraint or inaction, unavailability of equipment, and any other cause or event, whether of
the type enumerated specifically in this section or otherwise, which is not reasonably within the
control of the party to this Agreement claiming such suspension.

 

53

 

14.20. Consent to Agreement. By executing this Agreement, each party to this Agreement, for
himself or itself, represents such party has read or caused to be read this Agreement in all
particulars, and consents to the rights, conditions, duties and responsibilities imposed upon such
party as specified in this Agreement. Each party to this Agreement represents, warrants and
covenants that such party executes and delivers this Agreement of such party’s own free will and
with no threat, undue influence, menace, coercion or duress, whether economic or physical.
Moreover, each party to this Agreement represents, warrants, and covenants that such party executes
this Agreement acting on such party’s own independent judgment.

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be signed as of the date
hereof.

	 	 	 	 	 	 	 	 	 	 	 
	ImaRx Therapeutics, Inc.	 	 	 	Sycamore Films, Inc.,	 	 
	a Delaware corporation	 	 	 	a Nevada corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 
	 	 	 	By:
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Its: Chairman of the Board
	 	 	 	 	 	Its: President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Its: Secretary	 	 

	 	 	 
	Signatures of Sellers:
	 	 
	 
	 	 
	 
 

	 	  
	Edward Sylvan
	 	 
	 
	 	 
	 
 

	 	  
	Terry Sylvan
	 	 
	 
	 	 
	 
 

	 	  
	Michael Doban
	 	 
	 
	 	 
	 
 

	 	  
	Skyward Entertainment
	 	 
	 
	 	 
	 
 

	 	  
	Leaddog Capital LLC.
	 	 
	 
	 	 
	 
 

	 	  
	Natalia Evans
	 	 

 

54

 

	 	 	 
	 
 

	 	  
	Ikkee Battle
	 	 
	 
	 	 
	 
 

	 	  
	Achim Klor
	 	 
	 
	 	 
	 
 

	 	  
	Kadar Brown
	 	 
	 
	 	 
	 
 

	 	  
	Daniel Marcelli
	 	 
	 
	 	 
	 
 

	 	  
	Pamela Goulah
	 	 
	 
	 	 
	 
 

	 	  
	Steve Goulah
	 	 
	 
	 	 
	 
 

	 	  
	Angela Sylvan
	 	 
	 
	 	 
	 
 

	 	  
	Marcus Maraih
	 	 

	 	 	 	 	 	 	 	 	 	 	 
	JRT Productions, Inc.	 	 	 	Red Cat Productions, Inc.,	 	 
	a California corporation	 	 	 	a California corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 
	 	 	 	By:
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Its: President
	 	 	 	 	 	Its: President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 
	 	 	 	By:
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Its: Secretary
	 	 	 	 	 	Its: Secretary	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Sweet Spot Productions, Inc.,	 	 	 	 	 	 	 	 
	a California corporation	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Its: President	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Its: Secretary	 	 	 	 	 	 	 	 

 

55

 

SELLERS SCHEDULE

	 	 	 	 	 	 	 	 	 
	 	 	Number of shares of	 	 	 	 
	 	 	$.001 par value common	 	 	 	 
	 	 	stock of Sycamore sold	 	 	 	 
	 	 	pursuant to this	 	 	 	 
	Name of Seller:	 	Agreement:	 	 	U.S. Person (Yes/No)	 
	Edward Sylvan
	 	 	53,000,000	 	 	No
	Terry Sylvan
	 	 	18,000,000	 	 	No
	Michael Doban
	 	 	1,000,000	 	 	Yes
	Skyward Entertainment
	 	 	2,400,000	 	 	Yes
	Leaddog Capital LLC.
	 	 	600,000	 	 	Yes
	Natalia Evans
	 	 	1,000,000	 	 	No
	Ikkee Battle
	 	 	2,480,000	 	 	No
	Achim Klor
	 	 	1,000,000	 	 	No
	Kadar Brown
	 	 	1,000,000	 	 	No
	Daniel Marcelli
	 	 	80,000	 	 	No
	Pamela Goulah
	 	 	180,000	 	 	No
	Steve Goulah
	 	 	100,000	 	 	No
	Angela Sylvan
	 	 	100,000	 	 	No
	Marcus Maraih
	 	 	60,000	 	 	No
	JRT Productions, Inc.
	 	 	2,500,000	 	 	Yes
	Red Cat Productions, Inc.
	 	 	2,500,000	 	 	Yes

 

56Exhibit 10.2

Execution Version

Exhibit 10.2

Agreement and Plan of Merger 

By and Among

Sycamore Films, Inc., 

Sweet Spot Productions, Inc., 

JRT Productions, Inc.,

Red Cat Productions, Inc., 

 Joseph Takats, 

Donald J. Scotti,

and 

 ImaRx Therapeutics, Inc. 

 

Dated As of March 17, 2010

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page(s)	 
	 
	ARTICLE 1 Definitions	 	 	2	 
	 
	ARTICLE 2 The Merger	 	 	8	 
	 
	Section 2.1.
	 	Transaction	 	 	8	 
	 
	Section 2.2.
	 	Closing	 	 	8	 
	 
	Section 2.3.
	 	Effective Time	 	 	9	 
	 
	Section 2.4.
	 	Effect of Merger	 	 	9	 
	 
	Section 2.5.
	 	Directors and Officers	 	 	9	 
	 
	(a)
	 	Board of Directors of Surviving Corporation	 	 	9	 
	 
	(b)
	 	Officers of Surviving Corporation	 	 	9	 
	 
	Section 2.6.
	 	Surviving Charter	 	 	10	 
	 
	Section 2.7.
	 	Surviving Bylaws	 	 	10	 
	 
	Section 2.8.
	 	Capital Structure of the Surviving Corporation	 	 	10	 
	 
	ARTICLE 3 The Consideration	 	 	10	 
	 
	Section 3.1.
	 	Purchase Price	 	 	10	 
	 
	Section 3.2.
	 	Promissory Notes	 	 	10	 
	 
	Section 3.3.
	 	Subsidiary Stock	 	 	10	 
	 
	Section 3.4.
	 	Registration Rights	 	 	11	 
	 
	Section 3.5.
	 	Put Rights	 	 	11	 
	 
	Section 3.6.
	 	Limited Suspension of Rights During Fundraising	 	 	11	 
	 
	ARTICLE 4 Representations and Warranties of Target	 	 	12	 
	 
	Section 4.1.
	 	Organization	 	 	12	 
	 
	Section 4.2.
	 	Capitalization; No Derivative Securities	 	 	12	 
	 
	(a)
	 	Capitalization	 	 	12	 
	 
	(b)
	 	Derivative Securities	 	 	12	 
	 
	Section 4.3.
	 	Material Contracts	 	 	13	 

i

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page(s)	 
	 
	Section 4.4.
	 	Litigation	 	 	13	 
	 
	Section 4.5.
	 	No Undisclosed Liabilities	 	 	13	 
	 
	Section 4.6.
	 	No Material Adverse Change	 	 	13	 
	 
	Section 4.7.
	 	Brokers	 	 	14	 
	 
	Section 4.8.
	 	Representations in Stock Exchange Agreement	 	 	14	 
	 
	ARTICLE 5 Representations and Warranties of Purchaser and Subsidiary	 	 	14	 
	 
	Section 5.1.
	 	Organization	 	 	14	 
	 
	Section 5.2.
	 	Authority	 	 	14	 
	 
	Section 5.3.
	 	Capitalization	 	 	15	 
	 
	(a)
	 	Purchaser	 	 	15	 
	 
	(b)
	 	Subsidiary	 	 	15	 
	 
	Section 5.4.
	 	Investment Intent	 	 	16	 
	 
	Section 5.5.
	 	Capital Resources	 	 	16	 
	 
	Section 5.6.
	 	Liabilities	 	 	16	 
	 
	Section 5.7.
	 	Material Contracts	 	 	16	 
	 
	Section 5.8.
	 	Compliance with Law	 	 	16	 
	 
	Section 5.9.
	 	Brokers	 	 	17	 
	 
	Section 5.10.
	 	Representations in Stock Exchange Agreement	 	 	17	 
	 
	ARTICLE 6 Covenants	 	 	17	 
	 
	Section 6.1.
	 	Acquisition Transaction	 	 	17	 
	 
	Section 6.2.
	 	Conduct of Business Prior to the Effective Time	 	 	17	 
	 
	(a)
	 	Business in Ordinary Course	 	 	17	 
	 
	(b)
	 	Amendment of Corporate Documents and Shareholders Rights	 	 	17	 
	 
	(c)
	 	Stock Changes	 	 	17	 

ii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page(s)	 
	 
	(d)
	 	Additional Liabilities	 	 	18	 
	 
	(e)
	 	Employee Compensation	 	 	18	 
	 
	(f)
	 	Asset Disposition	 	 	18	 
	 
	(g)
	 	Material Contracts	 	 	18	 
	 
	(h)
	 	Taxes	 	 	18	 
	 
	(i)
	 	Compliance with Laws	 	 	18	 
	 
	Section 6.3.
	 	Access to Information	 	 	18	 
	 
	Section 6.4.
	 	Post-Closing 8-K Report	 	 	19	 
	 
	Section 6.5.
	 	Director and Officer Liability	 	 	19	 
	 
	(a)
	 	Directors’ and Officers’ Liability Insurance.	 	 	19	 
	 
	(b)
	 	Directors’ and Officers’ Indemnification	 	 	19	 
	 
	(c)
	 	Continuity of Insurance and Indemnification Obligations	 	 	19	 
	 
	Section 6.6.
	 	Updating of Disclosure Documents	 	 	20	 
	 
	Section 6.7.
	 	Rescission of Merger	 	 	20	 
	 
	ARTICLE 7 Closing Conditions	 	 	20	 
	 
	Section 7.1.
	 	Conditions to Each Party’s Obligation	 	 	20	 
	 
	(a)
	 	No Legal Barriers	 	 	20	 
	 
	(b)
	 	Third Party Consents Obtained	 	 	20	 
	 
	Section 7.2.
	 	Conditions to the Obligations of Target, Sellers and Seller Shareholders	 	 	21	 
	 
