Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Mobiventures, Inc. - Exhibit 10.6

SECURITIES PURCHASE AGREEMENT 

          THIS
SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of
March 31, 2008, by and among MobiVentures, Inc. a Nevada corporation, with
headquarters located at Sunnyside, Brinkworth, Chippenham, Wiltshire, SN15 5BY,
England (the “Company”), and the Buyers listed on Schedule I attached
hereto (individually, a “Buyer” or collectively “Buyers”). 

WITNESSETH:

          WHEREAS,
the Company and the Buyer(s) are executing and delivering this Agreement in
reliance upon an exemption from securities registration pursuant to Section 4(2)
and/or Rule 506 of Regulation D (“Regulation D”) as promulgated by the
U.S. Securities and Exchange Commission (the “SEC”) under the Securities
Act of 1933, as amended (the “1933 Act”); 

          WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained
herein, the Company shall issue and sell to the Buyer(s), as provided herein,
and the Buyer(s) shall purchase Two Million Dollars ($2,000,000) of secured
convertible redeemable debentures (the “Debentures”), all of which shall
be funded on the date hereof (the “Closing”), for a total purchase price
of Two Million Dollars ($2,000,000), (the “Purchase Price”) in the
respective amounts set forth opposite each Buyer(s) name on Schedule I (the
“Subscription Amount”); and 

          WHEREAS,
the aggregate proceeds of the sale of the Debentures contemplated hereby shall
be held in escrow pursuant to the terms of an escrow agreement substantially in
the form of the Escrow Agreement attached hereto as Exhibit A (the
“Escrow Agreement”); and 

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

          WHEREAS,
  contemporaneously with the execution and delivery of this Agreement, the parties
  hereto are executing and delivering Irrevocable Transfer Agent Instructions
  substantially in the form attached hereto as Exhibit C (the “Irrevocable
  Transfer Agent Instructions”).

          WHEREAS,
contemporaneously with the execution and delivery of this Agreement, the
parties hereto are executing and delivering a Security Agreement substantially
in the form attached hereto as Exhibit D, which shall be deemed to also
include: (i) the Composite Guarantee and Debenture to be entered into by
MobiVentures, Inc and MobiVentures Limited in favor of Buyer(s) to secure
their obligations under the guarantee provisions of that document by way of
fixed and floating charge over all the assets and undertaking of each company
and (ii) the Share Charges to be entered into by the shareholders of Pure
Promoter Ltd and Move2Mobile Ltd (collectively, the “Security Agreement”)
pursuant to which the Company has agreed to provide the Buyer a security
interest in Pledged Collateral (as this term is defined in the Security
Agreement dated the date hereof) to secure Company’s obligations under this
Agreement, the 

Debenture, the Registration Rights Agreement the Security
Agreement, the Irrevocable Transfer Agent Instructions, the Pledge Agreement and
the Escrow Agreement (collectively, the “Transaction Documents”) or any other
obligations of the Company to the Buyer;

          WHEREAS,
contemporaneously with the execution and delivery of this Agreement, the parties
hereto are executing and delivering a Pledge Agreement substantially in the form
attached hereto as Exhibit E (the “Pledge Agreement”). 

          NOW,
THEREFORE, in consideration of the mutual covenants and other agreements
contained in this Agreement the Company and the Buyer(s) hereby agree as
follows: 

                    1.
PURCHASE AND SALE OF DEBENTURES. 

                    (a)     
Purchase of Debentures. Subject to the satisfaction (or waiver) of the terms and
conditions of this Agreement, each Buyer agrees, severally and not jointly, to
purchase at the Closing (as defined herein below) and the Company agrees to sell
and issue to the Buyer, severally and not jointly, at such Closing,
Debentures in an aggregate amount of Two Million Dollars ($2,000,000.00) (the
“Purchase Price”) in amounts corresponding with the Subscription Amount set
forth opposite each Buyer’s name on Schedule I hereto. The Debentures purchased
by Buyer shall have a maturity date of two (2) years from the Closing. Upon
execution hereof by a Buyer, the Buyer shall wire transfer the Subscription
Amount set forth opposite his name on Schedule I in same-day funds or a check
payable to: “James G. Dodrill II, P.A. as Escrow Agent for Trafalgar – National
Automation”, which Subscription Amount shall be held in escrow pursuant to the
terms of the Escrow Agreement (as hereinafter defined) and disbursed in
accordance therewith.

                    (b)      Closing
Date. The Closing of the purchase and sale of the Debentures shall take place at
10:00 a.m. Eastern Standard Time on the date of this Agreement (the “Closing
Date”), with disbursement to the Company subject to satisfaction of the
conditions to the Closing set forth in Sections 6 and 7 below, (or such later
date as is mutually agreed to by the Company and the Buyer(s)). The Closing
shall occur on the Closing Date at the offices of James G. Dodrill II, P.A.,
5800 Hamilton Way, Boca Raton, FL 33496 (or such other place as is mutually
agreed to by the Company and the Buyer(s)).

                    (c)      Escrow
Arrangements; Form of Payment. Upon execution hereof by Buyer(s) and pending the
Closing and disbursement, the Purchase Price for the Debentures shall be
deposited in an escrow account with James G. Dodrill II, P.A., as escrow agent
(the “Escrow Agent”), pursuant to the terms of an escrow agreement between the
Company, the Buyer(s) and the Escrow Agent in the form attached hereto as
Exhibit A (the “Escrow Agreement”). Subject to the satisfaction of the terms and
conditions of this Agreement, on the Closing Date, (i) the Escrow Agent shall
deliver to the Company in accordance with the terms of the Escrow Agreement that
portion of the Escrow Funds (as that term is defined in the Escrow Agreement)
equal to the gross amount of the Debentures being purchased by such
Buyer(s) as set forth on Schedule I (minus the fees and expenses as set
forth herein which shall be paid directly from the Escrow Funds at the
Closing) by wire transfer of immediately available funds and (ii) the
Company shall deliver to each Buyer, Debentures which such Buyer(s) is
purchasing in amounts indicated opposite such Buyer’s name on Schedule I, duly
executed on behalf of the Company. 

2

                    
(d)      The Debentures shall contain
provisions that provide that in the event the Euro strengthens against the U.S.
Dollar during the life of the Debenture, the Buyer(s) shall be afforded an
adjustment to compensate for any such movement in either conversions or
redemptions.

                    2.
BUYER’S REPRESENTATIONS AND WARRANTIES. 

          Each
Buyer represents and warrants, severally and not jointly, that: 

                    (a)
Investment Purpose. Each Buyer is acquiring the Debentures for its own
account for investment only and not with a view towards, or for resale in
connection with, the public sale or distribution thereof, except pursuant to
sales registered or exempted under the 1933 Act. 

                    (b)
Accredited Investor Status. Each Buyer is an “Accredited Investor”
as that term is defined in Rule 501(a)(3) of Regulation D. 

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

                    (d)
Information. Each Buyer and its advisors (and his or, its counsel), if
any, have been furnished with all materials relating to the business, finances
and operations of the Company and information he deemed material to making an
informed investment decision regarding his purchase of the Debentures, which
have been requested by such Buyer. Each Buyer and its advisors, if any, have
been afforded the opportunity to ask questions of the Company and its
management. Neither such inquiries nor any other due diligence investigations
conducted by such Buyer or its advisors, if any, or its representatives shall
modify, amend or affect such Buyer’s right to rely on the Company’s
representations and warranties contained in Section 3 below. Each Buyer
understands that its investment in the Debentures involves a high degree of
risk. Each Buyer is in a position regarding the Company, which, based upon
employment, family relationship or economic bargaining power, enabled and
enables such Buyer to obtain information from the Company in order to evaluate
the merits and risks of this investment. Each Buyer has sought such accounting,
legal and tax advice, as it has considered necessary to make an informed
investment decision with respect to its acquisition of the Debentures. 

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

3

                    (f)
Transfer or Resale. Each Buyer understands that: (i) the Debentures have
not been and are not being registered under the 1933 Act or any state securities
laws, and may not be offered for sale, sold, assigned or transferred unless (A)
subsequently registered thereunder, or (B) such Buyer shall have delivered to
the Company an opinion of counsel, in a generally acceptable form, to the effect
that such securities to be sold, assigned or transferred may be sold, assigned
or transferred pursuant to an exemption from such registration requirements;
(ii) any sale of such securities made in reliance on Rule 144 under the 1933 Act
(or a successor rule thereto) (“Rule 144”) may be made only in accordance
with the terms of Rule 144 and further, if Rule 144 is not applicable, any
resale of such securities under circumstances in which the seller (or the person
through whom the sale is made) may be deemed to be an underwriter (as that term
is defined in the 1933 Act) may require compliance with some other exemption
under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii)
neither the Company nor any other person is under any obligation to register
such securities under the 1933 Act or any state securities laws or to comply
with the terms and conditions of any exemption thereunder.

                    (g)
Legends. Each Buyer understands that the certificates or other
instruments representing the Debentures and all certificates or other
instruments representing the shares of the Company’s common stock into which the
Debentures are converted shall bear a restrictive legend in substantially the
following form (and a stop transfer order may be placed against transfer of such
certificates): 

  
    THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
      STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT
      PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, GENERALLY
      ACCEPTABLE TO COMPANY’S COUNSEL, THAT REGISTRATION IS NOT REQUIRED
      UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

  

The legend set forth above shall be removed and the Company
within three (3) business days shall issue a certificate without such legend to
the holder of the security upon which it is stamped, if, unless otherwise
required by state securities laws, (i) in connection with a sale transaction,
provided the securities are registered under the 1933 Act or (ii) in connection
with a sale transaction, after such holder provides the Company with an opinion
of counsel, which opinion shall be in form, substance and scope reasonably
acceptable to counsel for the Company, to the effect that a public sale,
assignment or transfer of the securities may be made without registration under
the 1933 Act.

4

                    (h)
Authorization, Enforcement. This Agreement has been duly and validly
authorized, executed and delivered on behalf of such Buyer and is a valid and
binding agreement of such Buyer enforceable in accordance with its terms, except
as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and
other similar laws relating to, or affecting generally, the enforcement of
applicable creditors’ rights and remedies. 

                    (i)
Receipt of Documents. Each Buyer and his or its counsel has received and
read in their entirety: (i) this Agreement and each representation, warranty and
covenant set forth herein, and the Transaction Documents; (ii) all due diligence
and other information necessary to verify the accuracy and completeness of such
representations, warranties and covenants; and (iii) answers to all questions
each Buyer submitted to the Company regarding an investment in the Company; and
each Buyer has relied on the information contained therein and has not been
furnished any other documents, literature, memorandum or prospectus. 

                    (j)
Due Formation of Corporate and Other Buyers. If the Buyer(s) is a
corporation, trust, partnership or other entity that is not an individual
person, it has been formed and validly exists and has not been organized for the
specific purpose of purchasing the Debentures and is not prohibited from doing
so. 

                    (k)
No Legal Advice From the Company. Each Buyer acknowledges, that it had
the opportunity to review this Agreement and the transactions contemplated by
this Agreement with his or its own legal counsel and investment and tax
advisors. Each Buyer is relying solely on such counsel and advisors and not on
any statements or representations of the Company or any of its representatives
or agents for legal, tax or investment advice with respect to this investment,
the transactions contemplated by this Agreement or the securities laws of any
jurisdiction.

                    3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

          Except
as otherwise provided in the Company Disclosure Schedule delivered herewith, the
Company represents and warrants as of the date hereof and as of the Closing Date
to each of the Buyers that: 

                    (a)
Organization and Qualification. The Company and its subsidiaries are
corporations duly organized and validly existing in good standing under the laws
of the jurisdiction in which they are incorporated, and have the requisite
corporate power to own their properties and to carry on their business as now
being conducted. Each of the Company and its subsidiaries is duly qualified as a
foreign corporation to do business and is in good standing in every jurisdiction
in which the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in
good standing would not have a material adverse effect on the Company and its
subsidiaries taken as a whole. 

                    (b)
Authorization, Enforcement, Compliance with Other Instruments. (i) The
Company has the requisite corporate power and authority to enter into and
perform this Agreement, the Transaction Documents, and any related agreements,
and to issue the Debentures in accordance with the terms hereof and thereof,
(ii) the execution and delivery of this 

5

Agreement, the Transaction Documents and any related agreements
by the Company and the consummation by it of the transactions contemplated
hereby and thereby, including, without limitation, the issuance of the
Debentures, have been duly authorized by the Company’s Board of Directors and no
further consent or authorization is required by the Company, its Board of
Directors or its stockholders, (iii) this Agreement, the Transaction Documents
and any related agreements have been duly executed and delivered by the Company,
(iv) this Agreement, the Transaction Documents and any related agreements
constitute the valid and binding obligations of the Company enforceable against
the Company in accordance with their terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of creditors’ rights and remedies. The
Company knows of no reason why the Company cannot perform any of the Company’s
obligations under this Agreement or the Transaction Documents.

                    (c)
Capitalization. The authorized capital stock of the Company consists of
300,000,000 shares of Common Stock, par value $0.001 per share and 5,000,000
shares of Preferred Stock. As of the date hereof, the Company has 72,503,063
shares of Common Stock and no shares of Preferred Stock issued and outstanding.
All of such outstanding shares have been validly issued and are fully paid and
nonassessable. No shares of Common Stock are subject to preemptive rights or any
other similar rights or any liens or encumbrances suffered or permitted by the
Company. As of the date of this Agreement, other than as disclosed in the
Company’s filings with the Securities and Exchange Commission or as provided in
the attached schedule 3(c), (i) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its subsidiaries, or contracts, commitments,
understandings or arrangements by which the Company or any of its subsidiaries
is or may become bound to issue additional shares of capital stock of the
Company or any of its subsidiaries or options, warrants, scrip, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into, any shares of capital stock of the
Company or any of its subsidiaries, (ii) there are no outstanding debt
securities other than existing credit lines and (iii) there are no agreements or
arrangements under which the Company or any of its subsidiaries is obligated to
register the sale of any of their securities under the 1933 Act and (iv) there
are no outstanding registration statements and there are no outstanding comment
letters from the SEC or any other regulatory agency. There are no securities or
instruments containing anti-dilution or similar provisions that will be
triggered by the issuance of the Debentures as described in this Agreement. The
Company has furnished to the Buyer true and correct copies of the Company’s
Articles of Incorporation, as amended and as in effect on the date hereof (the
“Articles of Incorporation”), and the Company’s By-laws, as in effect on
the date hereof (the “By-laws”), and the terms of all securities
convertible into or exercisable for Common Stock and the material rights of the
holders thereof in respect thereto other than stock options issued to employees
and consultants.

                    (d)
Issuance of Securities. The Debentures are duly authorized and, upon
issuance in accordance with the terms hereof, shall be duly issued, fully paid
and nonassessable, are free from all taxes, liens and charges with respect to
the issue thereof.

6

                    (e)
No Conflicts. The execution, delivery and performance of this Agreement,
the Transaction Documents and any related agreements by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby
will not (i) result in a violation of the Articles of Incorporation or the
By-laws or (ii), to the best knowledge of the Company, conflict with or
constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Company or any of its subsidiaries is a party, or result
in a violation of any law, rule, regulation, order, judgment or decree
(including United States federal and state securities laws and regulations and
the rules and regulations of The OTC Bulletin Board on which the Common Shares
are quoted) applicable to the Company or any of its subsidiaries or by which any
property or asset of the Company or any of its subsidiaries is bound or
affected. To the best knowledge of the Company, neither the Company nor its
subsidiaries is in violation of any term of or in default under its Articles of
Incorporation or By-laws or their organizational charter or by-laws,
respectively, or, any material contract, agreement, mortgage,
indebtedness, indenture, instrument, judgment, decree or order or any statute,
rule or regulation applicable to the Company or its subsidiaries. The business
of the Company and its subsidiaries is not being conducted, and shall not be
conducted in violation of any material law, ordinance, or regulation of any
governmental entity. Except as specifically contemplated by this Agreement and
as required under the 1933 Act and any applicable state securities laws, the
Company is not required to obtain any consent, authorization or order of, or
make any filing or registration with, any court or governmental agency in order
for it to execute, deliver or perform any of its obligations under or
contemplated by this Agreement in accordance with the terms hereof. All
consents, authorizations, orders, filings and registrations which the Company is
required to obtain pursuant to the preceding sentence have been obtained or
effected on or prior to the date hereof, except for any required post-Closing
notice filings under applicable United States federal or state securities laws,
if any. 

                    (f)      SEC
Documents: Financial Statements. Since October 1, 2006, the Company has filed,
or furnished, as applicable, all reports, schedules, forms, statements and other
documents required to be filed by it with the SEC under the Exchange Act (the
foregoing materials, including the exhibits and schedules thereto, and such
financial statements and documents incorporated by reference therein, being
hereinafter referred to as the “SEC Documents”). The Company has delivered to
the Buyers or their representatives, or made available through the SEC’s website
at http://www.sec.gov, true and complete copies of the SEC Documents. As of
their respective dates, the financial statements of the Company included in the
SEC Documents (the “Financial Statements”) complied as to form in all material
respects with the published rules and regulations of the SEC with respect
thereto as in effect at the time of filing. Such financial statements have been
prepared in accordance with U.S. generally accepted accounting principles,
consistently applied, during the periods involved (except (i) as may be
otherwise indicated in such Financial Statements or the notes thereto, or (ii)
in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements) and, fairly present in all
material respects the financial position of the Company as of the dates thereof
and the results of its operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments).

7

                    (g)     
No Material Misstatement or Omission. None of the Company’s SEC Documents
at the time of filing, none of the materials provided to the Buyer(s) by the
Company and none of the representation and warranties made in this Agreement or
any of the other Transaction Documents include any untrue statements of material
fact, nor do the Company’s SEC Documents at the time of filing and none of the
representations and warranties made in this Agreement or any of the other
Transaction Documents omit to state any material fact required to be stated
therein necessary to make the statements made, in light of the circumstances
under which they were made, not misleading. 

                    (h)     
Absence of Litigation. There is no action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency,
self-regulatory organization or body pending against or affecting the Company,
the Common Stock or any of the Company’s subsidiaries, wherein an unfavorable
decision, ruling or finding would (i) have a material adverse effect on the
transactions contemplated hereby or (ii) adversely affect the validity or
enforceability of, or the authority or ability of the Company to perform its
obligations under, this Agreement or any of the Transaction Documents have a
material adverse effect on the business, operations, properties, financial
condition or results of operations of the Company and its subsidiaries taken as
a whole. 

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

                    (j)      No
General Solicitation. Neither the Company, nor any of its affiliates, nor
any person acting on its or their behalf, has engaged in any form of general
solicitation or general advertising (within the meaning of Regulation D under
the 1933 Act) in connection with the offer or sale of the Debentures. 

                    (k)     
No Integrated Offering. Neither the Company, nor any of its affiliates,
nor any person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security,
under circumstances that would require registration of the Debentures under the
1933 Act or cause this offering of the Debentures to be integrated with prior
offerings by the Company for purposes of the 1933 Act. 

                    (l)      Employee
Relations. Neither the Company nor any of its subsidiaries is involved in
any labor dispute nor, to the knowledge of the Company or any of its
subsidiaries, is any such dispute threatened. None of the Company’s or its
subsidiaries’ employees is a member of a union and the Company and its
subsidiaries believe that their relations with their employees are good. 

8

                    (m)      Intellectual
Property Rights. The Company and its subsidiaries own or possess adequate
rights or licenses to use all trademarks, trade names, service marks, service
mark registrations, service names, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and
rights necessary to conduct their respective businesses as now conducted. The
Company and its subsidiaries do not have any knowledge of any infringement by
the Company or its subsidiaries of trademark, trade name rights, patents, patent
rights, copyrights, inventions, licenses, service names, service marks, service
mark registrations, trade secret or other similar rights of others, and, to the
knowledge of the Company there is no claim, action or proceeding being made or
brought against, or to the Company’s knowledge, being threatened against, the
Company or its subsidiaries regarding trademark, trade name, patents, patent
rights, invention, copyright, license, service names, service marks, service
mark registrations, trade secret or other infringement; and the Company and its
subsidiaries are unaware of any facts or circumstances which might give rise to
any of the foregoing. 

                    (n)     
Environmental Laws. The Company and its subsidiaries are (i) in
compliance with any and all applicable foreign, federal, state and local laws
and regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or
contaminants (“Environmental Laws”), (ii) have received all permits,
licenses or other approvals required of them under applicable Environmental Laws
to conduct their respective businesses and (iii) are in compliance with all
terms and conditions of any such permit, license or approval. 

                    (o)     
Title. Any real property and facilities held under lease by the Company
and its subsidiaries are held by them under valid, subsisting and enforceable
leases with such exceptions as are not material and do not interfere with the
use made and proposed to be made of such property and buildings by the Company
and its subsidiaries. 

                    (p)     
Insurance. The Company and each of its current and future acquired
subsidiaries are or will be upon acquisition by the Company insured by insurers
of recognized financial responsibility against such losses and risks and in such
amounts as management of the Company believes to be prudent and customary in the
businesses in which the Company and its subsidiaries are engaged. Neither the
Company nor any such subsidiary has been refused any insurance coverage sought
or applied for and neither the Company nor any such subsidiary has any reason to
believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not materially
and adversely affect the condition, financial or otherwise, or the earnings,
business or operations of the Company and its subsidiaries, taken as a whole.

                    (q)      Regulatory
Permits. The Company and its subsidiaries possess all material certificates,
authorizations and permits issued by the appropriate federal, state or foreign
regulatory authorities necessary to conduct their respective businesses, and
neither the Company nor any such subsidiary has received any notice of
proceedings relating to the revocation or modification of any such certificate,
authorization or permit. 

9

                    (r)      Internal
Accounting Controls. The Company and each of its subsidiaries maintain a
system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability, and (iii)
the recorded amounts for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences. 

                    (s)     
No Material Adverse Breaches, etc. Neither the Company nor any of its
subsidiaries is subject to any charter, corporate or other legal restriction, or
any judgment, decree, order, rule or regulation which in the judgment of the
Company’s officers has or is expected in the future to have a material adverse
effect on the business, properties, operations, financial condition, results of
operations or prospects of the Company or its subsidiaries. Neither the Company
nor any of its subsidiaries is in breach of any contract or agreement which
breach, in the judgment of the Company’s officers, has or is expected to have a
material adverse effect on the business, properties, operations, financial
condition, results of operations or prospects of the Company or its
subsidiaries. 

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

                    (u)      Certain
Transactions. Except for arm’s length transactions pursuant to which the
Company makes payments in the ordinary course of business upon terms no less
favorable than the Company could obtain from third parties and other than the
grant of stock options disclosed to the Buyer, none of the officers, directors,
or employees of the Company is presently a party to any transaction with the
Company (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any corporation,
partnership, trust or other entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or
partner. 

                    (v)     
Fees and Rights of First Refusal. The Company is not obligated to offer
the securities offered hereunder on a right of first refusal basis or otherwise
to any third parties including, but not limited to, current or former
shareholders of the Company, underwriters, brokers, agents or other third
parties. 

10

                    4.
COVENANTS. 

                    (a)      Best
Efforts. Each party shall use its best efforts timely to satisfy each of the
conditions to be satisfied by it as provided in Sections 6 and 7 of this
Agreement. 

                    (b)     
Form D. The Company agrees to file a Form D with respect to the
Debentures as required under Regulation D and to provide a copy thereof to each
Buyer promptly after such filing. The Company shall, on or before the Closing
Date, take such action as the Company shall reasonably determine is necessary to
qualify the Debentures, or obtain an exemption for the Debentures for sale to
the Buyers at the Closing pursuant to this Agreement under applicable securities
or “Blue Sky” laws of the states of the United States, and shall provide
evidence of any such action so taken to the Buyers on or prior to the Closing
Date.

                    (c)      Reporting
Status. Until the date on which none of the Debentures are outstanding (the
“Registration Period”), the Company shall file in a timely manner all
reports required to be filed with the SEC pursuant to the 1934 Act and the
regulations of the SEC thereunder, and the Company shall not terminate its
status as an issuer required to file reports under the 1934 Act even if the 1934
Act or the rules and regulations thereunder would otherwise permit such
termination. 

                    (d)     
Use of Proceeds. The Company will use the proceeds from the sale of the
Debentures for the purposes of acquiring Pure Promoter Ltd. 

                    (e)     
Reservation of Shares. The Company shall take all action reasonably
necessary to at all times have authorized, and reserved for the purpose of
issuance, such number of shares of Common Stock as shall be necessary to effect
the issuance of the shares upon conversion of the Debentures. If at any time the
Company does not have available such shares of Common Stock as shall from time
to time be sufficient to effect the issuance of all shares upon conversion of
the Debentures, the Company shall file a preliminary proxy statement with the
Securities and Exchange Commission within ten (10) business day and shall call
and hold a special meeting of the shareholders as soon as practicable after such
occurrence, for the sole purpose of increasing the number of shares authorized.
The Company’s management shall recommend to the shareholders to vote in favor of
increasing the number of shares of Common Stock authorized. Management shall
also vote all of its shares in favor of increasing the number of authorized
shares of Common Stock. 

                    (f)     
Fees and Expenses.

                    (i)      Each
of the Company and the Buyer(s) shall pay all costs and expenses incurred by
such party in connection with the negotiation, investigation, preparation,
execution and delivery of this Agreement the Transaction Documents and any other
documents relating to this transaction. 

                    (ii)      The
Company has agreed to pay a structuring fee to Buyer of Seventeen Thousand Five
Hundred Dollars ($17,500), of which Twelve Thousand Five Hundred Dollars
($12,500) remains outstanding and shall be paid directly from the proceeds of
the Closing. 

11

                    (iii)     
The Company has agreed to pay a Due Diligence Fee to Buyer of Ten Thousand
Dollars ($10,000), one-half of which has been paid prior to this date and
one-half of which shall be paid directly from the proceeds of the Closing. 

                    (iv)     
In lieu of issuing warrants to the Buyer, the Company shall pay to the Buyer a
fee equal to two percent (2%) of the principal amount of the Debenture which
shall be paid directly from the proceeds of the Closing.

                    (v)      The
Company shall pay to the Buyer a Commitment Fee equal to six percent (6%) of the
principal amount of the Debenture which shall be paid directly from the proceeds
of the Closing.

                    (vi)      The
Company shall pay to the Buyer a Loan Commitment Fee equal to two percent (2%)
of the principal amount of the Debenture which shall be paid directly from the
proceeds of the Closing. 

                    (g)      Corporate
  Existence. So long as any of the Debentures remain outstanding, the Company
  shall not directly or indirectly consummate any merger, reorganization, restructuring,
  reverse stock split consolidation, sale of all or substantially all of the Company’s
  assets or any similar transaction or related transactions (each such transaction,
  an “Organizational Change”) unless, prior to the consummation
  an Organizational Change, the Company obtains the written consent of each Buyer.
  In any such case, the Company will make appropriate provision with respect to
  such holders’ rights and interests to insure that the provisions of this
  Section 4(g) will thereafter be applicable to the Debentures.

                    (h)      Transactions
With Affiliates. So long as any Debentures are outstanding, the Company
shall not, and shall cause each of its subsidiaries not to, enter into, amend,
modify or supplement, or permit any subsidiary to enter into, amend, modify or
supplement any agreement, transaction, commitment, or arrangement with any of
its or any subsidiary’s officers, directors, persons who were officers or
directors at any time during the previous two (2) years, stockholders who
beneficially own five percent (5%) or more of the Common Stock, or Affiliates
(as defined below) or with any individual related by blood, marriage, or
adoption to any such individual or with any entity in which any such entity or
individual owns a five percent (5%) or more beneficial interest (each a
“Related Party”), except for (a) customary employment arrangements and
benefit programs on reasonable terms, (b) any investment in an Affiliate of the
Company, (c) any agreement, transaction, commitment, or arrangement on an
arms-length basis on terms no less favorable than terms which would have been
obtainable from a person other than such Related Party, (d) any agreement
transaction, commitment, or arrangement which is approved by a majority of the
disinterested directors of the Company, for purposes hereof, any director who is
also an officer of the Company or any subsidiary of the Company shall not be a
disinterested director with respect to any such agreement, transaction,
commitment, or arrangement. “Affiliate” for purposes hereof means, with
respect to any person or entity, another person or entity that, directly or
indirectly, (i) has a ten percent (10%) or more equity interest in that person
or entity, (ii) has ten percent (10%) or more common ownership with that person
or entity, (iii) controls that person or entity, or (iv) shares common control
with that person or entity. “Control” or “controls” for purposes

12

hereof means that a person or entity has the power, direct or
indirect, to conduct or govern the policies of another person or entity. 

                    (i)      Transfer
Agent. The Company covenants and agrees that, in the event that the
Company’s agency relationship with the transfer agent should be terminated for
any reason prior to a date which is two (2) years after the Closing Date, the
Company shall immediately appoint a new transfer. 

                    (j)     
Restriction on Issuance of the Capital Stock. So long as any Debentures
are outstanding, the Company shall not, without the prior written consent of the
Buyer(s), (i) issue or sell shares of Common Stock or Preferred Stock without
consideration or for a consideration per share less than the bid price of the
Common Stock determined immediately prior to its issuance, (ii) issue any
preferred stock, warrant, option, right, contract, call, or other security
instrument granting the holder thereof, the right to acquire Common Stock
without consideration or for a consideration less than such Common Stock’s bid
price value determined immediately prior to it’s issuance, (iii) enter into any
security instrument granting the holder a security interest in any and all
assets of the Company or any subsidiary of the Company (whether now owned or
acquired in the future while the Debentures are outstanding), or (iv) permit any
subsidiary of the Company (whether now owned or acquired in the future while the
Debentures are outstanding) to enter into any security instrument granting the
holder a security interest in any and all assets of such subsidiary (v) file any
registration statement on Form S-8 

                    (k)     
Restriction on “Short” Position. Neither the Buyer nor any of its
affiliates have an open short position in the Common Stock of the Company, and
the Buyer agrees that it shall not, and that it will cause its affiliates not
to, engage in any short sales with respect to the Common Stock as long as any
Debentures shall remain outstanding. 

             
      (l)      Restriction
on Incurring Additional Debt. Neither the Company nor any subsidiary of the
Company (whether now owned or acquired in the future while the Debentures are
outstanding) shall incur any additional debt without the prior written approval
of the Buyer. 

                    5.
TRANSFER AGENT INSTRUCTIONS. 

The Company shall enter into irrevocable transfer agent
instructions in substantially the form attached hereto as Exhibit C (the
“Irrevocable Transfer Agent Instructions”) and shall pay the law offices of
James G. Dodrill II, P.A. a cash fee of One Hundred Dollars ($100) for every
occasion they act pursuant to the Irrevocable Transfer Agent Instructions. 

                    6.
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL. 

          Although
the Closing shall be deemed to occur on the date hereof, the obligation of the
Company hereunder to issue and sell the Debentures to the Buyer(s) is subject to
the satisfaction, at or before thedate on which the Company acquires Pure
Promoter Ltd, of each of the following conditions, provided that these
conditions are for the Company’s sole benefit and may be waived by the Buyer at
any time in its sole discretion: 

13

                    (a)
Each Buyer shall have executed this Agreement, and the Transaction Documents and
delivered the same to the Company. 

                    (b)
The Buyer(s) shall have delivered to the Escrow Agent the Purchase Price for
Debentures in respective amounts as set forth next to each Buyer as outlined on
Schedule I attached hereto and the Escrow Agent shall have delivered the net
proceeds to the Company by wire transfer of immediately available U.S. funds
pursuant to the wire instructions provided by the Company. 

                    (c)
The representations and warranties of the Buyer(s) shall be true and correct in
all material respects as of the date when made and as of each Closing Date as
though made at that time (except for representations and warranties that speak
as of a specific date), and the Buyer(s) shall have performed, satisfied and
complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the
Buyer(s) at or prior to such Closing Date. 

                    (d)
The Company shall have filed a form UCC-1 with regard to the Pledged Property
and Pledged Collateral as detailed in the Security Agreement dated the date
hereof and provided proof of such filing to the Buyer(s).

                    (e)
The Company shall have executed such other documents as are reasonably required
by the Buyer(s), which shall specifically include the Composite Guarantee and
Debenture to be entered into by MobiVentures, Inc and MobiVentures
Limited in favor of Buyer(s) to secure their obligations under the guarantee
provisions of that document by way of fixed and floating charge over all the
assets and undertaking of each company and (ii) the Share Charges to be entered
into by the shareholders of Pure Promoter Ltd and Move2Mobile Ltd. 

                    7.
CONDITIONS TO THE BUYER’S OBLIGATION TO PURCHASE. 

          The
obligation of the Buyer(s) hereunder to direct Escrow Agent to disburse to the
Company the net proceeds of the purchase price of the Debentures is subject to
the satisfaction, of each of the following conditions: 

                    (a)
The Company shall have executed this Agreement the Transaction Documents and any
other documents relating to this transaction and delivered the same to the
Buyer(s).

                    (b)
The trading in the Common Shares on the over-the-counter bulletin board shall
not have been suspended for any reason. 

                    (c)
The representations and warranties of the Company shall be true and correct in
all material respects (except to the extent that any of such representations and
warranties is already qualified as to materiality in Section 3 above, in which
case, such representations and warranties shall be true and correct without
further qualification) as of the date when made and as of the Closing Date as
though made at that time (except for representations and warranties that speak
as of a specific date) and the Company shall have performed, satisfied and
complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the

14

Company at or prior to the Closing Date. If requested by the
Buyer, the Buyer shall have received a certificate, executed by the President of
the Company, dated as of the Closing Date, to the foregoing effect and as to
such other matters as may be reasonably requested by the Buyer including,
without limitation an update as of the Closing Date regarding the representation
contained in Section 3(c) above. 

                    (d)
The Company shall have executed and delivered to the Buyer(s) the Debentures in
the respective amounts set forth opposite each Buyer(s) name on Schedule I
attached hereto. 

                    (e)
The Buyer(s) shall have received an opinion of counsel from counsel to the
Company in a form satisfactory to the Buyer(s). 

                    (f)
The Company shall have provided to the Buyer(s) a certificate of good standing
from the secretary of state from the state in which the company is incorporated.

                    (g)
As of the Closing Date, the Company shall have reserved out of its authorized
and unissued Common Stock, solely for the purpose of issuing shares of Common
Stock upon conversion of the Debenture, shares of Common Stock to effect the
issuance of the shares of Common Stock upon conversion of the Debenture in
accordance with the Fixed Conversion Price. 

                    (h)
The Irrevocable Transfer Agent Instructions, in form and substance satisfactory
to Buyer(s), shall have been delivered to and acknowledged in writing by
the Company’s transfer agent. 

                    (i)
The Irrevocable Transfer Agent Instructions, in form and substance satisfactory
to Buyer(s), shall have been delivered to and acknowledged in writing by
the Company’s transfer agent. 

                    (j)
The representations and warranties of the Company in this Agreement, the
Debentures and the Transaction Documents shall be true and correct in all
material respects (except to the extent that any of such representations and
warranties is already qualified as to materiality in Section 3 above, in which
case, such representations and warranties shall be true and correct without
further qualification) as of the date when made and as of the Closing Dates as
though made at that time (except for representations and warranties that speak
as of a specific date) and the Company shall have performed, satisfied and
complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the
Company at or prior to the Closing Dates. If requested by the Buyer, the Buyer
shall have received a certificate, executed by the President of the Company,
dated as of the Closing Dates, to the foregoing effect and as to such other
matters as may be reasonably requested by the Buyer including, without
limitation an update as of the Closing Dates regarding the representation
contained in Section 3(c) above. 

                    (k)
The Company shall provide to the Buyer an acknowledgement, to the satisfaction
of the Buyer, from the Company’s independent certified public accountants as to
its ability to provide all consents required in order to file a registration
statement in connection with this transaction. 

15

                    (l)
The Company shall file a form UCC-1 or such other forms as may be required to
perfect the Buyer’s interest in the Pledged Collateral as detailed in the
Security Agreement dated the date hereof, providing the Buyer with a senior lien
on all of the Company’s assets and intellectual property and provided proof of
such filing to the Buyer(s).

                    (m)The
satisfactorily completion by the Buyer of all due diligence. 

                    (n)
The closing of the acquisition by the Company of Pure Promoter Ltd. 