	(a)
	 	Officer Certificate Regarding Representation and Warranties	 	 	21	 
	 
	(b)
	 	Issuance and Delivery of Shares	 	 	21	 
	 
	(c)
	 	Capital Resources	 	 	21	 
	 
	(d)
	 	Ancillary Documents	 	 	21	 
	 
	(e)
	 	Budget Approval	 	 	21	 

iii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page(s)	 
	 
	(f)
	 	Surviving Charter and Bylaws Approval	 	 	21	 
	 
	(g)
	 	Surviving Board and Officers Appointments	 	 	22	 
	 
	(h)
	 	Covenants Fulfilled	 	 	22	 
	 
	Section 7.3.
	 	Conditions to the Obligations of Subsidiary and Purchaser	 	 	22	 
	 
	(a)
	 	Officer Certificate regarding Representations and Warranties	 	 	22	 
	 
	(b)
	 	Covenants Fulfilled	 	 	22	 
	 
	ARTICLE 8 Indemnification	 	 	22	 
	 
	Section 8.1.
	 	Survival of Representations and Warranties	 	 	22	 
	 
	Section 8.2.
	 	Indemnification by Purchaser and Subsidiary	 	 	23	 
	 
	Section 8.3.
	 	Indemnification by Sellers	 	 	23	 
	 
	Section 8.4.
	 	Notice	 	 	23	 
	 
	Section 8.5.
	 	Limitation on Indemnification	 	 	23	 
	 
	Section 8.6.
	 	Calculation of Damages	 	 	23	 
	 
	ARTICLE 9 Termination	 	 	24	 
	 
	Section 9.1.
	 	Termination	 	 	24	 
	 
	(a)
	 	by mutual written consent of Target, Subsidiary, and Purchaser	 	 	24	 
	 
	(b)
	 	by any party	 	 	24	 
	 
	Section 9.2.
	 	Effect of Termination	 	 	24	 
	 
	ARTICLE 10 General Provisions	 	 	24	 
	 
	Section 10.1.
	 	Entire Agreement	 	 	25	 
	 
	Section 10.2.
	 	Notices	 	 	25	 
	 
	Section 10.3.
	 	Governing Law	 	 	25	 
	 
	Section 10.4.
	 	Descriptive Headings	 	 	26	 
	 
	Section 10.5.
	 	No Third-Party Beneficiaries	 	 	26	 

iv

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page(s)	 
	 
	Section 10.6.
	 	No Strict Construction	 	 	26	 
	 
	Section 10.7.
	 	Counterparts	 	 	26	 
	 
	Section 10.8.
	 	Amendment	 	 	26	 
	 
	Section 10.9.
	 	Severability	 	 	26	 

v

 

EXHIBITS

	 	 	 
	Exhibit A

	 	Budget
	Exhibit B

	 	Form of Employment Agreement — Scotti
	Exhibit C

	 	Form of Employment Agreement — Takats
	Exhibit D

	 	Form of Opinion — Mitchell Silberberg & Knupp, LLP
	Exhibit E

	 	Form of Opinion — Stepp Law Corporation / Stoel Rives LLP
	Exhibit F

	 	Form of Pledge and Security Agreement
	Exhibit G

	 	Form of Promissory Note
	Exhibit H

	 	Form of Registration Rights Agreement
	Exhibit I

	 	Form of Shareholders Agreement
	[Exhibit J

	 	Form of Surviving Bylaws]
	[Exhibit K

	 	Form of Surviving Charter]

DISCLOSURE SCHEDULES

Target Disclosure Document

Purchaser and Subsidiary Disclosure Document

 

 

 Execution Version

AGREEMENT AND PLAN OF MERGER

THIS AGREEMENT AND PLAN OF MERGER (the “Agreement”), dated as of March 17, 2010, is by and
among Sycamore Films, Inc., a Nevada corporation (“Subsidiary”); Sweet Spot Productions, Inc., a
California corporation (“Target”); JRT Productions, Inc., a California corporation (“JRT”); Red Cat
Productions, Inc., a California corporation (“Red Cat” and collectively with JRT, “Sellers,” and
each individually, a “Seller”); Joseph Takats (“Takats”), and Donald J. Scotti (“Scotti,” and
collectively with Takats, “Seller Shareholders,” and each individually, a “Seller Shareholder”);
and ImaRx Therapeutics, Inc., a Delaware corporation (“Purchaser”).

RECITALS

WHEREAS, Target and Subsidiary have executed that certain Term Sheet dated as of January 21,
2010, and Purchaser and Subsidiary have executed that certain Letter of Intent dated as of February
5, 2010.

WHEREAS, Purchaser is a reporting issuer pursuant to the provisions of the Securities Exchange
Act of 1934 (the “Exchange Act”);

WHEREAS, JRT and Red Cat each own 50% of the issued and outstanding stock of the Target;

WHEREAS, Takats is the holder of 100% of the issued and outstanding shares of stock of JRT;

WHEREAS, Scotti is the holder of 100% of the issued and outstanding shares of stock of Red
Cat;

WHEREAS, Purchaser, Subsidiary, Sellers, Seller Shareholders and Target propose to merge
Target with and into Subsidiary in exchange for shares of Subsidiary common stock and certain
Promissory Notes, as defined herein, (the “Merger”), on the condition that immediately following
the Closing of the Merger, Subsidiary shall enter into that certain Agreement for the Purchase and
Sale of Stock with Purchaser (the “Stock Exchange Agreement”), whereby Purchaser shall acquire all
of the issued and outstanding shares of Subsidiary common stock $0.001 par value in exchange for
the issuance by Purchaser to Sycamore Shareholders (then including Sellers) of an aggregate of
79,376,735 shares of Purchaser’s $0.0001 par value common stock and certain other rights granted to
Sellers as provided herein (the “Acquisition”); and

WHEREAS, the parties intend that the Merger will be treated for income tax purposes as a
forward triangular merger pursuant to Section 368(a)(2)(D) of the Code (as defined below).

 

1

 

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals and the respective covenants and
promises contained herein and for other good and valuable consideration, the receipt and adequacy
of which is hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1

Definitions

As used herein, the terms below shall have the following meanings. Any of such terms, unless
the context otherwise requires, may be used in the singular or plural, depending upon the
reference.

“Action” means any action, claim, suit, litigation, proceeding, labor dispute, arbitral
action, governmental audit, inquiry, criminal prosecution, investigation, charge or complaint.

“Acquisition” means the transaction contemplated by the Stock Exchange Agreement.

“Affiliate” means, with respect to any Person (as defined below), any other Person which
directly or indirectly controls, is controlled by or is under common control with such Person.

“Ancillary Documents” means the Employment Agreements, Promissory Notes, Pledge and Security
Agreements, Opinions of Counsel, Registration Rights Agreement, Shareholders Agreement, and Stock
Powers (each as defined below).

“approval by” Seller Shareholders or Sellers means unanimous approval by Scotti and Takats or
JRT and Red Cat, as the case may be.

“Articles of Merger” means fully completed and executed Articles of Merger Form 92A as
provided by the Office of Nevada Secretary of State, accompanied by appropriate filing fees,
designating Subsidiary as the “surviving entity” and Target as the “merging entity.”

“Assets” means all of Target’s right, title and interest in and to the business, properties,
assets and rights of any kind, whether tangible or intangible, real or personal, and constituting,
or used in connection with, or related to, the Business (as defined below) or in which Target has
any interest.

“Audited Financial Statements” means the balance sheet, income statement, statement of
stockholders equity, and statement of cash flows or, in each instance, equivalent statements of the
Purchaser as of December 31, 2009, and for the two (2) years then ended, and Target as of October
31, 2009, and for the two (2) years then ended, as the case may be, as reported on by the Auditors
and as commonly provided to shareholders.

 

2

 

“Auditors” means independent certified public accountants currently retained by Purchaser and
Target, as the case may be, for the purpose of auditing their respective financial statements.

“Budget” means the budget for the first twelve (12) months of operations of Purchaser and
Surviving Corporation (as defined below), as approved by Scotti and Takats, attached hereto as
Exhibit A.

“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are
required or authorized by Law (as defined below) to be closed in the State of California.

“Business” means Target’s business of conceiving, developing and producing advertising and
trade campaigns promoting feature films and videogames, including film trailers, teasers, TV and
radio spots, Internet advertising and cross-platform/new media marketing, and activities ancillary
thereto.

“Claim Notice” has a meaning ascribed to it in Section 8.4 of this Agreement.

“Closing Date” means the date which is specified in Section 2.2 of this Agreement.

“Closing” means the completion of the Transaction, to occur as contemplated by Section 2.2 of
this Agreement.

“Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder.

“Common Stock” means the $.0001 par value common stock of Purchaser.

“Court Order” means any judgment, decision, consent decree, injunction, ruling, assessment,
writ or order of any Governmental Entity (as defined below) that is binding on any Person or its
property under applicable Law.

“Covenanting Party” means each Target, Subsidiary and Purchaser (collectively, “Covenanting
Parties”).

“Damages” means any Action, cost, damage, expense, disbursement, expense, Liability (as
defined below) (other than unknown contingent or unmatured Liabilities), loss, deficiency,
diminution in value, obligation, penalty or settlement of any kind or nature, including but not
limited to, interest or other carrying costs, penalties, reasonable legal, accounting and other
professional fees and expenses incurred in the investigation, collection, prosecution and defense
of claims and amounts paid in settlement, that may be imposed on or otherwise incurred or suffered
by the specified Person; provided, however, that damages shall not include any punitive,
consequential or incidental damages relating to any claim for which such party may be entitled to
recover under this Agreement.

 

3

 

“Default” means (a) any breach or default; (b) the occurrence of an act or event that, with
the passage of time or the giving of notice or both, would constitute a breach or default; or (c)
the occurrence of any act or event that, with or without the passage of time or the giving of
notice or both, would give rise to a right of termination, renegotiation or acceleration.

“Effective Time” means the time specified in Section 2.3 of this Agreement.

“Employment Agreements” means the Employment Agreements by and between Purchaser and each
Scotti and Takats, executed in the form reasonably satisfactory to Takats and Scotti, in
substantially the form of Exhibit B and Exhibit C attached hereto.

“Exchange Act” means the Securities Exchange Act of 1934.

“GAAP” means accounting principles generally accepted in the United States.

“Governmental Entity” means any government or any agency, bureau, board, commission, court,
department, official, political subdivision, tribunal or other instrumentality of any government,
whether federal, state or local, domestic or foreign.

“Indemnified Party” has a meaning ascribed to it in Section 8.4 of this Agreement.

“Indemnified Purchaser Party” has a meaning ascribed to it in Section 8.3 of this Agreement.

“Indemnified Seller Party” has the meaning ascribed to it in Section 8.2 of this Agreement.

“Indemnitor” has a meaning ascribed to it in Section 8.4 of this Agreement.

“ImaRx Shareholders” means all holders of $.0001 par value common stock of Purchaser
immediately prior to the consummation of the transaction contemplated by the Stock Exchange
Agreement.

“IRS” means the Internal Revenue Service of the United States of America.

“JRT Collateral” means 50% of the issued and outstanding shares of the $.001 par value common
stock of Subsidiary securing the JRT Note Indebtedness pursuant to the terms of the JRT Note and
JRT Security Agreement (as defined below).

“JRT Note Indebtedness” means the total amount due under the terms of the JRT Note (as defined
below).

“JRT Note” means the Promissory Note executed in favor of JRT.

“JRT Security Agreement” means the Pledge and Security Agreement (as defined below) securing
JRT Note Indebtedness.

 

4

 

“Knowledge of Purchaser” means the actual knowledge of the members of the board of directors
on the Closing Date of Purchaser of a particular fact, circumstance, event or matter, or knowledge
of such fact, circumstance, event or matter that would have been obtained after making reasonable
inquiry.

“Knowledge of Subsidiary” means the actual knowledge of Edward Sylvan, Terry Sylvan, or
Michael Doban of a particular fact, circumstance, event or matter, or knowledge of such fact,
circumstance, event or matter that would have been obtained after making reasonable inquiry.

“Knowledge of Target” means the actual knowledge of Takats or Scotti of a particular fact,
circumstance, event or matter, or knowledge of such fact, circumstance, event or matter that would
have been obtained after making reasonable inquiry.

“Laws” means any laws, statutes, ordinances, regulations, rules, notice requirements, court
decisions, agency guidelines, principles of law and common law, and orders of any Governmental
Entity.

“Liability” means any direct or indirect liability, indebtedness, obligation, commitment,
expense, claim, deficiency, guaranty or endorsement of or by any Person of any type, whether known
or unknown, and whether accrued, absolute, contingent, matured or unmatured.

“Material Adverse Change” means any material adverse change in the financial condition,
business, results of operations, assets, Liabilities or operations of Purchaser, Subsidiary or
Target, or the ability of Purchaser, Subsidiary or Target, to consummate the transactions
contemplated by this Agreement and the Stock Exchange Agreement, or any event or condition which
would, with the passage of time, constitute a “Material Adverse Change”; provided, however, that
the foregoing definition excludes the effects of (i) changes that are generally applicable to the
industry and markets in which Target operates; (ii) changes that are generally applicable to the
United States economy or securities markets or the world economy or international securities
markets; (iii) any change arising in connection with earthquakes, acts of war, sabotage or
terrorism, military actions or the escalation thereof; or (iv) any other effect of the public
announcement of this Agreement, the transactions contemplated hereby or the consummation of such
transactions.

“Opinions” means the legal opinions of Mitchell, Silberberg & Knupp, LLP, and Stepp Law
Corporation, in substantially the form of Exhibit D and Exhibit E,
correspondingly, attached hereto.

“Ordinary Course of Business” or “Ordinary Course” or any similar phrase means the ordinary
and usual course of conduct of the Business, consistent with the past practice of Target.

“Permits” means all licenses, permits, franchises, approvals, authorizations, certifications,
consents or orders of, or filings with (or any waiver of the foregoing), any Governmental Entity,
or any other Person (including, without limitation, federal and state agencies regulating food
safety).

 

5

 

“Person” means any person or entity, whether an individual, trustee, corporation, partnership,
limited partnership, limited liability company, trust, unincorporated organization, business
association, firm, joint venture, or Governmental Entity.

“Personal Property” means all machinery, equipment, furniture, fixtures, motor vehicles, other
miscellaneous supplies, tools, fixed assets and other tangible personal property owned or leased by
or used, or intended by Target for use, in connection with the Business.

“Pledge and Security Agreements” refers to the JRT Security Agreement and the Red Cat Security
Agreement executed by and between Purchaser, Subsidiary and Sellers granting to each Seller,
respectively, a first priority security interest in the JRT Collateral and the Red Cat Collateral,
respectively, pursuant to Section 3.2 of this Agreement, in the form reasonably satisfactory to
Takats and Scotti, in substantially the form of Exhibit F attached hereto.

“Promissory Notes” refers to the JRT Note and Red Cat Note (as defined below) executed in
favor of each Seller, respectively, as a part of the Purchase Price (as defined below) payment
pursuant to Section 3.2 of this Agreement, in the form reasonably satisfactory to Takats and Scotti
in substantially the form of Exhibit G attached hereto.

“Purchase Price” means the total amount of the consideration paid for Target Shares (as
defined below), as specified in detail in Section 3.1 of this Agreement.

“Purchaser” means ImaRx Therapeutics, Inc., a Delaware corporation.

“Purchaser Disclosure Document” means the Company Disclosure Document (each as defined by the
Stock Exchange Agreement), with such additional disclosures and exceptions to representations and
warranties made by Purchaser under this Agreement.

“Purchaser Financial Statements” refers to the Company Audited Financial Statements and
Company Unaudited Financial Statements (each as defined in the Stock Exchange Agreement).

“Put Right” means the option to put Purchaser Stock as defined in Section 3.5 of this
Agreement.

“Red Cat Collateral” means 50% of the issued and outstanding $.001 par value common stock of
Subsidiary securing Red Cat Note Indebtedness pursuant to the terms of the Red Cat Note and Red Cat
Security Agreement (as defined below).

“Red Cat Note Indebtedness” means the total amount due under the terms of the Red Cat Note.

“Red Cat Note” means the Promissory Note executed in favor of Red Cat.

“Red Cat Security Agreement” means the Pledge and Security Agreement securing Red Cat Note
Indebtedness.

 

6

 

“Registration Rights Agreement” means the Registration Rights Agreement by and between
Purchaser and Sellers, in the form reasonably satisfactory to Takats and Scotti, in substantially
the form of Exhibit H attached hereto.

“Reverse Stock Split” means a one-for-two (1:2) reverse stock split of the issued and
outstanding shares of the Common Stock that Purchaser shall cause to occur as soon as practicable
after the Acquisition pursuant to the Stock Exchange Agreement.

“SEC” means the Securities Exchange Commission.

“Securities Act” means the Securities Act of 1933.

“Seller Shareholders” means Scotti and Takas.

“Shareholders Agreement” means the Shareholders Agreement or similar agreement satisfactory to
Scotti and Takats in substantially the form of Exhibit I attached hereto.

“Stock Exchange Agreement” means the Agreement for the Purchase and Sale of Stock, dated as of
March
 ________, 2010, by and among Surviving Corporation and Purchaser, to be closed immediately after
the Closing of the Merger, whereby Surviving Corporation shall became a wholly owned subsidiary of
Purchaser.

“Stock Powers” means stock powers executed by Subsidiary and Purchaser in connection with the
Pledge and Security Agreements with respect to the $.001 par value common stock of Surviving
Corporation.

“Subsidiary” means Sycamore Films, Inc., a Nevada corporation.

“Subsidiary Disclosure Document” means the Sycamore Disclosure Document (each as defined by
the Stock Exchange Agreement), with such additional disclosures and exceptions to representations
and warranties made by Subsidiary under this Agreement.

“Surviving Bylaws” means the bylaws of Surviving Corporation, in substantially the form of
Exhibit J attached hereto.

“Surviving Charter” means the Articles of Incorporation of Surviving Corporation, in
substantially the form of Exhibit K attached hereto.

“Surviving Corporation” means Subsidiary, Sycamore Films, Inc., a Nevada corporation,
immediately after the Effective Time (as defined below) of the Merger (as defined below).

“Sycamore Shareholders” means Edward Sylvan, Terry Sylvan, Michael Doban and all other persons
specified on the Sellers Schedule to the Stock Exchange Agreement.

“Target Balance Sheet” means the most recent balance sheet included in the Unaudited Financial
Statements of Target.

 

7

 

“Target Disclosure Document” means the Sweet Spot Disclosure Document (as defined by the Stock
Exchange Agreement) with such additional disclosures and exceptions to representations and
warranties made by Target under this Agreement.