                    8.
INDEMNIFICATION. 

                    (a)
In consideration of the Buyer’s execution and delivery of this Agreement and
acquiring the Debentures hereunder, and in addition to all of the Company’s
other obligations under this Agreement, the Company shall defend, protect,
indemnify and hold harmless the Buyer(s) and each other holder of the
Debentures, and all of their officers, directors, employees and agents
(including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the “Buyer
Indemnitees”) from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such Buyer Indemnitee is a
party to the action for which indemnification hereunder is sought), and
including reasonable attorneys’ fees and disbursements (the “Indemnified
Liabilities”), incurred by the Buyer Indemnitees or any of them as a result
of, or arising out of, or relating to (a) any misrepresentation or breach of any
representation or warranty made by the Company in this Agreement, the
Transaction Documents or any other certificate, instrument or document
contemplated hereby or thereby, (b) any breach of any covenant, agreement or
obligation of the Company contained in this Agreement, or the Transaction
Documents or any other certificate, instrument or document contemplated hereby
or thereby, or (c) any cause of action, suit or claim brought or made against
such Buyer Indemnitee by a third party and arising out of or resulting from a
material misrepresentations by the Company under this Agreement or due to a
material breach by the Company of its obligations under this Agreement and the
execution, delivery, performance or enforcement of this Agreement or any other
instrument, document or agreement executed pursuant hereto by any of the
Indemnities, any transaction financed or to be financed in whole or in part,
directly or indirectly, with the proceeds of the issuance of the Debentures or
the status of the Buyer or holder of the Debentures, as a Buyer of Debentures in
the Company. To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities, which is
permissible under applicable law. 

                    (b)
In consideration of the Company’s execution and delivery of this Agreement, and
in addition to all of the Buyer’s other obligations under this Agreement, the
Buyer shall defend, protect, indemnify and hold harmless the Company and all of
its officers, directors, employees and agents (including, without limitation,
those retained in connection with the transactions contemplated by this
Agreement) (collectively, the “Company Indemnitees”) from and against any
and all Indemnified Liabilities incurred by the Indemnitees or any of them as a
result of, or arising out of, or relating to (a) any misrepresentation or breach
of any representation or warranty made by the Buyer(s) in this Agreement, the
Transaction Documents or any other certificate, instrument or document
contemplated hereby or thereby executed by the 

16

Buyer, (b) any breach of any covenant, agreement or obligation
of the Buyer(s) contained in this Agreement, the Transaction Documents or any
other certificate, instrument or document contemplated hereby or thereby
executed by the Buyer, or (c) any cause of action, suit or claim brought or made
against such Company Indemnitee based on material misrepresentations or due to a
material breach and arising out of or resulting from the execution, delivery,
performance or enforcement of this Agreement, the Transaction Documents or any
other certificate instrument, document or agreement executed pursuant hereto by
any of the Company Indemnities. To the extent that the foregoing undertaking by
each Buyer may be unenforceable for any reason, each Buyer shall make the
maximum contribution to the payment and satisfaction of each of the Indemnified
Liabilities, which is permissible under applicable law. 

                    9.
GOVERNING LAW: MISCELLANEOUS. 

                    (a)
Governing Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Florida without regard to the
principles of conflict of laws. The parties further agree that any action
between them shall be heard in Broward County, Florida and expressly consent to
the jurisdiction and venue of the State Court sitting in Broward County, Florida
and the United States District Court for the Southern District of Florida for
the adjudication of any civil action asserted pursuant to this Paragraph. 

                    (b)
Counterparts. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and
delivered to the other party.

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

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

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

                    (f)
Notices. Any notices, consents, waivers, or other communications required
or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered (i) upon receipt, when delivered
personally; (ii) upon confirmation of receipt, when sent by facsimile; (iii)
three (3) days after being sent by U.S. certified mail, return receipt
requested, or (iv) one (1) day after deposit with a nationally 

17

recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be: 

	If to the Company, to: 	MobiVentures, Inc. 
	  	Sunnyside 
	  	Brinkworth 
	 	Chippenham 
	  	Wiltshire 
	  	SN15 5BY 
	  	England 
	  	Attention: Mr. Peter Åhman,
      President 
	  	Telephone: +358 40 5514177 
	  	Facsimile: +44 8452 991729 
	  	 
	With a copy to: 	Lang Michener LLP 
	  	Royal Centre, 1055 West Georgia
      Stree, Suite 1500 
	 	PO Box 11117 
	  	Vancouver, VC Canada V6E 4N7
  
	  	Attention: Michael H. Taylor
  
	  	Telephone: 604-691-7410 
	  	Facsimile: 604-893-2669 
	  	 
	With Copy to: 	James G. Dodrill II, P.A. 
	  	5800 Hamilton Way 
	  	Boca Raton, FL 33496 
	  	Attention:      Jim Dodrill,
      Esq. 
	  	Telephone:   
      (561) 862-0529 
	  	Facsimile: 
           (561) 892-7787 

          If
to the Buyer(s), to its address and facsimile number on Schedule I, with copies
to the Buyer’s counsel as set forth on Schedule I. Each party shall provide five
(5) days’ prior written notice to the other party of any change in address or
facsimile number. 

                    (g)
Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors and assigns. Neither
the Company nor any Buyer shall assign this Agreement or any rights or
obligations hereunder without the prior written consent of the other party
hereto. 

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

                    (i)
Survival. Unless this Agreement is terminated under Section 9(l), the
representations and warranties of the Company and the Buyer(s) contained in
Sections 2 and 3, the agreements and covenants set forth in Sections 4, 5 and 9,
and the indemnification provisions set forth in Section 8, shall survive the
Closing for a period of two (2) years following the date 

18

on which the Debentures are redeemed in full. The Buyer(s)
shall be responsible only for its own representations, warranties, agreements
and covenants hereunder. 

                    (j)
Publicity. The Company and the Buyer(s) shall have the right to approve,
before issuance any press release or any other public statement with respect to
the transactions contemplated hereby made by any party; provided, however, that
the Company shall be entitled, without the prior approval of the Buyer(s), to
issue any press release or other public disclosure with respect to such
transactions required under applicable securities or other laws or regulations
(the Company shall use its best efforts to consult the Buyer(s) in connection
with any such press release or other public disclosure prior to its release and
Buyer(s) shall be provided with a copy thereof upon release thereof). 

                    (k)
Further Assurances. Each party shall do and perform, or cause to be done
and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of Furthermore, the Company agrees to execute such other documents as
are reasonably required by the Buyer(s), which shall specifically include the
Composite Guarantee and Debenture to be entered into by MobiVentures, Inc and
MobiVentures Limited in favor of Buyer(s) to secure their obligations under the
guarantee provisions of that document by way of fixed and floating charge over
all the assets and undertaking of each company and (ii) the Share Charges to be
entered into by the shareholders of Pure Promoter Ltd and Move2Mobile Ltd. It
shall be deemed a default of this Agreement if the Company or the referenced
shareholders fail to sign such agreements within one business day of the date of
closing of the respective acquisitions. 

                    (l)
this Agreement and the consummation of the transactions contemplated hereby.

                    (m)Termination.
In the event that the Closing shall not have occurred with respect to the Buyers
on or before five (5) business days from the date hereof due to the Company’s or
the Buyer’s failure to satisfy the conditions set forth in Sections 6 and 7
above (and the non-breaching party’s failure to waive such unsatisfied
condition(s)), the non-breaching party shall have the option to terminate this
Agreement with respect to such breaching party at the close of business on such
date without liability of any party to any other party; provided, however, that
if this Agreement is terminated by the Company pursuant to this Section 9(l),
the Company shall remain obligated to pay the Buyer(s) for the structuring fee
described in Section 4(g) above. 

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

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

19

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

COMPANY: 
MOBIVENTURES,
INC. 

              

By: ____________________________________

  Name:     Peter Åhman 

  Title:       President 

 

BUYER: 
TRAFALGAR CAPITAL
SPECIALIZED 
INVESTMENT FUND, LUXEMBOURG

By:        Trafalgar Capital Sarl

Its:         General Partner

               
  

By: ____________________________________

  Name:   Andrew Garai 

  Title:     Chairman of the Board 

20

EXHIBIT A 

FORM OF ESCROW AGREEMENT 

21

ESCROW AGREEMENT 

          THIS
  ESCROW AGREEMENT (this “Agreement”) is made and entered
  into as of March 31, 2008 among MOBIVENTURES, INC. a Nevada corporation,
  with headquarters located at MIS Business Centre, Suite 3.19, 130 Shaftsbury
  Avenue, London, England (the “Company”); the Buyer(s) listed
  on the Securities Purchase Agreement, dated the date hereof (also referred to
  as the “Buyer(s)”), and JAMES G. DODRILL II, P.A., as
  Escrow Agent hereunder (the “Escrow Agent”). 

BACKGROUND

          WHEREAS,
  the Company and the Buyer(s) have entered into a Securities Purchase Agreement
  (the “Securities Purchase Agreement”), dated as of the date
  hereof, pursuant to which the Company proposes to sell secured redeemable debentures
  (the “Redeemable Debentures”). The Securities Purchase Agreement
  provides that the Buyer(s) shall deposit the purchase amount in a segregated
  escrow account to be held by Escrow Agent in order to effectuate a disbursement
  to the Company at closings to be held as set forth in the Securities Purchase
  Agreement (each, a “Closing”). 

          WHEREAS,
  the Company intends to sell Redeemable Debentures (the “Offering”).

          WHEREAS,
  Escrow Agent has agreed to accept, hold, and disburse the funds deposited with
  it in accordance with the terms of this Agreement. 

          WHEREAS,
  in order to establish the escrow of funds and to effect the provisions of the
  Securities Purchase Agreement, the parties hereto have entered into this Agreement.

          NOW
  THEREFORE, in consideration of the foregoing, it is hereby agreed as
  follows: 

                    1.      Definitions.
  The following terms shall have the following meanings when used herein: 

                              a.     
  “Escrow Funds” shall mean the funds deposited with Escrow Agent
  pursuant to this Agreement. 

                              b.     
  “Joint Written Direction” shall mean a written direction
  executed by the Buyer(s) and the Company directing Escrow Agent to disburse
  all or a portion of the Escrow Funds or to take or refrain from taking any action
  pursuant to this Agreement. 

                              c.     
  “Escrow Period” shall begin with the commencement of the Offering
  and shall terminate upon the earlier to occur of the following dates: 

                                        (i)      The
  date upon which Escrow Agent confirms that it has received in the Escrow Account
  all of the proceeds of the sale of the Redeemable Debentures;

                                        (ii)      The
  date upon which a determination is made by the Company and the Buyer(s) to terminate
  the Offering prior to the sale of all the Redeemable Debentures. 

          During
  the Escrow Period, the Company and the Buyer(s) are aware that they are not
  entitled to any funds received into escrow and no amounts deposited in the Escrow
  Account shall become the property of the Company or the Buyer(s) or any other
  entity, or be subject to the debts of the Company or the Buyer(s) or any other
  entity.

                    2.      Appointment
  of and Acceptance by Escrow Agent. The Buyer(s) and the Company
  hereby appoint Escrow Agent to serve as Escrow Agent hereunder. Escrow Agent
  hereby accepts such appointment and, upon receipt by wire transfer of the Escrow
  Funds in accordance with Section 3 below, agrees to hold, invest and disburse
  the Escrow Funds in accordance with this Agreement. 

                              a.     
  The Company hereby acknowledges that the Escrow Agent is counsel to the Buyer(s)
  in connection with the transactions contemplated and referred herein. The Company
  agrees that in the event of any dispute arising in connection with this Escrow
  Agreement or otherwise in connection with any transaction or agreement contemplated
  and referred herein, the Escrow Agent shall be permitted to continue to represent
  the Buyer(s) and the Company will not seek to disqualify such counsel.

                    3.      Creation
  of Escrow Account. On or prior to the date of the commencement
  of the Offering, the parties shall establish an escrow account with the Escrow
  Agent, which escrow account shall be entitled as described below. The Buyer(s)
  will wire funds to the account of the Escrow Agent as follows: 

	 	Bank: 	Bank of America 
	 	 	 
	 	Routing #: 	026009583 
	 	 	 
	 	Account #: 	4350 1134 7136 
	 	 	 
	 	SWIFT #: 	BOFAUS3N 
	 	 	 
	 	Name on Account: 	James G. Dodrill II, P.A. as Escrow
      Agent 
	 	 	 
	 	Name on Sub-Account: 	Trafalgar – MobiVentures Escrow
      account 

                    4.      Deposits
  into the Escrow Account. The Buyer(s) agrees that it shall promptly
  deliver funds for the payment of the Redeemable Debentures to Escrow Agent for
  deposit in the Escrow Account. 

                    5.      Disbursements
  from the Escrow Account. 

                              a.      The
  Escrow Agent will continue to hold the Escrow Funds until: (a) the Buyer(s)
  or Trafalgar Capital Sarl on behalf of the Buyer(s) and (b) the Company execute
  a Joint Written Direction directing the Escrow Agent to disburse the Escrow
  Funds pursuant to Joint Written Direction signed by the Company and the Buyer(s).
  Escrow Agent is obligated to

 2 

disburse the Escrow Funds in accordance with the Joint Written
  Directions and has no discretion to withhold disbursement of the Escrow Funds
  for any reason upon receipt of such Joint Written Directions. In disbursing
  such funds, Escrow Agent is authorized to rely upon such Joint Written Direction
  from the Company and the Buyer(s) and may accept any signatory from the Company
  listed on the signature page to this Agreement and any signature from the Buyer(s)
  that the Escrow Agent already has on file.

                              b.     
  In the event Escrow Agent does not receive the amount of the Escrow Funds from
  the Buyer(s), Escrow Agent shall notify the Company and the Buyer(s). Upon receipt
  of payment instructions from the Company, Escrow Agent shall refund to each
  subscriber without interest the amount received from each Buyer(s), without
  deduction, penalty, or expense to the subscriber. The purchase money returned
  to each subscriber shall be free and clear of any and all claims of the Company,
  the Buyer(s) or any of their creditors. 

                              c.     
  In no event will the Escrow Funds be released to the Company until the Escrow
  Funds are received by Escrow Agent in collected funds. For purposes of this
  Agreement, the term “collected funds” shall mean the Escrow Funds
  received by Escrow Agent shall have cleared normal banking channels and are
  in the form of cash. 

                    6.      Collection
  Procedure. Escrow Agent is hereby authorized to deposit the proceeds
  of each wire in the Escrow Account. 

                    7.      Suspension
  of Performance: Disbursement Into Court. If at any time, there
  shall exist any dispute between the Company and the Buyer(s) with respect to
  holding or disposition of any portion of the Escrow Funds or any other obligations
  of Escrow Agent hereunder, or if at any time Escrow Agent is unable to determine,
  to Escrow Agent’s sole satisfaction, the proper disposition of any portion
  of the Escrow Funds or Escrow Agent’s proper actions with respect to its
  obligations hereunder, or if the parties have not within thirty (30) days of
  the furnishing by Escrow Agent of a notice of resignation pursuant to Section
  9 hereof, appointed a successor Escrow Agent to act hereunder, then Escrow Agent
  may, in its sole discretion, take either or both of the following action: 

                              a.      suspend
  the performance of any of its obligations (including without limitation any
  disbursement obligations) under this Escrow Agreement until such dispute or
  uncertainty shall be resolved to the sole satisfaction of Escrow Agent or until
  a successor Escrow Agent shall be appointed (as the case may be); provided however,
  Escrow Agent shall continue to invest the Escrow Funds in accordance with Section
  8 hereof; and/or 

                              b.     
  petition (by means of an interpleader action or any other appropriate method)
  any court of competent jurisdiction in any venue convenient to Escrow Agent,
  for instructions with respect to such dispute or uncertainty, and to the extent
  required by law, pay into such court, for holding and disposition in accordance
  with the instructions of such court, all funds held by it in the Escrow Funds,
  after deduction and payment to Escrow Agent of all fees and expenses (including
  court costs and attorneys’ fees) payable to, incurred by, or expected to
  be incurred by Escrow Agent in connection with performance of its duties and
  the exercise of its rights hereunder. 

3 

                              c.      Escrow
  Agent shall have no liability to the Company, the Buyer(s), or any person with
  respect to any such suspension of performance or disbursement into court, specifically
  including any liability or claimed liability that may arise, or be alleged to
  have arisen, out of or as a result of any delay in the disbursement of funds
  held in the Escrow Funds or any delay in with respect to any other action required
  or requested of Escrow Agent. 

                    8.      Investment
  of Escrow Funds. Escrow Agent shall deposit the Escrow Funds
  into a segregated escrow account which shall be used solely in connection with
  this transaction (the “Escrow Account”).

          If
  Escrow Agent has not received a Joint Written Direction at any time that an
  investment decision must be made, Escrow Agent shall maintain the Escrow Funds,
  or such portion thereof, as to which no Joint Written Direction has been received,
  in the Escrow Account.

                    9.     
  Resignation and Removal of Escrow Agent. Escrow Agent may
  resign from the performance of its duties hereunder at any time by giving thirty
  (30) days’ prior written notice to the parties or may be removed, with
  or without cause, by the parties, acting jointly, by furnishing a Joint Written
  Direction to Escrow Agent, at any time by the giving of ten (10) days’
  prior written notice to Escrow Agent as provided herein below. Upon any such
  notice of resignation or removal, the representatives of the Buyer(s) and the
  Company identified in Sections 13a.(iv) and 13b.(iv), below, jointly shall appoint
  a successor Escrow Agent hereunder, which shall be a commercial bank, trust
  company or other financial institution with a combined capital and surplus in
  excess of US$10,000,000.00. Upon the acceptance in writing of any appointment
  of Escrow Agent hereunder by a successor Escrow Agent, such successor Escrow
  Agent shall thereupon succeed to and become vested with all the rights, powers,
  privileges and duties of the retiring Escrow Agent, and the retiring Escrow
  Agent shall be discharged from its duties and obligations under this Escrow
  Agreement, but shall not be discharged from any liability for actions taken
  as Escrow Agent hereunder prior to such succession. After any retiring Escrow
  Agent’s resignation or removal, the provisions of this Escrow Agreement
  shall inure to its benefit as to any actions taken or omitted to be taken by
  it while it was Escrow Agent under this Escrow Agreement. The retiring Escrow
  Agent shall transmit all records pertaining to the Escrow Funds and shall pay
  all funds held by it in the Escrow Funds to the successor Escrow Agent, after
  making copies of such records as the retiring Escrow Agent deems advisable and
  after deduction and payment to the retiring Escrow Agent of all fees and expenses
  (including court costs and attorneys’ fees) payable to, incurred by, or
  expected to be incurred by the retiring Escrow Agent in connection with the
  performance of its duties and the exercise of its rights hereunder. 

                    10.      Liability
  of Escrow Agent. 

                              a.      Escrow
  Agent shall have no liability or obligation with respect to the Escrow Funds
  except for Escrow Agent’s willful misconduct or gross negligence. Escrow
  Agent’s sole responsibility shall be for the safekeeping, investment, and
  disbursement of the Escrow Funds in accordance with the terms of this Agreement.
  Escrow Agent shall have no implied duties or obligations and shall not be charged
  with knowledge or notice or any fact or circumstance not specifically set forth
  herein. Escrow Agent may rely upon any instrument, not only as to its due execution,
  validity and effectiveness, but also as to the truth and accuracy of 4 

any information contained herein, which Escrow Agent shall in
  good faith believe to be genuine, to have been signed or presented by the person
  or parties purporting to sign the same and conform to the provisions of this
  Agreement. In no event shall Escrow Agent be liable for incidental, indirect,
  special, and consequential or punitive damages. Escrow Agent shall not be obligated
  to take any legal action or commence any proceeding in connection with the Escrow
  Funds, any account in which Escrow Funds are deposited, this Agreement or the
  Purchase Agreement, or to appear in, prosecute or defend any such legal action
  or proceeding. Escrow Agent may consult legal counsel selected by it in any
  event of any dispute or question as to construction of any of the provisions
  hereof or of any other agreement or its duties hereunder, or relating to any
  dispute involving any party hereto, and shall incur no liability and shall be
  fully indemnified from any liability whatsoever in acting in accordance with
  the opinion or instructions of such counsel. The Company and the Buyer(s) jointly
  and severally shall promptly pay, upon demand, the reasonable fees and expenses
  of any such counsel. 

                              b.      Escrow
  Agent is hereby authorized, in its sole discretion, to comply with orders issued
  or process entered by any court with respect to the Escrow Funds, without determination
  by Escrow Agent of such court’s jurisdiction in the matter. If any portion
  of the Escrow Funds is at any time attached, garnished or levied upon under
  any court order, or in case the payment, assignment, transfer, conveyance or
  delivery of any such property shall be stayed or enjoined by any court order,
  or in any case any order judgment or decree shall be made or entered by any
  court affecting such property or any part thereof, then and in any such event,
  Escrow Agent is authorized, in its sole discretion, to rely upon and comply
  with any such order, writ judgment or decree which it is advised by legal counsel
  selected by it, binding upon it, without the need for appeal or other action;
  and if Escrow Agent complies with any such order, writ, judgment or decree,
  it shall not be liable to any of the parties hereto or to any other person or
  entity by reason of such compliance even though such order, writ judgment or
  decree may be subsequently reversed, modified, annulled, set aside or vacated.

                    11.      Indemnification
  of Escrow Agent. From and at all times after the date of this
  Agreement, the parties jointly and severally, shall, to the fullest extent permitted
  by law and to the extent provided herein, indemnify and hold harmless Escrow
  Agent and each director, officer, employee, attorney, agent and affiliate of
  Escrow Agent (collectively, the “Indemnified Parties”)
  against any and all actions, claims (whether or not valid), losses, damages,
  liabilities, costs and expenses of any kind or nature whatsoever (including
  without limitation reasonable attorney’s fees, costs and expenses) incurred
  by or asserted against any of the Indemnified Parties from and after the date
  hereof, whether direct, indirect or consequential, as a result of or arising
  from or in any way relating to any claim, demand, suit, action, or proceeding
  (including any inquiry or investigation) by any person, including without limitation
  the parties to this Agreement, whether threatened or initiated, asserting a
  claim for any legal or equitable remedy against any person under any statute
  or regulation, including, but not limited to, any federal or state securities
  laws, or under any common law or equitable cause or otherwise, arising from
  or in connection with the negotiation, preparation, execution, performance or
  failure of performance of this Agreement or any transaction contemplated herein,
  whether or not any such Indemnified Party is a party to any such action or proceeding,
  suit or the target of any such inquiry or investigation; provided, however,
  that no Indemnified Party shall have the right to be indemnified hereunder for
  liability finally determined by a court of competent jurisdiction, 

5 

subject to no further appeal, to have resulted from the gross
  negligence or willful misconduct of such Indemnified Party. If any such action
  or claim shall be brought or asserted against any Indemnified Party, such Indemnified
  Party shall promptly notify the Company and the Buyer(s) hereunder in writing,
  and the Buyer(s) and the Company shall assume the defense thereof, including
  the employment of counsel and the payment of all expenses. Such Indemnified
  Party shall, in its sole discretion, have the right to employ separate counsel
  (who may be selected by such Indemnified Party in its sole discretion) in any
  such action and to participate and to participate in the defense thereof, and
  the fees and expenses of such counsel shall be paid by such Indemnified Party,
  except that the Buyer(s) and/or the Company shall be required to pay such fees
  and expense if (a) the Buyer(s) or the Company agree to pay such fees and expenses,
  or (b) the Buyer(s) and/or the Company shall fail to assume the defense of such
  action or proceeding or shall fail, in the sole discretion of such Indemnified
  Party, to employ counsel reasonably satisfactory to the Indemnified Party in
  any such action or proceeding, (c) the Buyer(s) and the Company are the plaintiff
  in any such action or proceeding or (d) the named or potential parties to any
  such action or proceeding (including any potentially impleaded parties) include
  both the Indemnified Party, the Company and/or the Buyer(s) and the Indemnified
  Party shall have been advised by counsel that there may be one or more legal
  defenses available to it which are different from or additional to those available
  to the Company or the Buyer(s). The Buyer(s) and the Company shall be jointly
  and severally liable to pay fees and expenses of counsel pursuant to the preceding
  sentence, except that any obligation to pay under clause (a) shall apply only
  to the party so agreeing. All such fees and expenses payable by the Company
  and/or the Buyer(s) pursuant to the foregoing sentence shall be paid from time
  to time as incurred, both in advance of and after the final disposition of such
  action or claim. The obligations of the parties under this section shall survive
  any termination of this Agreement, and resignation or removal of the Escrow
  Agent shall be independent of any obligation of Escrow Agent. 

          The
  parties agree that neither payment by the Company or the Buyer(s) of any claim
  by Escrow Agent for indemnification hereunder shall impair, limit, modify, or
  affect, as between the Buyer(s) and the Company, the respective rights and obligations
  of Buyer(s), on the one hand, and the Company, on the other hand. 

                    12.      Expenses
  of Escrow Agent. Except as set forth in Section 11 the Company
  shall reimburse Escrow Agent for all of its out-of-pocket expenses, including
  attorney’s fees, travel expenses, telephone and facsimile transmission
  costs, postage (including express mail and overnight delivery charges), copying
  charges and the like. All of the compensation and reimbursement obligations
  set forth in this Section shall be payable by the Company, upon demand by Escrow
  Agent. The obligations of the Company under this Section shall survive any termination
  of this Agreement and the resignation or removal of Escrow Agent. 

                    13.      Warranties.

                              a.      The
  Buyer(s) makes the following representations and warranties to Escrow Agent:

                                        (i)      The
  Buyer(s) has full power and authority to execute and deliver this Agreement
  and to perform its obligations hereunder. 

6 

                                        (ii)      This
  Agreement has been duly approved by all necessary action of the Buyer(s), including
  any necessary approval of the limited partner of the Buyer(s) or necessary corporate
  approval, as applicable, has been executed by duly authorized officers of the
  Buyer(s), enforceable in accordance with its terms. 

                                        (iii)      The
  execution, delivery, and performance of the Buyer(s) of this Agreement will
  not violate, conflict with, or cause a default under any agreement of limited
  partnership of Buyer(s) or the certificate of incorporation or bylaws of the
  Buyer(s) (as applicable), any applicable law or regulation, any court order
  or administrative ruling or degree to which the Buyer(s) is a party or any of
  its property is subject, or any agreement, contract, indenture, or other binding
  arrangement. 

                                        (iv)      Andrew
  Garai has been duly appointed to act as the representative of the Buyer(s) hereunder
  and has full power and authority to execute, deliver, and perform this Escrow
  Agreement, to execute and deliver any Joint Written Direction, to amend, modify,
  or waive any provision of this Agreement, and to take any and all other actions
  as the Buyer(s)’s representative under this Agreement, all without further
  consent or direction form, or notice to, the Buyer(s) or any other party. 

                                        (v)      No
  party other than the parties hereto and the Buyer(s) have, or shall have, any
  lien, claim or security interest in the Escrow Funds or any part thereof. No
  financing statement under the Uniform Commercial Code is on file in any jurisdiction
  claiming a security interest in or describing (whether specifically or generally)
  the Escrow Funds or any part thereof. 

                                        (vi)      All
  of the representations and warranties of the Buyer(s) contained herein are true
  and complete as of the date hereof and will be true and complete at the time
  of any disbursement from the Escrow Funds. 

                              b.      The
  Company makes the following representations and warranties to the Escrow Agent:

                                        (i)      The
  Company is a corporation duly organized, validly existing, and in good
  standing under the laws of Colorado and has full power and authority to execute
  and deliver this Agreement and to perform its obligations hereunder. 

                                        (ii)      This
  Agreement has been duly approved by all necessary corporate action of the Company,
  including any necessary shareholder approval, has been executed by duly authorized
  officers of the Company, enforceable in accordance with its terms. 

                                        (iii)      The
  execution, delivery, and performance by the Company of this Agreement is in
  accordance with the Securities Purchase Agreement and will not violate, conflict
  with, or cause a default under the certificate of incorporation or bylaws of
  the Company, any applicable law or regulation, any court order or administrative
  ruling or decree to which the Company is a party or any of its property is subject,
  or any agreement, contract, indenture, or other binding arrangement, including
  without limitation to the Securities Purchase Agreement, to which the Company
  is a party. 

7 

                                        (iv)      Bob
  Chance has been duly appointed to act as the representative of the Company hereunder
  and has full power and authority to execute, deliver, and perform this Agreement,
  to execute and deliver any Joint Written Direction, to amend, modify or waive
  any provision of this Agreement and to take all other actions as the Company’s
  Representative under this Agreement, all without further consent or direction
  from, or notice to, the Company or any other party. 

                                        (v)      No
  party other than the parties hereto and the Buyer(s) have, or shall have, any
  lien, claim or security interest in the Escrow Funds or any part thereof. No
  financing statement under the Uniform Commercial Code is on file in any jurisdiction
  claiming a security interest in or describing (whether specifically or generally)
  the Escrow Funds or any part thereof. 

                                        (vi)      All
  of the representations and warranties of the Company contained herein are true
  and complete as of the date hereof and will be true and complete at the time
  of any disbursement from the Escrow Funds. 

                    14.      Consent
  to Jurisdiction and Venue. In the event that any party hereto
  commences a lawsuit or other proceeding relating to or arising from this Agreement,
  the parties hereto agree that the United States District Court for the Southern
  District of Florida shall have the sole and exclusive jurisdiction over any
  such proceeding. If all such courts lack federal subject matter jurisdiction,
  the parties agree that the State Courts of Florida located in Broward County
  shall have sole and exclusive jurisdiction. Any of these courts shall be proper
  venue for any such lawsuit or judicial proceeding and the parties hereto waive
  any objection to such venue. The parties hereto consent to and agree to submit
  to the jurisdiction of any of the courts specified herein and agree to accept
  the service of process to vest personal jurisdiction over them in any of these
  courts. 

                    15.     
  Notices. All notices and other communications hereunder
  shall be in writing and shall be deemed to have been validly served, given or
  delivered five (5) days after deposit in the United States mails, by certified
  mail with return receipt requested and postage prepaid, when delivered personally,
  one (1) day delivered to any overnight courier, or when transmitted by facsimile
  transmission and upon confirmation of receipt and addressed to the party to
  be notified as follows: 

	If to Buyer(s), to: 	Trafalgar Capital Specialized Investment Fund
    
	  	8-10 Rue Mathias Hardt 
	  	BP 3023 
	  	L-1030 Luxembourg 
	  	Attention:      Andrew Garai, Chairman of
      the Board of 
	  	                         Trafalgar
      Capital Sarl, General Partner 
	  	Facsimile:         011-44-207-405-0161
      and 
	  	                          001-786-323-1651
    

8 

	If to Escrow Agent, to: 	James G. Dodrill II, P.A. 
	  	5800 Hamilton Way 
	  	Boca Raton, FL 33496 
	  	Attention:           James
      Dodrill Esq. 
	  	Telephone:         (561) 862-0529
    
	  	Facsimile:           (561)
      892-7787 
	  	 
	If to the Company, to: 	MobiVentures, Inc. 
	  	Sunnyside 
	  	Brinkworth 
		Chippenham 
	  	Wiltshire 
	  	SN15 5BY 
	  	England 
	  	Attention:           Mr.
      Peter Åhman, President 
	  	Telephone:          +358
      40 5514177 
	  	Facsimile:          
       +44 8452 991729 
	  	Telephone: 
	  	Facsimile: 
	  	 
	With a copy to: 	Lang Michener LLP 
	  	Royal Centre, 1055 West Georgia Stree, Suite 1500
    
	 	PO Box 11117 
	  	Vancouver, VC Canada V6E 4N7 
	  	Attention: Michael H. Taylor 
	  	Telephone: 604-691-7410 
	  	Facsimile: 604-893-2669 

Or to such other address as each party may designate for itself
  by like notice. 

                    16.     
  Amendments or Waiver. This Agreement may be changed, waived,
  discharged or terminated only by a writing signed by the parties hereto. No
  delay or omission by any party in exercising any right with respect hereto shall
  operate as waiver. A waiver on any one occasion shall not be construed as a
  bar to, or waiver of, any right or remedy on any future occasion. 

                    17.      Severability.
  To the extent any provision of this Agreement is prohibited by or invalid
  under applicable law, such provision shall be ineffective to the extent of such
  prohibition, or invalidity, without invalidating the remainder of such provision
  or the remaining provisions of this Agreement. 

                    18.      Governing
  Law. This Agreement shall be construed and interpreted in accordance
  with the internal laws of the State of Florida without giving effect to the
  conflict of laws principles thereof. 

                    19.      Entire
  Agreement. This Agreement constitutes the entire Agreement between
  the parties relating to the holding, investment, and disbursement of the Escrow
  Funds 

9 

and sets forth in their entirety the obligations and duties of
  the Escrow Agent with respect to the Escrow Funds. 

                    20.     
  Binding Effect. All of the terms of this Agreement, as
  amended from time to time, shall be binding upon, inure to the benefit of and
  be enforceable by the respective heirs, successors and assigns of the Buyer(s),
  the Company, or the Escrow Agent. 

                    21.      Execution
  of Counterparts. This Agreement and any Joint Written Direction
  may be executed in counter parts, which when so executed shall constitute one
  and same agreement or direction. 

                    22.      Termination.
  Upon the first to occur of the disbursement of all amounts in the Escrow
  Funds pursuant to Joint Written Directions or the disbursement of all amounts
  in the Escrow Funds into court pursuant to Section 7 hereof, this Agreement
  shall terminate and Escrow Agent shall have no further obligation or liability
  whatsoever with respect to this Agreement or the Escrow Funds. 

IN WITNESS WHEREOF the parties have hereunto set their
  hands and seals the day and year above set forth. 

MOBIVENTURES, INC. 

By:   _______________________________________

  Name:   Peter Åhman 

  Title:     President 

  TRAFALGAR CAPITAL SPECIALIZED 

  INVESTMENT FUND, LUXEMBOURG 

By:        Trafalgar Capital
  Sarl 

  Its:        General Partner 

By:   _______________________________________

  Name:   Andrew Garai 

  Title:     Chairman of the Board 

JAMES G. DODRILL II, P.A. 

By:   _______________________________________

  Name:   James Dodrill, Esq. 

  Title:     President 

10 

EXHIBIT B 

FORM OF REGISTRATION RIGHTS AGREEMENT 

REGISTRATION RIGHTS AGREEMENT 

          THIS
  REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated
  as of March 31, 2008, by and among MOBIVENTURES, INC., a Nevada corporation,
  with its principal office located at MIS Business Centre, Suite 3.19, 130 Shaftsbury
  Avenue, London, England (the “Company”), and the undersigned
  investors (each, an “Investor” and collectively, the “Investors”).

          WHEREAS:

          A.     
  In connection with the Securities Purchase Agreement by and among the parties
  hereto of even date herewith (the “Securities Purchase Agreement”),
  the Company has agreed, upon the terms and subject to the conditions of the
  Securities Purchase Agreement, to issue and sell to the Investors secured convertible
  debentures (the “Convertible Debentures”) which shall be convertible
  into that number of shares of the Company’s common stock, par value US$0.001
  per share (the “Common Stock”), pursuant to the terms of the
  Securities Purchase Agreement for an aggregate purchase price of up to Two Million
  U.S. Dollars ($2,000,000). Capitalized terms not defined herein shall have the
  meaning ascribed to them in the Securities Purchase Agreement. 

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

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

               1.      DEFINITIONS.

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

                              (a)      “Person”
  means a corporation, a limited liability company, an association, a partnership,
  an organization, a business, an individual, a governmental or political subdivision
  thereof or a governmental agency. 

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

                              (c)     
  “Registrable Securities” means the shares of Common Stock issuable
  to Investors upon conversion of the Convertible Debentures pursuant to the Securities
  Purchase 

Agreement and the shares of Common Stock issuable to the Investors
  upon exercise of the Warrant issued pursuant to the Securities Purchase Agreement.
  As to any particular Registrable Securities, such securities will cease to be
  Registrable Securities when (a) they have been effectively registered under
  the 1933 Act and disposed of in accordance with the registration statement covering
  them, (b) they have been sold, or may be sold without volume restrictions pursuant
  to Rule 144(b)(1) promulgated by the SEC under the 1933 Act, or (c) they have
  been otherwise transferred and new certificates for them not bearing a restrictive
  legend have been issued by the Company and the Company shall not have “stop
  transfer” instructions against them. 

                              (d)     
  “Registration Statement” means a registration statement under
  the 1933 Act which covers the Registrable Securities. 

                              (e)     
  “Rule 144” means Rule 144 promulgated under the 1933 Act or
  any similar rule or regulation of the SEC that may at any time permit the Investors
  to sell securities of the Company to the public without registration. 

               2.      REGISTRATION.

                              (a)      Subject
  to the terms and conditions of this Agreement, the Company shall prepare and
  file, no later than thirty (30) days from the date of the Closing by the Company
  of its acquisition of Pure Promoter, Ltd (the “Scheduled Filing Deadline”,
  which shall in no event be later than fifty (50) days from the date hereof),
  with the SEC a registration statement on Form S-1 (or, if the Company is then
  eligible, on Form S-3) under the 1933 Act (the “Initial Registration
  Statement”) for the registration for the resale by all Investors who
  purchased Convertible Debentures pursuant to the Securities Purchase Agreement
  at least three (3) times the number of shares which are anticipated to be issued
  upon conversion of the Convertible Debentures issued pursuant to the Securities
  Purchase Agreement and the Investor’s Shares (subject to Rule 415 restrictions).
  The Company shall cause the Registration Statement to remain effective until
  all of the Registrable Securities have been sold. Prior to the filing of the
  Registration Statement with the SEC, the Company shall furnish a copy (which
  may be in electronic form) of the Initial Registration Statement to the Investors
  and James G. Dodrill II, P.A. for their review and comment. The Investors and
  James G. Dodrill II, P.A. shall furnish comments on the Initial Registration
  Statement to the Company by the later of: (a) seventy-two (72) hours of the
  receipt thereof from the Company and (b) the close of the second business day
  following receipt thereof from the Company. 

                              (b)      Effectiveness
  of the Initial Registration Statement. The Company shall use its best its
  best efforts (i) to have the Initial Registration Statement declared effective
  by the SEC no later than one hundred twenty (120) days after the Closing Date
  (the “Scheduled Effective Deadline”) and (ii) to insure
  that the Initial Registration Statement and any subsequent Registration Statement
  remains in effect until all of the Registrable Securities have been sold, subject
  to the terms and conditions of this Agreement. It shall be an event of default
  hereunder if the Initial Registration Statement is not declared effective by
  the SEC within one hundred twenty (120) days after the Closing Date. 

2 

                              (c)      Failure
  to File or Obtain Effectiveness of the Registration Statement. In the event
  the Registration Statement is not filed by the Scheduled Filing Deadline or
  is not declared effective by the SEC on or before the Scheduled Effective Date,
  or if after the Registration Statement has been declared effective by the SEC,
  sales cannot be made pursuant to the Registration Statement (whether because
  of a failure to keep the Registration Statement effective, failure to disclose
  such information as is necessary for sales to be made pursuant to the Registration
  Statement, failure to register sufficient shares of Common Stock or otherwise
  then as partial relief for the damages to any holder of Registrable Securities
  by reason of any such delay in or reduction of its ability to sell the underlying
  shares of Common Stock (which remedy shall not be exclusive of any other remedies
  at law or in equity), the Company will pay as liquidated damages (the “Liquidated
  Damages”) to the holder, at the holder’s option, either a cash
  amount or shares of the Company’s Common Stock within three (3) business
  days, after demand therefore, equal to two percent (2%) of the liquidated value
  of the Convertible Debentures outstanding as Liquidated Damages for each thirty
  (30) day period (or any part thereof) after the Scheduled Filing Deadline or
  the Scheduled Effective Date as the case may be. Notwithstanding anything herein
  to the contrary, to the extent that the registration of any or all of the Registrable
  Securities by the Company on a registration statement is prohibited (the “Non-Registered
  Shares”) as a result of rules, regulations, positions or releases issued
  or actions taken by the SEC pursuant to its authority with respect to Rule 415
  under the 1933 Act and the Company has registered at such time the maximum number
  of Registrable Securities permissible upon consultation with the SEC, then the
  liquidated damages described herein shall not be applicable to such Non-Registered
  Shares.

                              (d)     
  Liquidated Damages. The Company and the Investor hereto acknowledge and
  agree that the sums payable under subsection 2(c) above shall constitute liquidated
  damages and not penalties and are in addition to all other rights of the Investor,
  including the right to call a default. The parties further acknowledge that
  (i) the amount of loss or damages likely to be incurred is incapable or is difficult
  to precisely estimate, (ii) the amounts specified in such subsections bear a
  reasonable relationship to, and are not plainly or grossly disproportionate
  to, the probable loss likely to be incurred in connection with any failure by
  the Company to obtain or maintain the effectiveness of a Registration Statement,
  (iii) one of the reasons for the Company and the Investor reaching an agreement
  as to such amounts was the uncertainty and cost of litigation regarding the
  question of actual damages, and (iv) the Company and the Investor are sophisticated
  business parties and have been represented by sophisticated and able legal counsel
  and negotiated this Agreement at arm’s length.

                              (e)      Choice
  of law firm. The Company shall use a law firm recommended by the Buyers.

               3.      RELATED
  OBLIGATIONS. 

                              (a)      The
  Company shall keep the Registration Statement effective pursuant to Rule 415
  at all times until all Registrable Securities covered by such Registration Statement
  have been sold, or may be sold without volume restrictions pursuant to Rule
  144(b)(1) (the “Registration Period”), which Registration Statement
  (including any amendments or supplements thereto and prospectuses contained
  therein) shall not contain any untrue statement of a material 

3 

fact or omit to state a material fact required to be stated therein,
  or necessary to make the statements therein, in light of the circumstances in
  which they were made, not misleading. 

                              (b)      The
  Company shall prepare and file with the SEC such amendments (including post-effective
  amendments) and supplements to a Registration Statement and the prospectus used
  in connection with such Registration Statement, which prospectus is to be filed
  pursuant to Rule 424 promulgated under the 1933 Act, as may be necessary to
  keep such Registration Statement effective at all times during the Registration
  Period, and, during such period, comply with the provisions of the 1933 Act
  with respect to the disposition of all Registrable Securities of the Company
  covered by such Registration Statement until such time as all of such Registrable
  Securities shall have been disposed of in accordance with the intended methods
  of disposition by the seller or sellers thereof as set forth in such Registration
  Statement. In the case of amendments and supplements to a Registration Statement
  which are required to be filed pursuant to this Agreement (including pursuant
  to this Section 3(b)) by reason of the Company’s filing a report on Form
  10-K, Form 10-KSB, Form 10-Q, Form 10-QSB or Form 8-K or any analogous report
  under the Securities Exchange Act of 1934, as amended (the “1934
  Act”), the Company shall incorporate such report by reference into
  the Registration Statement, if applicable, or shall file such amendments or
  supplements with the SEC on the same day on which the 1934 Act report is filed
  which created the requirement for the Company to amend or supplement the Registration
  Statement.

                              (c)      The
  Company shall furnish to each Investor whose Registrable Securities are included
  in any Registration Statement, upon the request of such Investor, without charge,
  (i) at least one (1) copy of such Registration Statement as declared effective
  by the SEC and any amendment(s) thereto, including financial statements and
  schedules, all documents incorporated therein by reference, all exhibits and
  each preliminary prospectus, (ii) up to ten (10) copies of the final prospectus
  included in such Registration Statement and all amendments and supplements thereto
  (or such other number of copies as such Investor may reasonably request in writing)
  and (iii) such other documents as such Investor may reasonably request in writing
  from time to time in order to facilitate the disposition of the Registrable
  Securities owned by such Investor. Unless otherwise specified by the Investor,
  the Company may furnish copies of all such documents to the Investor in electronic
  form. The Investor acknowledges that any obligation under section 5(b)(2) of
  the 1933 Act to have a prospectus that satisfies the requirements of section
  10(a) of the 1933 Act precede or accompany the carrying or delivery of a security
  in a registered offering is satisfied if the conditions in Rule 172(c) under
  the 1933 Act have been met.

                              (d)      The
  Company shall use its best efforts to (i) register and qualify the Registrable
  Securities covered by a Registration Statement under such other securities or
  “blue sky” laws of such jurisdictions in the United States as any
  Investor reasonably requests, (ii) prepare and file in those jurisdictions,
  such amendments (including post-effective amendments) and supplements to such
  registrations and qualifications as may be necessary to maintain the effectiveness
  thereof during the Registration Period, (iii) take such other actions as may
  be necessary to maintain such registrations and qualifications in effect at
  all times during the Registration Period, and (iv) take all other actions reasonably
  necessary or advisable to qualify the Registrable Securities for sale in such
  jurisdictions; provided, however, that the Company shall not be required in
  connection therewith or as a condition thereto to (w) make any 

4 

change to its certificate of incorporation or by-laws, (x) qualify
  to do business in any jurisdiction where it would not otherwise be required
  to qualify but for this Section 3(d), (y) subject itself to general taxation
  in any such jurisdiction, or (z) file a general consent to service of process
  in any such jurisdiction. The Company shall promptly notify each Investor who
  holds Registrable Securities of the receipt by the Company of any notification
  with respect to the suspension of the registration or qualification of any of
  the Registrable Securities for sale under the securities or “blue sky”
  laws of any jurisdiction in the United States or its receipt of actual notice
  of the initiation or threat of any proceeding for such purpose. 

                              (e)      As
  promptly as practicable after becoming aware of such event or development, the
  Company shall notify each Investor in writing of the happening of any event
  as a result of which the prospectus included in a Registration Statement, as
  then in effect, includes an untrue statement of a material fact or omission
  to state a material fact required to be stated therein or necessary to make
  the statements therein, in light of the circumstances under which they were
  made, not misleading (provided that in no event shall such notice contain any
  material, nonpublic information), and promptly prepare a supplement or amendment
  to such Registration Statement to correct such untrue statement or omission,
  and deliver ten (10) copies of such supplement or amendment to each Investor.
  The Company shall also promptly notify each Investor in writing (i) when a prospectus
  or any prospectus supplement or post-effective amendment has been filed, and
  when a Registration Statement or any post-effective amendment has become effective
  (notification of such effectiveness shall be delivered to each Investor by facsimile
  on the same day of such effectiveness), (ii) of any request by the SEC for amendments
  or supplements to a Registration Statement or related prospectus or related
  information, and (iii) of the Company’s reasonable determination that a
  post-effective amendment to a Registration Statement would be appropriate. 

                              (f)     
  The Company shall use its best efforts to prevent the issuance of any stop order
  or other suspension of effectiveness of a Registration Statement, or the suspension
  of the qualification of any of the Registrable Securities for sale in any jurisdiction
  within the United States of America and, if such an order or suspension is issued,
  to obtain the withdrawal of such order or suspension at the earliest possible
  moment and to notify each Investor who holds Registrable Securities being sold
  of the issuance of such order and the resolution thereof or its receipt of actual
  notice of the initiation or threat of any proceeding for such purpose. 

                              (g)      Upon
  written request, the Company shall make available for inspection by (i) any
  Investor and (ii) one (1) firm of accountants or other agents retained by the
  Investors (collectively, the “Inspectors”) all pertinent financial
  and other records, and pertinent corporate documents and properties of the Company
  (collectively, the “Records”), as shall be reasonably deemed
  necessary by each Inspector, and cause the Company’s officers, directors
  and employees to supply all information which any Inspector may reasonably request
  in writing; provided, however, that each Inspector shall agree, and each Investor
  hereby agrees, to hold in strict confidence and shall not make any disclosure
  (except to an Investor) or use any Record or other information which the Company
  determines in good faith to be confidential, and of which determination the
  Inspectors are so notified, unless (a) the disclosure of such Records is necessary
  to avoid or correct a misstatement or omission in any Registration Statement
  or is otherwise required under the 1933 Act, (b) the release of such Records
  is ordered pursuant to a final, non-appealable subpoena or order from a court
  or government body of competent 

5 

jurisdiction, or (c) the information in such Records has been
  made generally available to the public other than by disclosure in violation
  of this or any other agreement of which the Inspector and the Investor has knowledge.
  Each Investor agrees that it shall, upon learning that disclosure of such Records
  is sought in or by a court or governmental body of competent jurisdiction or
  through other means, give prompt notice to the Company and allow the Company,
  at its expense, to undertake appropriate action to prevent disclosure of, or
  to obtain a protective order for, the Records deemed confidential. 

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

                              (i)      The
  Company shall use its best efforts either to cause all the Registrable Securities
  covered by a Registration Statement (i) to be listed on each securities exchange
  on which securities of the same class or series issued by the Company are then
  listed, if any, if the listing of such Registrable Securities is then permitted
  under the rules of such exchange or (ii) the inclusion for quotation on the
  OTC Bulletin Board for such Registrable Securities. The Company shall pay all
  fees and expenses in connection with satisfying its obligation under this Section
  3(j). 

                              (j)      The
  Company shall cooperate with the Investors who hold Registrable Securities being
  offered and, to the extent applicable, to facilitate the timely preparation
  and delivery of certificates (not bearing any restrictive legend) representing
  the Registrable Securities to be offered pursuant to a Registration Statement
  and enable such certificates to be in such denominations or amounts, as the
  case may be, as the Investors may reasonably request in writing and registered
  in such names as the Investors may request. 

                              (k)      The
  Company shall use its best efforts to cause the Registrable Securities covered
  by the applicable Registration Statement to be registered with or approved by
  such other governmental agencies or authorities as may be necessary to consummate
  the disposition of such Registrable Securities. 

                              (l)      The
  Company shall make generally available to its security holders as soon as practical,
  but not later than ninety (90) days after the close of the period covered thereby,
  an earnings statement (in form complying with the provisions of Rule 158 under
  the 1933 Act) covering a twelve (12) month period beginning not later than the
  first day of the Company’s fiscal quarter next following the effective
  date of the Registration Statement. 

6 

                              (m)      The
  Company shall otherwise use its best efforts to comply with all applicable rules
  and regulations of the SEC in connection with any registration hereunder. 

                              (n)      Within
  two (2) business days after a Registration Statement which covers Registrable
  Securities is declared effective by the SEC, the Company shall deliver, and
  shall cause legal counsel for the Company to deliver, to the transfer agent
  for such Registrable Securities (with copies to the Investors whose Registrable
  Securities are included in such Registration Statement) confirmation that such
  Registration Statement has been declared effective by the SEC in the form attached
  hereto as Exhibit A. 

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

               4.     
  OBLIGATIONS OF THE INVESTORS. 

          Each
  Investor agrees that, upon receipt of any notice from the Company of the happening
  of any event of the kind described in Section 3(f) or the first sentence of
  3(e), such Investor will immediately discontinue disposition of Registrable
  Securities pursuant to any Registration Statement(s) covering such Registrable
  Securities until such Investor’s receipt of the copies of the supplemented
  or amended prospectus contemplated by Section 3(e) or receipt of notice that
  no supplement or amendment is required. Notwithstanding anything to the contrary,
  the Company shall cause its transfer agent to deliver unlegended certificates
  for shares of Common Stock to a transferee of an Investor in accordance with
  the terms of the Securities Purchase Agreement in connection with any sale of
  Registrable Securities with respect to which an Investor has entered into a
  contract for sale prior to the Investor’s receipt of a notice from the
  Company of the happening of any event of the kind described in Section 3(f)
  or the first sentence of 3(e) and for which the Investor has not yet settled.

               5.      EXPENSES
  OF REGISTRATION. 

         All expenses
  incurred in connection with registrations, filings or qualifications pursuant
  to Sections 2 and 3, including, without limitation, all registration, listing
  and qualifications fees, printers, legal and accounting fees shall be paid by
  the Company.

               6.      INDEMNIFICATION.

          With
  respect to Registrable Securities which are included in a Registration Statement
  under this Agreement: 

                              (a)      To
  the fullest extent permitted by law, the Company will, and hereby does, indemnify,
  hold harmless and defend each Investor, the directors, officers, partners, employees,
  agents, representatives of, and each Person, if any, who controls any Investor
  within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified
  Person”), against any losses, claims, damages, liabilities, judgments,
  fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid
  in settlement or expenses, joint or several (collectively, “Claims”)
  incurred in investigating, preparing or defending any action, claim, suit, inquiry,
  proceeding, investigation or appeal taken from the foregoing by or before any
  court or governmental, 

7 

administrative or other regulatory agency, body or the SEC, whether
  pending or threatened, whether or not an indemnified party is or may be a party
  thereto (“Indemnified Damages”), to which any of them may become
  subject insofar as such Claims (or actions or proceedings, whether commenced
  or threatened, in respect thereof) arise out of or are based upon: (i) any untrue
  statement or alleged untrue statement of a material fact in a Registration Statement
  or any post-effective amendment thereto or in any filing made in connection
  with the qualification of the offering under the securities or other “blue
  sky” laws of any jurisdiction in which Registrable Securities are offered
  (“Blue Sky Filing”), or the omission or alleged omission to
  state a material fact required to be stated therein or necessary to make the
  statements therein not misleading; (ii) any untrue statement or alleged untrue
  statement of a material fact contained in any final prospectus (as amended or
  supplemented, if the Company files any amendment thereof or supplement thereto
  with the SEC) or the omission or alleged omission to state therein any material
  fact necessary to make the statements made therein, in light of the circumstances
  under which the statements therein were made, not misleading; or (iii) any violation
  or alleged violation by the Company of the 1933 Act, the 1934 Act, any other
  law, including, without limitation, any state securities law, or any rule or
  regulation there under relating to the offer or sale of the Registrable Securities
  pursuant to a Registration Statement (the matters in the foregoing clauses (i)
  through (iii) being, collectively, “Violations”). The Company
  shall reimburse the Investors and each such controlling person promptly as such
  expenses are incurred and are due and payable, for any legal fees or disbursements
  or other reasonable expenses incurred by them in connection with investigating
  or defending any such Claim. Notwithstanding anything to the contrary contained
  herein, the indemnification agreement contained in this Section 6(a): (x) shall
  not apply to a Claim by an Indemnified Person arising out of or based upon a
  Violation which occurs in reliance upon and in conformity with information furnished
  in writing to the Company by such Indemnified Person expressly for use in connection
  with the preparation of the Registration Statement or any such amendment thereof
  or supplement thereto; (y) shall not be available to the extent such Claim is
  based on a failure of the Investor to deliver or to cause to be delivered the
  prospectus made available by the Company, if such prospectus was timely made
  available by the Company pursuant to Section 3(c); and (z) shall not apply to
  amounts paid in settlement of any Claim if such settlement is effected without
  the prior written consent of the Company, which consent shall not be unreasonably
  withheld. Such indemnity shall remain in full force and effect regardless of
  any investigation made by or on behalf of the Indemnified Person and shall survive
  the transfer of the Registrable Securities by the Investors pursuant to Section
  9 hereof. 

                              (b)      In
  connection with a Registration Statement, each Investor agrees to severally
  and not jointly indemnify, hold harmless and defend, to the same extent and
  in the same manner as is set forth in Section 6(a), the Company, each of its
  directors, each of its officers, employees, representatives, or agents and each
  Person, if any, who controls the Company within the meaning of the 1933 Act
  or the 1934 Act (each an “Indemnified Party”), against any
  Claim or Indemnified Damages to which any of them may become subject, under
  the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified
  Damages arise out of or is based upon any Violation, in each case to the extent,
  and only to the extent, that such Violation occurs in reliance upon and in conformity
  with written information furnished to the Company by such Investor expressly
  for use in connection with such Registration Statement; and, subject to Section
  6(d), such Investor will reimburse any legal or other expenses reasonably incurred
  by them in connection with investigating or defending any such Claim; provided,

8 

however, that the indemnity agreement contained in this Section
  6(b) and the agreement with respect to contribution contained in Section 7 shall
  not apply to amounts paid in settlement of any Claim if such settlement is effected
  without the prior written consent of such Investor, which consent shall not
  be unreasonably withheld; provided, further, however, that the Investor shall
  be liable under this Section 6(b) for only that amount of a Claim or Indemnified
  Damages as does not exceed the net proceeds to such Investor as a result of
  the sale of Registrable Securities pursuant to such Registration Statement.
  Such indemnity shall remain in full force and effect regardless of any investigation
  made by or on behalf of such Indemnified Party and shall survive the transfer
  of the Registrable Securities by the Investors pursuant to Section 9. Notwithstanding
  anything to the contrary contained herein, the indemnification agreement contained
  in this Section 6(b) with respect to any prospectus shall not inure to the benefit
  of any Indemnified Party if the untrue statement or omission of material fact
  contained in the prospectus was corrected and such new prospectus was delivered
  to each Investor prior to such Investor’s use of the prospectus to which
  the Claim relates. 

                              (c)      Promptly
  after receipt by an Indemnified Person or Indemnified Party under this Section
  6 of notice of the commencement of any action or proceeding (including any governmental
  action or proceeding) involving a Claim, such Indemnified Person or Indemnified
  Party shall, if a Claim in respect thereof is to be made against any indemnifying
  party under this Section 6, deliver to the indemnifying party a written notice
  of the commencement thereof, and the indemnifying party shall have the right
  to participate in, and, to the extent the indemnifying party so desires, jointly
  with any other indemnifying party similarly noticed, to assume control of the
  defense thereof with counsel mutually satisfactory to the indemnifying party
  and the Indemnified Person or the Indemnified Party, as the case may be; provided,
  however, that an Indemnified Person or Indemnified Party shall have the right
  to retain its own counsel with the fees and expenses of not more than one (1)
  counsel for such Indemnified Person or Indemnified Party to be paid by the indemnifying
  party, if, in the reasonable opinion of counsel retained by the indemnifying
  party, the representation by such counsel of the Indemnified Person or Indemnified
  Party and the indemnifying party would be inappropriate due to actual or potential
  differing interests between such Indemnified Person or Indemnified Party and
  any other party represented by such counsel in such proceeding. The Indemnified
  Party or Indemnified Person shall cooperate fully with the indemnifying party
  in connection with any negotiation or defense of any such action or claim by
  the indemnifying party and shall furnish to the indemnifying party all information
  reasonably available to the Indemnified Party or Indemnified Person which relates
  to such action or claim. The indemnifying party shall keep the Indemnified Party
  or Indemnified Person fully apprised at all times as to the status of the defense
  or any settlement negotiations with respect thereto. No indemnifying party shall
  be liable for any settlement of any action, claim or proceeding effected without
  its prior written consent; provided, however, that the indemnifying party shall
  not unreasonably withhold, delay or condition its consent. No indemnifying party
  shall, without the prior written consent of the Indemnified Party or Indemnified
  Person, consent to entry of any judgment or enter into any settlement or other
  compromise which does not include as an unconditional term thereof the giving
  by the claimant or plaintiff to such Indemnified Party or Indemnified Person
  of a release from all liability in respect to such claim or litigation. Following
  indemnification as provided for hereunder, the indemnifying party shall be subrogated
  to all rights of the Indemnified Party or Indemnified Person with respect to
  all third parties, firms or corporations relating to the matter for which indemnification
  has been made. The failure to deliver written notice to the indemnifying party

9 

within a reasonable time of the commencement of any such action
  shall not relieve such indemnifying party of any liability to the Indemnified
  Person or Indemnified Party under this Section 6, except to the extent that
  the indemnifying party is prejudiced in its ability to defend such action. 

                              (d)      The
  indemnification required by this Section 6 shall be made by periodic payments
  of the amount thereof during the course of the investigation or defense, as
  and when bills are received or Indemnified Damages are incurred. 

                              (e)      The
  indemnity agreements contained herein shall be in addition to (i) any cause
  of action or similar right of the Indemnified Party or Indemnified Person against
  the indemnifying party or others, and (ii) any liabilities the indemnifying
  party may be subject to pursuant to the law. 

               7.     
  CONTRIBUTION. 

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

               8.      REPORTS
  UNDER THE 1934 ACT. 

          With
  a view to making available to the Investors the benefits of Rule 144 the Company
  agrees to: 

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

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

                              (c)      furnish
  to each Investor so long as such Investor owns Registrable Securities, promptly
  upon written request, (i) a written statement by the Company that it has complied
  with the public information requirements of Rule 144, the 1933 Act and the 1934
  Act, (ii) a copy of the most recent annual or quarterly report of the Company
  and such other reports and documents so filed by the Company, and (iii) such
  other information as may be reasonably requested to permit the Investors to
  sell such securities pursuant to Rule 144(b)(1) without registration. 

10 

               9.      AMENDMENT
  OF REGISTRATION RIGHTS. 

          Provisions
  of this Agreement may be amended and the observance thereof may be waived (either
  generally or in a particular instance and either retroactively or prospectively),
  only with the written consent of the Company and Investors who then hold at
  least two-thirds (2/3) of the Registrable Securities. Any amendment or waiver
  effected in accordance with this Section 9 shall be binding upon each Investor
  and the Company. No such amendment shall be effective to the extent that it
  applies to fewer than all of the holders of the Registrable Securities. No consideration
  shall be offered or paid to any Person to amend or consent to a waiver or modification
  of any provision of any of this Agreement unless the same consideration also
  is offered to all of the parties to this Agreement. 

               10.      MISCELLANEOUS.

                              (a)      A
  Person is deemed to be a holder of Registrable Securities whenever such Person
  owns or is deemed to own of record such Registrable Securities. If the Company
  receives conflicting instructions, notices or elections from two (2) or more
  Persons with respect to the same Registrable Securities, the Company shall act
  upon the basis of instructions, notice or election received from the registered
  owner of such Registrable Securities. 

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

	If to the Company, to: 	MobiVentures, Inc. 
	  	Sunnyside 
	  	Brinkworth 
		Chippenham
	  	Wiltshire 
	  	SN15 5BY 
	  	England 
	  	Attention: Mr. Peter Åhman, President 
	  	Telephone: +358 40 5514177 
	  	Facsimile: +44 8452 991729 
	  	  
	With a copy to: 	Lang Michener LLP 
	  	Royal Centre, 1055 West Georgia Stree, Suite 1500
    
		PO Box 11117

11 

Vancouver, VC Canada V6E 4N7 

  Attention: Michael H. Taylor 

  Telephone: 604-691-7410 

  Facsimile: 604-893-2669 

If to an Investor, to its address and facsimile number on the
  Schedule of Investors attached hereto, with copies to such Investor’s representatives
  as set forth on the Schedule of Investors or to such other address and/or facsimile
  number and/or to the attention of such other person as the recipient party has
  specified by written notice given to each other party five (5) days prior to
  the effectiveness of such change. Written confirmation of receipt (A) given
  by the recipient of such notice, consent, waiver or other communication, (B)
  mechanically or electronically generated by the sender’s facsimile machine
  containing the time, date, recipient facsimile number and an image of the first
  page of such transmission or (C) provided by a courier or overnight courier
  service shall be rebuttable evidence of personal service, receipt by facsimile
  or receipt from a nationally recognized overnight delivery service in accordance
  with clause (i), (ii) or (iii) above, respectively. 

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

                              (d)      The
  laws of the State of Florida shall govern all issues concerning the relative
  rights of the Company and the Investors as its stockholders. All other questions
  concerning the construction, validity, enforcement and interpretation of this
  Agreement shall be governed by the internal laws of the State of Florida without
  giving effect to any choice of law or conflict of law provision or rule (whether
  of the State of Florida or any other jurisdiction) that would cause the application
  of the laws of any jurisdiction other than the State of Florida Each party hereby
  irrevocably submits to the non-exclusive jurisdiction of the State Courts of
  the State of Florida sitting in Broward County, Florida and federal courts for
  the Southern District of Florida for the adjudication of any dispute hereunder
  or in connection herewith or with any transaction contemplated hereby or discussed
  herein, and hereby irrevocably waives, and agrees not to assert in any suit,
  action or proceeding, any claim that it is not personally subject to the jurisdiction
  of any such court, that such suit, action or proceeding is brought in an inconvenient
  forum or that the venue of such suit, action or proceeding is improper. Each
  party hereby irrevocably waives personal service of process and consents to
  process being served in any such suit, action or proceeding by mailing a copy
  thereof to such party at the address for such notices to it under this Agreement
  and agrees that such service shall constitute good and sufficient service of
  process and notice thereof. Nothing contained herein shall be deemed to limit
  in any way any right to serve process in any manner permitted by law. If any
  provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
  such invalidity or unenforceability shall not affect the validity or enforceability
  of the remainder of this Agreement in that jurisdiction or the validity or enforceability
  of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
  IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
  TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH
  OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 

12 

                              (e)      This
  Agreement, the Irrevocable Transfer Agent Instructions, the Securities Purchase
  Agreement and related documents including the Convertible Debenture and the
  Escrow Agreement dated the date hereof by and among the Company, the Investors
  set forth on the Schedule of Investors attached hereto, and James G. Dodrill
  II, P.A. (the “Escrow Agreement”) and the Security Agreement
  dated the date hereof (the “Security Agreement”) constitute
  the entire agreement among the parties hereto with respect to the subject matter
  hereof and thereof. There are no restrictions, promises, warranties or undertakings,
  other than those set forth or referred to herein and therein. This Agreement,
  the Irrevocable Transfer Agent Instructions, the Securities Purchase Agreement
  and related documents including the Convertible Debenture, the Escrow Agreement
  and the Security Agreement supersede all prior agreements and understandings
  among the parties hereto with respect to the subject matter hereof and thereof.

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

                              (g)      The
  headings in this Agreement are for convenience of reference only and shall not
  limit or otherwise affect the meaning hereof. 

                              (h)      This
  Agreement may be executed in identical counterparts, each of which shall be
  deemed an original but all of which shall constitute one and the same agreement.
  This Agreement, once executed by a party, may be delivered to the other party
  hereto by facsimile transmission of a copy of this Agreement bearing the signature
  of the party so delivering this Agreement. 

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

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

                              (j)      This
  Agreement is intended for the benefit of the parties hereto and their respective
  permitted successors and assigns, and is not for the benefit of, nor may any
  provision hereof be enforced by, any other Person. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

13 

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

COMPANY: 

  MOBIVENTURES, INC. 

By: ____________________________________

  Name:  Peter Åhman 

  Title:    President 

 

BUYER: 

  TRAFALGAR CAPITAL SPECIALIZED 

  INVESTMENT FUND, LUXEMBOURG 

  By:      Trafalgar Capital Sarl 

  Its:      General Partner 

By: ____________________________________

  Name:  Andrew Garai 

  Title:    Chairman of the Board 

14 

SCHEDULE I 

SCHEDULE OF INVESTORS

	  	 	 	 	Address/Facsimile 
	Name 	 	Signature 	 	Number of Buyer 
	  	 	 	 	8-10 Rue Mathias Hardt 
	Trafalgar Capital Specialized 	 	By: Trafalgar Capital Sarl 	 	BP 3023 
	Investment Fund, 	 	Its: General Partner 	 	L-1030 Luxembourg 
	Luxembourg 	 	 	 	Facsimile: 
	  	 	 	 	011-44-207-405-0161 
	  	 	By: _________________________	 	and 
	  	 	Name: Andrew Garai 	 	001-786-323-1651 
	  	 	Its: Chairman of the Board 	 	  

EXHIBIT A 

FORM OF NOTICE OF EFFECTIVENESS 

  OF REGISTRATION STATEMENT 

Attention: 

          Re:     
  MOBIVENTURES, INC.

Ladies and Gentlemen: 

          We
  are counsel to MobiVentures, Inc., a Nevada corporation (the “Company”),
  and have represented the Company in connection with that certain Securities
  Purchase Agreement (the “Securities Purchase Agreement”) entered
  into by and among the Company and the investors named therein (collectively,
  the “Investors”) pursuant to which the Company issued to the
  Investors shares of its Common Stock, par value US$_______ per share (the “Common
  Stock”). Pursuant to the Purchase Agreement, the Company also has entered
  into a Registration Rights Agreement with the Investors (the “Registration
  Rights Agreement”) pursuant to which the Company agreed, among other
  things, to register the Registrable Securities (as defined in the Registration
  Rights Agreement) under the Securities Act of 1933, as amended (the “1933
  Act”). In connection with the Company’s obligations under the
  Registration Rights Agreement, on ____________ ____, the Company filed a Registration
  Statement on Form ________(File No. 333-_____________) (the “Registration
  Statement”) with the Securities and Exchange SEC (the “SEC”)
  relating to the Registrable Securities which names each of the Investors as
  a selling stockholder there under. 

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

Very truly yours, 

[INSERT NAME OF COMPANY COUNSEL]

By: _________________________________________

cc:      [LIST NAMES OF INVESTORS]
  

EXHIBIT C 

FORM OF IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

IRREVOCABLE TRANSFER AGENT INSTRUCTIONS 

March 31, 2008 

[Transfer Agent address block]

  Attention: __________

          RE:     
  MOBIVENTURES, INC. 

Ladies and Gentlemen: 

          Reference
  is made to that certain Securities Purchase Agreement (the “Securities
  Purchase Agreement”), dated the date hereof, by and between MobiVentures,
  Inc., a corporation organized under the laws of Nevada (the “Company”),
  and the Buyers set forth on Schedule I attached thereto (collectively the “Buyer”),
  pursuant to which the Company shall sell to the Buyer up to Two Million Dollars
  ($2,000,000) of the Company’s secured redeemable convertible debentures,
  which shall be convertible into shares of the Company’s common stock, par
  value $0.001 per share (the “Common Stock”). The shares of
  Common Stock to be converted thereunder plus interest which may be converted
  into Common Stock and any Liquidated Damages to which the Buyer may become
  entitled pursuant to the Transaction Documents (as defined in the Securities
  Purchase Agreement) , which may be converted into Common Stock thereunder are
  referred to herein as the “Conversion Shares.” This letter
  shall serve as our irrevocable authorization and direction to you (provided
  that you are the transfer agent of the Company at such time) to issue the Conversion
  Shares in shares of the Company’s Common Stock, in the event the Buyer
  has elected to have the interest of the Convertible Debenture, pursuant to Section
  1.05 of the Convertible Debenture, paid in Common Stock (the “Interest
  Shares”), to the Buyer from time to time upon surrender to you of
  a properly completed and duly executed Conversion Notice, in the form attached
  hereto as Exhibit I, delivered on behalf of the Company by James G. Dodrill
  II, P.A.. 

          Specifically,
  upon receipt by the Company or The Law Office of James G. Dodrill II, P.A. of
  a copy of a Conversion Notice, you on behalf of the Company, shall as soon as
  practicable, but in no event later than one (1) Trading Day (as defined below)
  after receipt of such Conversion Notice, send, via facsimile a Conversion Notice,
  which shall constitute an irrevocable instruction to you to process such Conversion
  Notice in accordance with the terms of these instructions. Upon your receipt
  of a copy of the executed Conversion Notice, you shall use your best efforts
  to, within three (3) Trading Days following the date of receipt of the Conversion
  Notice, (A) issue and surrender to a common carrier for overnight delivery to
  the address as specified in the Conversion Notice, a certificate, registered
  in the name of the Buyer or its designee, for the number of shares of Common
  Stock to which the Buyer shall be entitled as set forth in the Conversion Notice
  or (B) provided you are participating in The Depository Trust Company (“DTC”)
  Fast Automated Securities Transfer Program, upon the request of the Buyer, credit
  such aggregate number of shares of Common Stock to which the Buyer shall be

entitled to the Buyer’s or its designee’s balance account
  with DTC through its Deposit Withdrawal At Custodian (“DWAC”)
  system provided the Buyer causes its bank or broker to initiate the DWAC transaction.
  (“Trading Day” shall mean any day on which the Nasdaq
  Market is open for customary trading.)

          The
  Company hereby confirms to you and the Buyer that certificates representing
  the Conversion Shares, the Interest Shares and/or the Liquidated Damages Shares
  shall not bear any legend restricting transfer of the Conversion Shares thereby
  and should not be subject to any stop-transfer restrictions and shall otherwise
  be freely transferable on the books and records of the Company provided that
  the Company counsel delivers (i) the Notice of Effectiveness set forth Exhibit
  II attached hereto and (ii) an opinion of counsel in the form set forth
  in Exhibit III attached hereto, and that if the Conversion Shares, the
  Interest Shares, and/or the Liquidated Damages Shares are not registered for
  sale under the Securities Act of 1933, as amended, then the certificates for
  the Conversion Shares shall bear the following legend: 

  
    “THE SECURITIES REPRESENTED BY THIS CERTIFICATE
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
      APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR
      INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS, OR AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY,
      THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES
      LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.” 

  

          
  The Company hereby confirms and you acknowledge that in the event Counsel to
  the Company does not issue an opinion of counsel as required to issue the Conversion
  Shares and the Interest Shares free of legend the Company authorizes and you
  will accept an opinion of Counsel from James G. Dodrill II, P.A..

          The
  Company hereby confirms to you and the Buyer that no instructions other than
  as contemplated herein will be given to you by the Company with respect to the
  Conversion Shares, or the Interest Shares. The Company hereby agrees that it
  shall not replace you as the Company’s transfer agent without the prior
  written consent of the Buyer. 

          Unless
  the Company is in breach of its agreement with the Transfer Agent, any attempt
  by the Transfer Agent to resign as the Company’s transfer agent hereunder
  shall not be effective until such time as the Company provides to the Transfer
  Agent written notice that a suitable replacement has agreed to serve as transfer
  agent and to be bound by the terms and conditions of these Irrevocable Transfer
  Agent Instructions. 

          Any
  attempt by you to resign as transfer agent hereunder shall not be effective
  until such time as the Company provides to you written notice that a suitable
  replacement has agreed to serve as transfer agent and to be bound by the terms
  and conditions of these Irrevocable Transfer Agent Instructions. 

2 

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

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

          Each
  party hereto specifically acknowledges and agrees that in the event of a breach
  or threatened breach by a party hereto of any provision hereof, the Buyer will
  be irreparably damaged and that damages at law would be an inadequate remedy
  if these Irrevocable Transfer Agent Instructions were not specifically enforced.
  Therefore, in the event of a breach or threatened breach by a party hereto,
  including, without limitation, the attempted termination of the agency relationship
  created by this instrument, the Buyer shall be entitled, in addition to all
  other rights or remedies, to an injunction restraining such breach, without
  being required to show any actual damage or to post any bond or other security,
  and/or to a decree for specific performance of the provisions of these Irrevocable
  Transfer Agent Instructions. 