“Target Shares” means all of the issued and outstanding no par value common stock of Target.

“Target Unaudited Financial Statements” means balance sheet, income statement, statement of
stockholders’ equity and statement of cash flows or equivalent statements of Target as commonly
prepared, as of December 31, 2009.

“Target” means Sweet Spot Productions, Inc., a California corporation.

“Transaction” means the consummation of the Merger and the Acquisition as provided by this
Agreement and the Stock Exchange Agreement.

“UCC” means the Uniform Commercial Code currently in effect in the State of California;
provided, however, in the event that, by reason of mandatory provisions of law, any or all of the
attachment, perfection or priority of security interest in any collateral referenced to in the
Promissory Notes and Pledge and Security Agreements is governed by the Uniform Commercial Code as
in effect in a jurisdiction other than the State of California, the term “UCC” shall mean the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such attachment, perfection or priority and for purposes of definitions related
to such provisions.

ARTICLE 2

The Merger

Section 2.1. Transaction. Upon the terms and subject to the conditions set forth in this Agreement, and in accordance
with provisions of Chapter 78 and Chapter 92A of the Nevada Revised Statutes, at the Effective
Time, (a) Target shall be merged with and into Subsidiary, (b) the separate corporate existence of
Target shall cease, all Target Shares shall be cancelled and extinguished, and (c) Target and
Subsidiary shall continue their corporate existence under Nevada law as Surviving Corporation (the
“Merger”). Immediately upon the execution of this Agreement, Surviving Corporation shall enter
into the Stock Exchange Agreement with the Purchaser for the purpose of becoming a wholly-owned
subsidiary thereof (the “Acquisition,” and collectively with the Merger, the “Transaction”). The
parties understand that the principal purpose of this Agreement is to complete the Transaction, and
that such principal purpose will be frustrated if the Acquisition subsequent to the Merger does not
occur.

Section 2.2. Closing. Subject to the satisfaction or waiver of all of the conditions to closing contained in
ARTICLE 7 of this Agreement, the closing of the Merger (the “Closing”) shall take place (a) at the
offices of Mitchell Silberberg & Knupp LLP, 11377 West Olympic Boulevard, Los Angeles, California
90064, at 10:00 a.m. on the Closing Date (as defined below) determined by the parties, but not
later than April 20, 2010, or (b) at such other place and time or on such other date as Purchaser,
Subsidiary and Target may agree in writing (the “Closing Date”). Not later than
three (3) Business Days before the Closing, (a) Subsidiary

 

8

 

shall have delivered to CT Corp or
similar institution satisfactory to Purchaser the Articles of Merger for presentation to an
appropriate representative of the Nevada Secretary of State, with instructions that the Articles of
Merger are not to be filed until the parties so direct at the Closing telephone conference call;
(b) to the extent possible, the representative of the Nevada Secretary of State shall conduct a
preliminary review of the Articles of Merger to ensure that the Articles of Merger are in proper
form; and (c) Purchaser shall have previously provided a transfer agent of its choice with
instructions to issue, upon Purchaser’s subsequent authorization, shares of the Common Stock to
Sellers and Sycamore Shareholders, as provided by the Stock Exchange Agreement. The parties shall
schedule a telephone conference call with the Nevada Secretary of State representative and such
transfer agent to occur at the Closing. During that conference call, Subsidiary and Target, or
their counsel, shall give an oral authorization to the Nevada Secretary of State to file the
Articles of Merger. Immediately upon confirmation by the Nevada Secretary of State that the
Articles of Merger have been filed, Purchaser, or its counsel, shall authorize and instruct
Purchaser’s transfer agent to issue and deliver shares of the Common Stock to Sellers and other
Sycamore Shareholders in accordance with the terms of the Stock Exchange Agreement.

Section 2.3. Effective Time. The Merger shall become effective upon the filing of the Articles of Merger with the Nevada
Secretary of State in accordance with Section 92A.200 of the Nevada Revised Statutes (“Effective
Time”). Promptly after the Effective Time, Surviving Corporation or the Purchaser shall file such
document as it deems necessary pursuant to Section 1108(d) of the California Corporations Code.

Section 2.4. Effect of Merger. The Merger shall have the effects set forth in Section 2.1 of this Agreement. Without
limiting the generality of the foregoing, and subject thereto, at the Effective Time, all the
property, rights, privileges, powers and franchises of Target and Subsidiary shall vest in
Surviving Corporation, and all debts, liabilities, obligations, restrictions, disabilities and
duties of Target and Subsidiary shall become the debts, liabilities, obligations, restrictions,
disabilities and duties of Surviving Corporation.

Section 2.5. Directors and Officers.

(a) Board of Directors of Surviving Corporation. The board of directors of Surviving Corporation shall consist of five (5) directors (the
“Surviving Board”). On the Closing Date, (a) Edward Sylvan, Terry Sylvan, and Michael Doban, and
each of them, being the current directors of Subsidiary, shall continue as the directors on the
Surviving Board; and (b) Scotti and Takats shall be appointed as additional directors on the
Surviving Board and will serve as such until their successors are appointed or elected and duly
qualified.

(b) Officers of Surviving Corporation. On the Closing Date, Scotti shall become the President of the Surviving Corporation, and
Takats shall become the Senior Executive Vice President and Treasurer of the Surviving
Corporation, and both shall serve in these capacities on the terms and conditions set forth in
the respective Employment Agreements.

 

9

 

Section 2.6. Surviving Charter. The Articles of Incorporation of Subsidiary, in the form attached as Exhibit K
hereto, shall be from and after the Effective Time, the Surviving Charter until amended as
provided in the Surviving Charter or by applicable Laws.

Section 2.7. Surviving Bylaws. Subsidiary shall take all requisite action to amend its Bylaws, in a manner satisfactory to
the Seller Shareholders, and Subsidiary’s Bylaws in effect immediately prior to the Effective Time
shall be, from and after the Effective Time, the Surviving Bylaws, attached hereto as Exhibit
J, until amended as provided in the Surviving Charter, the Surviving Bylaws or by applicable
Laws.

Section 2.8. Capital Structure of the Surviving Corporation. At the Closing, Subsidiary shall issue or cause to be issued 2,500,000 shares of common
stock to each of the Sellers. Immediately following the Closing, the issued and outstanding shares
of Subsidiary’s $.001 par value common stock shall be as follows:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number of Shares of that	 
	Name of Shareholder	 	Percentage Ownership	 	 	Common Stock	 
	JRT
	 	 	2.907	%	 	 	2,500,000	 
	Red Cat
	 	 	2.907	%	 	 	2,500,000	 
	Sycamore Shareholders
	 	 	94.186	%	 	 	81,000,000	 
	Total:
	 	 	100	%	 	 	86,000,000	 

ARTICLE 3

The Consideration

Section 3.1. Purchase Price. The Purchase Price for the Target Shares and the other acts and agreements of the Seller
Shareholders shall be One Million Two Hundred Thousand Dollars ($1,200,000.00). The consideration
paid to Sellers for the Target Shares shall consist of the Promissory Notes, Subsidiary Stock,
registration rights and Put Rights.

Section 3.2. Promissory Notes. Four Hundred Thousand Dollars ($400,000.00) of the Purchase Price shall be paid at the
Closing by delivery by Purchaser to the Sellers of the Promissory Notes, each in the principal
amount of Two Hundred Thousand Dollars ($200,000.00).

Section 3.3. Subsidiary Stock. On the Closing Date, Subsidiary shall issue or cause to be issued to each Seller such
number of shares of Subsidiary’s $.001 par value common stock that, upon the closing of the
Acquisition, shall entitle each Seller to 21/2% of the total number of shares of the Common
Stock issued and outstanding at the closing of the Acquisition.

Section 3.4. Registration Rights. Until such time as Sellers may sell the shares of the Common Stock received by each on the
Closing Date freely and without restrictions regarding quantity or manner of sale, Sellers shall be
provided with registration rights

 

10

 

with respect to such shares of the Common Stock as set forth in
the Registration Rights Agreements to be executed and delivered by Purchaser to Sellers on or prior
to the Closing Date.

Section 3.5. Put Rights. Beginning on that date which is six (6) months after the Closing Date, and continuing for a
two year period immediately thereafter (the “Put Period”), each Seller shall have the right to
require that, during any 90-day period following the first day of the Put Period, Purchaser
purchase from that Seller up to 25% of the Common Stock received by that Seller on the Closing Date
(“Put Right”). A Seller may exercise the Put Right, in whole or in part, at any time or from time
to time during the Put Period, by delivering to Purchaser a thirty (30) day written notice of such
Seller’s intent to exercise its Put Right, which notice shall specify the number of shares of the
Common Stock to be purchased by Purchaser. If during any 90-day period a Seller elects not to
exercise the Put Right with respect to any of 25% of the Common Stock which that Seller is entitled
to put, such Common Stock may be put during the following 90-day period in addition to 25% of the
Common Stock that such Seller is entitled to put during such 90-day period. As such, at the
beginning of the fourth 90-day period each Seller shall have the right to exercise the Put Right
with respect to any and all of the Common Stock held by that Seller as of the Closing Date. The
price at which Purchaser shall be required to purchase shares of the Common Stock shall equal (i)
$0.16 per share, in the event that the Put Right is exercised prior to the Reverse Stock Split, and
(ii) $0.32 per share, in the event that the Put Right is exercised after the Reverse Stock Split.
The purchase price for the Common Stock so put shall be paid by Purchaser within ten (10) Business
Days following the expiration of the 30-day notice period.