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

	COMPANY: 	 	THE FOREGOING INSTRUCTIONS ARE 
	  	 	ACKNOWLEDGED AND AGREED TO 
	MOBIVENTURES, INC. 	 	THIS DAY OF MARCH 2008 
	  	 	 
	By: _____________________________________________	 	[TRANSFER AGENT] 
	Name: 	 	 
	Title: 	 	 
	  	 	By: _____________________________________________
	[COMPANY COUNSEL] 	 	Name: 
	  	 	Title: 
	By: _____________________________________________	 	 
	Name: 	 	 
	Title: 	 	 

3 

SCHEDULE I 

SCHEDULE OF BUYERS

	  	 	 	 	Address/Facsimile 
	Name 	 	Signature 	 	Number of Buyer 
	  	 	 	 	8-10 Rue Mathias Hardt 
	Trafalgar Capital Specialized 	 	By: Trafalgar Capital Sarl 	 	BP 3023 
	Investment Fund, Luxembourg 	 	Its: General Partner 	 	L-1030 Luxembourg 
	  	 	 	 	Facsimile: 
	  	 	 	 	011-44-207-405-0161 
	  	 	By: ________________________________	 	and 
	  	 	Name: Andrew Garai 	 	001-786-323-1651 
	  	 	Its: Chairman of the Board 	 	  

SCHEDULE I-1 

EXHIBIT I 

TO IRREVOCABLE TRANSFER AGENT INSTRUCTIONS 

FORM OF CONVERSION NOTICE 

          The
  undersigned hereby irrevocably elects to convert US$ of the principal amount
  of the above Debenture into Shares of Common Stock of MobiVentures, Inc., according
  to the conditions stated therein, as of the Conversion Date written below. 

	Conversion Date: 	 	  
	 	 	 
	Applicable Conversion Price: 	 	  
	 	 	 
	Signature: 	 	  
	 	 	 
	Name: 	 	  
	 	 	 
	Address: 	 	  
	 	 	 
	Amount to be converted: 	US$ 	 
	 	 	 
	Amount of Debenture 		  
	unconverted: 	US$ 	 
	 	 	 
	Conversion Price per share: 	US$ 	 
	 	 	 
	Number of shares of Common 	 	  
	Stock to be issued: 	 	  
	 	 	 
	Please issue the shares of 	 	  
	Common Stock in the following 	 	  
	name and to the following 	 	  
	address: 	 	  
	 	 	 
	Issue to: 	 	  
	 	 	 
	Authorized Signature: 	 	  
	 	 	 
	Name: 	 	  
	 	 	 
	Title: 	 	  
	 	 	 
	Phone Number: 	 	  
	 	 	 
	Broker DTC Participant Code: 	 	  
	 	 	 
	Account Number: 	 	  

Please issue the shares of Common Stock in the following name
  and to the following address: 

  * Note that receiving broker must initiate transaction on DWAC System.

EXHIBIT I-1 

EXHIBIT II 

TO IRREVOCABLE TRANSFER AGENT INSTRUCTIONS 

_________, 200___ 

________

 

Attention: 

RE:      MOBIVENTURES, INC. 

Ladies and Gentlemen: 

          We
  are counsel to MobiVentures, Inc., a corporation organized under the
  laws of Nevada (the “Company”), and have represented the Company
  in connection with that certain Securities Purchase Agreement, dated as of March
  31, 2008 (the “Securities Purchase Agreement”), entered into
  by and among the Company and the Buyers set forth on Schedule I attached thereto
  (collectively the “Buyer”) pursuant to which the Company has
  agreed to sell to the Buyer up to Two Million Dollars ($2,000,000) of secured
  redeemable convertible debentures (“Debentures”), which shall be convertible
  into shares (the “Conversion Shares”) of the Company’s
  common stock, par value $____ per share (the “Common Stock”),
  in accordance with the terms of the Debentures and the Securities Purchase Agreement.
  Pursuant to the Securities Purchase Agreement, the Company also has entered
  into a Registration Rights Agreement, dated as of March 31, 2008, with the Buyer
  (the “Investor Registration Rights Agreement”) pursuant to
  which the Company agreed, among other things, to register the Conversion Shares
  under the Securities Act of 1933, as amended (the “1933 Act”).
  In connection with the Company’s obligations under the Securities Purchase
  Agreement and the Registration Rights Agreement, on _______, 2008, the Company
  filed a Registration Statement (File No. ___-_________) (the “Registration
  Statement”) with the Securities and Exchange Commission (the “SEC”)
  relating to the sale of the Conversion Shares. 

          In
  connection with the foregoing, we advise you that a member of the SEC’s
  staff has advised us by telephone that the SEC has entered an order declaring
  the Registration Statement effective under the 1933 Act at ____ P.M. on __________,
  2008 and we have no knowledge, after telephonic inquiry of a member of the SEC’s
  staff, that any stop order suspending its effectiveness has been issued or that
  any proceedings for that purpose are pending before, or threatened by, the SEC
  and the Conversion Shares are available for sale under the 1933 Act pursuant
  to the Registration Statement. 

          The
  Buyer has confirmed it shall comply with all securities laws and regulations
  applicable to it including applicable prospectus delivery requirements upon
  sale of the Conversion Shares. 

 

EXHIBIT II-1 

Very truly yours, 

[Company Counsel] 

 

By: ______________________________________

 

 

EXHIBIT II-2 

EXHIBIT III 

TO IRREVOCABLE TRANSFER AGENT INSTRUCTIONS 

FORM OF OPINION 

________________ 2008 

VIA FACSIMILE AND REGULAR MAIL 

________ 

Attention: 

          RE:      MOBIVENTURES,
  INC. 

Ladies and Gentlemen: 

          We
  have acted as special counsel to MobiVentures, Inc. (the “Company”),
  in connection with the registration of ___________ shares (the “Shares”)
  of its common stock with the Securities and Exchange Commission (the “SEC”).
  We have not acted as your counsel. This opinion is given at the request and
  with the consent of the Company. 

          In
  rendering this opinion we have relied on the accuracy of the Company’s
  Registration Statement on Form SB-2, as amended (the “Registration Statement”),
  filed by the Company with the SEC on ____________, 2008. The Company filed the
  Registration Statement on behalf of certain selling stockholders (the “Selling
  Stockholders”). This opinion relates solely to the Selling Shareholders
  listed on Exhibit “A” hereto and number of Shares set forth
  opposite such Selling Stockholders’ names. The SEC declared the Registration
  Statement effective on _____________, 2008. 

          We
  understand that the Selling Stockholders acquired the Shares in a private offering
  exempt from registration under the Securities Act of 1933, as amended. Information
  regarding the Shares to be sold by the Selling Shareholders is contained under
  the heading “Selling Stockholders” in the Registration Statement,
  which information is incorporated herein by reference. This opinion does not
  relate to the issuance of the Shares to the Selling Stockholders. The opinions
  set forth herein relate solely to the sale or transfer by the Selling Stockholders
  pursuant to the Registration Statement under the Federal laws of the United
  States of America. We do not express any opinion concerning any law of any state
  or other jurisdiction. 

          In
  rendering this opinion we have relied upon the accuracy of the foregoing statements.

 

EXHIBIT III-1 

          Based
  on the foregoing, it is our opinion that the sale of Shares has been registered
  with the Securities and Exchange Commission under the Securities Act of 1933,
  as amended, and that upon any sale of the Shares pursuant to the registration
  statement at a time when such registration statement is effective, the share
  certificates issuable to the purchase may be issued without any restrictive
  legend under the Securities Act of 1933. This opinion relates solely
  to the number of Shares set forth opposite the Selling Stockholders listed on
  Exhibit “A” hereto. 

          This
  opinion is furnished to you specifically in connection with the issuance of
  the Shares, and solely for your information and benefit. This letter may not
  be relied upon by you in any other connection, and it may not be relied upon
  by any other person or entity for any purpose without our prior written consent.
  This opinion may not be assigned, quoted or used without our prior written consent.
  The opinions set forth herein are rendered as of the date hereof and we will
  not supplement this opinion with respect to changes in the law or factual matters
  subsequent to the date hereof. 

Very truly yours, 

 

JAMES G. DODRILL II, P.A. 

 

EXHIBIT III-2 

EXHIBIT “A” 

(LIST OF SELLING STOCKHOLDERS)

	Name: 	 	No. of Shares: 

 

 

 

EXHIBIT A-1 

EXHIBIT D 

FORM OF SECURITY AGREEMENT

SECURITY AGREEMENT 

          THIS
  SECURITY AGREEMENT (the “Agreement”), is entered
  into and made effective as of March 31, 2008, by and between MOBI VENTURES
  INC. (the “Company”), and the BUYER(S) listed on
  Schedule I attached to the Securities Purchase Agreement dated the date hereof
  (the “Secured Party”). Capitalized words which are otherwise
  undefined in this Agreement shall have the same definition as in the Securities
  Purchase Agreement. 

          WHEREAS,
  the Company shall issue and sell to the Secured Party, as provided in the
  Securities Purchase Agreement dated the date hereof, and the Secured Party shall
  purchase Two Million Dollars ($2,000,000) of secured convertible redeemable
  debentures (the “Redeemable Debentures”) in the respective
  amounts set forth opposite each Buyer(s) name on Schedule I attached to the
  Securities Purchase Agreement; 

          WHEREAS,
  to induce the Secured Party to enter into the transaction contemplated by
  the Securities Purchase Agreement, the Redeemable Debenture, the Registration
  Rights Agreement and the Escrow Agreement (collectively referred to as the “Transaction
  Documents”), the Company hereby grants to the Secured Party a first
  priority security interest in and to the pledged property identified on Exhibit
  “A” hereto (collectively referred to as the “Pledged Property”)
  until the satisfaction of the Obligations, as defined herein below.

          NOW,
  THEREFORE, in consideration of the premises and the mutual covenants herein
  contained, and for other good and valuable consideration, the adequacy and receipt
  of which are hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE 1. 

DEFINITIONS AND INTERPRETATIONS 

          Section
  1.1.      Recitals.

          The
  above recitals are true and correct and are incorporated herein, in their entirety,
  by this reference. 

          Section
  1.2.      Interpretations.

          Nothing
  herein expressed or implied is intended or shall be construed to confer upon
  any person other than the Secured Party any right, remedy or claim under or
  by reason hereof. 

          Section
  1.3.      Obligations Secured. 

          The
  obligations secured hereby are any and all obligations of the Company to the
  Secured Party now existing or hereinafter incurred to the Secured Party, whether
  oral or written and whether arising before, on or after the date hereof including,
  without limitation, those obligations of the Company to the Secured Party under
  the Securities Purchase Agreement and the Secured Redeemable Debenture and any
  other amounts now or hereafter owed to the Secured Party by the Company thereunder
  or hereunder (collectively, the “Obligations”). 

ARTICLE 2. 

PLEDGED PROPERTY, ADMINISTRATION OF COLLATERAL AND TERMINATION
  OF SECURITY INTEREST 

          Section
  2.1.      Grant of Security Interest. 

          1.     
  Company hereby pledges to the Secured Party and creates in the Secured Party
  for its benefit a security interest for such time until the Obligations are
  paid in full, in and to all of in the property described in “Exhibit
  A” hereto, whether now existing or hereafter from time to time acquired
  (collectively, the “Pledged Property.”). 

                    (a)      Simultaneously
  with the execution and delivery of this Agreement, the Company shall make, execute,
  acknowledge, file, record and deliver to the Secured Party any documents reasonably
  requested by the Secured Party to perfect its security interest in the Pledged
  Property. Simultaneously with the execution and delivery of this Agreement,
  the Company shall make, execute, acknowledge and deliver to the Secured Party
  such documents and instruments, including, without limitation, financing statements,
  certificates, affidavits and forms as may, in the Secured Party’s reasonable
  judgment, be necessary to effectuate, complete or perfect, or to continue and
  preserve, the security interest of the Secured Party in the Pledged Property,
  and the Secured Party shall hold such documents and instruments as secured party,
  subject to the terms and conditions contained herein. 

          Section
  2.2.      Rights; Interests; Etc. 

                    (a)      So
  long as no Event of Default (as hereinafter defined) shall have occurred and
  be continuing: 

                              (i)      the
  Company shall be entitled to exercise any and all rights pertaining to the Pledged
  Property or any part thereof for any purpose not inconsistent with the terms
  hereof; and 

                              (ii)      the
  Company shall be entitled to receive and retain any and all payments paid or
  made in respect of the Pledged Property. 

                    (b)      Upon
  the occurrence and during the continuance of an Event of Default: 

                              (i)     
  All rights of the Company to exercise the rights which it would otherwise be
  entitled to exercise pursuant to Section 2.2(a)(i) hereof and to receive payments
  which it would otherwise be authorized to receive and retain pursuant to Section
  2.2(a)(ii) hereof shall be suspended, and all such rights shall thereupon become
  vested in the Secured Party who shall thereupon have the sole right to exercise
  such rights and to receive and hold as Pledged Property such payments; provided,
  however, that if the Secured Party shall become entitled and shall elect
  to exercise its right to realize on the Pledged Property pursuant to Article
  5 hereof, then all cash sums received by the Secured Party, or held by Company
  for the benefit of the Secured Party and paid over pursuant to Section 2.2(b)(ii)
  hereof, shall be applied against any outstanding Obligations; and 

2 

                              (ii)     
  All interest, dividends, income and other payments and distributions which are
  received by the Company contrary to the provisions of Section 2.2(b)(i) hereof
  shall be received in trust for the benefit of the Secured Party, shall be segregated
  from other property of the Company and shall be forthwith paid over to the Secured
  Party; or

                              (iii)     
  The Secured Party in its sole discretion shall be authorized to sell any or
  all of the Pledged Property at public or private sale in order to recoup all
  of the outstanding principal plus accrued interest owed pursuant to the Redeemable
  Debenture as described herein 

                    (c)      Each
  of the following events, subject to the lapse of applicable cure periods, shall
  constitute a default under this Agreement (each an “Event of Default”):

                              (i)      any
  default, whether in whole or in part, shall occur in the payment to the Secured
  Party of principal, interest or other item comprising the Obligations as and
  when due or with respect to any other debt or obligation of the Company to a
  party other than the Secured Party; 

                              (ii)      any
  default, whether in whole or in part, shall occur in the due observance or performance
  of any obligations or other covenants, terms or provisions to be performed under
  this Agreement or the Transaction Documents;

                              (iii)     
  the Company shall: (1) make a general assignment for the benefit of its creditors;
  (2) apply for or consent to the appointment of a receiver, trustee, assignee,
  custodian, sequestrator, liquidator or similar official for itself or any of
  its assets and properties; (3) commence a voluntary case for relief as a debtor
  under the United States Bankruptcy Code; (4) file with or otherwise submit to
  any governmental authority any petition, answer or other document seeking: (A)
  reorganization, (B) an arrangement with creditors or (C) to take advantage of
  any other present or future applicable law respecting bankruptcy, reorganization,
  insolvency, readjustment of debts, relief of debtors, dissolution or liquidation;
  (5) file or otherwise submit any answer or other document admitting or failing
  to contest the material allegations of a petition or other document filed or
  otherwise submitted against it in any of the proceedings set forth in this Section
  2.2(c)(iii) under any such applicable law, or (6) be adjudicated a bankrupt
  or insolvent by a court of competent jurisdiction; or 

                              (iv)      any
  case, proceeding or other action shall be commenced against the Company for
  the purpose of effecting, or an order, judgment or decree shall be entered by
  any court of competent jurisdiction approving (in whole or in part) anything
  specified in Section 2.2(c)(iii) hereof, or any receiver, trustee, assignee,
  custodian, sequestrator, liquidator or other official shall be appointed with
  respect to the Company, or shall be appointed to take or shall otherwise acquire
  possession or control of all or a substantial part of the assets and properties
  of the Company, and any of the foregoing shall continue unstayed and in effect
  for any period of thirty (30) days. 

3 

ARTICLE 3. 

ATTORNEY-IN-FACT; PERFORMANCE 

          Section
  3.1.      Secured Party Appointed Attorney-In-Fact.

          Upon
  the occurrence of an Event of Default, the Company hereby appoints the Secured
  Party as its attorney-in-fact, with full authority in the place and stead of
  the Company and in the name of the Company or otherwise, from time to time in
  the Secured Party’s discretion to take any action and to execute any instrument
  which the Secured Party may reasonably deem necessary to accomplish the purposes
  of this Agreement, including, without limitation, to receive and collect all
  instruments made payable to the Company representing any payments in respect
  of the Pledged Property or any part thereof and to give full discharge for the
  same. The Secured Party may demand, collect, receipt for, settle, compromise,
  adjust, sue for, foreclose, or realize on the Pledged Property as and when the
  Secured Party may determine. To facilitate collection, the Secured Party may
  notify account debtors and obligors on any Pledged Property or Pledged Property
  to make payments directly to the Secured Party. 

          Section
  3.2.      Secured Party May Perform. 

          If
  the Company fails to perform any agreement contained herein, the Secured Party,
  at its option, may itself perform, or cause performance of, such agreement,
  and the expenses of the Secured Party incurred in connection therewith shall
  be included in the Obligations secured hereby and payable by the Company under
  Section 8.3. 

ARTICLE 4. 

REPRESENTATIONS AND WARRANTIES 

          Section
  4.1.      Authorization; Enforceability. 

          Each
  of the parties hereto represents and warrants that it has taken all action necessary
  to authorize the execution, delivery and performance of this Agreement and the
  transactions contemplated hereby; and upon execution and delivery, this Agreement
  shall constitute a valid and binding obligation of the respective party, subject
  to applicable bankruptcy, insolvency, reorganization, moratorium and similar
  laws affecting creditors’ rights or by the principles governing the availability
  of equitable remedies. 

          Section
  4.2.      Ownership of Pledged Property.

          The
  Company warrants and represents that it is the legal and beneficial owner of
  the Pledged Property free and clear of any lien, security interest, option or
  other charge or encumbrance except for the security interest created by this
  Agreement and for the Permitted Liens. For purposes hereof, “Permitted
  Liens” shall mean (i) liens for taxes or other governmental charges which
  are not yet delinquent or are being contested in good faith by appropriate proceedings,
  (ii) liens for carriers, contractors, warehousemen, mechanics, materialmen,
  laborers, employees, suppliers or other similar persons arising by operation
  of law and incurred in the ordinary course of business for sums not yet delinquent
  or being contested in good faith, (iii) liens relating to deposits made in the
  ordinary course of business in connection 

4 

with workers’ compensation, unemployment insurance and other
  types of social security or to secure the performance of leases, trade contracts
  or other similar agreements; and (iv) in the case of real property, any matters,
  restrictions, covenants, conditions, limitations, rights, rights of way, encumbrances,
  encroachments, reservations, easements, agreements and other matters of record,
  such state of facts of which an accurate survey or inspection of the property
  would reveal and do not materially interfere with the use or value of the property.

ARTICLE 5. 

DEFAULT; REMEDIES; SUBSTITUTE COLLATERAL 

          Section
  5.1.      Default and Remedies. 

                    (a)      If
  an Event of Default described in Section 2.2(c)(i) or (ii) occurs, then in each
  such case the Secured Party may declare the Obligations to be due and payable
  immediately, by a notice in writing to the Company, and upon any such declaration,
  the Obligations shall become immediately due and payable. If an Event of Default
  described in Sections 2.2(c)(iii) or (iv) occurs and is continuing for the period
  set forth therein, then the Obligations shall automatically become immediately
  due and payable without declaration or other act on the part of the Secured
  Party. 

                    (b)      Upon
  the occurrence of an Event of Default, the Secured Party shall: (i) be entitled
  to receive all distributions with respect to the Pledged Collateral, (ii) to
  cause the Pledged Property to be transferred into the name of the Secured Party
  or its nominee, (iii) to dispose of the Pledged Property, and (iv) to realize
  upon any and all rights in the Pledged Property then held by the Secured Party
  as provided herein. 

          Section
  5.2.      Method of Realizing Upon the Pledged
  Property: Other Remedies. 

          Upon
  the occurrence of an Event of Default, in addition to any rights and remedies
  available at law or in equity, the following provisions shall govern the Secured
  Party’s right to realize upon the Pledged Property: 

                    (a)      Any
  item of the Pledged Property may be sold for cash or other value in any number
  of lots at brokers board, public auction or private sale and may be sold without
  demand, advertisement or notice (except that the Secured Party shall give the
  Company ten (10) days’ prior written notice of the time and place or of
  the time after which a private sale may be made (the “Sale Notice”)),
  which notice period is hereby agreed to be commercially reasonable. At any sale
  or sales of the Pledged Property, the Company may bid for and purchase the whole
  or any part of the Pledged Property and, upon compliance with the terms of such
  sale, may hold, exploit and dispose of the same without further accountability
  to the Secured Party. The Company will execute and deliver, or cause to be executed
  and delivered, such instruments, documents, assignments, waivers, certificates,
  and affidavits and supply or cause to be supplied such further information and
  take such further action as the Secured Party reasonably shall require in connection
  with any such sale. 

5 

                    (b)      Any
  cash being held by the Secured Party as Pledged Property and all cash proceeds
  received by the Secured Party in respect of, sale of, collection from, or other
  realization upon all or any part of the Pledged Property shall be applied as
  follows: 

                              (i)      to
  the payment of all amounts due the Secured Party for the expenses reimbursable
  to it hereunder or owed to it pursuant to Section 8.3 hereof; 

                              (ii)     
  to the payment of the Obligations then due and unpaid. 

                              (iii)     
  the balance, if any, to the person or persons entitled thereto, including, without
  limitation, the Company. 

                    (c)     
  In addition to all of the rights and remedies which the Secured Party may have
  pursuant to this Agreement, the Secured Party shall have all of the rights and
  remedies provided by law, including, without limitation, those under the Uniform
  Commercial Code. 

                    (d)     
  If the Company fails to pay such amounts due upon the occurrence of an Event
  of Default which is continuing, then the Secured Party may institute a judicial
  proceeding for the collection of the sums so due and unpaid, may prosecute such
  proceeding to judgment or final decree and may enforce the same against the
  Company and collect the monies adjudged or decreed to be payable in the manner
  provided by law out of the property of Company, wherever situated. 

                    (e)     
  The Company agrees that it shall be liable for any reasonable fees, expenses
  and costs incurred by the Secured Party in connection with enforcement, collection
  and preservation of the Transaction Documents, including, without limitation,
  reasonable legal fees and expenses, and such amounts shall be deemed included
  as Obligations secured hereby and payable as set forth in Section 8.3 hereof.

          Section
  5.3.      Proofs of Claim. 

          In
  case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
  reorganization, arrangement, adjustment, composition or other judicial proceeding
  relating to the Company or the property of the Company or of such other obligor
  or its creditors, the Secured Party (irrespective of whether the Obligations
  shall then be due and payable as therein expressed or by declaration or otherwise
  and irrespective of whether the Secured Party shall have made any demand on
  the Company for the payment of the Obligations), shall be entitled and empowered,
  by intervention in such proceeding or otherwise: 

                              (i)     
  to file and prove a claim for the whole amount of the Obligations and to file
  such other papers or documents as may be necessary or advisable in order to
  have the claims of the Secured Party (including any claim for the reasonable
  legal fees and expenses and other expenses paid or incurred by the Secured Party
  permitted hereunder and of the Secured Party allowed in such judicial proceeding),
  and 

                              (ii)      to
  collect and receive any monies or other property payable or deliverable on any
  such claims and to distribute the same; and any custodian, receiver, assignee,
  trustee, liquidator, sequestrator or other similar official in any such judicial
  proceeding is hereby 

6 

authorized by the Secured Party to make such payments to the
  Secured Party and, in the event that the Secured Party shall consent to the
  making of such payments directed to the Secured Party, to pay to the Secured
  Party any amounts for expenses due it hereunder. 

          Section
  5.4.      Duties Regarding Pledged Property.

          The
  Secured Party shall have no duty as to the collection or protection of the Pledged
  Property or any income thereon or as to the preservation of any rights pertaining
  thereto, beyond the safe custody and reasonable care of any of the Pledged Property
  actually in the Secured Party’s possession. 

ARTICLE 6. 

AFFIRMATIVE COVENANTS 

          The
  Company covenants and agrees that, from the date hereof and until the Obligations
  have been fully paid and satisfied, unless the Secured Party shall consent otherwise
  in writing (as provided in Section 8.4 hereof): 

          Section
  6.1.      Existence, Properties, Etc. 

                    (a)      The
  Company shall do, or cause to be done, all things, or proceed with due diligence
  with any actions or courses of action, that may be reasonably necessary (i)
  to maintain Company’s due organization, valid existence and good standing
  under the laws of its state of incorporation, and (ii) to preserve and keep
  in full force and effect all qualifications, licenses and registrations in those
  jurisdictions in which the failure to do so could have a Material Adverse Effect
  (as defined below); and (b) the Company shall not do, or cause to be done, any
  act impairing the Company’s corporate power or authority (i) to carry on
  the Company’s business as now conducted, and (ii) to execute or deliver
  this Agreement or any other document delivered in connection herewith, including,
  without limitation, any UCC-1 Financing Statements required by the Secured Party
  to which it is or will be a party, or perform any of its obligations hereunder
  or thereunder. For purpose of this Agreement, the term “Material Adverse
  Effect” shall mean any material and adverse affect, whether individually
  or in the aggregate, upon (a) the Company’s assets, business, operations,
  properties or condition, financial or otherwise or results of operations of
  the Company, taken as a whole, excluding any change, event, circumstance or
  effect that is caused by changes in general economic conditions or changes generally
  affecting the industry in which the Company operates (provided that such changes
  do not affect the Company in a materially disproportionate manner); or (b) the
  Company’s ability to make payment as and when due of all or any part of
  the Obligations; or (c) the Pledged Property. 

          Section
  6.2      Accounts and Reports. 

          The
  Company shall maintain a standard system of accounting in accordance with generally
  accepted accounting principles consistently applied and provide, at its sole
  expense, to the Secured Party the following: 

                    (b)      as
  soon as available, a copy of any notice or other communication alleging any
  nonpayment or other material breach or default, or any foreclosure or other
  action respecting 

7 

any material portion of its assets and properties, received respecting
  any of the indebtedness of the Company in excess of $25,000 (other than the
  Obligations), or any demand or other request for payment under any guaranty,
  assumption, purchase agreement or similar agreement or arrangement respecting
  the indebtedness or obligations of others in excess of $25,000, including any
  received from any person acting on behalf of the Secured Party or beneficiary
  thereof, except for supplier requests in the normal course of business for payment
  of past due accounts payable invoices so long as such past due amounts do not
  exceed in the aggregate $50,000 at any time; and

                    (c)     
  within fifteen (15) days after the making of each submission or filing, a copy
  of any report, financial statement, notice or other document, whether periodic
  or otherwise, submitted to the shareholders of the Company, or submitted to
  or filed by the Company with any governmental authority involving or affecting
  (i) the Company that could have a Material Adverse Effect; (ii) the Obligations;
  or (iii) any part of the Pledged Property. 

          Section
  6.2.      Maintenance of Books and Records;
  Inspection. 

          The
  Company shall maintain its books, accounts and records in accordance with United
  States generally accepted accounting principles consistently applied, and permit
  the Secured Party, its officers and employees and any professionals designated
  by the Secured Party in writing, during business hours and upon reasonable notice
  to visit and inspect any of its properties (including but not limited to the
  Pledged Property), corporate books and financial records, and to discuss its
  accounts, affairs and finances with any employee, officer or director thereof.

          Section
  6.3.      Maintenance and Insurance. 

                    (a)      The
  Company shall maintain or cause to be maintained, at its own expense, all of
  its assets and properties in good working order and condition, making all necessary
  repairs thereto and renewals and replacements thereof. 

                    (b)      The
  Company shall maintain or cause to be maintained, at its own expense, insurance
  in form, substance and amounts (including deductibles), which the Company deems
  reasonably necessary to the Company’s business, (i) adequate to insure
  all assets and properties of the Company, which assets and properties are of
  a character usually insured by persons engaged in the same or similar business
  against loss or damage resulting from fire or other risks included in an extended
  coverage policy; (ii) against public liability and other tort claims that may
  be incurred by the Company; (iii) as may be required by the Transaction Documents
  and/or applicable law and (iv) as may be reasonably requested by Secured Party,
  all with adequate, financially sound and reputable insurers. 

          Section
  6.4.      Contracts and Other Collateral.

          The
  Company shall perform all of its obligations under or with respect to each instrument,
  receivable, contract and other intangible included in the Pledged Property to
  which the Company is now or hereafter will be party on a timely basis and in
  the manner therein required, including, without limitation, this Agreement.

8 

          Section
  6.5.      Defense of Collateral, Etc. 

          The
  Company shall defend and enforce its right, title and interest in and to any
  part of: (a) the Pledged Property; and (b) if not included within the Pledged
  Property, those assets and properties whose loss could have a Material Adverse
  Effect, the Company shall defend the Secured Party’s right, title and interest
  in and to each and every part of the Pledged Property, each against all manner
  of claims and demands on a timely basis to the full extent permitted by applicable
  law. 

          Section
  6.6.      Payment of Debts, Taxes, Etc.

          The
  Company shall pay, or cause to be paid, all of its indebtedness and other liabilities
  and perform, or cause to be performed, all of its obligations in accordance
  with the respective terms thereof, and pay and discharge, or cause to be paid
  or discharged, all taxes, assessments and other governmental charges and levies
  imposed upon it (other than those being contested by the Company in good faith),
  upon any of its assets and properties on or before the last day on which the
  same may be paid without penalty, as well as pay all other lawful claims (whether
  for services, labor, materials, supplies or otherwise) as and when due 

          Section
  6.7.      Taxes and Assessments; Tax Indemnity.

          The
  Company shall (a) file all tax returns and appropriate schedules thereto that
  are required to be filed under applicable law, prior to the date of delinquency,
  (b) pay and discharge all taxes, assessments and governmental charges or levies
  imposed upon the Company, upon its income and profits or upon any properties
  belonging to it, prior to the date on which penalties attach thereto, and (c)
  pay all taxes, assessments and governmental charges or levies that, if unpaid,
  might become a lien or charge upon any of its properties; provided, however,
  that the Company in good faith may contest any such tax, assessment, governmental
  charge or levy described in the foregoing clauses (b) and (c) so long as appropriate
  reserves are maintained with respect thereto.

          Section
  6.8.      Compliance with Law and Other Agreements.

          The
  Company shall maintain its business operations and property owned or used in
  connection therewith in compliance with (a) all applicable federal, state and
  local laws, regulations and ordinances governing such business operations and
  the use and ownership of such property, and (b) all agreements, licenses, franchises,
  indentures and mortgages to which the Company is a party or by which the Company
  or any of its properties is bound. Without limiting the foregoing, the Company
  shall pay all of its indebtedness promptly in accordance with the terms thereof.

          Section
  6.9.      Notice of Default.

          The
  Company shall give written notice to the Secured Party of the occurrence of
  any default or Event of Default under this Agreement or the Transaction Documents,
  promptly upon the occurrence thereof. 

9 

          Section
  6.10.      Notice of Litigation. 

          The
  Company shall give notice, in writing, to the Secured Party of (a) any actions,
  suits or proceedings wherein the amount at issue is in excess of $50,000, instituted
  by any persons against the Company, or affecting any of the assets of the Company,
  and (b) any dispute, not resolved within fifteen (15) days of the commencement
  thereof, between the Company on the one hand and any governmental or regulatory
  body on the other hand, which might reasonably be expected to have a Material
  Adverse Effect on the business operations or financial condition of the Company.

ARTICLE 7. 

NEGATIVE COVENANTS 

          The
  Company covenants and agrees that, from the date hereof until the Obligations
  have been fully paid and satisfied, the Company shall not, unless the Secured
  Party shall consent otherwise in writing: 

          Section
  7.1.      Indebtedness. 

          Other
  than in the ordinary course of business consistent with past practice, the Company
  shall not directly or indirectly permit, create, incur, assume, permit to exist,
  increase, renew or extend on or after the date hereof any indebtedness on its
  part, including commitments, contingencies and credit availabilities, or apply
  for or offer or agree to do any of the foregoing. 

          Section
  7.2.      Liens and Encumbrances. 

          Except
  for Permitted Liens and for transfers in the ordinary course of business, and
  except for such assignment, transfer, pledge, mortgage, security interest or
  other lien or encumbrance as is outstanding on the date of this Agreement, the
  Company shall not directly or indirectly make, create, incur, assume or permit
  to exist any assignment, transfer, pledge, mortgage, security interest or other
  lien or encumbrance of any nature in, to or against any part of the Pledged
  Property or of the Company’s capital stock, or offer or agree to do so,
  or own or acquire or agree to acquire any asset or property of any character
  subject to any of the foregoing encumbrances (including any conditional sale
  contract or other title retention agreement), or assign, pledge or in any way
  transfer or encumber its right to receive any income or other distribution or
  proceeds from any part of the Pledged Property; or enter into any sale-leaseback
  financing respecting any part of the Pledged Property as lessee, or cause or
  assist the inception or continuation of any of the foregoing. 

10 

          Section
  7.3.      Certificate of Incorporation, By-Laws,
  Mergers, Consolidations, Acquisitions and Sales, Sales of Capital Stock,
  Incurrence of Debt. 

          Other
  than in the ordinary course of business, without the prior express written consent
  of the Secured Party, the Company shall not: (a) Amend its Articles of Incorporation
  or ByLaws; (b) issue or sell its common stock without consideration or for a
  consideration per share less than the bid price of the common stock determined
  immediately prior to its issuance, (c) issue or sell any Preferred Stock, warrant,
  option, right, contract, call, or other security or instrument granting the
  holder thereof the right to acquire Common Stock without consideration or for
  a consideration per share less than such Common Stock’s bid price value
  determined immediately prior to its issuance, (d) incur any additional debt
  or permit any subsidiary of the Company to incur any additional debt without
  the Secured Party’s prior written consent.; (c) be a party to any merger,
  consolidation or corporate reorganization, (d) purchase or otherwise acquire
  all or substantially all of the assets or stock of, or any partnership or joint
  venture interest in, any other person, firm or entity, (e) sell, transfer, convey,
  grant a security interest in (except for Permitted Liens) or lease all or any
  substantial part of its assets, nor (f) create any new subsidiaries nor convey
  any of its assets to any subsidiary. 

          Section
  7.4.      Management, Ownership. 

          The
  Company shall not materially change its ownership, executive staff or management
  without the prior written consent of the Secured Party. The ownership, executive
  staff and management of the Company are material factors in the Secured Party's
  willingness to institute and maintain a lending relationship with the Company.

          Section
  7.5.      Dividends, Etc. 

          The
  Company shall not declare or pay any dividend of any kind, in cash or in property,
  on any class of its capital stock, nor purchase, redeem, retire or otherwise
  acquire for value any shares of such stock, nor make any distribution of any
  kind in respect thereof, nor make any return of capital to shareholders, nor
  make any payments in respect of any pension, profit sharing, retirement, stock
  option, stock bonus, incentive compensation or similar plan (except as required
  or permitted hereunder), without the prior written consent of the Secured Party.

          Section
  7.6.      Guaranties; Loans. 

          Other
  than in the ordinary course of business, and except for such guarantees or liabilities
  as are outstanding on the date of this Agreement, the Company shall not guarantee
  nor be liable in any manner, whether directly or indirectly, or become contingently
  liable after the date of this Agreement in connection with the obligations or
  indebtedness of any person or persons, except for (i) the indebtedness currently
  secured by the liens identified on the Pledged Property identified on Exhibit
  A hereto and (ii) the endorsement of negotiable instruments payable to the Company
  for deposit or collection in the ordinary course of business. The Company shall
  not make any loan, advance or extension of credit to any person other than in
  the normal course of its business. 

11 

          Section
  7.7.      Debt. 

          Other
  than in the ordinary course of business, and except for such indebtedness as
  is outstanding on the date of this Agreement, without the prior written approval
  of Secured Party, the Company shall not create, incur, assume or suffer to exist
  any additional indebtedness of any description whatsoever in an aggregate amount
  in excess of $50,000 (excluding any indebtedness of the Company to the Secured
  Party, trade accounts payable and accrued expenses incurred in the ordinary
  course of business and the endorsement of negotiable instruments payable to
  the Company, respectively for deposit or collection in the ordinary course of
  business). 

          Section
  7.8.      Conduct of Business. 

          The
  Company will continue to engage in a business of the general type as conducted
  by it on the date of this Agreement. 

          Section
  7.9.      Places of Business. 

          The
  location of the Company’s chief place of business is at the address set
  forth in Section 8.1 hereof. The Company shall not change the location of its
  chief place of business, chief executive office or any place of business disclosed
  to the Secured Party or move any of the Pledged Property from its current location
  without thirty (30) days' prior written notice to the Secured Party in each
  instance.

ARTICLE 8. 

MISCELLANEOUS 

          Section
  8.1.      Notices. 

          All
  notices or other communications required or permitted to be given pursuant to
  this Agreement shall be in writing and shall be considered as duly given on:
  (a) the date of delivery, if delivered in person, by nationally recognized overnight
  delivery service or (b) five (5) days after mailing if mailed from within the
  continental United States by certified mail, return receipt requested to the
  party entitled to receive the same: 

	 	If to the Secured Party: 	Trafalgar Capital Specialized Investment Fund 
	 	  	8-10 Rue Mathias Hardt 
	 	  	BP 3023 
	 	 	L-1030 Luxembourg 
	 	  	Attention: Andrew Garai, Chairman of the Board
      of 
	 	  	Trafalgar Capital Sarl, General Partner 
	 	  	Facsimile:          
      011-44-207-405-0161 and 
	 	  	                           
      001-786-323-1651 

12 

	 	With a copy to: 	James G. Dodrill II, P.A. 
	 	 	5800 Hamilton Way 
	 	  	Boca Raton, FL 33496 
	 	  	Attention:         James
      Dodrill, Esq. 
	 	  	Telephone:      
      (561) 862-0529 
	 	  	Facsimile:         
      (561) 892-7787 
	 	  	 
	 	  	 
	 	And if to the Company: 	MobiVentures, Inc. 
	 	  	Sunnyside 
	 	  	Brinkworth 
	 	  	Chippenham 
	 	  	Wiltshire 
	 	  	SN15 5BY 
	 	  	England 
	 	  	Attention: Mr. Peter Åhman, President 
	 	  	Telephone: +358 40 5514177 
	 	  	Facsimile: +44 8452 991729 
	 	  	 
	 	  	 
	 	With a copy to: 	Lang Michener LLP 
	 	  	Royal Centre, 1055 West Georgia Stree, Suite 1500
    
	 	  	PO Box 11117 
	 	  	Vancouver, VC Canada V6E 4N7 
	 	  	Attention: Michael H. Taylor 
	 	  	Telephone: 604-691-7410 
	 	  	Facsimile: 604-893-2669 

          Any
  party may change its address by giving notice to the other party stating its
  new address. Commencing on the tenth (10th) day after the giving
  of such notice, such newly designated address shall be such party’s address
  for the purpose of all notices or other communications required or permitted
  to be given pursuant to this Agreement. 

          Section
  8.2.      Severability. 

          If
  any provision of this Agreement shall be held invalid or unenforceable, such
  invalidity or unenforceability shall attach only to such provision and shall
  not in any manner affect or render invalid or unenforceable any other severable
  provision of this Agreement, and this Agreement shall be carried out as if any
  such invalid or unenforceable provision were not contained herein. 

          Section
  8.3.      Expenses. 

          In
  the event of an Event of Default, the Company will pay to the Secured Party
  the amount of any and all reasonable expenses, including the reasonable fees
  and expenses of its counsel, which the Secured Party may incur in connection
  with: (i) the custody or preservation of, or the sale, collection from, or other
  realization upon, any of the Pledged Property; (ii) the 

13 

exercise or enforcement of any of the rights of the Secured Party
  hereunder or (iii) the failure by the Company to perform or observe any of the
  provisions hereof. 

          Section
  8.4.      Waivers, Amendments, Etc. 

          The
  Secured Party’s delay or failure at any time or times hereafter to require
  strict performance by Company of any undertakings, agreements or covenants shall
  not waiver, affect, or diminish any right of the Secured Party under this Agreement
  to demand strict compliance and performance herewith. Any waiver by the Secured
  Party of any Event of Default shall not waive or affect any other Event of Default,
  whether such Event of Default is prior or subsequent thereto and whether of
  the same or a different type. None of the undertakings, agreements and covenants
  of the Company contained in this Agreement, and no Event of Default, shall be
  deemed to have been waived by the Secured Party, nor may this Agreement be amended,
  changed or modified, unless such waiver, amendment, change or modification is
  evidenced by an instrument in writing specifying such waiver, amendment, change
  or modification and signed by the Secured Party. 

          Section
  8.5.      Continuing Security Interest.

          This
  Agreement shall create a continuing security interest in the Pledged Property
  and shall: (i) remain in full force and effect until payment in full of the
  Obligations (whether by payment of cash, redemption or conversion); and (ii)
  be binding upon the Company and its successors and heirs and (iii) inure to
  the benefit of the Secured Party and its successors and assigns. Upon the payment
  or satisfaction in full of the Obligations, the Company shall be entitled to
  the return, at its expense, of such of the Pledged Property as shall not have
  been sold in accordance with Section 5.2 hereof or otherwise applied pursuant
  to the terms hereof. Upon payment in full of all Obligations, the Secured Party
  shall execute and deliver to the Company all instruments and other documents
  as may be necessary or proper to release the lien on and security interest in
  the Pledged Property which has been granted hereunder. 

          Section
  8.6.      Independent Representation. 

          Each
  party hereto acknowledges and agrees that it has received or has had the opportunity
  to receive independent legal counsel of its own choice and that it has been
  sufficiently apprised of its rights and responsibilities with regard to the
  substance of this Agreement. 

          Section
  8.7.      Applicable Law: Jurisdiction.

          This
  Agreement shall be governed by and interpreted in accordance with the laws of
  the State of Florida without regard to the principles of conflict of laws. The
  parties further agree that any action between them shall be heard in Florida
  and expressly consent to the jurisdiction and venue of the Florida State Court
  sitting in Broward County, Florida or the United States District Court for the
  Southern District of Florida, for the adjudication of any civil action asserted
  pursuant to this Paragraph. 

14 

          Section
  8.8.      Waiver of Jury Trial. 

          AS
  A FURTHER INDUCEMENT FOR THE SECURED PARTY TO ENTER INTO THIS AGREEMENT AND
  TO MAKE THE FINANCIAL ACCOMMODATIONS TO THE COMPANY, THE COMPANY HEREBY WAIVES
  ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS
  AGREEMENT AND/OR ANY AND ALL OTHER DOCUMENTS RELATED TO THIS TRANSACTION.

          Section
  8.9.      Entire Agreement. 

          This
  Agreement constitutes the entire agreement among the parties and supersedes
  any prior agreement or understanding among them with respect to the subject
  matter hereof. 

          Section
  8.10      Limited One Time Right to Factor Receivables.

          
  The Company shall have the ability to factor the receivables of Pure Promoter
  Ltd as a one time factoring arrangement during the period of this agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

15 

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

COMPANY: 

  MOBI VENTURES, INC. 

By: __________________________________________________

  Name:    Peter Åhman 

  Title:      President

SECURED PARTY: 

  TRAFALGAR CAPITAL SPECIALIZED 

  INVESTMENT FUND, LUXEMBOURG 

  By:         Trafalgar Capital Sarl 

  Its:         General Partner 

By: __________________________________________________

  Name: 

  Title:      Portfolio Manager 

16 

EXHIBIT A 

DEFINITION OF PLEDGED PROPERTY 

          For
  the purpose of securing prompt and complete payment and performance by the Company
  of all of the Obligations, the Company unconditionally and irrevocably hereby
  grants to the Secured Party a continuing security interest in and to, and lien
  upon, all of the Company’s and its current or future acquired subsidiaries’
  assets, including specifically the following Pledged Property of the Company
  and its current or future acquired subsidiaries: 

                    (a)     
  all goods of the Company, including, without limitation, machinery, equipment,
  furniture, furnishings, fixtures, signs, lights, tools, parts, supplies and
  motor vehicles of every kind and description, now or hereafter owned by the
  Company or in which the Company may have or may hereafter acquire any interest,
  and all replacements, additions, accessions, substitutions and proceeds thereof,
  arising from the sale or disposition thereof, and where applicable, the proceeds
  of insurance and of any tort claims involving any of the foregoing; 

                    (b)     
  all inventory of the Company, including, but not limited to, all goods, wares,
  merchandise, parts, supplies, finished products, other tangible personal property,
  including such inventory as is temporarily out of Company’s custody or
  possession and including any returns upon any accounts or other proceeds, including
  insurance proceeds, resulting from the sale or disposition of any of the foregoing;

                    (c)      all
  contract rights and general intangibles of the Company, including, without limitation,
  goodwill, trademarks, trade styles, trade names, leasehold interests, partnership
  or joint venture interests, patents and patent applications, copyrights, deposit
  accounts whether now owned or hereafter created; 

                    (d)     
  all documents, warehouse receipts, instruments and chattel paper of the Company
  whether now owned or hereafter created; 

                    (e)      subject
  to 8.10 of the Security Agreement, all accounts and other receivables, instruments
  or other forms of obligations and rights to payment of the Company (herein collectively
  referred to as “Accounts”), together with the proceeds thereof,
  all goods represented by such Accounts and all such goods that may be returned
  by the Company’s customers, and all proceeds of any insurance thereon,
  and all guarantees, securities and liens which the Company may hold for the
  payment of any such Accounts including, without limitation, all rights of stoppage
  in transit, replevin and reclamation and as an unpaid vendor and/or lienor,
  all of which the Company represents and warrants will be bona fide and existing
  obligations of its respective customers, arising out of the sale of goods by
  the Company in the ordinary course of business; 

                    (f)      to
  the extent assignable, all of the Company’s rights under all present and
  future authorizations, permits, licenses and franchises issued or granted in
  connection with the operations of any of its facilities; 

                    (g)      all
  products and proceeds (including, without limitation, insurance proceeds) from
  the above-described Pledged Property; and 

                    (h)      all
  equity interests, securities or other instruments in other companies, including,
  without limitation, any subsidiaries, investments or other entities (whether
  or not controlled).

A-1 

EXHIBIT E 

FORM OF PLEDGE AGREEMENT

PLEDGE AGREEMENT 

          THIS
  PLEDGE AGREEMENT (the “Agreement”) is made and entered
  into as of March 31, 2008 (the “Effective Date”) by and among
  MOBI VENTURES, INC., a corporation organized and existing under the laws
  of Nevada (the “Company” and the “Pledgor”), TRAFALGAR
  CAPITAL SPECIALIZED INVESTMENT FUND, LUXEMBOURG, (the “Pledgee”),
  and JAMES G. DODRILL II, P.A., as escrow agent (“Escrow Agent”).

RECITALS: 

          WHEREAS,
  in order to secure the full and prompt payment when due (whether at the
  stated maturity, by acceleration or otherwise) of all of the Company’s
  obligations (the “Obligations”) to the Pledgee or any successor
  to the Pledgee under this Agreement, the Securities Purchase Agreement of even
  date herewith between the Pledgor and the Pledgee (the “Securities Purchase
  Agreement”), the Convertible Redeemable Debentures (the “Convertible
  Redeemable Debentures”) issued or to be issued by the Company to the
  Pledgee, either now or in the future, up to a total of Two Million Dollars ($2,000,000)
  of principal, plus any interest, costs, fees, and other amounts owed to the
  Pledgee thereunder, the Security Agreement of even date herewith between the
  Pledgor and the Pledgee (the “Security Agreement”), and all
  other contracts entered into between the parties hereto (collectively, the “Transaction
  Documents”), the Pledgor has agreed to irrevocably pledge to the Pledgee
  Six Million Dollars ($6,000,000) of the Pledgor’s common stock with each
  share valued at the Conversion Price as defined in the Convertible Redeemable
  Debentures (the “Pledged Shares”).

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

TERMS AND CONDITIONS

     1. Pledge and Transfer
  of Pledged Shares.

               1.1.
  The Pledgor hereby grants to Pledgee a security interest in all Pledged Shares
  as security for the Company’s obligations under the Convertible Redeemable
  Debentures. Prior to disbursement of proceeds to the Company, the Pledgor shall
  deliver to the Escrow Agent stock certificates representing the Pledged Shares,
  in such denominations as requested by the Pledgee, together with duly executed
  stock powers or other appropriate transfer documents executed in blank by the
  Pledgor (the “Transfer Documents”), and such stock certificates
  and Transfer Documents shall be held by the Escrow Agent until the full payment
  of all amounts due to the Pledgee under the Convertible Redeemable Debentures
  and through repayment in accordance with the terms of the Convertible Redeemable
  Debentures, or the termination or expiration of this Agreement.

          2.
  Rights Relating to Pledged Shares. Upon the occurrence of
  an Event of Default (as defined herein), the Pledgee shall be entitled to vote
  the Pledged Shares, to receive dividends and other distributions thereon, and
  to enjoy all other rights and privileges incident to the ownership of the Pledged
  Shares.

          3.
  Release of Pledged Shares from Pledge. Upon the payment of
  all amounts due to the Pledgee under the Convertible Redeemable Debentures by
  repayment in accordance with the terms of the Convertible Redeemable Debentures,
  the parties hereto shall notify the Escrow Agent to such effect in writing.
  Upon receipt of such written notice for payment of the amounts due to the Pledgee
  under the Convertible Redeemable Debentures, the Escrow Agent shall return to
  the Pledgor the Transfer Documents and the certificates representing the Pledged
  Shares, (collectively the “Pledged Materials”), whereupon any
  and all rights of Pledgee in the Pledged Materials shall be terminated. Notwithstanding
  anything to the contrary contained herein, upon full payment of all amounts
  due to the Pledgee under the Convertible Redeemable Debentures, by repayment
  in accordance with the terms of the Convertible Redeemable Debentures, this
  Agreement and Pledgee’s security interest and rights in and to the Pledged
  Shares shall terminate.

          4.
  Event of Default. An “Event of Default” shall
  be deemed to have occurred under this Agreement upon an Event of Default under
  the Transaction Documents.

          5.
  Remedies. Upon and anytime after the occurrence of an Event
  of Default, the Pledgee shall have the right to provide written notice of such
  Event of Default (the “Default Notice”) to the Escrow Agent,
  with a copy to the Pledgor. As soon as practicable after receipt of the Default
  Notice, the Escrow Agent shall deliver to Pledgee the Pledged Materials held
  by the Escrow Agent hereunder. Upon receipt of the Pledged Materials, the Pledgee
  shall have the right to (i) sell the Pledged Shares and to apply the proceeds
  of such sales, net of any selling commissions, to the Obligations owed to the
  Pledgee by the Pledgor under the Transaction Documents, including, without limitation,
  outstanding principal, interest, legal fees, and any other amounts owed to the
  Pledgee, and exercise all other rights and (ii) any and all remedies of a secured
  party with respect to such property as may be available under the Uniform Commercial
  Code as in effect in the State of Nevada. To the extent that the net proceeds
  received by the Pledgee are insufficient to satisfy the Obligations in full,
  the Pledgee shall be entitled to a deficiency judgment against the Pledgor for
  such amount. The Pledgee shall have the absolute right to sell or dispose of
  the Pledged Shares in any manner it sees fit and shall have no liability to
  the Pledgor or any other party for selling or disposing of such Pledged Shares
  even if other methods of sales or dispositions would or allegedly would result
  in greater proceeds than the method actually used. The Escrow Agent shall have
  the absolute right to disburse the Pledged Shares to the Pledgee in batches
  not to exceed 9.9% of the outstanding capital of the Pledgor (which limit may
  be waived by the Pledgee providing not less than 65 days’ prior written
  notice to the Escrow Agent). The Pledgee shall return any Pledged Shares released
  to it and remaining after the Pledgee has applied the net proceeds to all amounts
  owed to the Pledgee.

               5.1.
  Each right, power and remedy of the Pledgee provided for in this Agreement or
  any other Transaction Document shall be cumulative and concurrent and shall
  be in addition to every other such right, power or remedy. The exercise or beginning
  of the exercise by the Pledgee of any one or more of the rights, powers or remedies
  provided for in this Agreement or any other Transaction Document or now or hereafter
  existing at law or in equity or by statute or otherwise shall not preclude the
  simultaneous or later exercise by the Pledgee of all such other rights, powers
  or remedies, and no failure or delay on the part of the Pledgee to exercise
  any such right, power or remedy shall operate as a waiver thereof. No notice
  to or demand on the Pledgor in any case shall entitle it to any other or further
  notice or demand in similar or other circumstances or constitute a waiver of
  any of the rights of the Pledgee to any other further action in any circumstances
  without demand or notice. The Pledgee shall have the full power to enforce or
  to assign or contract is rights under this Agreement to a third party.

          6.
  Concerning the Escrow Agent.

               6.1.
  The Escrow Agent undertakes to perform only such duties as are expressly set
  forth herein and no implied duties or obligations shall be read into this Agreement
  against the Escrow Agent.

               6.2.
  The Escrow Agent may act in reliance upon any writing or instrument or signature
  which it, in good faith, believes to be genuine, may assume the validity and
  accuracy of any statement or assertion contained in such a writing or instrument,
  and may assume that any person purporting to give any writing, notice, advice
  or instructions in connection with the provisions hereof has been duly authorized
  to do so. The Escrow Agent shall not be liable in any manner for the sufficiency
  or correctness as to form, manner, and execution, or validity of any instrument
  deposited in this escrow, nor as to the identity, authority, or right of any
  person executing the same; and its duties hereunder shall be limited to the
  safekeeping of such certificates, monies, instruments, or other document received
  by it as such escrow holder, and for the disposition of the same in accordance
  with the written instruments accepted by it in the escrow.

               6.3.
  Pledgee and the Pledgor hereby agree, to defend and indemnify the Escrow Agent
  and hold it harmless from any and all claims, liabilities, losses, actions,
  suits, or proceedings at law or in equity, or any other expenses, fees, or charges
  of any character or nature which it may incur or with which it may be threatened
  by reason of its acting as Escrow Agent under this Agreement; and in connection
  therewith, to indemnify the Escrow Agent against any and all expenses, including
  attorneys’ fees and costs of defending any action, suit, or proceeding
  or resisting any claim (and any costs incurred by the Escrow Agent pursuant
  to Sections 6.4 or 6.5 hereof). The Escrow Agent shall be vested with a lien
  on all property deposited hereunder, for indemnification of attorneys’
  fees and court costs regarding any suit, proceeding or otherwise, or any other
  expenses, fees, or charges of any character or nature, which may be incurred
  by the Escrow Agent by reason of disputes arising between the makers of this
  escrow as to the correct interpretation of this Agreement and instructions given
  to the Escrow Agent hereunder, or otherwise, with the right of the Escrow Agent,
  regardless of the instructions aforesaid, to 

hold said property until and unless said additional expenses,
  fees, and charges shall be fully paid. Any fees and costs charged by the Escrow
  Agent for serving hereunder shall be paid by the Pledgor.

               6.4.
  If any of the parties shall be in disagreement about the interpretation of this
  Agreement, or about the rights and obligations, or the propriety of any action
  contemplated by the Escrow Agent hereunder, the Escrow Agent may, at its sole
  discretion deposit the Pledged Materials with the Clerk of the United States
  District Court Southern District of Florida, sitting in Miami, Florida, and,
  upon notifying all parties concerned of such action, all liability on the part
  of the Escrow Agent shall fully cease and terminate. The Escrow Agent shall
  be indemnified by the Pledgor, the Company and Pledgee for all costs, including
  reasonable attorneys’ fees in connection with the aforesaid proceeding,
  and shall be fully protected in suspending all or a part of its activities under
  this Agreement until a final decision or other settlement in the proceeding
  is received.

               6.5.
  The Escrow Agent may consult with counsel of its own choice (and the costs of
  such counsel shall be paid by the Pledgor and Pledgee) and shall have full and
  complete authorization and protection for any action taken or suffered by it
  hereunder in good faith and in accordance with the opinion of such counsel.
  The Escrow Agent shall not be liable for any mistakes of fact or error of judgment,
  or for any actions or omissions of any kind, unless caused by its willful misconduct
  or gross negligence.

               6.6.
  The Escrow Agent may resign upon ten (10) days’ written notice to the parties
  in this Agreement. If a successor Escrow Agent is not appointed within this
  ten (10) day period, the Escrow Agent may petition a court of competent jurisdiction
  to name a successor.

               6.7
  Conflict Waiver. The Pledgor hereby acknowledges that the Escrow
  Agent is securities counsel to the Pledgee and counsel to the Pledgee in connection
  with the transactions contemplated and referred herein. The Pledgor agrees that
  in the event of any dispute arising in connection with this Agreement or otherwise
  in connection with any transaction or agreement contemplated and referred herein,
  the Escrow Agent shall be permitted to continue to represent the Pledgee and
  the Pledgor will not seek to disqualify such counsel and waives any objection
  Pledgor might have with respect to the Escrow Agent acting as the Escrow Agent
  pursuant to this Agreement.

               6.8
  Notices. Unless otherwise provided herein, all demands,
  notices, consents, service of process, requests and other communications hereunder
  shall be in writing and shall be delivered in person or by overnight courier
  service, or mailed by certified mail, return receipt requested, addressed:

	 	If to the Pledgor, to: 	MobiVentures, Inc. 
	 	  	Sunnyside 
	 	  	Brinkworth 

	 	  	Chippenham 
	 	  	Wiltshire 
	 	  	SN15 5BY 
	 	  	England 
	 	  	Attention: Mr. Peter Åhman, President 
	 	  	Telephone: +358 40 5514177 
	 	  	Facsimile: +44 8452 991729 
	 	  	  
	 	  	  
	 	With a copy to: 	Lang Michener LLP 
	 	  	Royal Centre, 1055 West Georgia Stree, Suite 1500
    
	 	  	PO Box 11117 
	 	  	Vancouver, VC Canada V6E 4N7 
	 	  	Attention: Michael H. Taylor 
	 	  	Telephone: 604-691-7410 
	 	  	Facsimile: 604-893-2669 
	 	  	  
	 	If to the Pledgee: 	Trafalgar Capital Specialized 
	 	  	Investment Fund, Luxembourg 
	 	  	8-10 Rue Mathias Hardt 
	 	  	BP 3023 
	 	  	L-1030 Luxembourg
	 	  	Attention: Andrew Garai, Chairman of the Board
      of 
	 	  	Trafalgar Capital Sarl, the General Partner 
	 	  	Facsimile: 011-44-207-405-0161 
	 	  	and 001-786-323-1651 
	 	  	
	 	With copy to: 	James G. Dodrill II, P.A. 
	 	 	5800 Hamilton Way 
	 	  	Boca Raton, FL 33496 
	 	  	Telephone: (561) 862-0529 
	 	  	Facsimile: (561) 892-7787 

Any such notice shall be effective (a) when delivered, if delivered
  by hand delivery or overnight courier service, or (b) five (5) days after deposit
  in the United States mail, as applicable.

          7.
  Binding Effect. All of the covenants and obligations contained
  herein shall be binding upon and shall inure to the benefit of the respective
  parties, their successors and assigns.

          8.
  Governing Law; Venue; Service of Process. The validity, interpretation
  and performance of this Agreement shall be determined in accordance with the
  laws of the State of Florida applicable to contracts made and to be performed
  wholly within that state except to the extent that Federal law applies. The
  parties hereto agree that any disputes, claims, disagreements, lawsuits, actions
  or controversies of any type or nature whatsoever 

that, directly or indirectly, arise from or relate to this Agreement,
  including, without limitation, claims relating to the inducement, construction,
  performance or termination of this Agreement, shall be brought in the state
  state courts located in Broward County, Florida or United States District Courts
  for the Southern District of Florida, and the parties hereto agree not to challenge
  the selection of that venue in any such proceeding for any reason, including,
  without limitation, on the grounds that such venue is an inconvenient forum.
  The parties hereto specifically agree that service of process may be made, and
  such service of process shall be effective if made, pursuant to Section 8 hereto.

          9.
  Enforcement Costs. If any legal action or other proceeding
  is brought for the enforcement of this Agreement, or because of an alleged dispute,
  breach, default or misrepresentation in connection with any provisions of this
  Agreement, the successful or prevailing party or parties shall be entitled to
  recover reasonable attorneys’ fees, court costs and all expenses even if
  not taxable as court costs (including, without limitation, all such fees, costs
  and expenses incident to appeals), incurred in that action or proceeding, in
  addition to any other relief to which such party or parties may be entitled.

          10.
  Remedies Cumulative. No remedy herein conferred upon
  any party is intended to be exclusive of any other remedy, and each and every
  such remedy shall be cumulative and shall be in addition to every other remedy
  given hereunder or now or hereafter existing at law, in equity, by statute,
  or otherwise. No single or partial exercise by any party of any right, power
  or remedy hereunder shall preclude any other or further exercise thereof.

          11.
  Counterparts. This Agreement may be executed in one
  or more counterparts, each of which shall be deemed an original, but all of
  which together shall constitute the same instrument.

          12.
  No Penalties. No provision of this Agreement is to
  be interpreted as a penalty upon any party to this Agreement.

          13.
  JURY TRIAL. EACH OF THE PLEDGEE AND THE PLEDGOR HEREBY KNOWINGLY,
  VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT WHICH IT MAY HAVE TO A TRIAL
  BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION BASED HEREON, OR ARISING
  OUT OF, UNDER OR IN ANY WAY CONNECTED WITH THE DEALINGS BETWEEN PLEDGEE AND
  PLEDGOR, THIS PLEDGE AND ESCROW AGREEMENT OR ANY DOCUMENT EXECUTED IN CONNECTION
  HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL
  OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO OR THERETO IN EACH CASE WHETHER NOW
  EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE.

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

MOBI VENTURES, INC. 

By: ________________________________________________

  Name:   Peter Åhman 

  Title:     President

TRAFALGAR CAPITAL SPECIALIZED 

  INVESTMENT FUND, LUXEMBOURG 

By:        Trafalgar Capital
  Sarl 

  Its:        General Partner 

By: ________________________________________________

  Name:   Andrew Garai 

  Title:      Chairman of the Board 

JAMES G. DODRILL II, P.A. 

By: ________________________________________________

  Name:   James Dodrill, Esq. 

  Title:     President 

SCHEDULE I 

SCHEDULE OF BUYERS

	  	 	 	 	Address/Facsimile 	 	Amount of 
	Name 	 	Signature 	 	Number of Buyer 	 	Subscription 
	  	 	 	 	8-10 Rue Mathias Hardt 	 	  
	Trafalgar Capital Specialized 	 	By: Trafalgar Capital Sarl 	 	BP 3023 	 	$ 2,000,000 
	Investment Fund, Luxembourg 	 	Its: General Partner 	 	L-1030 Luxembourg 	 	  
	  	 	 	 	Facsimile: 	 	  
	  	 	 	 	011-44-207-405-0161 	 	  
	  	 	By: _____________________________	 	and 	 	  
	  	 	Name: Andrew Garai 	 	001-786-323-1651 	 	  
	  	 	Its: Chairman of the Board 	 	  	 	  

Buyer’s Counsel: 

James G. Dodrill II, P.A. 

  5800 Hamilton Way 

  Boca Raton, FL 33496 

  Telephone: (561) 862-0529 

  Facsimile: (561) 892-7787 

  FORM OF SECURED CONVERTIBLE REDEEMABLE DEBENTURE

  

   

  THIS SECURED DEBENTURE (THE “SECURITIES”) HAS NOT
    BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
    STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT
    PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE,
    SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
    STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
    OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY
    ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE
    STATE SECURITIES LAWS.

  SECURED CONVERTIBLE REDEEMABLE DEBENTURE 

  MOBIVENTURES, INC. 

  March 31, 2008 

  	No. MV - 1 	US$2,000,000 

            This
    Secured Convertible Redeemable Debenture (the “Debenture”)
    is issued on March 31, 2008 (the “Closing Date”) by MobiVentures,
    Inc. a Nevada corporation (the “Company”), to Trafalgar Capital
    Specialized Investment Fund, Luxembourg (together with its permitted successors
    and assigns, the “Holder”) pursuant to exemptions from registration
    under the Securities Act of 1933, as amended. 

  ARTICLE I. 

            Section
    1.01               
    Principal and Interest. For value received, the Company
    hereby promises to pay to the order of the Holder on March 31, 2010 in lawful
    money of the United States of America and in immediately available funds the
    unpaid principal sum of Two Million U.S. Dollars (US$2,000,000) together
    with interest on the unpaid principal of this Debenture at the rate of: (a)
    ten percent (10%) per annum compounded monthly from the date hereof until
    repaid. Interest shall be computed on the basis of a 360-day year and the
    actual days elapsed and the Holder shall deduct the first two (2) interest
    payments at the Closing (as defined in the Securities Purchase Agreement).

            Section
    1.02               
    Optional Conversion. The Holder is entitled, at its option,
    to convert, and sell on the same day or at any subsequent time, at any time
    when the Company’s common stock par value US$0.001 per share (“Common
    Stock”) is trading at or above the Conversion Price and from time
    to time, until payment in full of this Debenture, all or any part of the principal
    amount of the Debenture, plus accrued interest, into shares (the 

  

  
  “Conversion Shares”) of the Common Stock,
    at the price per share equal to $0.0875 (the “Conversion Price”).
    No fraction of shares or scrip representing fractions of shares will be issued
    on conversion, but the number of shares issuable shall be rounded to the nearest
    whole share. To convert this Debenture, the Holder hereof shall deliver written
    notice thereof, substantially in the form of Exhibit “A” to this
    Debenture, with appropriate insertions (the “Conversion Notice”),
    to the Company at its address as set forth herein. The date upon which the
    conversion shall be effective (the “Conversion Date”) shall
    be deemed to be the date set forth in the Conversion Notice. Upon the
    Holder converting any of this Debenture into Common Stock or the Company redeeming
    any of this Debenture as provided herein, the principal amount owed under
    this Debenture shall be reduced by the principal amount so converted or redeemed.
    Additionally, whenever the monthly installment due pursuant to the Mandatory
    Redemption provisions of Section 1.05 hereof is not paid within five (5) days
    of the due date of such payment (unless such obligation has been suspended
    under the terms of Section 1.05), the Holder shall have the right to convert
    this Debenture at an amount equal to eighty-five percent (85%) of the lowest
    daily closing bid price of the Company’s Common Stock, as quoted by Bloomberg,
    LP, for the ten (10) trading days immediately preceding the Conversion Date.
    In no event shall the Holder be entitled to convert this Debenture for a number
    of shares of Common Stock in excess of that number of shares of Common Stock
    which, upon giving effect to such conversion, would cause the aggregate number
    of shares of Common Stock beneficially owned by the Holder and its affiliates
    to exceed 4.99% of the outstanding shares of the Common Stock following such
    conversion. 

            Section
    1.03               
    Reservation of Common Stock. The Company shall reserve
    and keep available out of its authorized but unissued shares of Common Stock,
    solely for the purpose of effecting the conversion of this Debenture, such
    number of shares of Common Stock as shall from time to time be sufficient
    to effect such conversion, based upon the Conversion Price. If at any time
    the Company does not have a sufficient number of Conversion Shares authorized
    and available, then the Company shall file a preliminary proxy statement with
    the Securities and Exchange Commission within ten (10) business day after
    such occurrence and shall call and hold a special meeting of its stockholders
    as soon as practicable after such occurrence for the sole purpose of increasing
    the number of authorized shares of Common Stock. 

            Section
    1.04                Optional
    Redemption. The Company may redeem this Debenture, in whole or in part,
    at any time provided that the Common Stock is trading below the Conversion
    Price by paying unpaid principal and interest accrued to the date of such
    redemption and a fifteen percent (15%) redemption premium on the amount redeemed.

            Section
    1.05               
    Mandatory Redemption. Except as provided in the final sentence
    of this Section (during which time the Company’s obligation to redeem
    this Debenture is suspended), the Company shall begin redeeming on this Debenture
    monthly beginning on the one (1) month anniversary following the Closing (each
    date, as well as the date of any Optional Redemption pursuant to Section 1.04
    , a “Redemption Date”) by making equal payments over the remaining
    term of this Debenture by the Company making equal monthly principal and interest
    payments at a fifteen percent (15%) redemption premium on the principal redeemed
    each month as set out in Exhibit B. The Company may not redeem
    this Debenture at any time when the Common Stock is trading at or above the
    Conversion Price unless the Holder 

  2 

  

  
  notifies the Company on or prior to the date for such redemption
    that it is not utilizing its rights of conversion. Notwithstanding
    the restriction on redemption contained in the immediately preceeding sentence,
    in the occurrence of any event that results or will result in Pure Promoter
    not being owned by the Company, prior to the transfer of Pure Promoter, the
    Company shall redeem all outstanding principal and unpaid interest on this
    Debenture at a fifteen percent (15%) redemption premium on the principal redeemed.
  

            Section
    1.06                Interest
    Payments. Holder shall deduct the first two (2) interest payments
    at the First Closing At the time such interest is payable, the Holder, in
    its sole discretion, may elect to receive the interest in cash (via wire transfer
    or certified funds) or in the form of Common Stock. In the event of default,
    as described in Article III Section 3.01 hereunder, the Holder may elect that
    the interest be paid in cash (via wire transfer or certified funds) or in
    the form of Common Stock. If paid in the form of Common Stock, the amount
    of stock to be issued will be calculated as follows: the value of the stock
    shall be the Closing Bid Price on the date the interest payment is due. A
    number of shares of Common Stock with a value equal to the amount of interest
    due shall be issued. No fractional shares will be issued; therefore, in the
    event that the value of the Common Stock per share does not equal the total
    interest due, the Company will pay the balance in cash. 

            Section
    1.07                Paying
    Agent and Registrar. Initially, the Company will act as paying agent
    and registrar. The Company may change any paying agent, registrar, or Company-registrar
    by giving the Holder not less than ten (10) business days’ written notice
    of its election to do so, specifying the name, address, telephone number and
    facsimile number of the paying agent or registrar. The Company may act in
    any such capacity. 

            Section
    1.08                Secured
    Nature of Debenture. This Debenture is secured by all of the assets
    and property of the Company and its subsidiaries as set forth on Exhibit A
    to the Security Agreement dated the date hereof between the Company and the
    Holder (the “Security Agreement”). As set forth in the Security
    Agreement, Holder’s security interest shall terminate upon the occurrence
    of an Expiration Event as defined in the Security Agreement. 

            Section
    1.08                Currency
    Exchange Rate Protections. 

            
    (a)      “Closing Date Exchange Rate”
    means the Euro to US dollar spot exchange rate as converted by the Holder’s
    Custodian on the date funds are transferred into escrow. 

            (b)      “Repayment
    Exchange Rate” means in relation to each date of a Conversion
    or Redemption , the Euro to US dollar spot exchange rate as quoted
    by Bloomberg or Proquote on such date. 

            (c)     
    If on the date of any Conversion Notice, the Repayment Exchange Rate is more
    than the Closing Date Exchange Rate then the number of Shares to be issued
    shall be increased by the same percentage as results from dividing the Repayment
    Exchange Rate by the relevant Closing Date Exchange Rate. By way of example,
    if the number of Shares to be issued in respect of a particular Conversion
    Notice would, but for this Section 1.08, be 1,000 and if the Closing Date
    Exchange Rate is 1.75 and the relevant Repayment Exchange Rate is 1.80, then
    1,029 Shares will be issued in relation to that 

  3 

  

  
  Conversion Notice, as the case may
    be. For the avoidance of doubt, the formula for such calculation, by way of
    example for this Section 1.08, equals ((1.80 /1.75) -1)*1000 = 29 additional
    shares. 

            (d)      If
    on any Redemption Date, the Cash Payment Date Exchange Rate, as defined below
    is more than the Closing Date Exchange Rate then the amount of cash required
    to satisfy the amounts due at such time shall be increased by the same percentage
    as results from dividing the Cash Payment Date Exchange Rate by the relevant
    Closing Date Exchange Rate. “Cash Payment Date Exchange Rate”
    means in relation to each Redemption Date the Euro to
    US dollar spot exchange rate as quoted by Bloomberg or Proquote on such date.
    By way of example, if the amount of cash required to repay all amounts due
    on such date would, but for this Section 1.08, be $1,000 and if the Closing
    Date Exchange Rate is 1.75 and the relevant Repayment Date Exchange Rate is
    1.80 then the amount of cash from the Cash Payment required to repay all amounts
    due on such date will be $1,028.57. For the avoidance of doubt, the formula
    for such calculation, by way of example for this Section 1.08, equals ((180/1.75)
    -1)*$1000 = $28.57 additional dollars. 

  ARTICLE II. 

            Section
    2.01                Amendments
    and Waiver of Default. The Debenture may not be amended without
    the written consent of both the Holder and the Company. Notwithstanding the
    above, without the consent of the Holder, the Debenture may be amended to
    cure any ambiguity, defect or inconsistency, or to provide for assumption
    of the Company obligations to the Holder. 

  ARTICLE III. 

            Section
    3.01                Events
    of Default. An Event of Default is defined as follows: (a)
    failure by the Company to pay amounts due hereunder within fifteen (15) days
    of the date of maturity of this Debenture, (b) after the Registration Statement
    required by the Registration Rights Agreement has been declared effective,
    failure by the Company’s transfer agent to issue freely tradeable Common
    Stock (including Common Stock tradeable under Rule 144) to the Holder within
    five (5) days of the Company’s receipt of a Notice of Exercise from Holder;
    (c) failure by the Company for ten (10) days after notice to it to comply
    with any of its other agreements in the Debenture; (d) events of bankruptcy
    or insolvency or (e) a breach by the Company of its obligations under the
    Securities Purchase Agreement which is not cured by the Company within ten
    (10) days after receipt of written notice thereof, (f) a breach by the Company
    of any of the Covenants under the Securities Purchase Agreement. Upon the
    occurrence of an Event of Default, the Holder may, in its sole discretion,
    accelerate full repayment of all debentures outstanding and accrued interest
    thereon or may, notwithstanding any limitations contained in this Debenture
    and/or the Securities Purchase Agreement dated the date hereof between the
    Company and Trafalgar Capital Specialized Investment Fund, Luxembourg (the
    “Securities Purchase Agreement”).