Section 3.6. Limited Suspension of Rights During Fundraising. The provisions of Section 3.5 of this Agreement notwithstanding, if at any time during the
Put Period Purchaser decides to raise funds for a particular project, whether by a public or
private sale of shares of the Common Stock or by any other form of financing transaction, and
determines in good faith that Sellers’ exercise of Put Rights may interfere with such fundraising
efforts, Purchaser may suspend Sellers’ rights to exercise their Put Rights by delivering to
Sellers a written notice of suspension, which notice shall set forth the planned fundraising
activity and the anticipated duration of the suspension period. The Put Period shall be extended
for the duration of such suspension period. Upon Sellers’ receipt of the notice of suspension and
during the suspension period, the Sellers (i) shall not exercise their Put Rights, and (ii) shall
not exercise rights granted under the Registration Rights Agreements at a time or in a manner that
will interfere with the efforts of Purchaser to raise funds. The suspension period shall terminate
and the Sellers shall be able to exercise the suspended rights to the full extent provided by this
Agreement and the Ancillary Documents upon the earlier of (i) completion of Purchaser’s fundraising
campaign including such reasonable period thereafter as requested by an underwriter or financial
advisor participating in the fund raising not to exceed six (6) months from the date of closing of
the fund raising including the exercise of any over allotment option granted to such
underwriters or financial advisors; or (ii) Purchaser’s determination that the necessary funds
cannot be raised within the immediate future, not to exceed twelve (12) months.

ARTICLE 4

Representations and Warranties of Target

 

11

 

Except as otherwise set forth in writing in the Target Disclosure Document delivered by the
Target to Subsidiary in connection with this Agreement, Target hereby represents and warrants to
Subsidiary and Purchaser as follows:

Section 4.1. Organization. Target is duly organized, validly existing and in good standing under the Laws of the State
of California with full power and authority to conduct and carry on the Business as it is presently
being conducted and to own or lease, as applicable, the Assets, which it currently owns or leases.
Target is duly qualified or licensed to do business as a foreign entity and is in good standing in
each jurisdiction where the character of its properties owned or leased or the nature of its
activities make such qualification necessary. Target Disclosure Document correctly lists the
current directors, managers and executive officers of Target.

Section 4.2. Capitalization; No Derivative Securities.

(a) Capitalization. On the Closing Date, the total authorized capital of the Target consists of one million
(1,000,000) shares of no par value common stock, all of which are issued and outstanding and
constitute the Target Shares. Immediately prior to the Closing, the ownership of the Target Shares
is as follows:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number of Shares of	 
	Shareholder	 	Percentage Ownership	 	 	Common Stock	 
	JRT
	 	 	50	%	 	 	500,000	 
	Red Cat
	 	 	50	%	 	 	500,000	 
	Total:
	 	 	100	%	 	 	1,000,000	 

All of the Target Shares have been duly authorized and validly issued in accordance with
applicable Laws and are fully paid and non-assessable. None of the Target Shares were issued in
violation of any preemptive right.

(b) Derivative Securities. On the Closing Date, there will be no (i) outstanding options, warrants, agreements,
convertible or exchangeable securities or other arrangements or commitments pursuant to which the
holders thereof shall have the right to sell, transfer, purchase, return, redeem, or otherwise
acquire shares of Target’s no par value common stock; (ii) shares of Target’s no par value common
stock reserved for any purpose; (iii) agreements pursuant to which registration rights in the
Target Shares have been granted; (iv) agreements, whether written or oral, among any current
and former stockholders or members of Target or Sellers; (v) statutory or contractual
preemptive rights or rights of first refusal with respect to the Target Shares; (vi) declared or
accrued dividends on any of the Target Shares; or (vii) any other voting trust, voting agreement,
stockholders agreement, pledge agreement, buy-sell agreement, or similar agreement affecting or
relating to ownership interests in Target

 

12

 

Section 4.3. Material Contracts. Target Disclosure Document discloses all material agreements, contracts, arrangements,
commitments, obligations, bonds, franchises, indemnities, indentures, instruments, leases, licenses
and understandings, whether or not in writing, (collectively referred to as “Material Contracts”),
with a brief summary of each such Material Contract. To the Knowledge of Target, (i) each such
Material Contract is legal, valid, binding, enforceable and in full force and effect; and (ii) no
party is in breach or default, and no event has occurred that with notice or lapse of time would
constitute a breach or default, or permit termination, modification, or acceleration, under any
such Material Contract; and (iii) no party has repudiated any provision of any such Material
Contract.

Section 4.4. Litigation. Except as set forth in Target Disclosure Document, there is no Action pending or, to the
Knowledge of the Target, threatened against the Target, any of its Affiliates or any of the Assets
which, individually or in the aggregate, (i) involves monetary claims for more than $25,000; (ii)
involves any requests for injunctive relief; or (iii) or challenges or seeks to prevent, enjoin,
alter or materially delay the transactions contemplated by this Agreement. Except as set forth in
the Target Disclosure Document, neither the Target, any Seller, nor any Asset is subject to any
outstanding Court Order. Target has not commenced any Action and is not contemplating commencing
any Action against any Person.

Section 4.5. No Undisclosed Liabilities. Target does not have, to the Knowledge of the Target, any material Liabilities, whether
accrued, absolute, contingent or otherwise, and whether due or to become due, probable of assertion
or not, except (i) those reflected or otherwise reserved against in the Target Financial Statements
in amounts that have been established on a basis consistent with past practices of Target and in
accordance with GAAP; (ii) those arising subsequent to the Target Financial Statements in the
Ordinary Course of Business, none of which constitute or would constitute a violation or breach of
any condition or covenant in this Agreement; (iii) those not required to be reflected on, or
disclosed in the footnotes to, the Target Financial Statements under GAAP; (iv) executory
obligations under the Material Contracts and executory obligations under contracts not required to
be disclosed as Material Contracts; and (v) other Liabilities of which Purchaser and Subsidiary
have Knowledge.

Section 4.6. No Material Adverse Change. Except as contemplated or caused by this Agreement, there has not been (i) any Material
Adverse Change in the Business, (financial or otherwise), operations, or prospects of Target; (ii)
any damage, destruction, or loss, whether covered by insurance or not, having a material adverse
effect on the Business, (financial or otherwise), operations or prospects of Target; (iii) any
entry into or termination of any material commitment, contract, agreement, or transaction
(including, without limitation, any material borrowing or capital expenditure or sale
or other disposition of any material asset or assets) by or involving Target, other than this
Agreement, and agreements executed in the Ordinary Course of Business; (iv) any redemption,
repurchase, or other acquisition for value of its capital stock by Target, or any dividend or
distribution declared, set aside, or paid on capital stock of Target; (v) any transfer of any right
granted pursuant to any material lease, license, agreement, patent, trademark, trade name, or
copyright of Target; (vi) any sale or other disposition of any Asset, or any mortgage, pledge, or

 

13

 

imposition of any lien or other encumbrance on any Asset, other than in the Ordinary Course of
Business, or any agreement relating to any of the foregoing; of (vii) any default or breach by
Target in any material respect pursuant to any contract, license or permit. Since the date of the
Target Balance Sheet, Target has conducted the Business only in the ordinary and usual course, and,
without limiting the foregoing, no changes have been made in (i) executive compensation amounts,
(ii) the manner in which other employees of Target are compensated, (iii) supplemental benefits
provided to any such executives or other employees, or (iv) inventory amounts in relation to sales
amounts, except, in any such event, in the Ordinary Course of Business and, in any event, without
material adverse effect on the business, condition (financial or otherwise), operations, or
prospects of causing a Material Adverse Change with respect to Target.

Section 4.7. Brokers. No broker, finder, or investment banker is entitled to any brokerage, finder’s, or other fee
or commission in connection with this Agreement or any related transaction based upon any
agreements, written or oral, made by or on behalf of Target.

Section 4.8. Representations in Stock Exchange Agreement. To the extent applicable to this Agreement, Target’s representations and warranties under
Article IV of the Stock Exchange Agreement are incorporated by reference herein.

ARTICLE 5

Representations and Warranties of Purchaser and Subsidiary

Except as otherwise set forth in writing in the respective Purchaser and the Subsidiary
Disclosure Documents delivered by Purchaser and Subsidiary to Sellers in connection with this
Agreement, Purchaser and Subsidiary, severally, for itself only, except for the representation and
warranty set forth in Section 5.5 which is made solely by Subsidiary, hereby represent and warrant
to Sellers and Target as follows:

Section 5.1. Organization. Purchaser and Subsidiary are duly organized, validly existing and in good standing under
the Laws of the jurisdictions of their organization with full corporate power and authority to
conduct their businesses as they are presently being conducted and to own or lease, as applicable,
their assets. Purchaser and Subsidiary are duly qualified to do business as foreign entities and
are in good standing in each jurisdiction where the nature of the transactions contemplated by this
Agreement make such qualification necessary.

Section 5.2. Authority. Purchaser and Subsidiary have all requisite corporate power and corporate authority, and
have taken all corporate actions necessary, to execute, deliver and perform this Agreement, the
Ancillary Documents and the Stock Exchange Agreement, to consummate the transactions
contemplated hereby and thereby and to perform their obligations hereunder and thereunder.
The execution and delivery by Purchaser and Subsidiary of this Agreement, the Ancillary Documents
and the Stock Exchange Agreement, and the consummation by Purchaser and Subsidiary of the
transactions contemplated hereby and thereby have been duly and validly authorized by the
respective boards of directors of Purchaser and Subsidiary, and Purchaser and Subsidiary have taken
all other corporate actions necessary to authorize this Agreement, the Ancillary Documents and the
Stock Exchange Agreement, and the

 

14

 

transactions contemplated hereby and thereby. This Agreement has
been duly and properly executed and delivered by Purchaser and Subsidiary and, is the legal, valid
and binding obligations of Purchaser and Subsidiary, enforceable against each in accordance with
its terms.