  4 

  

  
            Section
    3.02               
    Failure to Issue Unrestricted Common Stock. As indicated
    in Article III Section 3.01, a breach by the Company of its obligations under
    the Securities Purchase Agreement shall be deemed an Event of Default, which
    if not cured within ten (10) days, shall entitle the Holder to accelerate
    full repayment of the Debentures together with accrued interest thereon or,
    notwithstanding any limitations contained in this Debenture and/or the Securities
    Purchase Agreement, to convert all amounts outstanding under the Debentures
    together with accrued interest thereon into shares of Common Stock pursuant
    to Section 1.02 herein. The Company acknowledges that failure to honor a Notice
    of Conversion except as set forth herein, shall cause irreparable harm to
    the Holder.

            Section
    3.03               
    Re-issuance of Debenture. When the Holder elects to convert
    a part of the Debenture, then the Company shall reissue a new Debenture in
    the same form as this Debenture to reflect the new principal amount. Upon
    Company’s request, Holder shall surrender this Debenture prior to the
    issuance of such new Debenture. 

  ARTICLE IV. 

            Section
    4.01                [Reserved]
  

  ARTICLE V. 

            Section
    5.01               
    Anti-dilution. In the event that the Company shall at
    any time subdivide the outstanding shares of Common Stock, or shall issue
    a stock dividend on the outstanding Common Stock, the Conversion Price in
    effect immediately prior to such subdivision or the issuance of such dividend
    shall be proportionately decreased, and in the event that the Company shall
    at any time combine the outstanding shares of Common Stock, the Conversion
    Price in effect immediately prior to such combination shall be proportionately
    increased, effective at the close of business on the date of such subdivision,
    dividend or combination as the case may be. 

            Section
    5.02                Consent
    of Holder to Sell Capital Stock, Incur Debt or Grant
    Security Interests. Except for the Securities Purchase Agreement
    dated the date hereof between the Company and Trafalgar Capital Specialized
    Investment Fund, Luxembourg, so long as any of the principal of or interest
    on this Debenture remains unpaid, the Company shall not, without the prior
    consent of the Holder, issue or sell (i) any Common Stock or Preferred Stock
    without consideration or for a consideration per share less than the bid price
    of the Common Stock determined immediately prior to its issuance, (ii) issue
    or sell any Preferred Stock, warrant, option, right, contract, call, or other
    security or instrument granting the holder thereof the right to acquire Common
    Stock without consideration or for a consideration per share less than such
    Common Stock’s bid price value determined immediately prior to its issuance,
    (iii) enter into any security instrument granting the holder a security interest
    in any of the assets of the Company, (iv) file any registration statement
    on Form S-8, or (v) incur any additional debt or permit any subsidiary of
    the Company to incur any additional debt without the Holder’s prior written
    consent. 

  5 

  

  
  ARTICLE VI. 

            Section
    6.01               
    Notice. Notices regarding this Debenture shall be sent
    to the parties at the following addresses, unless a party notifies the other
    parties, in writing, of a change of address: 

  	If to the Company, to: 	MobiVentures, Inc. 
	  	Sunnyside 
	  	Brinkworth 
	  	Chippenham 
	  	Wiltshire 
	  	SN15 5BY 
	  	England 
	  	Attention: Mr. Peter Åhman, President 
	  	Telephone: +358 40 5514177 
	  	Facsimile: +44 8452 991729 
	  	 
	With a copy to: 	Lang Michener LLP 
	  	Royal Centre, 1055 West Georgia Stree, Suite
        1500 
	  	PO Box 11117 
	  	Vancouver, VC Canada V6E 4N7 
	  	Attention: Michael H. Taylor 
	  	Telephone: 604-691-7410 
	  	Facsimile: 604-893-2669 
	  	 
	If to the Holder: 	Trafalgar Capital Specialized Investment Fund
      
	  	8-10 Rue Mathias Hardt 
	  	BP 3023 
	  	L-1030 Luxembourg 
	  	Attention:        Andrew Garai, Chairman
        of the Board of 
	  	Facsimile:          011-44-207-405-0161
        and 
	  	                           001-786-323-1651
      
	  	 
	With a copy to: 	James G. Dodrill II, P.A. 
	 	5800 Hamilton Way 
	  	Boca Raton, FL 33496 
	  	Attention:        James Dodrill, Esq.
      
	  	Telephone:       (561) 862-0529 
	  	Facsimile:          (561)
        892-7787 

            Section
    6.02               
    Governing Law. This Debenture shall be deemed to be made
    under and shall be construed in accordance with the laws of the State of Florida
    without giving effect to the principals of conflict of laws thereof. Each
    of the parties consents to the jurisdiction of the U.S. District Court sitting
    in the Southern District of the State of Florida or the state courts of the
    State of Florida sitting in Broward County, Florida in connection with any
    dispute arising under this Debenture and hereby waives, to the maximum extent
    permitted by 

  6 

  

  
  law, any objection, including any objection based on forum
    non conveniens to the bringing of any such proceeding in such
    jurisdictions. 

            Section
    6.03               
    Severability. The invalidity of any of the provisions
    of this Debenture shall not invalidate or otherwise affect any of the other
    provisions of this Debenture, which shall remain in full force and effect.
  

            Section
    6.04               
    Entire Agreement and Amendments. This Debenture represents
    the entire agreement between the parties hereto with respect to the subject
    matter hereof and there are no representations, warranties or commitments,
    except as set forth herein. This Debenture may be amended only by an instrument
    in writing executed by the parties hereto. 

            Section
    6.05                Counterparts.
    This Debenture may be executed in multiple counterparts, each of which
    shall be an original, but all of which shall be deemed to constitute on instrument.
  

            IN
    WITNESS WHEREOF, with the intent to be legally bound hereby, the Company
    as executed this Debenture as of the date first written above. 

  MOBIVENTURES, INC. 

  By: ________________________________________________

    Name:    Peter Åhman 

    Title:      President 

  7 

  

  
  EXHIBIT “A” 

  NOTICE OF CONVERSION 

  (To be executed by the Holder in order to Convert the Debenture)
    

  TO: 

            The
    undersigned hereby irrevocably elects to convert US$ ________________________________________________
    of the principal amount of the above Debenture into Shares of Common Stock
    of MobiVentures, Inc., according to the conditions stated therein, as of the
    Conversion Date written below. 

  	Conversion Date: 	 	  
	 	 	 
	Applicable Conversion Price: 	 	  
	 	 	 
	Signature: 	 	  
	 	 	 
	Name: 	 	  
	 	 	 
	Address: 	 	  
	 	 	 
	Amount to be converted: 	US$ 	
	 	 	 
	Amount of Debenture 		  
	unconverted: 	US$ 	
	 	 	 
	Conversion Price per share: 	US$ 	
	 	 	 
	Number of shares of Common 		  
	Stock to be issued: 		  
	 	 	 
	Please issue the shares of 		  
	Common Stock in the following 		  
	name and to the following 	 	  
	address: 	 	  
	 	 	 
	Issue to: 	 	  
	 	 	 
	Authorized Signature: 	 	  
	 	 	 
	Name: 	 	  
	 	 	 
	Title: 	 	  
	 	 	 
	Phone Number: 	 	  
	 	 	 
	Broker DTC Participant Code: 	 	  
	 	 	 
	Account Number: 	 	  

  A-1Filed by Automated Filing Services Inc. (604) 609-0244 - Mobiventures, Inc. - Exhibit 10.7

Final version

Dated                                                                       2008

(1) THE PERSONS listed in schedule 1

(2) Mobiventures Inc

	AGREEMENT FOR THE SALE AND PURCHASE OF THE 
	ENTIRE ISSUED SHARE CAPITAL OF PURE PROMOTER
      
	LIMITED 
	 

THIS AGREEMENT is made on this 4th day of April
  2008

BETWEEN:

	(1) 	
      THE PERSONS whose names and addresses are
      set out in schedule 1 (the "Sellers"); and

	 	 
	(2) 	
      Mobiventures Inc. a Nevada corporation
      with an address at Sunnyside, Brinkworth, Chippenham, Wiltshire, SN15 5BY,
      England (the "Buyer").

WHEREAS:

	 	(A) 	 The issued share capital of the Company (as defined
        below) is comprised 100 A Ordinary Shares of £1.00 each and 365 B
        Ordinary Shares of £1.00 each.

	 	 	 
	 	(B) 	 Further particulars of the Company at the date of this
        agreement are set out in Schedule 2.

	 	 	 
	 	(C) 	 The Sellers are the legal and beneficial owners of,
        or are otherwise able to procure the transfer of, the legal and beneficial
        title to the number of shares set out opposite their respective names
        in Schedule 1 comprising in aggregate the whole of the issued share capital
        of the Company.

	 	 	 
	 	(D) 	 The Sellers have agreed to sell and the Buyer has agreed
        to buy the Shares (as defined below) subject to the terms and conditions
        of this Agreement.

	IT IS AGREED as follows: 
	  	  
	1 	Definitions and interpretation
  
	  	  
	1.1 	
      In this agreement, including the schedules, the following
      words and expressions have the following meanings unless the context
      otherwise requires: 

	  	
       

	  	
      “Accountants” 

		
      such firm of chartered accountants as may be appointed
      from time to time by the Company as its accountants in order to draw up
      its annual statutory accounts; 

	  	
       

	  	
      "Accounts" 

		
      the unaudited abbreviated annual accounts of the Company
      for the accounting reference period ended on the Accounts Date, comprising
      a balance sheet, and the notes thereon; 

	  	
       

	  	
      "Accounts Date" 

	  	
      31st March 2007; 

	  	
       

	  	
      “Addendum” 

		
      the addendum, in the agreed form, to the existing
      employment agreements previously entered into between the Company, and
      Stuart Hobbs, Mark Hla, Ash Richards and Roger North-Row respectively;
    

	  	
       

	  	
      “Anticipated Completion Date” 

	  	
      the 18th day of April 2008; 

	  	
       

	  	
      "Business Day" 

	  	
      a day other than a Saturday or Sunday or public holiday
      in England and Wales; 

	  	
       

	  	
      “Business Plan” 

		
      the business plan in the form appearing in Schedule 12
      hereto or in such other form as may be agreed from time to time between
      the Managers and the Buyers; 

“Buyer’s Group” 
the Buyer,
any subsidiary of the Buyer, any holding company of the Buyer and any subsidiary
of any holding company of the Buyer from time to time;

“Buyer’s Loan” 
means the
principal amount lent by the Lender to the Buyer for the purposes of purchasing
the Shares together with any interest, costs, charges, penalties and other
liabilities actual or contingent from time to time arising or incurred to Lender
in respect of the same;

"Buyer's Solicitors"
Lang
Michener LLP, 1500 – 1055 West Georgia Street, Vancouver, British Columbia,
Canada V6E 4N7

"CA1985" 
the Companies Act
1985;

"CA2006" 
the Companies Act
2006;

"Claim" 
a claim by the Buyer
involving or relating to a breach of a General Warranty;

"Companies Acts"
CA1985 and
CA2006, together as in force from time to time;

"Company"
Pure Promoter
Limited details of which are set out in schedule 2;

"Company Intellectual
Property"

	 	(a) 	
      the Technical Information;

	 	(b) 	
      the Confidential Information; and

	 	(c) 	
      all other Intellectual Property which is used in,
      required for or material to the conduct of the Company's business at the
      date of this agreement, or which relates to any of the assets of the
      Company;

"Completion" 
completion of
the sale and purchase of the Shares in accordance with this agreement;

"Computer Equipment" 
all
computer hardware including all disks, disk drives, display screens, keyboards,
printers, microprocessors (whether embedded in a computer or any other piece of
equipment) associated and peripheral equipment and firmware and any other items
that connect with any or all of them together with technical documentation,
which in each case are owned by the Company and/or used in the Company's
business;

"Computer Software" 
all
computer software owned and/or used by the Company, including all executable
versions of computer programs in both source and object code form, all operating
systems software comprised in the Computer Equipment and all application
software and all other software owned and/or used by the Company or which by
virtue of the Company's interest in the Computer Equipment, or in software owned
and/or used by the Company, the Company is entitled to have or use or is capable
of having or using;

"Computer Systems" 
the
Computer Software and the Computer Equipment;

"Conditions"

the conditions specified in
clause 5 and "Condition" shall mean each of them;

"Confidential Information"

all trade secrets, data, know how and other such information (in whatever
form held including written, oral, visual and electronic) which is for the time
being not publicly known which is used in, or otherwise relates to, any part of
the Company's business including (i) any services rendered by the Company, (ii)
the operations, management, administration or other financial affairs of the
Company, (iii) the sale or marketing of any of the services rendered by the
Company or (iv) the Company Intellectual Property;

"Consideration"
 the total
consideration payable by the Buyer to the Sellers for the sale of the Shares in
accordance with this agreement; being the aggregate of the Initial
Consideration, the Second Cash Consideration and the Earn Out Consideration.

“Consideration Shares” 
any
shares in the capital of the Buyer issued and allotted to the Sellers in
satisfaction of any part of the Consideration in accordance with this
Agreement;

"Data Protection Legislation"

any and all data protection and privacy legislation in force from time to
time in those parts of the world in which the Company operates and/or processes
personal data (either directly or via a third party) including the Data
Protection Act 1984, the Data Protection Act 1998, the Telecommunications (Data
Protection and Privacy) Regulations 1999 and the Privacy and Electronic
Communications (EC Directive) Regulations 2003;

“the Deed of Priorities” 
the
deed in the agreed form, to be entered into between (1) the Buyer, (2) the
lender and (3) Stuart Hobbs;

"Disclosure Documents" 
the
two identical bundles of documents (as listed in the schedule to the Disclosure
Letter) in the agreed form;

"Disclosure Letter" 
the
letter in the agreed form from the Sellers to the Buyer in relation to the
Warranties having the same date as this agreement;

"Domain Names" 
the domain
names listed at pages 472 to 475 inclusive of the Disclosure Documents;

"Due Proportion" 
the
respective proportions shown in column (4) of schedule 1 being the proportions
in which the Shares are held by the Sellers;

"E-Commerce Legislation" 
any
and all e-commerce legislation in force from time to time in those parts of the
world in which the Company operates including the Electronic Commerce (EC
Directive) Regulations 2002;

“Earn Out Consideration” 
the
maximum aggregate sum of £362,522 payable to the Sellers in accordance with
clause 4;

“Earn Out Period” 
the period
from Completion to the date of final payment of the Earn Out Consideration.

"EHS Laws" 
all applicable
laws, statutes, secondary legislation, bye-laws, regulations, directives, common
law, judgments, orders or decisions of any court, codes of practice, guidance
notes and circulars (which have legal effect) and directions of any regulatory
authority in force from time to time relating to EHS Matters;

"EHS Matters"

	 	(a) 	
      the pollution, conservation or protection of, or
      prevention of harm to the Environment or health & safety of humans and
      animals;

	 	(b) 	
      the presence, existence, disposal, release, spillage,
      deposit, escape, leak, migration or emission of Hazardous
    Substances;

	 	(c) 	
      the exposure of any person to Hazardous
  Substances;

	 	(d) 	
      the creation or existence of any noise, odour, radiation
      or nuisance

	 	(e) 	
      the health & safety of any person, including any
      accidents, injuries, illnesses and diseases;

"Encumbrance" 
a mortgage,
charge, pledge, lien, option, restriction, right of first refusal, right of
preemption, right of set-off, third-party right or interest, assignment by way
of security, other encumbrance or security interest of any kind or another type
of preferential arrangement (including a title transfer or retention
arrangement) having similar effect howsoever arising;

"Environment" 
all or any of
the following media, namely, the air, water and land; and any natural organisms
supported by any of those media;

"Environmental Permit" 
any
permit, licence, consent, approval, certificate, registration, exemption or
other authorisation required under any EHS Laws for the operation of the
Company's business or the use of the Property;

"General Warranty" 
a
Warranty other than a Tax Warranty and "General Warranties" means all
those statements;

"Hazardous Substances" 
any
natural or artificial substance (whether solid, liquid or gas) whether alone or
in combination with any other substance which is capable of causing harm to the
Environment or the health or safety of humans or any living organism supported
by the Environment;

“IFRS” 
the International
Financial Reporting Standards issued by the International Accounting Standards
Board;

"Independent Adviser" 
a
chartered accountant of at least 10 years standing (with experience of the
matter or circumstance which may constitute a Material Adverse Change) agreed
upon by the Sellers and the Buyer or, in the event of their failure to agree
upon the identity of the Independent Advisor within 5 days, nominated by the
President for the time being of the Institute of Chartered Accountants in
England and Wales upon the application of either party;

“Initial Consideration”

collectively, the Initial Cash Consideration and the Initial Share
Consideration;

“Initial Cash Consideration”

the aggregate sum of £1,290,000 payable
in cash to Darren Fell, Mark James Hla, Ash Richards, Roger North-Row, Tim Brown
and Darren Broad on Completion in accordance with the provisions of and in the
amounts stated in Clause 3.1.1

“Initial Share Consideration”

the aggregate sum of £1,675,000 payable to Stuart Hobbs, Mark James Hla,
Ash Richards and Roger North-Row and which shall be satisfied by the allotment
to them on Completion of that number of Consideration Shares
as stated in Clause 3.1.2 and otherwise in accordance with the provisions
of that clause;

"Intellectual Property" 
all
intellectual property rights, including:

	 	(a) 	
      patents, Trade Marks, copyright, rights in designs,
      rights in inventions, database rights and topography rights (whether or
      not registered);

	 	(b) 	
      applications for any of the rights in (a) above, together
      with the right to apply for registration of such rights;

	 	(c) 	
      know-how, trade secrets, confidential information,
      technical information, customer and supplier lists and any other
      proprietary knowledge and/or information of whatever nature and howsoever
      arising,

together with any rights or types of
protection of the same or of a similar nature to those listed in (a), (b) or (c)
which may subsist anywhere in the world and in each case for their full term
and/or effect;

“Lender” 
means Trafalgar
Capital Specialized Investment Fund "Long Stop Date" 30th
April 2008;

“Losses” 
losses, damages
(including without limitation), special, incidental, consequential and punitive
damages), costs, actions, awards, penalties, fines, proceedings, claims,
demands, liabilities and expenses (including (without limitation) all legal and
other professional fees and expenses);

“Managers” 
together Mark
James Hla and Stuart Hobbs and “Manager” means any one of them;

"Management Accounts" 
the
unaudited management accounts of the Company comprising a profit and loss
account for the period which commenced on 1st April 2007 and ended on
29th February 2008, a copy of which appears at page 6A of the
Disclosure Documents;

"Material Adverse Change" 
a)
the termination for any reason of the employment by the Company of Stuart Hobbs
or Mark Hla; 
(b) the notification by a third party of its intention to bring
a claim against the Company where the loss or damages being claimed are £50,000
or more; or 
(c) any other event taking place between the date of this
agreement and Completion that has a material and adverse effect on the financial
position (including turnover, profitability and cash flow) or business prospects
of the Company (where the expression “material” shall mean an event which would
result in a loss or liability to the Company in excess of £50,000) but ignoring
any such event details of which were fairly disclosed by the Sellers in the
Disclosure letter (where the expression “fairly disclosed” shall be interpreted
in the same manner as set out in clause 8.2;

“Ordinary Shares” 
means the
ordinary shares in the capital of the Buyer having a nominal value of $0.001 USD
each;

“Outstanding Loans” 
the sum
of £43,806 outstanding and due to Stuart Hobbs and the sum of £8,770 outstanding
and due to Tim Brown, at the date hereof;

"Properties" 
means the
various properties details of which are set out in Schedule 10;

"Relevant 2009 Accounts"
 the
Company's audited annual accounts for the financial year ended on 31 March 2009,
the auditors' report in those accounts and the directors' report for that
year;

"Relevant 2010 Accounts" 
the
Company's audited annual accounts for the financial year ended on 31 March 2010,
the auditors' report in those accounts and the directors' report for that
year;

“Relevant Claim” 
a claim by
the Buyer under the Tax Covenant or involving or relating to breach of a General
Warranty or Tax Warranty ;

"Restricted Period" 
the
period of 2 years from the date of Completion;

"SEC" 
means the United
States Securities and Exchange Commission;

“Second Cash Consideration”

means the sum of £556,400.00 payable in cash to Stuart Hobbs in
accordance with the provisions of Clause 3.1.3

"Securities Act" 
means the
United States Securities Act of 1933, as amended;

"Sellers' Representative"

Stuart Hobbs;

"Sellers'
Solicitors"
Geoffrey Leaver Solicitors of 251 Upper Third Street, Central
Milton Keynes, Bucks, Mk9 1DR (Ref: TDW/JJ/Pure);

“Share Mortgage” 
the
mortgage of the Shares in favour of Stuart Hobbs, in the agreed form;

"Shares"
100 A ordinary
shares of £1 each and 365 B ordinary shares of £1 each in the capital of the
Company, comprising the whole of the issued share capital of the Company;

“Supplemental Disclosure Letter”

the letter in the agreed form from the Sellers to the Buyer containing
details of any new facts or circumstances which have arisen since the date of
the Disclosure Letter in relation to the Warranties and Tax Warranties as at
Completion;

"Tax" and "Taxation"

have the meaning given in schedule 7;

"Tax Authority"
 has the
meaning given in schedule 7;

"Tax Claim" 
a claim by the
Buyer under the Tax Covenant or involving or relating to breach of a Tax
Warranty;

"Tax Covenant" 
the covenant
in part 3 of schedule 7;

"Taxes Act" 
has the meaning
given in schedule 7;

"Tax Warranty" 
a statement
in part 2 of schedule 7 and "Tax Warranties" means all those
statements;

"Technical Information" 
all
data, formulae, techniques, trade secrets, expertise, proprietary knowledge,
knowhow, designs, drawings, recipes, specifications, instructional materials and
other such information, of whatever nature, used by the Company in connection
with its business;

"Trade Marks" 
business
names, domain names, registered and unregistered trade and service marks and
applications for registration of any of these; and

"Warranty" 
a statement in
schedule 5, or part 2 of schedule 7 and "Warranties" means all those
statements.

	1.2 	
      In this agreement, a reference to:

	 	 	 
		1.2.1 	
      a "subsidiary undertaking" or "parent undertaking" is to
      be construed in accordance with section 258 CA1985 and a "subsidiary" or
      "holding company" is to be construed in accordance with section 736
      CA1985;

	 	 	 
		1.2.2 	
      a document in the "agreed form" is a reference to a
      document in a form approved and, for the purposes of identification,
      signed by or on behalf of each party;

	 	 	 
		1.2.3 	
      a statutory provision includes a reference to the
      statutory provision as replaced, modified or re-enacted from time to time
      before or after the date of this agreement and any subordinate legislation
      made under the statutory provision before or after the date of this
      agreement. In particular (without prejudice to the generality of the
      foregoing) a reference to a section of CA1985 shall include a reference to
      any section of CA2006 which replaces, modifies or re-enacts that section
      of CA1985 at any time after the date of this agreement with effect from
      the date such section of CA2006 comes into force;

	 	 	 
		1.2.4 	
      a person includes a reference to an individual, body
      corporate, association, government, state, agency of state or any
      undertaking (whether or not having a legal personality and irrespective of
      the jurisdiction in or under the law of which it was incorporated or
      exists);

	 	 	 
		1.2.5 	
      a party means a party to this agreement and includes its
      permitted assignees and/or the successors in title to substantially the
      whole of its undertaking and, in the case of an individual, to his estate
      and personal representatives;

	 	1.2.6 	
      a company (other than "the Company") shall be construed
      so as to include any company, corporation or other body corporate,
      wherever and however incorporated or established;

	 	 	 
	 	1.2.7 	
      this agreement includes its schedules;

	 	 	 
	 	1.2.8 	
      a sub-clause in a clause, or to a paragraph in a
      schedule, are to a sub- clause of that clause or a paragraph of that
      schedule;

	 	 	 
	 	1.2.9 	
      a clause, paragraph or schedule, unless the context
      otherwise requires, is a reference to a clause or paragraph of, or
      schedule to, this agreement;

	 	 	 
	 	1.2.10 	
      writing shall, subject to clause 18.4, include any mode
      of reproducing words in a legible and non-transitory form;

	 	 	 
	 	1.2.11 	
      "includes" and "including" shall mean including without
      limitation; and

	 	 	 
	 	1.2.12 	
      this agreement or any provision of this agreement or any
      document are to this agreement, that provision or that document as in
      force for the time being and as amended from time to time in accordance
      with the terms of this agreement or that document or with the agreement of
      the relevant parties.

	1.3 	
      The contents table and headings in this agreement are for
      convenience only and do not affect its interpretation.

	 	 
	1.4 	
      Words importing the singular include the plural and vice
      versa and words importing a gender include every gender.

	 	 
	1.5 	
      All agreements, obligations and liabilities on the part
      of the Sellers or any two or more of the Sellers contained in or arising
      under this agreement are joint and several and shall be construed
      accordingly.

	 	 
	1.6 	
      Any question as to whether a person is connected with
      another shall be determined in accordance with section 839 of the Taxes
      Act (except that in construing section 839 "control" has the meaning given
      by section 840 or section 416 of the Taxes Act so that there is control
      whenever section 840 or 416 requires) which shall apply in relation to
      this agreement as it applies in relation to the Taxes
  Act.

	2 	
      Sale and purchase

	 	 	 
		2.1 	
      Each of the Sellers shall sell with full title guarantee
      and free from any Encumbrance, and the Buyer shall purchase, the number of
      Shares set opposite the name of that Seller in column (2) of schedule
      1.

	 	 	 
		2.2 	
      Section 6(2) of the Law of Property (Miscellaneous
      Provisions) Act 1994 shall have no effect for the purposes of this
      agreement.

	 	 	 
		2.3 	
      Title to, beneficial ownership of and any risk attaching
      to the Shares shall pass to the Buyer on Completion and the Shares shall
      be sold and purchased together with all rights and benefits attached to or
      accruing to them at or at any time after Completion.

	 	 	 
		2.4 	
      The Buyer shall not be obliged to complete the purchase
      of any of the Shares unless the purchase of all the Shares is completed
      simultaneously.

	 	 	 
		2.5 	
      Each of the Sellers irrevocably waives any right of
      pre-emption or other right or restriction on transfer in respect of any of
      the Shares conferred on him (whether

under the articles of association of
the Company or otherwise) and shall procure the irrevocable waiver of any such
right or restriction conferred on any other person who is not a party to this
agreement.

	3 	
      Consideration

	 	 	 	 
		3.1 	
      The aggregate consideration for the sale of the Shares
      shall be:

	 	 	 	 
			3.1.1 	
      the Initial Cash Consideration which shall be paid in
      cash at Completion in the following amounts to the following Sellers,
      namely: £1,024,000 to Darren Fell, £106,000 to Mark James Hla, £40,000 to
      Ash Richards , £20,000 to Roger North-Row, £50,000 to Tim Brown and
      £50,000 to Darren Broad;

	 	 	 	 
			3.1.2 	
      the Initial Share Consideration payable in the following
      amounts to the following Sellers namely: £1,000,000 to Stuart Hobbs,
      £450,000 to Mark James Hla, £150,000 to Ash Richards and £75,000 to Roger
      North-Row, and which shall be satisfied by the allotment at Completion of
      such number of Ordinary Shares which when multiplied by $0.10 USD per
      share is equal to the proportion of the Initial Share Consideration due to
      such Seller in accordance with this clause 3.1.2

	 	 	 	 
			3.1.3 	
      Second Cash Consideration which shall be paid in cash to
      Stuart Hobbs on or before the date falling 6 months after
    Completion;

	 	 	 	 
			3.1.4 	
      the Earn Out Consideration (if any) to be calculated and
      satisfied in accordance with clause 4;

	 	 	 	 
		3.2 	
      Notwithstanding any other provisions of this agreement
      the maximum aggregate consideration payable for the Shares (as a
      combination of both Cash Consideration and Consideration Shares) shall not
      under any circumstances exceed £3,883,922.

	 	 	 	 
		3.3 	
      In the absence of any other written agreement between the
      parties in relation thereto, the parties agree that any sum due from one
      party to the other pursuant to any provision of this agreement may be paid
      by telegraphic transfer of funds to the receiving party's solicitors whose
      receipt shall constitute a full discharge of the paying party's obligation
      to make any such payment and the paying party shall not be concerned with
      the application of any such amount.

	 	 	 	 
		3.4 	
      If the Buyer fails to comply with the provisions of
      clause 3.1.3 then Stuart Hobbs shall be entitled by notice in writing
      served on the Buyer within 120 days of the date on which payment should
      have been made by the Buyer in accordance with clause 3.1.3, to elect to
      buy back the entire issued share capital of the Company from the Buyer for
      a total cash consideration of £1. In the event that Stuart Hobbs exercises
      the right to buy back the entire issued share capital of the Company from
      the Buyer in accordance with the provisions of this clause, he shall be
      obliged (by way of additional consideration) to repay the Buyer’s Loan in
      full (which the Buyer hereby irrevocably instructs and consents to Stuart
      Hobbs paying directly to the Lender) or to enter into some arrangement
      with the Lender in order to take over all liability that the Buyer has in
      respect of the Buyer’s Loan. In the event that Stuart Hobbs exercises the
      right to buy back the entire issued share capital of the Company from the
      Buyer in accordance with the provisions of this clause, the Buyer shall on
      a day to be nominated by Stuart Hobbs (being no later than 30 days
      following the day on which he served notice on the Buyer pursuant to this
      clause) transfer those shares which comprise the then entire issued share
      capital of the Company to Stuart Hobbs with full title guarantee and free
      from all encumbrances of whatever nature subject only to any remaining
      charges or other security interest in favour of the Lender. In the event
      that the Buyer shall be in breach of any of the provisions contained in
      this clause then subject to Stuart Hobbs having complied with, or being
      willing and able

		
      to comply with, the same, the Buyer shall indemnify
      Stuart Hobbs in respect of all or any losses thereby occasioned.

	 	 	 
	3.5 	
      In connection with the issuance of the Consideration
      Shares according to this agreement both on Completion and in accordance
      with clause 4 , each Seller acknowledges and agrees with the Buyer
      that:

	 	 	 
		3.5.1 	
      Regulation S. The Consideration Shares will be offered
      and sold to the Sellers without such offers and sales being registered
      under the Securities Act and will be issued to the Seller in accordance
      with Rule 903 of Regulation S of the Securities Act in an “offshore
      transaction” within the meaning of Regulation S based on the
      representations and warranties of the Seller in this Agreement. As such,
      each Seller further acknowledges and agrees that all Consideration Shares
      will, upon issuance, be “restricted securities” within the meaning of the
      Securities Act.

	 	 	 
		3.5.2 	
      Agreement Regarding Resale. The Seller agrees to resell
      the Consideration Shares only in accordance with the provisions of
      Regulation S of the Securities Act, pursuant to registration under the
      Securities Act, or pursuant to an available exemption from registration
      pursuant to the Securities Act, and otherwise in accordance with all
      applicable state securities laws and the laws of any other jurisdiction.
      The Seller agrees that the Buyer may require the opinion of legal counsel
      reasonably acceptable to the Buyer in the event of any offer, sale, pledge
      or transfer of any of the Consideration Shares by the Seller pursuant to
      an exemption from registration under the Securities Act. Each Seller
      agrees that the Buyer may refuse to register any transfer of the
      Consideration Shares if such transfer is not made in accordance with the
      provisions of Regulation S of the Securities Act, or pursuant to
      registration under the Securities Act, or pursuant to an available
      exemption from registration.

	 	 	 
		3.5.3 	
      Prohibition Against Hedging Transactions. The Seller
      agrees not to engage in hedging transactions with regard to the
      Consideration Shares unless in compliance with the Securities
  Act.

	 	 	 
		3.5.4 	
      No Obligation to Register. The Seller acknowledges that
      the Buyer has not agreed and has no obligation to register the resale of
      the Consideration Shares under the Securities Act however the Buyer will
      attach piggyback registration rights to the shares.

	 	 	 
		3.5.5 	
      Share Certificates. The Seller acknowledges and agrees
      that all certificates representing the Consideration Shares will be
      endorsed with the following legend in accordance with Regulation S of the
      Securities Act or such similar legend as deemed advisable by legal counsel
      for the Buyer to ensure compliance with Regulation S of the Securities Act
      and to reflect the status of the Consideration Shares as restricted
      securities:

	 	 	 
			
      “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
      BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE "ACT"), AND
      HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE
      ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE
      TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S,
      PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT.
  HEDGING

TRANSACTIONS INVOLVING THE SECURITIES
MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT”.

	3.6 	
      In connection with the issuance of the Consideration
      Shares according to this agreement both on Completion and in accordance
      with clause 4, the Buyer covenants with each of the Sellers
that:

	 	 	 
		(i) 	
      no later than eighteen (18) months from the date hereof,
      the Buyer will do all such things as are necessary in order to procure the
      full registration of the Consideration Shares pursuant to the provisions
      of the Securities Act so as to enable such shares to become fully and
      freely tradable, including but not limited to preparing and filing with
      the SEC a registration statement pursuant to Rule 415 of the Securities
      Act or pursuant to any successor rule which relates to the registration
      formalities to be observed to enable the Consideration Shares to become
      fully and freely tradable;

	 	 	 
		(ii) 	
      the Buyer will in a timely manner file all reports that
      it is required to file pursuant to the Securities Act and any other
      legislation that is applicable to it; and

	 	 	 
		(iii) 	
      in the event that the Buyer shall fail to procure that
      the Consideration Shares become fully and freely tradable within the time
      period set out in clause 3.6(i) above, then without prejudice to any other
      remedies that the Sellers (or any of them) may have, the Buyer shall at
      its own cost and expense be responsible for obtaining any opinion of legal
      counsel which is required pursuant to clause 3.5.2 in the event of any
      intended offer, sale, pledge or transfer of any of the Consideration
      Shares by any of the Sellers pursuant to an exemption from registration
      under the Securities Act.

	3.7 	
      For the purposes of clause 3.1.2 above the following rate
      of exchange shall be used namely: £1.00 = $2.00 USD.

	 	 	 	 
	3.8 	
      At all times that Stuart Hobbs owns any of the
      Consideration Shares he (or such person as he may nominate from time to
      time) shall be entitled to be appointed as and to remain as a director of
      the Buyer, and the Buyer shall take such steps as may be required in order
      to comply with the provisions of this clause.

	 	 	 	 
	4 	
      Earn Out Consideration

	 	 	 	 
		4.1 	
      The Earn Out Consideration shall be calculated as
      follows:

	 	 	 	 
			
      Relevant 2009 Accounts

	 	 	 	 
			4.1.1 	
      Provided that the Profit for the year ended 31st
      March 2009 as disclosed in the Relevant 2009 Accounts is equal to or
      greater than £725,000 the Buyer shall by way of additional consideration
      pay £41,860 to Darren Fell, £62,500 to Stuart Hobbs, £22,500 to Mark Hla,
      £10,000 to Ash Richards and £5,000 to Roger North-Row. If the Profit for
      the year ended 31st March 2009 as disclosed in the Relevant
      2009 Accounts is between £600,000 and £725,000 then the Earn Out
      Consideration due in accordance with this clause 4.1.1 to each of the
      Sellers named in this clause shall be calculated by reference to the
      following formula (‘the 2009 Formula’), namely:

	 	 	 	 
				
      (A ÷ 125,000) X EOC

	 	 	 	 
				
      Where:

	 	 	 	 
				
      A is that portion of the Profit for the year ended
      31st March 2009 as disclosed in the Relevant 2009 Accounts
      which represents the excess over and above £600,000;
and

EOC is the Earn Out Consideration which
would have been paid to that Seller had the Profit for the year ended
31st March 2009 as disclosed in the Relevant 2009 Accounts been equal
to or greater than £725,000.

The amounts payable in accordance with
this clause 4.1.1 shall be satisfied by the allotment to the Sellers named in
this clause, on or before the 31st May 2009, of such number of
Ordinary Shares which when multiplied by $0.10 USD per share is equal to the
proportion of the Earn Out Consideration due to such Seller in accordance with
this clause.

	 	4.1.2 	 Provided that the Profit for the year ended
        31st March 2009 as disclosed in the Relevant 2009 Accounts
        is equal to or greater than £725,000 the Buyer shall pay by way of
        additional consideration £32,173 to Darren Fell, £3,614 to Darron
        Broad and £3,614 to Tim Brown. If the Profit for the year ended 31st
        March 2009 as disclosed in the Relevant 2009 Accounts is between
        £600,000 and £725,000 then the Earn Out Consideration due to
        each of the Sellers named in this clause 4.1.2 shall be calculated by
        reference to the 2009 Formula as if the same had been set out mutatis
        mutandis in this clause. 

	 	  	  

			 The amounts payable in accordance with this
        clause 4.1.2 shall be paid in cash on or before the 31st May
        2009. 