Section 5.3. Capitalization.

(a) Purchaser. On the Closing Date, the total authorized capital of Purchaser consists of (a) one hundred
million (100,000,000) shares of $.0001 par value common stock, of which, at the Closing of the
Merger eleven million six hundred and sixty-five thousand seven hundred thirty-three (11,665,733)
shares are issued and outstanding, and (b) five million (5,000,000) shares of $.0001 par value
preferred stock, of which at the Closing of the Merger zero (0) shares are issued and outstanding.
The rights, privileges and preferences of Purchaser’s capital stock are as stated in Purchaser’s
Certificate of Incorporation, as amended to date. All outstanding shares of the Common Stock are
duly authorized, validly issued, fully paid and non-assessable. Except as disclosed in the Stock
Exchange Agreement, as of the Closing Date, there are no outstanding or authorized capital stock,
options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, or
other contracts or commitments that could require Purchaser to issue, sell, or otherwise cause to
become outstanding any of its capital stock; and, except as provided in ARTICLE 3 of this
Agreement, there are no outstanding contracts, commitments or rights of any kind that could require
Purchaser to repurchase, redeem or otherwise acquire any outstanding shares of its capital stock.
There are no outstanding or authorized stock appreciation, phantom stock, profit participation or
similar rights with respect to Purchaser.

(b) Subsidiary. On the Closing Date, the total authorized capital of Subsidiary consists of one hundred
million (100,000,000) shares of $.001 par value common stock, of which eighty six million
(86,000,000) shares are issued and outstanding. The rights, privileges and preferences of
Subsidiary’s $.001 par value common stock are as stated in Subsidiary’s Certificate of
Incorporation, as amended to date. All of the outstanding shares of Subsidiary’s $.001 par value
common stock are duly authorized, validly issued, fully paid and non-assessable. There are no
outstanding or authorized capital stock, options, warrants, purchase rights, subscription rights,
conversion rights, exchange rights, or other contracts or commitments that could require Subsidiary
to issue, sell, or otherwise cause to become outstanding any of its capital stock, and there are no
outstanding contracts, commitments or rights of any kind that could require Subsidiary to
repurchase, redeem or otherwise acquire any outstanding shares of its capital stock. There are no
outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights
with respect to Subsidiary.

Section 5.4. Investment Intent Subsidiary is acquiring the Target Shares for its own account and not with a view to their
distribution within the meaning of Section 2(a)(11) of the Securities Act, in any manner that would
be in violation of the Securities Act. Subsidiary has not, directly or indirectly, offered the
Target Shares to anyone or solicited any offer to buy the Target Shares from anyone, so as to
bring the offer and sale of the Target Shares within the registration requirements of the
Securities Act.

 

15

 

Section 5.5. Capital Resources. Purchaser and Subsidiary have, and will have at the Effective Time, commitments for
sufficient funds, in the form of capital contributions or loan proceeds, or both, to pay (i)
Purchaser’s obligations under this Agreement and Ancillary Documents to which Purchaser and
Subsidiary are parties; and (ii) the amount of $1,800,000.00, which amount has been approved by
Seller Shareholders on or prior to the Closing Date as being adequate to finance the operations of
Purchaser and Surviving Corporation for the first twelve (12) months following the Closing in a
manner consistent with the Budget.

Section 5.6. Liabilities. Purchaser does not have any material Liabilities, whether accrued, absolute, contingent or
otherwise, and whether due or to become due, probable of assertion or not, except (i) those
reflected or otherwise reserved against in the Purchaser Financial Statements in amounts that have
been established on a basis consistent with past practices of Purchaser and in accordance with
GAAP; (ii) those arising subsequent to the Purchaser Financial Statements in the Ordinary Course of
Business, none of which constitute or would constitute a violation or breach of any condition or
covenant in this Agreement; (iii) those not required to be reflected on, or disclosed in the
footnotes to, the Purchaser Financial Statements under GAAP; and (iv) other Liabilities of which
Target has Knowledge. Subsidiary has no material Liabilities, whether accrued, absolute,
contingent or otherwise, and whether due or to become due, probable of assertion or not.

 

16

 

Section 5.7. Material Contracts. The Purchaser and the Subsidiary Disclosure Documents specify all material contracts,
agreements, or understandings, whether express or implied, written or verbal, to which either
Purchaser or Subsidiary is a party, with a brief summary of each such material contract, agreement
or understanding. To the Knowledge of the Purchaser and the Subsidiary, (i) each such contract is
legal, valid, binding, enforceable and in full force and effect; and (ii) no party is in breach or
default, and no event has occurred that with notice or lapse of time would constitute a breach or
default, or permit termination, modification, or acceleration, under any such contract; and (iii)
no party has repudiated any provision of any such contract.

Section 5.8. Compliance with Law. Purchaser and Subsidiary are in compliance with all Laws and Court Orders which would affect
their ability to perform their obligations hereunder. There is no Action pending or threatened
against Purchaser or Subsidiary that would affect its ability to perform its obligations hereunder.

Section 5.9. Brokers. No broker, finder, or investment banker is entitled to any brokerage, finder’s, or other fee
or commission in connection with this Agreement or any related transaction based upon any
agreements, written or oral, made by or on behalf of Purchaser or Subsidiary.

Section 5.10. Representations in Stock Exchange Agreement. To the extent applicable to this Agreement, Subsidiary’s and Purchaser’s representations and
warranties set forth in Article III and Article V of the Stock Exchange Agreement are incorporated
by reference herein.

ARTICLE 6

Covenants

Section 6.1. Acquisition Transaction. Immediately following the Closing of the Merger, Purchaser and Surviving Corporation shall
enter into the Stock Exchange Agreement. Purchaser and the Surviving Corporation shall perform in
all material respects each of its agreements and obligations specified in the Stock Exchange
Agreement and required to be performed on or prior to the closing of the Acquisition. Purchaser
and Surviving Corporation shall comply with all material requirements, rules, and regulations of
all regulatory authorities having jurisdiction relating to the Acquisition.

Section 6.2. Conduct of Business Prior to the Effective Time. Except as expressly contemplated or permitted by this Agreement or the Stock Exchange
Agreement, or as required by applicable Law, during the period from the date of this Agreement to
the Effective Time, each Target, Subsidiary, and Purchaser (“Covenanting Parties”) shall comply
with each of the following:

(a) Business in Ordinary Course. The business of each Covenanting Party shall be conducted only in the ordinary and usual
course, each Covenanting Party shall use reasonable efforts to keep intact its business
organization and goodwill, keep available the services of its officers and employees and maintain
good relationships with suppliers, lenders, creditors, distributors, employees, customers, and
other persons having business or financial relationships with such Covenanting Party, and each
Covenanting Party shall immediately notify the other

 

17

 

Covenanting Parties of any event or occurrence
or emergency material to, and not in the Ordinary Course of Business of, the notifying Covenanting
Party.

(b) Amendment of Corporate Documents and Shareholders Rights. Covenanting Parties shall not (i) amend their Articles of Incorporation (or similar charter
document) or Bylaws (or similar governing document), or (ii) split, combine, or reclassify any of
their outstanding securities or declare, set aside, or pay any dividend or other distribution on or
make or agree or commit to make any exchange for or redemption of any such securities payable in
cash, stock, or property.

(c) Stock Changes. Covenanting Parties shall not (i) issue or agree to issue any additional shares of, or
rights of any kind to acquire any shares of, their capital stock of any class, or (ii) enter into
any contract, agreement, commitment, or arrangement with respect to any of the foregoing.

(d) Additional Liabilities. Covenanting Parties shall not create, incur, or assume any long-term or short-term
indebtedness for money borrowed or make any capital expenditures or commitment for capital
expenditures, except in their Ordinary Course of Business and consistent with past practices.

(e) Employee Compensation. Covenanting Parties shall not (i) adopt, enter into, or amend any bonus, profit-sharing,
compensation, stock option, warrant, pension, retirement, deferred compensation, employment,
severance, termination, or other employee benefit plan, agreement, trust fund, or arrangement for
the benefit or welfare of any officer, director or employee; or (ii) agree to any material (in
relation to historical compensation) increase in the compensation payable or to become payable to,
or any increase in the contractual term of employment of, any officer, director, or employee,
except, with respect to employees who are not officers or directors, in the Ordinary Course of
Business in accordance with past practice.

(f) Asset Disposition. Covenanting Parties shall not sell, lease, mortgage, encumber, or otherwise dispose of or
grant any interest in any of their assets or properties, except for sales, encumbrances, and other
dispositions or grants in the Ordinary Course of Business and consistent with past practice and
except for liens for taxes not yet due or liens or encumbrances that are not material in amount or
effect and do not impair the use of such property, or as specifically provided for or permitted in
this Agreement and the Stock Exchange Agreement.

(g) Material Contracts. Covenanting Parties shall not enter into, or terminate, any material contract, agreement,
commitment, or understanding.

(h) Taxes. Each Covenanting Party will file properly and promptly when due all federal, state, local,
foreign and other tax returns, reports, and declarations required to be filed by such Covenanting
Party and will pay, or make full and adequate provision for the payment of, all taxes and
governmental charges due from or payable by such Covenanting Party.

(i) Compliance with Laws. Each Covenanting Party will comply with all laws and regulations applicable to such
Covenanting Party and such Covenanting Party’s operations.

 

18

 

Section 6.3. Access to Information. Each Covenanting Party shall provide to each other Covenanting Party and to their
accountants, counsel and other representatives reasonable access during normal business hours
during the period prior to the Closing to all of its properties, books, contracts, commitments,
records (including, but not limited to, tax returns), and personnel, and, during such period, each
Covenanting Party shall furnish promptly to the other Covenanting Parties as requested (i) all
written communications to its directors or to its shareholders generally; (ii) internal monthly
financial statements when and as available; and (iii) all other information concerning its
business, properties, and personnel, but no investigation pursuant to this section shall affect any
representations or warranties of any Covenanting Party, or the conditions to the obligations of
any Covenanting Party to consummate the Transaction. In the event of the termination of this
Agreement, each Covenanting Party will, and will cause its representatives to, deliver to the other
Covenanting Parties or destroy all documents, work papers, and other material, and all copies
thereof, obtained by each Covenanting Party from other Covenanting Parties as a result of this
Agreement or in connection with this Agreement, whether so obtained before or after the execution
of this Agreement, and each Covenanting Party will hold in confidence all confidential information,
that has been designated as such in writing or by appropriate and obvious notation, and will not
use any such confidential information, except in connection with the Transaction, until such time
as such information is otherwise publicly available. Each Covenanting Party and their
representatives shall assert their rights pursuant to this Agreement in such manner as to minimize
interference with the business of other Covenanting Parties.

Section 6.4. Post-Closing 8-K Report. Purchaser shall prepare and, within four (4) Business Days following the Closing Date, cause
to be filed with the SEC a Current Report on Form 8-K regarding the Transaction, as required under
the Exchange Act and Rule 13a-11 of the Exchange Act.

Section 6.5. Director and Officer Liability.

(a) Directors’ and Officers’ Liability Insurance. Beginning the Effective Time, Surviving Corporation shall obtain and maintain officers’ and
directors’ liability insurance or insurance “tail” or other insurance policies in respect to acts
or omissions occurring prior to the Effective Time covering present and former directors and
officers of Target on such terms and in such amounts with respect to coverage as is presently
available to Target’s officers and directors for a period of at least six years from the Closing
Date. Surviving Corporation shall maintain such policies in full force and effect for their full
term, and continue to honor the obligations thereunder.

(b) Directors’ and Officers’ Indemnification. Beginning the Effective Time, Purchaser’s Certificate of Incorporation and Bylaws, and the
Surviving Charter and the Surviving Bylaws shall contain, or Subsidiary shall cause the Surviving
Charter and the Surviving Bylaws to so contain, such provisions with respect to indemnification,
advancement of expenses and exculpation of present and former directors and officers of Target as
shall be reasonably satisfactory to Scotti and Takats, and such provisions shall not be amended,
repealed, or otherwise modified in any manner that could adversely affect the rights thereunder of
any indemnified directors and officers benefited by such provisions.

 

19

 

(c) Continuity of Insurance and Indemnification Obligations. If Purchaser, Surviving Corporation or any of their successors or assigns (i) consolidates
with or merges into any other Person and shall not be the continuing or surviving corporation or
entity of such consolidation or merger or (ii) transfers or conveys all or substantially all of
their properties and assets to any Person, then, and in each such case, to the extent necessary,
proper provision shall be made so that the successors and assigns of Purchaser or the Surviving
Corporation, as the case may be, shall assume the obligations set forth in this Section 6.5.

Section 6.6. Updating of Disclosure Documents. Each Covenanting Party shall notify the other Covenanting Parties of any changes, additions
or events which may cause any change in or addition to such Covenanting Party’s Disclosure Document
promptly after the occurrence of the same and at the Closing by the delivery of appropriate updates
to the respective Disclosure Document. No notification made pursuant to this section shall be
deemed to cure any breach of any representation or warranty made in this Agreement, unless all
Covenanting Parties specifically agree thereto in writing nor shall any such notification be
considered to constitute or result in a waiver by any Covenanting Party of any condition set forth
in this Agreement.

Section 6.7. Rescission of Merger. In case the Acquisition does not close, as contemplated by the Stock Exchange Agreement, within
thirty (30) days after the Closing of the Merger, the Merger shall be rescinded, and this Agreement
and all documents, securities and other instruments executed and delivered in connection hereto
shall be shall be cancelled and rendered null and void ab initio. The Covenanting Parties, and
each of them, shall take all necessary actions to effectuate such rescission, including, without
limitation, executing appropriate documents and causing appropriate filings with appropriate
offices of Secretary of State, so as to restore each party to this Agreement to their respective
positions occupied immediately prior to the Closing of the Merger.

Section 6.8. Further Assurances. Covenanting Parties shall use their commercially reasonable efforts to 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 or documents as any other party may
reasonably request in order to carry out the intent and purposes of this Agreement and the
consummation of the transactions contemplated hereby.

ARTICLE 7

Closing Conditions

Section 7.1. Conditions to Each Party’s Obligation. The respective obligations of each party hereto to effect the transactions contemplated
hereby are subject to the satisfaction, on or prior to the Closing Date, of the following
conditions:

(a) No Legal Barriers. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been
enacted, entered, promulgated or enforced by any governmental entity which prohibits, restrains,
enjoins or restricts the consummation of the transactions contemplated by this Agreement and the
Stock Exchange Agreement; and

 

20

 

(b) Third Party Consents Obtained. All authorizations, consents, orders or approvals of, or declarations or filings with, or
expiration of waiting periods imposed by, any Governmental Entity necessary for the consummation of
the transactions contemplated by this Agreement and the Stock Exchange Agreement have been filed,
occurred or been obtained.

Section 7.2. Conditions to the Obligations of Target, Sellers and Seller
Shareholders. The respective obligations of Target, Sellers and Seller Shareholders to effect the
transactions contemplated hereby are subject to the satisfaction, on or prior to the Closing Date,
of the following conditions:

(a) Officer Certificate Regarding Representation and Warranties. The representations and warranties of Subsidiary and Purchaser contained in this Agreement
or in any other document delivered pursuant hereto shall be true and correct in all material
respects at and as of the Closing Date with the same effect as if made at and as of the Closing
Date (except to the extent such representations and warranties specifically relate to an earlier
date, in which case such representations and warranties shall be true and correct as of such
earlier date) and, at the Closing, Subsidiary and Purchaser shall have delivered to the Sellers
certificates of appropriate officers to that effect;

(b) Issuance and Delivery of Shares. Subsidiary has issued or caused to be issued shares of Subsidiary’s $.001 par value common
stock in the amount specified in Section 3.3 of this Agreement and delivered or caused to be
delivered to the Sellers certificates representing such shares of Subsidiary’s $.001 par value
common stock, each accompanied by an instrument of transfer of such shares of Subsidiary’s $.001
par value common stock.

(c) Capital Resources. Purchaser and Subsidiary have presented to Seller Shareholders satisfactory evidence of the
commitments for those funds provided in Section 5.5 of this Agreement.

(d) Ancillary Documents. Purchaser and Subsidiary, as appropriate, have executed and delivered to Sellers, in a form
satisfactory to each Seller, the following Ancillary Documents:

(i) Employment Agreements;

(ii) Opinions of Counsel;

(iii) Pledge and Security Agreements;

(iv) Promissory Notes;

(v) Registration Rights Agreements;

(vi) Shareholders Agreements; and

(vii) Stock Powers.

(e) Budget Approval. The Budget has been presented to and approved by the Seller Shareholders.

(f) Surviving Charter and Bylaws Approval. The Articles of Incorporation and Bylaws of Subsidiary have been amended in a manner
satisfactory to Sellers, and the Surviving Charter and Surviving Bylaws have been approved by the
Seller Shareholders.

 

21

 

(g) Surviving Board and Officers Appointments. Subsidiary has caused to be prepared and executed all appropriate consents and resolutions
appointing Scotti and Takats directors on the Surviving Board as provided by Section 2.5(a) of this
Agreement. Subsidiary and its board of directors have caused to be prepared and executed all
appropriate board of directors resolutions appointing Scotti the President and Takats the Senior
Executive Vice President and Treasurer of Surviving Corporation as provided by Section 2.5(b) of
this Agreement.

(h) Covenants Fulfilled. Subsidiary and Purchaser have otherwise performed in all material respects each of their
agreements and obligations specified in this Agreement and required to be performed on or prior to
the Closing and shall have complied with all material requirements, rules, and regulations of all
regulatory authorities having jurisdiction relating to the Merger and the Acquisition.

Section 7.3. Conditions to the Obligations of Subsidiary and Purchaser. The obligation of Subsidiary and Purchaser to effect the transactions contemplated hereby is
subject to the satisfaction, on or prior to the Closing Date, of the following conditions:

(a) Officer Certificate regarding Representations and Warranties. The representations and warranties of Target and Seller Shareholders contained in this
Agreement or in any other document delivered pursuant hereto shall be true and correct in all
material respects at and as of the Closing Date with the same effect as if made at and as of the
Closing Date (except to the extent such representations and warranties specifically relate to an
earlier date, in which case such representations and warranties shall be true and correct as of
such earlier date) and, at the Closing, Target shall have delivered to Purchaser and Subsidiary
certificates of an appropriate officer to that effect.

(b) Covenants Fulfilled. Target has otherwise performed in all material respects each of its agreements and
obligations specified in this Agreement and required to be performed on or prior to the Closing,
and shall have complied with all material requirements, rules, and regulations of all regulatory
authorities having jurisdiction relating to the Merger and the Acquisition.

ARTICLE 8

Indemnification

 

22

 

Section 8.1. Survival of Representations and Warranties. The representations and warranties of the parties contained herein or in any agreement,
certificate or other instrument delivered pursuant to this Agreement shall survive the Closing Date
until eighteen (18) months after the Closing Date. Any claims under this Agreement with respect to
a breach of a representation and warranty must be asserted by written notice within the applicable
survival period contemplated by this Section 8.1, and, if such a notice is given, the survival
period for such representation and warranty shall continue until the claim is fully resolved.