	 	  	  

	 	Relevant 2010 Accounts 
	 	  	  

	 	4.1.3 	 Provided that the Profit for the year ended
        31st March 2010 as disclosed in the Relevant 2010 Accounts
        is equal to or greater than £1,025,000 the Buyer shall pay by way
        of additional consideration £41,860 to Darren Fell, £62,500
        to Stuart Hobbs, £22,500 to Mark Hla, £10,000 to Ash Richards
        and £5,000 to Roger North-Row. If the Profit for the year ended 31st
        March 2010 as disclosed in the Relevant 2010 Accounts is between
        £725,000 and £1,025,000 then the Earn Out Consideration due
        in accordance with this clause 4.1.1 to each of the Sellers named in this
        clause shall be calculated by reference to the following formula (‘the
        2010 Formula’), namely: 

	 	  	  

	 	  	 (A ÷ 300,000) X EOC 

	 	  	  

	 	  	 Where: 

	 	  	  

			 A is that portion of the Profit for the year
        ended 31st March 2009 as disclosed in the Relevant 2010 Accounts
        which represents the excess over and above £725,000; and 

	 	  	  

			 EOC is the Earn Out Consideration which would
        have been paid to that Seller had the Profit for the year ended 31st
        March 2010 as disclosed in the Relevant 2010 Accounts been equal
        to or greater than £725,000. 

	 	  	  

			 The amounts payable in accordance with this
        clause 4.1.3 shall be satisfied by the allotment to the Sellers named
        in this clause, on or before the 31st May 2010, of such number
        of Ordinary Shares which when multiplied by $0.10 USD per share is equal
        to the proportion of the Earn Out Consideration due to such Seller in
        accordance with this clause. 

	 	  	  

	 	4.1.4 	 Provided that the Profit for the year ended
        31st March 2009 as disclosed in the Relevant 2010 Accounts
        is equal to or greater than £1,025,000 the Buyer shall pay by way
        of additional consideration £32,173 to Darren Fell, £3,614 to
        Darron Broad and £3,614 to Tim Brown. If the Profit for the year
        ended 31st March 2010 as disclosed in the Relevant 2010 Accounts
        is between £725,000 and £1,025,000 then the Earn Out Consideration
        due to each of the Sellers named in this clause 

 

	 	4.1.2	shall be calculated by reference to the 2010 Formula as if the same had
      been set out mutatis mutandis in this clause. 
	 	 	 
	 	 	The amounts payable in accordance with this clause 4.1.4 shall be paid
      in cash on or before the 31st May 2010.

	 	4.1.5 	
      For the purposes of clauses 4.1 1 and 4.1.3 the exchange
      rate to be used in order to convert £ into $ USD, shall be the spot rate of exchange of HSBC Bank Plc, Milton Keynes
      Branch for purchasing $ USD with £ prevailing on the working day prior to
      the day on which such shares are allotted, as conclusively determined by
      that bank acting in good faith.

	 	 	 
	 	4.1.6 	
      For the avoidance of doubt the maximum aggregate sum
      payable to the Sellers under this clause 4.1 shall be
  £362,520.

	4.2 	
      Any payments to be made to the Sellers pursuant to clause
      4.1 in cash shall be made to such account or accounts as the Sellers shall
      direct. Such payment will be made within five Business Days of the
      agreement of the Schedule (as defined in clause 4.6 below) or (in the
      event of a reference in accordance with clause 4.7) the date on which the
      Expert's decision is given in accordance with clause 4.9.

	 	 	 
	4.3 	
      Any proportion of the Earn Out Consideration to be
      satisfied in shares in accordance with clauses 4.1.1 or 4.1.3 above or
      clause 4.7 below shall be satisfied by the issue and allotment to the
      relevant Seller by the Buyer of such number of ordinary shares of $0.001
      each in the capital of the Buyer which when divided by $0.10 equal to the
      proportion of the Earn Out Consideration due to such Seller in accordance
      with clauses 4.1.2 or 4.1.4 above or clause 4.7 below as
    appropriate.

	 	 	 
	4.4 	
      If the Buyer has reasonable grounds to believe it will be
      unable to comply with the provisions of clause 4.2 in respect of any
      element of the Earn Out Consideration due and payable in cash in relation
      to either the 2009 Earn Out or the 2010 Earn Out, then the Seller shall be
      entitled, by notice in writing served on the Buyers so as to be received
      by the Buyers no later than the last date on which payment should have
      been made by the Buyer in accordance with clause 4.2 to offer to the
      Sellers shares in the capital of the Buyer in lieu of the cash
      consideration due. The Buyers shall, by notice in writing to the Seller,
      be entitled either elect to accept such offer or to require the Buyer to
      pay interest on the unpaid amount at the rate of 10% per annum (compounded
      quarterly) for each day that the Earn Out Consideration remains
      unpaid..

	 	 	 
	4.5 	
      The Profit shall be determined by reference to the
      Relevant Accounts of the Company prepared in accordance with the following
      principles (in decreasing order of priority):

	 	 	 
		4.5.1 	
      the specific accounting provisions in this agreement to
      take priority

	 	 	 
		4.5.2 	
      thereafter, the accounting principles, policies and
      practices used in the preparation of the Accounts;

	 	 	 
		4.5.3 	
      thereafter, IFRS.

	 	 	 
		
      For the avoidance of doubt, sub-clause 4.5.1 shall take
      precedence over sub-clause 4.5.2 and sub-clause 4.5.2 shall take
      precedence over 4.5.3.

	 	 	 
	4.6 	
      For the purposes of this agreement the expression
      “Profit" shall mean the pre- taxation and pre-depreciation and
      amortisation earnings of the Company before
charging:

	 	4.6.1 	
      any dividend or provision for any dividend for any share
      in the capital of the Company or any other distribution or the transfer of
      any sum to reserve;

	 	 	 	 
	 	4.6.2 	
      any sums paid or payable to the Buyer or any other member
      of the Buyer's Group by way of management charge other than charges for
      specific services and costs incurred on behalf of the Company and agreed
      by the Sellers in good faith;

	 	 	 	 
	 	4.6.3 	
      all payments made without the Sellers' consent (such
      consent not to be unreasonably withheld or delayed where such payment has
      been made in good faith and for services properly rendered) to executive
      directors of the Company and employees which are in addition to their
      contracted basic salaries and benefits;

	 	 	 	 
	 	4.6.4 	
      any amounts charged from the Buyer or any other company
      in the Buyer's Group in relation to group costs or central costs which
      have not been specifically incurred by the Company in relation to its own
      business including, without limitation:

	 	 	 	 
	 		(a) 	
      any remuneration paid to directors and employees of any
      company in the Buyer's Group other than the Company save for Stuart Hobbs’
      remuneration paid to him as a director of the Buyer;

	 	 	 	 
	 		(b) 	
      any audit fees, professional fees and consultancy costs
      incurred by any company in the Buyer's Group other than the
  Company;

	 	 	 	 
	 		(c) 	
      the costs of operating the Buyer's Group head
    office;

	 	 	 	 
	 		(d) 	
      any costs relating to the acquisition of the Company and
      raising finance to fund the acquisition and any costs which are incurred
      in relation to any future acquisition of any company or business or the
      funding thereof;

	 	 	 	 
	 		(e) 	
      the costs of calculating any payments due to the Sellers
      under this agreement, including any professional fees incurred and any of
      the costs of the Auditors or the accountants which may be incurred in
      relation to the calculation or determination of any such payments, but
      excluding the costs properly incurred by the Company in the preparation of
      its own annual audited accounts; and

	 	 	 	 
	 		(f) 	
      any amounts incurred by way of recharge from any company
      in the Buyer's Group in excess of the fair market revenue of the goods and
      services provided to the Company.

but after charging, deducting or making an adequate provision
for all revenue expenses and outgoings properly incurred in the course of the
business of the Company (other than those excluded specifically by clauses 4.6.1
to 4.6.4 above) and having specific regard to the following principles:

	 	4.6.5 	
      Sales revenue shall be recognised on the date that the
      customer has access to the underlying products sold;

	 	 	 
	 	4.6.6 	
      Provision shall be made for sales credit notes raised
      after the relevant balance sheet date;

	 	 	 
	 	4.6.7 	
      Provision shall be made for all outstanding trade debtor
      balances in excess of 90 days old as at the relevant balance sheet date
      save that

	 		
      any such debt shall be subsequently taken into account
      when calculating the Profit in the event that (and to the extent that)
      payment of such debt is received within 60 days of the relevant balance
      sheet date;

	 	 	 
	 	4.6.8 	
      Provision shall be made for all sales commissions and
      bonuses payable on profits;

	 	 	 
	 	4.6.9 	
      Refurbishment costs shall be capitalised and depreciated
      over the entire period of any lease; and

	 	 	 
	 	4.6.10 	
      Rent, rates and services charges shall be recognised on a
      monthly basis according to when they are due to be paid and shall not be
      averaged out over the course of any lease.

	4.7 	
      The parties jointly undertake to procure (in so far as
      they are legally able to do so) that the Accountants will prepare and
      deliver to the Sellers the Relevant Accounts for the years ending 31 March
      2009 and 31 March 2010 together with a schedule showing the calculation of
      the Profit for that year and the calculation of the Earn Out Consideration
      payable ("Schedule") as soon as may be practicable after the
      completion of the audited accounts of the Company for that period and in
      any event by no later than 20th May in each relevant year.

	 	 
	4.8 	
      If within a period of 21 days following receipt of the
      Schedule the Sellers notify the Buyer that they disagree with the
      Schedule, the Buyer shall consult with such firm of accountants as the
      Sellers may have appointed for that purpose (“the Sellers' Accountants”)
      to give to them or any of them all reasonably requested explanations and
      information in relation to the Schedule in accordance with clause 4.12.
      Any amendments which may be agreed between the Buyer, the Accountants and
      the Sellers as a result of such consultation shall be incorporated in and
      form part of the Schedule for the purposes of this agreement. For the
      avoidance of doubt, in the event that the Sellers do not notify the Buyer
      within the 21 day period they shall be deemed to agree the Schedule. If
      (notwithstanding any other such amendment which may be so agreed) the
      Buyer, the Accountants and the Sellers are unable to agree the Schedule
      within 21 days after the Sellers shall have notified the Buyer of their
      disagreement, the Schedule shall be determined by a chartered accountant
      or a firm of chartered accountants (the "Expert") to be appointed
      by agreement between the Buyer and the Sellers.

	 	 
	4.9 	
      In the event of the Buyer and the Sellers failing to
      agree the appointment of the Expert within 14 days of the expiration of
      the period of 21 days referred to in clause 4.8 then either of them may
      forthwith apply to the President or other appropriate officer for the time
      being of The Institute of Chartered Accountants in England and Wales to
      appoint the Expert for the purpose of this clause. In particular the
      Expert shall determine the Profit for the relevant financial period and
      give his certificate as to the Profit and as to the amount of the relevant
      tranche of Earn Out Consideration.

	 	 
	4.10 	
      The Expert shall be instructed to deliver the certificate
      within 20 Business Days of his nomination or appointment and such
      certificate shall, in the absence of fraud or manifest error, be
      conclusive and binding upon all the parties to this agreement and in
      making any such determination the Expert shall have regard to the
      provisions of this agreement and, in particular, but without limiting the
      generality of the foregoing, the definition of Profit contained in this
      clause 4.

	 	 
	4.11 	
      The Expert shall act as an expert and not as an
      arbitrator and the costs, charges and expenses of obtaining such
      certificate (exclusive of the cost of any party to this agreement in
      presenting their case to the Expert which shall be borne by such party)
      shall be borne by the Sellers and the Buyer in equal shares, or as the
      Expert shall otherwise determine.

	 	4.12 	
      The Buyer shall procure that there are made available to
      the Accountants, the Sellers’ Accountants and the Expert, if appointed,
      all documents information and explanations which they may require for the
      purposes of this clause including (but without limiting the generality of
      the foregoing) the books and records of the Company and such accountants
      shall be permitted (in the case of the Seller’ Accountants, at the
      Sellers' own cost) to take extracts therefrom or make copies thereof to
      the intent that they shall have the same information facilities and access
      as will be made available to the Accountant.

	 	 	 
	 	4.13 	
      Pending resolution (in accordance with the preceding
      provisions of this agreement) of any dispute as to the correct amount of
      Profit for any year, the Buyer shall pay to the Sellers (in cash or in
      shares as required) on the date specified in clauses 4.1.1 to 4.1.4
      inclusive such amount (if any) as the Buyer accepts is due to the Sellers
      with the balance (if any) payable with 3 working days’ of the Profit being
      agreed or determined in accordance with those preceding provisions.4.14
      Where the Buyer is required to issue any Consideration Shares to any
      Seller in accordance with this clause 4, the Buyer
shall:

(i) procure that the certificate in
respect of such Consideration Shares shall bear the following endorsement:

“Fully paid and non-assessable”

(ii) deliver to any Seller receiving
any such Consideration Shares a letter in a form reasonably acceptable to that
Seller, addressed to that Sellers and written by the Buyer’s US legal counsel
confirming that those Consideration Shares are validly issued, fully paid and
are non-assessable.

	5 	
      Material Adverse Change

	 	 	 
		5.1 	
      Between the date of this agreement and Completion, the
      Sellers undertake to promptly notify the Buyer in writing upon becoming
      aware of any matter or circumstance which is reasonably likely to
      constitute a Material Adverse Change (such notice, a "Notice of
      MAC") and to provide the Buyer with as much detail of the matter or
      circumstance as is reasonably practicable to enable the Buyer to make an
      informed assessment of the matter or circumstance, its nature and
      effect.

	 	 	 
		5.2 	
      The Buyer shall ensure that within 3 days from the
      receipt of a Notice of MAC, it will notify the Sellers whether in its
      opinion (acting in good faith) the matter or circumstance constitutes a
      Material Adverse Change. If the Buyer does not notify the Seller of its
      decision as to whether the matter or circumstance constitutes a Material
      Adverse Change within the prescribed period, the matter or circumstance
      shall be deemed to not constitute a Material Adverse Change and the
      parties shall proceed to Completion.

	 	 	 
		5.3 	
      If the Buyer notifies the Sellers that in its opinion
      (acting in good faith) the matter or circumstance does constitute a
      Material Adverse Change, the Buyer and the Sellers shall, within three
      working days starting on the day of receipt of the Buyer's notification
      pursuant to clause 5.2 above, endeavour to agree as to whether the matter
      or circumstance constitutes a Material Adverse Change. If within the
      prescribed period the parties (both parties acting in good faith) have not
      agreed as to whether the matter or circumstance constitutes a Material
      Adverse Change, then the matter in dispute shall be referred to an
      Independent Adviser for determination in accordance with clause
  5.4.

		
5.4 		
The Independent Adviser shall be instructed to notify the Sellers and the Buyer of his determination of the matters in dispute within five days of the referral to him. He shall be instructed to act as an expert and not as an
arbitrator and to notify his decision by means of a written determination. The Independent Adviser shall be entitled to such professional assistance and advice as he may reasonably require. The Sellers and the Buyer shall be entitled to make written
submissions to the Independent Adviser (provided they simultaneously furnish a copy to the other) but subject as aforesaid the Sellers and the Buyer shall permit the Independent Adviser to determine the procedure to be followed with regard to his
determination of the matters in dispute.

	
	 	 	 	 	 
		
5.5 		
The Independent Adviser's decision shall (in the absence of manifest error) be final and binding on the Sellers and the Buyer and his costs shall be borne as he shall determine.

	
	 	 	 	 	 
		
5.6 		
This agreement shall immediately terminate and cease to have effect as from the date of either agreement that a Material Adverse Change has occurred in accordance with clause 5.3 or determination by the Independent Adviser in
accordance with clauses 5.4 and 5.5.

	
	 	 	 	 	 
	
6 		
Action Pending Completion

	
	 	 	 	 	 
		
6.1 		
Between the execution of this agreement and Completion or the earlier termination of the rights and obligations of the parties under this agreement the Sellers shall:

	
	 	 	 	 	 
			
6.1.1 		
use all reasonable endeavours to ensure that the Company complies with schedule 4;

	
	 	 	 	 	 
			
6.1.2 		
use all reasonable endeavours to ensure that neither they nor the Company does, procures or permits any act or omission which:

	
	 	 	 	 	 
				
(a) 		
constitutes a Relevant Claim or Tax Claim or would constitute a Relevant Claim or Tax Claim if Completion were to take place;

	
	 	 	 	 	 
				
(b) 		
would give rise to a claim under the Tax Covenant if Completion were to take place;

	
	 	 	 	 	 
				
(c) 		
constitutes a breach by any of the Sellers of clause 6.1.1, 13, 14 or 15; or

	
	 	 	 	 	 
				
(d) 		
would or is reasonably likely to result in a Material Adverse Change; and

	
	 	 	 	 	 
			
6.1.3 		
notify the Buyer together with reasonable details immediately if they become aware of a fact, event or circumstance described in sub- clauses (a) to (d) (inclusive) of clause 6.1.2.

	
	 	 	 	 	 
		
6.2 		
Each of the Sellers acknowledges that nothing contained in this clause or schedule 4 or the exercise or failure to exercise any of the Buyer's rights under this clause shall give rise to any liability on the part of the Buyer or
any member of the Buyer's Group to any of the Sellers.

	
	 	 	 	 	 
	
7 		
Completion

	
	 	 	 	 	 
		
7.1 		
Completion shall take place at the office of the Seller's Solicitors on the Anticipated Completion Date, when each of the matters set out in schedule 3 shall occur, provided always that if any of the matters set out in schedule 3
have not be satisfied or so waived by that date then the party not in default shall be entitled to extend the

	

day on which Completion is to take
place to such later date as it or he may specify provided that such day is a
working day and provided further that such day is no later than the Long Stop
Date..

		7.2 	
      Upon completion of the matters referred to in schedule 3
      the Buyer shall pay the amount stated in clause 3.1.1 in the manner
      specified in clause 3.3 and shall satisfy the amount stated in clause
      3.1.2 in the manner stated in that clause.

	 	 	 	 
	8 	
      Warranties

	 	 	 	 
		8.1 	
      The Sellers warrant to the Buyer in the terms of the
      Warranties and shall warrant the same up to and including the date of
      Completion as if each Warranty and Tax Warranty were repeated at the date
      of Completion with reference to the facts and circumstances then existing.
      The Sellers acknowledge that the Buyer is entering into this agreement in
      reliance on each Warranty.

	 	 	 	 
		8.2 	
      The Warranties are qualified by the facts and
      circumstances fairly disclosed in the Disclosure Letter and the
      Supplemental Disclosure Letter. For this purpose "fairly disclosed" means
      disclosed, whether generally or specifically, in such a manner and with
      such accuracy and sufficient detail so as to enable a reasonable purchaser
      to identify the nature and scope of the matter disclosed and to make an
      informed assessment of its effect.

	 	 	 	 
		8.3 	
      Subject to clause 8.2

	 	 	 	 
			8.3.1 	
      no constructive or imputed knowledge relating to the
      Company or the Shares shall prevent or limit a claim made by the Buyer for
      breach of clause 8.1.; and

	 	 	 	 
			8.3.2 	
      the Sellers may not invoke the Buyer's constructive or
      imputed knowledge of a fact or circumstance as a defence to a claim for
      breach of clause 8.1 but shall be entitled to invoke the Buyer’s actual
      knowledge in such a defence.

	 	 	 	 
		8.4 	
      For the purposes of clause 8.3.2 “the Buyer’s actual
      knowledge” means such knowledge of the Buyer (or any of its directors at
      the date of this agreement) of the nature, effect and scope of the matter
      which is the subject of the relevant claim as would enable a reasonable
      purchaser to make an informed assessment of such matter, and its nature
      and effect.

	 	 	 	 
		8.5 	
      The Sellers waive and may not enforce a right which they
      may have in respect of a misrepresentation, inaccuracy or omission in or
      from information or advice supplied or given by the Company or any of its
      officers or employees for the purpose of assisting the Sellers to make a
      representation, give a Warranty or prepare the Disclosure
Letter.

	 	 	 	 
		8.6 	
      Each Warranty is to be construed independently and
      (except where this agreement provides otherwise) is not limited by the
      terms of any other Warranty or any other provision of this
    agreement.

	 	 	 	 
		8.7 	
      Unless otherwise specified, where any Warranty refers to
      the knowledge, information, belief or awareness of the Sellers (or a
      similar expression) the Sellers shall be deemed to have such knowledge,
      information, belief or awareness as the Sellers would have obtained had
      the Sellers made all due and careful enquiries into the subject matter of
      that Warranty of each other, the directors and officers of the Company and
      the advisers of the Company.

		8.8 	
      Notwithstanding any other provision of this agreement the
      liability of the Sellers in respect of a Claim and a Tax Claim shall be
      limited in accordance with schedule 6, provided that none of the
      limitations in schedule 6, save for the overall financial limit in
      paragraph 1.4 of Schedule 6, shall apply in respect of a breach of any of
      the Warranties in paragraphs 1 or 2 of schedule 5.

	 	 	 	 
	9 	
      Indemnities

	 	 	 	 
		9.1 	
      The Sellers shall jointly and severally indemnify and
      keep indemnified the Buyer and (as if directs) the Company and any member
      of the Buyer’s Group from and against all Losses suffered or incurred by
      the Buyer or the Company or any member of the Buyer’s Group in respect of
      any claims made by Michael Bairstow, Vicki Cohen or any other employee or
      former employee of the Company in respect of shares in the Company
      purported to be held by them or options or quasi options alleged to be
      granted to them by the Company or otherwise prior to the date of
      Completion.

	 	 	 	 
		9.2 	
      The Buyer acknowledges that Stuart Hobbs and Mark Hla
      have each given personal guarantees (“the Guarantees”) to Brighton and
      Hove City Council in respect of the obligations and liabilities of the
      Company arising under or connected with the lease entered into between the
      Company and Brighton and Hove City Council and relating to the premises at
      Units A to D, South Wing, New England House Business Centre, New England
      Street, Brighton. In respect of the Guarantees the Buyer agrees that it
      will at all times hereafter keep Stuart Hobbs and Mark Hla fully and
      effectively indemnified in respect of any claims made against either or
      both of them pursuant to the Guarantee provided always that the indemnity
      contained in this clause shall cease in the event that Stuart Hobbs
      exercises the right to buy back the entire issued share capital of the
      Company from the Buyer in accordance with the provisions of clause 3.4
      above (subject to the Buyer duly completing such buy back following the
      exercise of that right).

	 	 	 	 
	10 	
      Tax

	 	 	 	 
		
      The provisions of schedule 7 shall apply.

	 	 	 	 
	11 	
      Restrictive covenants

	 	 	 	 
		11.1 	
      Each of the Sellers hereby severally undertakes with the
      Buyer (for itself and for the benefit of the Company and each member of
      the Buyer’s Group) that he will not, either solely or jointly with or
      through any other person, on his own account or as agent, manager, advisor
      or consultant for any other person or otherwise howsoever:

	 	 	 	 
			11.1.1 	
      during the Restricted Period carry on or be engaged,
      concerned or interested in, or assist, a business which competes, directly
      or indirectly, with a business of the Company as operated at the date of
      Completion in a territory in which such business is operated at that
      date;

	 	 	 	 
			11.1.2 	
      during the Restricted Period solicit custom or business
      from any person in respect of goods and/or services competitive with those
      manufactured and/or supplied by the Company during the period of 12 months
      prior to the date of Completion, such person having been a customer of the
      Company in respect of such goods and/or services during such
  period;

	 	 	 	 
			11.1.3 	
      during the Restricted Period accept custom or business
      from any person in respect of goods and/or services competitive with those
      manufactured and/or supplied by the Company during the period of 12 months
      prior to the date of Completion, such person having been
  a

customer of the Company in respect of
such goods and/or services during such period;

	 	11.1.4 	 during the Restricted Period place custom or business
        with any person in respect of goods and/or services the same as or similar
        to those supplied to the Company during the period of 12 months prior
        to the date of Completion, (such person having been a supplier to the
        Company in respect of such goods and/or services during such period) if
        in doing so it has or is likely to have a material effect on the supply
        of such goods and/or services to the Company;

	 	 	 
	 	11.1.5 	 during the Restricted Period induce, solicit or endeavour
        to entice to leave the service or employment of the Company any person
        who, during the period of 12 months prior to the date of Completion, was
        an employee of the Company occupying a senior, managerial, technical,
        sales or research position or was a consultant of the Company or carried
        out duties for and on behalf of the Company and who (in any such case)
        is in possession of Confidential Information or able to influence the
        client, customer, supplier or other relationships or connections of the
        Company;

	 	 	 
	 	11.1.6 	 during the Restricted Period employ any person who,
        during the period of 12 months prior to the date of this agreement was
        an employee of the Company occupying a senior, managerial, technical,
        sales or research position or was a consultant of the Company or carried
        out duties for and on behalf of the Company and who (in any such case)
        is in possession of Confidential Information or able to influence the
        client, customer, supplier or other relationships or connections of the
        Company;

	 	 	 
	 	11.1.7 	 in relation to a business which is competitive with
        the business of the Company as carried on at the date of Completion use
        any of the Company Intellectual Property (in particular, a name including
        the word "Pure") or use in that context anything which is intended, or
        is likely, to be confused with any of the Company Intellectual Property;
        or

	 	 	 
	 	11.1.8 	 do or say anything which is harmful to the Company's
        reputation or which may lead a person to cease to deal with the Company
        on substantially equivalent terms to those previously offered or at all.

	11.2 	
      Each restriction in clause 11.1 constitutes an entirely
      independent restriction on the Sellers and if one or more of the
      restrictions is held to be against the public interest or unlawful or in
      any way an unreasonable restraint of trade, or unenforceable in whole or
      in part for any reason, the remaining restrictions or parts thereof (as
      appropriate) shall continue to bind the Sellers.

	 	 
	11.3 	
      The Sellers, having taken independent advice, agree that
      the restrictions in clause 11.1 are reasonable and entered into for the
      purpose of protecting the goodwill of the Company. If, however, any
      restriction in clause 11.1 shall be held to be void but would be valid if
      deleted in part or reduced in application, such undertaking shall apply
      with such deletion or modification as may be necessary to make it valid
      and enforceable.

	 	 
	11.4 	
      Nothing in clause 11.1 shall prevent any of the Sellers
      from being the holder of any number of shares in the Buyer, or
      beneficially interested in any class of securities in any other company if
      such class of securities is listed or dealt in on the any Stock Exchange
      and confers not more than 3% of the votes which can generally be cast at a
      general meeting of that company.

	11.5 	
      Each of the Sellers hereby agrees with the Buyer that he
      will at the Buyer's request and cost enter into a direct undertaking
      executed as a deed with the Company whereby he will accept restrictions
      corresponding to the restrictions in clause
11.1.

	12 	
      Conduct of business during the Earn Out
      Period

	 	 
		
      The Sellers and the Buyer shall each use all reasonable
      endeavours to ensure that the provisions of Schedule 8 shall apply and be
      complied with in relation to the conduct of themselves and the business of
      the Company during the Earn Out Period

	13 	 Further undertakings and obligations
        of the Sellers

	 	 	 
		13.1 	 Waiver of Claims

	 	 	 
			 The Sellers confirm that at the date of
        this agreement (and save in respect of any accrued and unpaid salary and
        pension entitlements, and any accrued but untaken holiday entitlement,
        that any of them may have in their capacities as employees of the Company
        as set out in the Disclosure Letter):

	 	 	 
			
      13.1.1 
	neither they nor any person connected with any of them has any claim against
      the Company on any account whatsoever;
	 	 	 
			
      13.1.2 
	there are no agreements or arrangements under which the Company has any
      actual, contingent or prospective obligation to or in respect of any of
      the Sellers or any person connected with any of them; and
	 	 	 
			
      13.1.3 
	
      any claim which the Sellers or any person connected
        with any of them have or has against the Company is hereby waived in full,
        any obligation owed to the Sellers or any such connected person by the
        Company is hereby released and the Sellers indemnify the Buyer and the
        Company against any loss, liability or cost incurred in connection with
        any such claim or obligation.

	 	13.2 	Further assurance 
	 	  	  	  
	 		
      13.2.1 
	
      The Sellers covenant with the Buyer that they will at
      their own cost do everything possible to give the Buyer full and
      unrestricted legal and beneficial title to the Shares and to give effect
      to the provisions of this agreement including, on receiving the Buyer's
      reasonable request: 

	 	  	
      
	
      

	 		
      (a) 
	
      doing and executing, or arranging for the doing and
      executing of, each act, document and thing necessary to implement this
      agreement; and 

	 	  	
      
	
      

	 		
      (b) 
	
      giving to the Buyer all information they possess or to
      which they have access relating to the Company's business and allowing the
      Buyer to copy any document containing that information. 

	 	  	
      
	
      

	 		
      13.2.2 
	
      Forthwith following Completion the Sellers shall (and
      shall procure that any other person shall) send to the Buyer at its
      registered office for the time being all records, correspondence,
      documents, files, memoranda and other papers belonging to the Company and
      which are not located at the Properties or delivered at Completion
      (whether or not such documents are referred to in schedule 3).
  

	 	  	  	  
	 	13.3 	Dealing with Shares pending registration 

	 	13.3.1 	The Sellers undertake to the Buyer that for so
      long as any of them remains the registered holder of any of the Shares
      after Completion they will: 
	 	  	  
	 	(a) 	hold the Shares and the dividends and other
      distributions of profits or surplus or other assets declared, paid or made
      in respect of them after Completion and all rights arising out of or in
      connection with them in trust for the Buyer; 
	 	  	  
	 	(b) 	deal with and dispose of the Shares and all
      such dividends, distributions and rights as the Buyer may direct; 
	 	  	  
	 	(c) 	vote at all meetings which they shall be
      entitled to attend as the registered holder of the Shares in such manner
      as the Buyer shall direct; and 
	 	  	  
	 	(d) 	execute all instruments of proxy or other
      documents which the Buyer may require to enable the Buyer to attend and
      vote at any such meeting. 

	 	13.3.2 	
      For the purpose of giving effect to clause 13.3.1 each of
      the Sellers hereby appoints the Buyer (acting by any of its directors from
      time to time) to be his attorney in his name and on his behalf to exercise
      all or any of the rights in relation to the Shares as the Buyer in its
      absolute discretion sees fit from Completion to the day on which the Buyer
      or its lawful nominee is registered in the register of members of the
      Company as the holder of the relevant Shares, including: 

	 	  	
      

	 	(a) 	
      receiving notice of, attending and voting at a general
      meeting, class meeting or other meeting of the Company; 

	 	  	
      

	 	(b) 	
      completing and returning any meeting requisition, form of
      proxy, consent to short notice, written resolution or other document
      required to be signed by the registered holder of the Shares; 

	 	  	
      

	 	(c) 	
      dealing with, and giving directions as to, any moneys,
      securities, benefits, documents, notices or other communications (in
      whatever form) arising by right of the Shares or received in connection
      with the Shares from the Company or any other person; and 

	 	  	
      

	 	(d) 	
      executing, delivering and doing all deeds, instruments
      and acts in that Seller's name as may be done in the Seller's capacity as
      the registered holder of the relevant Shares, 

and for that purpose each Seller hereby
authorises the Company to send any written resolutions, notices or other
communications in respect of the Shares registered in his name to the Buyer. The
power of attorney granted by this clause 13.3.2 is granted by each Seller to
secure the interest of the Buyer in the Shares and, accordingly, shall be
irrevocable. 

	13.4     Restrictions
      on sale of Consideration Shares 
	 	  
	 	The Sellers severally covenant and undertake with the Buyer
      in respect of any Consideration Shares that they may receive pursuant to
      this agreement not to dispose or agree to dispose of any of the such Consideration
      Shares issued in their names or beneficially owned by them, or any shares
      in the capital of the Buyer into which such Consideration Shares or any
      of them are sub-divided or converted, at all within the period of eighteen
      months following the issue and allotment of the same (the “Lock
      In Period”) provided always that in relation to any such
      Consideration Shares issued and allotted in satisfaction of all or part
      of both the 2009 Earn Out and 2010 Earn Out the Lock-In Period for the purposes
      of this clause 13.4 shall be reduced to six months from the issue and allotment
      of such Consideration Shares for all Sellers.

	
      14 
	Confidential Information
      

	  
	
      
	
      
	
      

		
      14.1 
	
      Each of the Sellers undertakes with the Buyer (for itself
      and for the benefit of the Company) that he will: 

	  
	
      
	
      
	
      

			
      14.1.1 
	
      not use or disclose to a person Confidential Information
      he has or acquires; and 

	  
	
      
	
      
	
      

			
      14.1.2 
	
      make every effort to prevent the use or disclosure of
      Confidential Information. 

	  
	
      
	
      
	
      

	
      
	
      14.2 
	
      Clause 14.1 does not apply to: 

	  
	
      
	
      
	
      

			
      14.2.1 
	
      disclosure of Confidential Information to a director,
      officer or employee of the Buyer or the Company whose function requires
      him to have the Confidential Information; 

	  
	
      
	
      
	
      

			
      14.2.2 
	
      use or disclosure of Confidential Information required to
      be used or disclosed by law or by any governmental or regulatory body but
      only to the extent required by law; 

	  
	
      
	
      
	
      

			
      14.2.3 
	
      disclosure of Confidential Information to an adviser for
      the purpose of advising the Sellers but only on terms that clause 14.1
      applies to use or disclosure by the adviser; or 

	  
	
      
	
      
	
      

			
      14.2.4 
	
      Confidential Information and/or Technical Information
      which becomes publicly known except by a breach of clause 14.1. 

	  
	
      
	
      
	
      

	
      15 
	
       Announcements 

	  
	
      
	
      
	
      

		
      15.1 
	
      Subject to clauses 14 and 15.2, the Sellers shall not
      make or authorise any public announcement or other communication or
      circular concerning the terms of any matter contemplated by or ancillary
      to this agreement unless they have first obtained the consent of the
      Buyer. 

	  
	
      
	
      
	
      

	
      
	
      15.2 
	
      Notwithstanding clause 15.1: 

	  
	
      
	
      
	
      

			
      15.2.1 
	
      the Sellers may make or authorise an announcement
      required by law or any securities exchange or regulatory or governmental
      body (whether or not such requirement has the force of law) provided that:
      

	  
	
      
	
      
	
      

			
      (a) 
	
      the Sellers have consulted with and taken into account
      the requirements of the Buyer; and 

	  
	
      
	
      
	
      

			
      (b) 
	
      the Sellers have used reasonable endeavours to obtain
      confidentiality undertakings from any relevant securities exchange or
      regulatory or governmental body; and 

	  
	
      
	
      
	
      

			
      15.2.2 
	
      the Sellers may make a communication to their
      professional advisers in connection with advice relating to the
      interpretation of this agreement, proceedings relating to the enforcement
      of the terms of this agreement or otherwise. 

	  
	
      
	
      
	
      

	
      16 
	
      Assignment 
	
      

		
16.1 		
No party shall assign, transfer, charge, make the subject of a trust or deal in any other manner with this agreement or any of its rights under this agreement or purport to do any of the same without the prior written consent of
the other party except that the Buyer may assign the benefit of any provision to which it is entitled from time to time, in whole or in part and without restriction, at any time.

	
	 	 	 	 
		
16.2 		
This agreement shall be binding on and shall enure for the benefit of each party's successors and permitted assignees.

	
	 	 	 	 
	
17 		
Third party rights

	
	 	 	 	 
		
17.1 		
The Company, any person to whom the benefit of any provision of this agreement is assigned in accordance with clause 16.1 and each person falling within the category of persons described in clause 16.2 shall be entitled under the
Contracts (Rights of Third Parties) Act 1999 to enforce any term of this agreement which confers (expressly or impliedly) any benefit on any such person.

	
	 	 	 	 
		
17.2 		
Subject to clause 17.1, a person who is not a party to this agreement shall have no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce a provision of this agreement.

	
	 	 	 	 
	
18 		
Notices

	
	 	 	 	 
		
18.1 		
Any notice given under this agreement shall be in writing and signed by or on behalf of the party giving it and shall be served by delivering it by hand or sending it by pre-paid recorded delivery or registered post to the party
due to receive it, at (in the case of the Buyer) its registered office address from time to time or (in the case of the Sellers) their respective addresses set out in this agreement or (in either case) to such other address as was last notified in
writing to the other party.

	
	 	 	 	 
		
18.2 		
Subject to clause 18.3, in the absence of evidence of earlier receipt, any notice given pursuant to this clause shall be deemed to have been received:

	
	 	 	 	 
			
18.2.1 		
if delivered by hand, at the time of actual delivery to the address referred to in clause 18.1;

	
	 	 	 	 
			
18.2.2 		
in the case of pre-paid recorded delivery or registered post, two Business Days after the date of posting; and

	
	 	 	 	 
			
18.2.3 		
in the case of registered airmail, five Business Days after the date of posting.

	
	 	 	 	 
		
18.3 		
If deemed receipt occurs after 5.00pm on a Business Day or on any day which is not a Business Day, the notice shall be deemed to have been received on the next Business Day.

	
	 	 	 	 
		
18.4 		
For the avoidance of doubt, notice given under this agreement shall not be validly served if sent by e-mail.

	
	 	 	 	 
		
18.5 		
Notwithstanding any other provision of this agreement, each of the Sellers agrees that any notice to be given to or by all of the Sellers pursuant to this agreement shall be deemed to have been properly given if it is given to or
by the Sellers' Representative in accordance with clause 18.1 and the rights of the Sellers shall be deemed to have been exercised or waived on behalf of them if exercised or waived by the Sellers' Representative.