Section 8.2.  Indemnification by Purchaser and Subsidiary. Subject to limitations below, Purchaser and Subsidiary agree to indemnify, defend and hold
Sellers, Seller Shareholders and their assigns (“Indemnified Seller Parties”) harmless from and
against any and all Damages that Indemnified Seller Parties may suffer, sustain, incur or become
subject to arising out of or due to (a) any inaccuracy of any representation of Purchaser or
Subsidiary in this Agreement or Ancillary Documents; (b) any breach of any warranty of Purchaser or
Subsidiary in this Agreement or Ancillary Documents; (c) breach of any covenant, undertaking,
agreement or other obligation of Purchaser or Subsidiary under this Agreement or Ancillary
Documents; (d) any Action of any nature arising out of any act performed, transaction entered into,
or state of facts caused to exist by Purchaser prior or subsequent to the Closing Date; and (e) any
costs and expenses (including attorneys’ fees) which Indemnified Seller Parties may suffer or
sustain in seeking to enforce the indemnification obligations of Purchaser hereunder.

Section 8.3. Indemnification by Sellers. Sellers agree to indemnify, defend and hold Purchaser and Subsidiary (“Indemnified
Purchaser Parties”) harmless from and against any and all Damages that Indemnified Purchaser
Parties may suffer, sustain, incur or become subject to arising out of or due to (a) any inaccuracy
of any representation of Target in this Agreement or Ancillary Documents; (b) any breach of any
warranty of Target in this Agreement or Ancillary Documents; (c) breach of any covenant,
undertaking, agreement or other obligation of Target under this Agreement or Ancillary Documents;
(d) any Action of any nature arising out of any act performed, transaction entered into, or state
of facts cause to exist by Target prior to the Closing Date; and (e) any costs and expenses
(including attorneys’ fees) which Indemnified Purchaser Parties may suffer or sustain in seeking to
enforce the indemnification obligations of Sellers.

Section 8.4. Notice. Any Indemnified Purchaser Party or Indemnified Seller Party seeking indemnification
hereunder (the “Indemnified Party”) shall give to the party obligated to provide indemnification to
such Indemnified Party (the “Indemnitor”) a prompt written notice (a “Claim Notice”) describing, to
the extent reasonably practical to do so, in reasonable detail the facts giving rise to any claims
for indemnification hereunder and shall include in such Claim Notice (if then known) the amount or
the method of computation of the amount of such claim, and a reference to the provision of this
Agreement or any agreement, certificate or instrument executed pursuant hereto or in connection
herewith upon which such claim is based; provided that failure to give such Claim Notice shall not
relieve the Indemnitor of its obligations hereunder, except to the extent it shall have been
prejudiced by such failure.

Section 8.5. Limitation on Indemnification. Notwithstanding the foregoing, no Indemnified Party shall have the right to indemnification
pursuant to Section 8.2 or

 

23

 

Section 8.3 of this Agreement, unless and until the aggregate of all
Damages suffered by such Indemnified Party hereunder exceeds $30,000.

Section 8.6. Calculation of Damages. The amount of any Damage for which indemnification is provided shall be net of any amounts
recovered by the Indemnified Party or paid for its benefit under insurance policies with respect to
such Damage. In the event that any claim for indemnification asserted hereunder is, or
may be, the subject of any insurance coverage or other right to indemnification or
contribution from any third Person, the Indemnified Party expressly agrees to promptly notify the
applicable insurance carrier of any such claim or loss and tender defense thereof to such carrier,
and shall also promptly notify any potential third party indemnitor or contributor which may be
liable for any portion of such losses or claims. In the event that any claim asserted hereunder is
not subject of any insurance coverage or right to indemnification, the amount of the Damage shall
be limited to the amount of the Indemnified Party’s out-of-pocket expenses.

ARTICLE 9

Termination

Section 9.1.  Termination. This Agreement may be terminated and the transactions contemplated hereby may be abandoned
at any time prior to the Effective Time:

(a) by mutual written consent of Target, Subsidiary, and Purchaser;

(b) by any party:

	 	(i)	 	if any Governmental Entity of competent jurisdiction issues an
order, judgment, decision, opinion, decree or ruling or takes any other action
(which the party seeking to terminate this Agreement shall have used its
commercially reasonable efforts to resist, resolve, annul, quash or lift, as
applicable) permanently restraining, enjoining or otherwise prohibiting the
Merger and such order, judgment, decision, opinion, decree or ruling or other
action shall have become final and non-appealable; or
	 
	 	(ii)	 	if any other party shall have breached or failed to perform in
any material respect any of its representations, warranties or covenants
contained in this Agreement, which breach or failure to perform is (A)
incapable of being cured or is not cured within ten (10) Business Days
following written notice to the breaching party and (B) would result in a
failure of any condition set forth in ARTICLE 7 of this Agreement.

Section 9.2. Effect of Termination. If this Agreement is terminated pursuant to Section 9.1 of this Agreement, this
Agreement shall become void and of no effect without liability of any party (or any stockholder,
director, officer, employee, agent, consultant or representative of such party) to each other party
hereto.

 

24

 

ARTICLE 10

General Provisions

Section 10.1. Entire Agreement. This Agreement (including the Exhibits and the Disclosure Schedules), together with
Ancillary Documents, constitute the entire agreement between the parties hereto with respect to the
subject matter hereof and supersedes all other prior agreements and understandings both written and
oral between the parties with respect to the subject matter hereof.

Section 10.2. Notices. All notices and other communications hereunder shall be in writing and shall be deemed given
on (i) the date of delivery, if delivered personally or by commercial delivery service, or (ii) on
the date of confirmation of receipt (or the next Business Day, if the date of confirmation of
receipt is not a Business Day), if sent via facsimile (with confirmation of receipt), to the
parties hereto at the following address (or at such other address for a party as shall be specified
by like notice):

	 	 	 
	If to Purchaser:
	 	ImaRx Therapeutics, Inc.
	 
	 	c/o Stoel Rives LLP
	 
	 	201 S. Main Street
	 
	 	Suite 1100
	 
	 	Salt Lake City, Utah 84111-4904
	 
	 	Facsimile Machine:  801.578.6999
	 
	 	kjontiveros@stoel.com
	 
	 	 
	If to Subsidiary:
	 	Sycamore Films, Inc.
	 
	 	c/o Stepp Law Corporation
	 
	 	15707 Rockfield Boulevard
	 
	 	Suite 101
	 
	 	Irvine, California 92618
	 
	 	Facsimile Machine:  949.660.9010
	 
	 	tes@stepplawgroup.com
	 
	 	 
	With a copy to:
	 	edwardsylvan@gmail.com
	 
	 	terry.sylvan@gmail.com
	 
	 	 
	If to Target or Sellers:
	 	Mitchell Silbergerg & Knopp LLP
	 
	 	11377 West Olympic Boulevard
	 
	 	Los Angeles, California 90064
	 
	 	dkb@msk.com
	 
	 	aek@msk.com
	 
	 	 
	With a copy to:
	 	don@sweetspotent.com
	 
	 	jtakats@sweetspotent.com

Section 10.3. Governing Law. This Agreement shall be construed, interpreted and the rights of the parties determined in
accordance with the Laws of the State of California, as applied to agreements among California
residents entered into and wholly to be

 

25

 

performed within the State of California
(without reference to any choice of law rules that would require the application of the Laws
of any other jurisdiction).

Section 10.4. Descriptive Headings. The descriptive headings herein are inserted for convenience of reference only and are not
intended to be part of or to affect the meaning or interpretation of this Agreement.

Section 10.5. No Third-Party Beneficiaries. This Agreement shall be binding upon and inure solely to the benefit of each party hereto
and his, her or its successors and permitted assigns and nothing in this Agreement express or
implied is intended to or shall confer upon any other Person any rights, benefits or remedies of
any nature whatsoever under or by reason of this Agreement.

Section 10.6. No Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this
Agreement. In the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement.

Section 10.7. Counterparts. This Agreement may be executed by facsimile in one or more counterparts, each of which
shall be deemed to be an original but all of which shall constitute one and the same agreement.

Section 10.8. Amendment. This Agreement may be amended, supplemented or modified only by an instrument in writing
signed on behalf of the parties hereto.

Section 10.9.  Severability. In the event that any provision of this Agreement, or the application thereof, becomes or
is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the
remainder of this Agreement shall continue in full force and effect and the application of such
provision to other persons or circumstances shall be interpreted so as reasonably to effect the
intent of the parties hereto. The parties hereto further agree to use their commercially reasonable
efforts to replace such void or unenforceable provision of this Agreement with a valid and
enforceable provision that shall achieve, to the extent possible, the economic, business and other
purposes of such void or unenforceable provision.

 

26

 

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be duly executed on its
behalf as of the day and year first above written.

	 	 	 	 	 
	 	SWEET SPOT, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Donald Scotti 	 
	 	 	Title:  	President 	 
	 
	 	JRT PRODUCTIONS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Joseph Takats 	 
	 	 	Title:  	President 	 
	 
	 	RED CAT PRODUCTIONS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Donald Scotti 	 
	 	 	Title:  	President 	 
	 
	 	TAKATS

 	 
	 	By:  	 	 
	 	 	Joseph Takats 	 
	 	 	 	 
	 
	 	SCOTTI

 	 
	 	By:  	 	 
	 	 	Donald Scotti 	 
	 	 	 	 
	 
	 	IMARX THERAPEUTICS INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Richard Love 	 
	 	 	Title:  	Chairman of the Board 	 
	 
	 	SYCAMORE FILMS INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Terry Sylvan 	 
	 	 	Title:  	President 	 
	 

 

27

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