	
	 	 	 	 
	
19 		
General

	

	 	19.1 	
      Subject to clause 19.2 below and except where this
      agreement provides otherwise, each party shall pay its own costs relating
      to the negotiation, preparation, execution and performance by it of this
      agreement and of each document referred to in it.

	 	 	 
	 	19.2 	
      The reasonably and properly incurred professional fees of
      the Sellers up to a maximum of £45,000 plus VAT due thereon will be
      payable by the Buyer immediately following Completion on receipt of a
      valid invoice or invoices. A schedule of the expected qualifying
      professional fees and the manner in which those fees is to be paid is
      attached as Schedule 11

	 	 	 
	 	19.3 	
      A variation of this agreement is valid only if it is in
      writing and signed by or on behalf of each party. The Buyer and the
      Sellers shall not be required to obtain the consent of the Company or any
      other third party on whom a benefit is conferred under this agreement to
      the termination or variation of this agreement or to the waiver or
      settlement of any right or claim arising under it.

	 	 	 
	 	19.4 	
      The failure or delay in exercising a right or remedy
      provided by this agreement or by law does not constitute a waiver of that
      (or any other) right or remedy. No single or partial exercise of a right
      or remedy provided by this agreement or by law prevents the further
      exercise of that (or any other) right or remedy.

	 	 	 
	 	19.5 	
      The Buyer's rights and remedies contained in this
      agreement are cumulative and not exclusive of any rights or remedies
      provided by law.

	 	 	 
	 	19.6 	
      Except to the extent that they have been performed or
      where this agreement provides otherwise, the obligations contained in this
      agreement remain in force after Completion.

	 	 	 
	 	19.7 	
      This agreement, together with all agreements entered into
      or to be entered into pursuant to the terms of this agreement, constitutes
      the entire agreement between the parties in connection with the matters
      dealt with therein and (save in respect of fraudulent misrepresentation)
      supersedes and extinguishes all previous agreements between the parties
      (whether orally or in writing) in connection with the matters dealt with
      therein.

	 	 	 
	 	19.8 	
      Any liability to the Buyer under this agreement may be
      released, compounded or compromised (in whole or in part) and any time or
      indulgence may be given by the Buyer in its absolute discretion as regards
      any of the Sellers without in any way prejudicing or affecting the Buyer's
      rights against any of the other Sellers in respect of that (or any other)
      liability, whether joint or several or otherwise.

	 	 	 
	 	19.9 	
      If a Seller is required by law to make a deduction or
      withholding in respect of any sum payable under this agreement such sum
      shall be increased by such additional amount as will ensure that after
      such deduction or withholding (as the case may be) the Buyer will receive
      the same amount as it would have received in the absence of any such
      deduction or withholding.

	 	 	 
	 	19.10 	
      If any Tax Authority charges to Tax any sum paid by any
      of the Sellers under or pursuant to this agreement then that Seller shall
      pay such additional amount as will ensure that the total amount paid, less
      the tax chargeable on such amount, is equal to the amount that would
      otherwise be payable under this agreement.

	 	 	 
	 	19.11 	
      Each provision of this agreement is severable and
      distinct from the others. If any provision is or at any time becomes to
      any extent or in any circumstances invalid, illegal or unenforceable for
      any reason, it shall to that extent or in those circumstances be deemed
      not to form part of this agreement but (except to that extent or in those
      circumstances in the case of that provision) the validity, legality and
      enforceability of that and all other provisions of this agreement shall
      not be affected or impaired and shall remain valid and
  enforceable.

		19.12 	
      If any provision of this agreement is found to be
      illegal, invalid or unenforceable in accordance with clause 19.11 but
      would be legal, valid or enforceable if some part of the provision were
      deleted, the provision in question shall apply with such modification(s)
      as may be necessary to make it legal, valid or enforceable.

	 	 	 	 
		19.13 	
      This agreement may be executed in any number of
      counterparts each of which when executed and delivered is an original but
      all the counterparts together shall constitute the same
document.

	 	 	 	 
	20 	
      Governing law and jurisdiction

	 	 	 	 
		20.1 	
      This agreement is governed by English law.

	 	 	 	 
		20.2 	
      The courts of England have exclusive jurisdiction to hear
      and decide any suit, action or proceedings, and to settle any disputes,
      which may arise out of or in connection with this agreement and, for these
      purposes, each party irrevocably submits to the jurisdiction of the courts
      of England.

	 	 	 	 
		20.3 	
      Each party irrevocably waives any objection which it
      might at any time have to the courts of England being nominated as the
      forum to decide any suit, action or proceedings, and to settle any
      disputes, which may arise out of or in connection with this agreement and
      agrees not to claim that the courts of England are not a convenient or
      appropriate forum.

	 	 	 	 
	21 	
      Acknowledgements

	 	 	 	 
		
      The Sellers each acknowledge and/or confirm as
      follows:

	 	 	 	 
		21.1 	
      that they have such knowledge, sophistication and
      experience in business and financial matters such that they are each
      capable of evaluating the merits and risks of the investment in the
      Consideration Shares;

	 	 	 	 
		21.2 	
      they have evaluated the merits and risks of an investment
      in the Consideration Shares;

	 	 	 	 
		21.3 	
      they can bear the economic risk of such investment, and
      are able to afford a complete loss of such investment;

	 	 	 	 
		21.4 	
      the Buyer is in the early stages of development of its
      business and the Buyer’s success is subject to a number of significant
      risks, including the risk that the Buyer will not be able to finance its
      plan of operations;

	 	 	 	 
		21.5 	
      the Buyer has limited cash and working capital;

	 	 	 	 
		21.6 	
      the Buyer will have to raise additional capital in order
      to finance its plan of operations which capital may be raised by the issue
      of additional shares of its common stock which will result in dilution to
      the Seller;

	 	 	 	 
		21.7 	
      the Consideration Shares will be acquired by the Sellers
      for investment for the Sellers own account, not as a nominee or agent, and
      not with a view to the immediate resale or distribution of any part
      thereof, and that the Seller has no present intention of selling, granting
      any participation in, or otherwise distributing the same;

	 	 	 	 
		21.8 	
      they do not have any contract, undertaking, agreement or
      arrangement with any person to sell, transfer or grant participations to
      such person or to any third person, with respect to any of the
      Consideration Shares; and

	 	21.9 	
      the Seller has had full opportunity to ask questions and
      receive answers from representatives of the Buyer regarding the business,
      properties, prospects and financial condition of the Buyer, each as is
      necessary to evaluate the merits and risks of investing in the
      Consideration Shares, and the Seller believe that they have received all
      the information they consider necessary or appropriate for deciding
      whether to accept the Consideration Shares as part of the consideration
      payable to them pursuant to this agreement and have reviewed the Buyer's
      filings with the United States Securities and Exchange
  Commission.

IN WITNESS whereof the parties have executed this
agreement as a deed and it is hereby delivered on the day and year first before
written.

Schedule 1 - The Sellers

Part A

	(1) 
Name and 
Address 	(2) 
No of 
Shares
    	(3) 
No of B Ordinary
      
Shares 
	
      Darron Broad 
137 Reidhaven Road 
Plumstead
      
London 
SE18 1BX 
	- 	10 
	
      Darren Fell 
Zion Chapel 
The Street 
Poynings
      
West Sussex 
BN45 7AQ 
	74 
	200 

	
      Mark Hla 
42 St Nicholas Road 
Brighton 
BN1 3LP
      
	- 
	40 

	
      Ash Richards 
Flat 11 
Jasmine Court 
136
      Holland Road 
Hove 
BN3 1WA 
	- 
	20 
	
      Stuart Hobbs 
Flaxlands Manor 
Flaxlands North Hook
      
Swindon 
Wiltshire 
SN4 8DY 
	26 
	75

	
      Tim Brown 
13a Surrendale Place 
Maidavale
      
London 
W9 2QW 
	- 	
10 
	
      Roger North-Row 
24 Frederick Gardens 
Brighton
      
BN1 4TB 
	-
	10 
	
      Total 
	100 	365 

Schedule 2 - The Company

	1 	Registered number: 	4266410 
	 	 	 
	2 	Date of incorporation: 	7 August 2001 
	 	 	 
	3 	Place of incorporation: 	United Kingdom 
	 	 	 
	4 	Type of company: 	Private limited company 
	 	 	 
	5 	Address of registered office: 	19 New Road, Brighton, East Sussex BN1 1UF
  
	 	 	 
	6 	Principal place of business: 	United Kingdom 
	 	 	 
	7 	Authorised share capital: 	500 A ordinary shares of £1 each and 
	  	  	500 B ordinary shares of £1 each 
	 	 	 
	8 	Issued share capital: 	100 A ordinary shares of £1 each and 
	  	  	365 B ordinary shares of £1 each 
	 	 	 
	9 	Directors: 	Darren Fell, Mark Hla and Stuart Hobbs 
	 	 	 
	10 	Secretary: 	Mark Hla 
	 	 	 
	11 	Accounting reference date: 	31 March 
	  	  	  
	12 	Charges: 	None registered 

Schedule 3 - Completion

	1 	
      Items for delivery by the Sellers

	 	 	 	 
		
      The Sellers shall deliver to the Buyer:

	 	 	 	 
		1.1 	
      the Supplemental Disclosure Letter (if any);

	 	 	 	 
		1.2 	
      executed transfers transferring the Shares to the Buyer
      or its nominee(s);

	 	 	 	 
		1.3 	
      the share certificates for the Shares or an indemnity in
      the agreed form in respect of any missing certificates;

	 	 	 	 
		1.4 	
      any waiver, consent or other document necessary to give
      the Buyer or its nominee(s) full legal and beneficial ownership of the
      Shares;

	 	 	 	 
		1.5 	
      a copy (certified by a solicitor as being a true copy) of
      any power of attorney under which any document to be delivered to the
      Buyer pursuant to this schedule 3 has been executed, together (if required
      by the Buyer) with a power of attorney in a form reasonably acceptable to
      the Sellers given by each Seller in favour of the Buyer enabling the Buyer
      to exercise all voting and other rights attaching to the Shares prior to
      the transfer of the Shares to the Buyer being registered in the register
      of members of the Company;

	 	 	 	 
		1.6 	
      each register, minute book and other book required to be
      kept by the Company under the Companies Acts (in each case written up to
      Completion), each certificate of incorporation and certificate of
      incorporation on change of name for the Company and the common seal (if
      any) of the Company;

	 	 	 	 
		1.7 	
      a letter, executed as a deed, from Darren Fell resigning
      from his office as a director of the Company with effect from the end of
      the meeting held pursuant to paragraph 2 below;

	 	 	 	 
		1.8 	
      a copy (certified by the Sellers' Solicitors as being a
      true copy) of a letter, in the agreed form, to the Company from its
      accountants resigning their office with effect from Completion;

	 	 	 	 
		1.9 	
      the following documents, duly executed by the
    Company:

	 	 	 	 
				
      1.9.1 the Addendums;

	 	 	 	 
		1.10 	
      evidence in a form satisfactory to the Buyer that all
      guarantees, bonds and indemnities, securities or Encumbrances (if any)
      given by the Company in respect of the indebtedness, liabilities or
      obligations of any of the Sellers or any person connected with any of the
      Sellers have been released;

	 	 	 	 
		1.11 	
      in relation to each bank account maintained by the
      Company:

	 	 	 	 
				
      1.11.1 a copy of the mandate for that account;
  and

	 	 	 	 
				
      1.11.2 all cheque books in respect of that
  account;

	 	 	 	 
		1.12 	
      all credit, debit or other cards in the name of or for
      the account of the Company in the possession of any person resigning from
      his office or employment on Completion;

		
1.13 		
the deeds, certificates and other documents of title to the assets of the Company (other than the Property), including registration certificates and files for applications and oppositions or other registry proceedings in respect
of the Company Intellectual Property together with all applicable documentation and information relating to the Domain Names;

	
	 	 	 
		
1.14 		
evidence in a form satisfactory to the Buyer that debts (other than the Outstanding Loans) and accounts between the Company and the Sellers or any company or person connected with them have been fully paid;

	
	 	 	 
		
1.15 		
all motor vehicles owned by the Company but in the possession of any person resigning from his office or employment on Completion, together with all keys, registration documents and certificates of insurance in respect thereof.

	
	 	 	 
	
2 		
Board meeting

	
	 	 	 
		
The Sellers shall procure that a meeting of the board of directors of the Company is held at which the directors shall:

	
	 	 	 
		
2.1 		
vote in favour of the registration of the Buyer or its nominee(s) as member(s) of the Company in respect of the Shares (subject to the production of properly stamped transfers);

	
	 	 	 
		
2.2 		
change the Company's registered office to a place nominated by the Buyer;

	
	 	 	 
		
2.3 		
change the Company's accounting reference date to a date nominated by the Buyer;

	
	 	 	 
		
2.4 		
appoint persons nominated by the Buyer as directors, secretary and auditors of the Company with effect from the end of the meeting;

	
	 	 	 
		
2.5 		
revoke all existing instructions and authorities to bankers and replace such instructions and authorities with new instructions and authorities to those banks in the form required by the Buyer; and

	
	 	 	 
		
2.6 		
approve and authorise the repayment on Completion of the amounts outstanding on any directors’ loan account as disclosed in the Disclosure Letter.

	
	 	 	 
	
3 		
Obligations of the Buyer

	
	 	 	 
		
The Buyer shall:

	
	 	 	 
	
3.1 		
pay the Initial Cash Consideration to the Sellers in the manner set out in clause 3.3;

	
	 	 	 
	
3.2 		
pay to the Seller’s Solicitors the amounts due in accordance with clause 19.2 or, where required by that clause to issue Ordinary Shares, to deliver to the Seller’s Solicitors a certificate for the appropriate number of
Ordinary Shares in satisfaction of the amounts due pursuant to that clause.

	
	 	 	 
	
3.3 		
deliver to the Sellers certificates in respect of those Consideration Shares which are to be issued at Completion in accordance with clause 3.1.2, duly executed as a deed by or signed (as required) on behalf of the Buyer together
with such other documentation as the Sellers may reasonably require in order to show that such Consideration Shares have been validly issued in accordance with all applicable laws and regulations. In particular the said certificates shall bear the
following endorsement: “Fully paid and non-assessable”

	
	 	 	 
	
3.4 		
deliver to the Sellers a letter in a form reasonably acceptable to the Sellers, addressed to the Sellers and written by the Buyer’s US legal counsel confirming that those

	

		
Consideration Shares which are issued to the Sellers at Completion are validly issued, fully paid and are non-assessable.

	
	 	 
	
3.5 		
deliver to the Sellers the Share Mortgage duly executed as a deed by, or signed (as required) on behalf of, the Buyer.

	
	 	 
	
3.6 		
deliver to the Sellers the Deed of Priorities duly executed as a deed by, or signed (as required) on behalf of, the Buyer and the Lender.

	
	 	 
	
3.7 		
procure that the Company shall, and shall permit the Company to, repay the Outstanding Loans in full;

	
	 	 
	
3.8 		
take such steps as are required in order to appoint Stuart Hobbs as a director of the Buyer;

	
	 	 
	
3.9 		
deliver to the Sellers addendums, in the agreed form, to the contracts of employment of Mark Hla, Ash Richards and Roger North-Row duly executed as a deed by, or signed (as required) on behalf of, the Buyer and (in so far as the
Buyer is able to legally procure the same) on behalf of the Company.

	

Schedule 4 – Action Pending Completion

The Sellers shall ensure that the Company will:

	1 	
      not create, allot, issue, acquire, repay or redeem any
      share or loan capital or agree, arrange or undertake to do any of those
      things or acquire or agree to acquire, an interest in a corporate
    body;

	 	 	 
	2 	
      operate its business in the usual way and substantially
      in the same manner and on the same terms as in the period prior to
      Completion with a view to maintaining that business as a going
    concern;

	 	 	 
	3 	
      not without the consent of the Buyer, such consent not to
      be unreasonably withheld or delayed, acquire or dispose of, or agree to
      acquire or dispose of, an asset exceeding £10,000 in value or assume or
      incur, or agree to assume or incur, a liability, obligation or expense
      (actual or contingent) exceeding £10,000 in value;

	 	 	 
	4 	
      not without the consent of the Buyer, such consent not to
      be unreasonably withheld or delayed, make, or agree to make, capital
      expenditure save as set out in the Business Plan or otherwise exceeding in
      total £5,000 (or its equivalent at the time) or incur, or agree to incur,
      a commitment or commitments involving capital expenditure exceeding in
      total £5,000 (or its equivalent at the time);

	 	 	 
	5 	
      not declare, pay or make a dividend or
    distribution;

	 	 	 
	6 	
      not pass any resolution of, or obtain the consent from,
      its shareholders or any class of its shareholders;

	 	 	 
	7 	
      not make a claim under section 152 or 153 of TCGA which
      affects an asset owned by the Company;

	 	 	 
	8 	
      not create, or agree to create, an Encumbrance over any
      of the Properties or another asset or redeem, or agree to redeem, an
      existing Encumbrance over any of the Properties or another
asset;

	 	 	 
	9 	
      continue each of the Policies (as defined in paragraph
      23.3 of schedule 5) and not do or omit to do anything which would make any
      of the Policies void or voidable or might result in an increase in the
      premium payable under any of the Policies or prejudice the ability to
      effect equivalent insurance in the future;

	 	 	 
	10 	
      in relation to the Property:

	 	 	 
		(a) 	
      not change its existing use;

	 	 	 
		(b) 	
      not terminate, or give a notice to terminate, a lease,
      tenancy or licence;

	 	 	 
		(c) 	
      not apply for consent to do something requiring consent
      under a lease, tenancy or licence;

	 	 	 
		(d) 	
      not grant or refuse an application by a tenant, licensee
      or occupier to do something requiring its consent under a lease, tenancy
      or licence; or

	 	 	 
		(e) 	
      not agree a new rent or fee payable under a lease,
      tenancy or licence;

	
11 		
not enter into a long-term, onerous or unusual agreement, arrangement or obligation (including, without limitation, an agreement, arrangement or obligation of the type referred to in paragraph 16.1 of schedule 5);

	
	 	 
	
12 		
not amend or terminate an agreement, arrangement or obligation to which it is a party;

	
	 	 
	
13 		
not appoint any additional director or new auditors or amend the terms of employment or engagement of a director, other officer or employee (except in the usual course of its business) or provide, or agree to provide, a gratuitous
payment or benefit to a director, officer or employee (or any of their dependants) or employ, engage, or terminate the employment or engagement of, a person;

	
	 	 
	
14 		
not amend, or agree to amend, the terms of its borrowing or indebtedness in the nature of borrowing or create, incur, or agree to create or incur, borrowing or indebtedness in the nature of borrowing (except pursuant to facilities
disclosed in the Disclosure Letter where the borrowing or indebtedness in the nature of borrowing does not exceed the amount available to be drawn by the Company under those facilities);

	
	 	 
	
15 		
not give, or agree to give, a guarantee, indemnity or other agreement to secure, or incur financial or other obligations with respect to, another person's obligation;

	
	 	 
	
16 		
not amend or discontinue (wholly or partly) any pension scheme set up for the benefit of all or any of the Company’s employees or communicate to any such employee a plan, proposal or an intention to amend, discontinue (wholly
or partly), or exercise a discretion or power, in relation to such a scheme;]

	
	 	 
	
17 		
not start litigation or arbitration proceedings;

	
	 	 
	
18 		
except in the usual course of its business, not compromise, settle, release, discharge or compound litigation or arbitration proceedings or a liability, claim, action, demand or dispute, or waive a right in relation to litigation
or arbitration proceedings;

	
	 	 
	
19 		
conduct its business in all material respects in accordance with all applicable legal and administrative requirements in any jurisdiction;

	
	 	 
	
20 		
not enter into an agreement, arrangement or obligation (legally enforceable or not) in which the Seller a director or former director of the Company or a person connected with any of them (as defined in clause 1.7) is
interested;

	
	 	 
	
21 		
not make a payment out of a bank account except where the payment is in the usual course of its business or in respect of planned capital expenditure as set out in the Business Plan; and

	
	 	 
	
22 		
co-operate with the Buyer to ensure the efficient continuation of management of the Company after Completion.

	
	 	 
		
which shall include giving the Buyer, and its representatives access to the Properties during normal business hours and will allow them to inspect and copy the books, accounts, board minutes, minutes of management meetings and
other records of the Company; and

	
	 	 
	
23 		
permit a representative of the Buyer to attend all meetings of the board and management meetings of the Company as an observer and shall provide the Buyer with all notices of all such meetings.

	

Schedule 5 – General Warranties

	1 	
      Capacity and authority

	 	 	 
		1.1 	
      The Sellers have full power and authority and have taken
      all action necessary, including obtaining all necessary approvals or
      consents, to enable them to enter into and perform this agreement and all
      agreements or documents entered into, or to be entered into, pursuant to
      the terms of this agreement.

	 	 	 
		1.2 	
      This agreement and all agreements or documents entered
      into, or to be entered into, pursuant to the terms of this agreement
      constitute (or will constitute when executed) valid legal and binding
      obligations on the Sellers in accordance with their respective
    terms.

	 	 	 
		1.3 	
      The Seller is not a “U.S. Person” as defined by
      Regulation S of the Securities Act and is not acquiring the Consideration
      Shares for the account or benefit of a U.S.
Person.

		
      A “U.S. Person” is defined by Regulation S of the
      Securities Act to be any person who is: 

	 	
      (i) 
	
      any natural person resident in the United States;
  

		
      (ii) 
	
      any partnership or corporation organized or incorporated
      under the laws of the United States 

	 	
      (iii) 
	
      any estate of which any executor or administrator is a
      U.S. person; 

	 	
      (iv) 
	
      any trust of which any trustee is a U.S. person;
  

	 	
      (v) 
	
      any agency or branch of a foreign entity located in the
      United States; 

		
      (vi) 
	
      any non-discretionary account or similar account (other
      than an estate or trust) held by a dealer or other fiduciary organized,
      incorporate, or (if an individual) resident in the United States; and
    

	 	
      (vii) 
	
      any partnership or corporation if:

	 	(a) 	
      organized or incorporated under the laws of any foreign
      jurisdiction; and

	 	(b) 	
      formed by a U.S. person principally for the purpose of
      investing in securities not registered under the Act, unless it is
      organized or incorporated, and owned, by accredited Sellers (as defined in
      Section 230.501(a) of the Securities Act) who are not natural persons,
      estates or trusts;

		1.4 	
      The Seller was not in the United States at the time this
      Agreement was executed.

	 	 	 
	2 	
      The Shares

	 	 	 
		2.1 	
      Each Seller is the only legal and beneficial owner of the
      number of Shares specified opposite his name in schedule 1.

	 	 	 
		2.2 	
      The Shares comprise the whole of the Company's allotted
      and issued share capital, have been properly allotted and issued and are
      fully paid or credited as fully paid. The Company has not exercised nor
      purported to exercise or claim any lien over the Shares and no call on the
      Shares is outstanding.

	 	 	 
		2.3 	
      There is no Encumbrance, nor is there any agreement,
      arrangement or obligation to create or give an Encumbrance, in relation to
      any of the Shares or unissued shares in the capital of the Company. No
      person has claimed to be entitled to an Encumbrance in relation to any of
      the Shares.

	 	 	 
		2.4 	
      Other than this agreement, there is no agreement,
      arrangement or obligation requiring the creation, allotment, issue,
      transfer, redemption or repayment of, or the grant to a person of the
      right (conditional or not) to require the allotment, issue, transfer,
      redemption or repayment of, a share in the capital of the Company
      (including an option or right of pre-emption or
  conversion).

		
2.5 		
There is no litigation, arbitration, prosecution, administrative or other legal proceedings or dispute in existence or threatened against any Seller in relation to any of the Shares or any unissued shares in the capital of the
Company or in relation to the Sellers' entitlement to dispose of any of the Shares and there is no fact or circumstance which might give rise to any such proceedings or dispute.

	
	 	 	 	 
		
2.6 		
None of the Shares has been the subject of a transaction within the last five years where the transferor of the Shares made a gift of them or received no consideration or where the consideration (in money or money's worth) was
significantly less than the value (in money or money's worth) provided by the transferor.

	
	 	 	 	 
	
3 		
The Company

	
	 	 	 	 
		
3.1 		
Capacity of the Company

	
	 	 	 	 
			
The Company is a limited company incorporated under English law and has been in continuous existence since incorporation. The Company has the right, power, capacity and authority to conduct its business as conducted at the date of
this agreement.

	
	 	 	 	 
		
3.2 		
Subsidiary Undertakings

	
	 	 	 	 
			
3.2.1 		
Since its incorporation the Company has not been a subsidiary of another company.

	
	 	 	 	 
			
3.2.2 		
The Company does not have and has never had a subsidiary undertaking. The Company has no interest in, nor has it agreed, arranged or undertaken to acquire an interest in, or take part in the management of, a corporate body.

	

		
3.3 		
Purchase of Own Shares

	
	 	 	 	 
			
The Company has not at any time:

	
	 	 	 	 
			
3.3.1 		
purchased, redeemed or repaid any of its own share capital; or

	
	 	 	 	 
			
3.3.2 		
given any financial assistance (as set out in section 151 to 158 CA1985) in connection with any acquisition of its share capital or the share capital of any holding company of the Company from time to time.

	
	 	 	 	 
		
3.4 		
Distributions

	
	 	 	 	 
			
All dividends and distributions declared, made or paid by the Company have been declared, made or paid in accordance with its memorandum and articles of association (at the relevant time), the applicable provisions of the
Companies Acts and any agreement or arrangement made with any third party regulating the payment of dividends and distributions by the Company, complete copies of which agreements or arrangements are included in the Disclosure Documents.

	
	 	 	 	 
		
3.5 		
Written resolutions

	
	 	 	 	 
			
There is no written resolution of the Company with a circulation date prior to the date of this agreement which has not yet been passed by the members or else lapsed in accordance with CA2006.

	
	 	 	 	 
	
4 		
Constitution, registers and returns

	

	 	4.1 	
      The copy of the memorandum and articles of association of
      the Company included in the Disclosure Documents is true, complete and
      accurate and has embodied in it or annexed to it a copy of every
      resolution and agreement specified in section 29 CA2006. The Company has
      at all times carried on its business and affairs in accordance with its
      memorandum and articles of association (at the relevant time).

	 	 	 
	 	4.2 	
      Each register, minute book and other book which the
      Companies Acts require the Company to keep has been properly kept and
      contains a true, complete and accurate record of the matters which it is
      required by the Companies Acts to record. No notice has been received or
      allegation made that a register or book is incorrect or should be
      rectified.

	 	 	 
	 	4.3 	
      All returns, particulars, resolutions and other documents
      required to be delivered by the Company to the registrar of companies or
      any other governmental or other authority or agency have been properly
      prepared and delivered within the applicable time limits.

	 	 	 
	 	4.4 	
      The Company has not given any power of attorney or other
      authority by which a person may enter into an agreement, arrangement or
      obligation on the Company's behalf (other than an authority for a
      director, other officer or employee to enter into an agreement in the
      ordinary course of his duties).

	5 	
      Accounts

	 	 	 	 
		5.1 	
      General

	 	 	 	 
			
      The Accounts:

	 	 	 	 
			5.1.1 	
      are true and accurate in all respects and comply with the
      requirements of the Companies Acts, other relevant statutes and generally
      accepted accounting principles and standards in the United Kingdom at the
      date on which the Accounts were approved by the directors;

	 	 	 	 
			5.1.2 	
      give a true and fair view of the financial position and
      state of affairs of the Company as at the Accounts Date and of its profit
      or loss and cash flow for the period ending on that date;

	 	 	 	 
			5.1.3 	
      fully disclose all assets owned and/or used by the
      Company, make full reserve against all assets and fully provide for all
      bad and doubtful debts, accruals, liabilities (including Taxation and
      deferred Taxation) and capital commitments of the Company (in each case
      whether actual, contingent, unquantified or disputed);

	 	 	 	 
			5.1.4 	
      are not affected by any extraordinary, exceptional or
      non-recurring items;

	 	 	 	 
			5.1.5 	
      make full provision for depreciation of fixed assets
      having regard to their original cost and estimated life;

	 	 	 	 
			5.1.6 	
      contain or make direct reference to all information and
      factors necessary to determine accurately the gross profit margin (as that
      term is commonly understood) on the manufacture, sale or supply of
      products and/or supply of services by the Company;

	 	 	 	 
			5.1.7 	
      as far as the Sellers are aware, do not overstate the
      value of any asset or understate any liability of the Company as at the
      Accounts Date;

	 	5.1.8 	
      have been prepared on a basis wholly consistent with that
      used for the preparation of the Company's accounts for the preceding 3
      financial periods; and

	 	 	 
	 	5.1.9 	
      have been filed and laid before the Company in general
      meeting in accordance with the requirements of the Companies
  Acts.

	 	5.2 	
      Extraordinary and exceptional items

	 	 	 	 
	 		
      The results shown by the audited profit and loss account
      of the Company for each of the three financial years of the Company ended
      on the Accounts Date have not (except as disclosed in those accounts) been
      affected by an extraordinary, exceptional or non- recurring item or by any
      other fact or circumstance making the profit or loss for a period covered
      by any of those accounts unusually high or low.

	 	 	 	 
	 	5.3 	
      Valuation of stock and long-term contract
      balances

	 	 	 	 
	 		
      In the Accounts:

	 	 	 	 
	 		5.3.1 	
      stock (except long-term contract balances) was valued in
      the same way as in the three preceding financial years and on the basis of
      the lower of cost or net realisable value;

	 	 	 	 
	 		5.3.2 	
      the long-term contract balances were valued in the same
      way as in the three preceding financial years and on the basis of net cost
      less foreseeable losses and payments on account; and

	 	 	 	 
	 		5.3.3 	
      all redundant and obsolete stock was written off and all
      slow-moving and damaged stock was written down appropriately.

	 	 	 	 
	 	5.4 	
      Depreciation

	 	 	 	 
	 		5.4.1 	
      The rates of depreciation and amortisation used in the
      audited accounts of the Company for the three financial years of the
      Company ended on the Accounts Date were sufficient to ensure that each
      fixed asset of the Company will be written down to nil by the end of its
      useful life.

	 	 	 	 
	 		5.4.2 	
      The value of the fixed assets of the Company shown in the
      Accounts is at cost thereof less depreciation deducted from time to time
      in a consistent manner and there has been no revaluation of such fixed
      assets since their acquisition.

	 	 	 	 
	 	5.5 	
      Off balance sheet financing

	 	 	 	 
	 		
      The Company has not engaged in any financing (including
      incurring any borrowing or indebtedness in the nature of acceptances or
      acceptance credits) of a type which would not be required to be shown or
      reflected in the Accounts.

	 	 	 	 
	 	5.6 	
      Management reports

	 	 	 	 
	 		5.6.1 	
      There have been no reports concerning the Company by
      financial or management consultants within the three years ending on the
      date of this agreement.

	 	 	 	 
	 		5.6.2 	
      There have been no management recommendation letters
      received by the Company or its board of directors from any
  auditor.

	6 	
      Management Accounts

	 	 	 
		
      The Management Accounts have been prepared on a basis
      consistent with that previously adopted, and that the figures which appear
      at numbered lines 1, 2, 6, 9, 13, 14 and 16 to 24 inclusive in that copy
      of thee Management Accounts which appears in the Disclosure Documents are
      materially correct save that the figure for ‘Product Sales’ which appear
      at numbered line 1, represents the amounts invoiced (as opposed to amounts
      actually received).

	 	 	 
	7 	
      Records

	 	 	 
		
      7.1 All accounts, books, ledgers, financial and other
      records of whatsoever kind of the Company (including all invoices and
      other records required for VAT purposes):

	 	 	 
			
      7.1.1 have at all times been fully, properly and
      accurately maintained in accordance with the law and applicable standards,
      principles and practices generally accepted in the United
  Kingdom;

	 	 	 
			
      7.1.2 are properly written up to date;

	 	 	 
			
      7.1.3 are in the Company's possession or under its
      control;

	 	 	 
			
      7.1.4 give and reflect a true and fair view of the
      financial, contractual and trading position of the Company and of its
      plant, machinery, vehicles, equipment, fixed and current assets and
      liabilities (actual and contingent), debtors, creditors, stock and work in
      progress.

		7.2 	
      The Company is the owner of all hardware and all software
      licences necessary to enable it to use the records referred to in
      paragraph 7.1 in the manner in which they have been used prior to the date
      of this agreement and the Company does not share that hardware or software
      with any other person.

	 	 	 	 
		7.3 	
      No notice has been received by, or allegation made to,
      the Company that any of the records referred to in paragraph 7.1 are
      incorrect or should be rectified.

	 	 	 	 
		7.4 	
      All statutory records, including accounting records,
      required to be kept or filed by the Company have been properly kept or
      filed and comply with the requirements of the Companies Acts and all other
      applicable law.

	 	 	 	 
	8 	
      Changes since the Accounts Date

	 	 	 	 
		
      Since the Accounts Date:

	 	 	 	 
		8.1 	
      the Company's business has been carried on in the
      ordinary and usual course without interruption, both as regards its
      nature, extent and manner and so as to maintain it as a going
    concern;

	 	 	 	 
		8.2 	
      there has been no material adverse change in the
      turnover, financial or trading position or (as far as the Sellers are
      aware) the prospects of the Company and as far as the Sellers are aware
      there is no fact or circumstance which might give rise to any such
      change;

	 	 	 	 
		8.3 	
      there has been no reduction in the value of the net
      tangible assets of the Company on the basis of the valuations used in the
      Accounts;

	 	 	 	 
		8.4 	
      the Company has not, other than in the ordinary course of
      its business:

	 	 	 	 
			8.4.1 	
      acquired or disposed of, or agreed to acquire or dispose
      of, any business or asset; or

	 	8.4.2 	
      assumed or incurred, or agreed to assume or incur, a
      liability, obligation, expense or capital expenditure (whether, in any
      case, actual or contingent);

	 	8.5 	
      none of the fixed assets of the Company shown in the
      Accounts or acquired by the Company since the Accounts Date has been lost,
      damaged or destroyed and there has been no material reduction in their
      value;

	 	 	 
	 	8.6 	
      the Company has not made, or agreed to make, any material
      price reductions or allowances or price increases on sales of stock or the
      provision of its services;

	 	 	 
	 	8.7 	
      the Company has not changed its accounting reference
      period;

	 	 	 
	 	8.8 	
      the Company has not declared, made or paid any dividend
      or other distribution;

	 	 	 
	 	8.9 	
      no resolution of the members of the Company (or any class
      thereof) has been passed (other than routine business at the annual
      general meeting);

	 	 	 
	 	8.10 	
      the Company has not created, allotted, issued or acquired
      any share or loan capital, or made an agreement or arrangement or
      undertaken an obligation to do any of those things;

	 	 	 
	 	8.11 	
      as far as the Sellers are aware the Company has not done
      or omitted to do anything which will or might prejudicially affect the
      goodwill of the Company; and

	 	 	 
	 	8.12 	
      the Company has not been adversely affected by the
      termination, or a change in the terms, of an important agreement (being an
      agreement where the amount received by or paid out by the Company exceeds
      5% of the Company’s annual turnover in the year to the Accounts Date) or
      by the loss of or material reduction in orders from a material customer
      (being a customer from whom the Company derived income exceeding 5% of the
      Company’s annual turnover in the year to the Accounts Date) or the loss of
      or material reduction in any source of supply or by any abnormal factor
      not affecting similar businesses to a similar extent and as far as the
      Sellers are aware there is no fact or circumstance which might give rise
      to any such adverse effects.

	9 	
      Assets

	 	 	 	 
		9.1 	
      Each asset included in the Accounts or acquired by the
      Company since the Accounts Date (other than stock disposed of in the
      ordinary course of business) and each asset used by the Company or which
      is in the reputed ownership of the Company is:

	 	 	 	 
			9.1.1 	
      legally and beneficially owned by the Company free from
      any Encumbrance;

	 	 	 	 
			9.1.2 	
      where capable of possession, in the possession or under
      the control of the Company; and

	 	 	 	 
			9.1.3 	
      situated in the United Kingdom.

	 	 	 	 
		9.2 	
      The Company has not sold or transferred or agreed to sell
      or transfer any of the assets referred to in paragraph 9.1 and the Company
      has not granted or agreed to grant any Encumbrance on or over any such
      assets. There has been no exercise or purported exercise of a claim for
      any Encumbrance on or over any of those assets and there is no dispute
      directly or indirectly relating to any of those assets.

	 	 	 	 
		9.3 	
      None of the assets referred to in paragraph 9.1 has been
      purchased on terms that title does not pass to the Company until full
      payment is made by it to the supplier.

		9.4 	
      The Company owns each asset necessary or desirable for
      the effective operation of its business as carried on at the date of this
      agreement and the Company does not make use of any asset which is not
      included in the Accounts.

	 	 	 	 
	10 	
      Hire purchase and leased assets

	 	 	 	 
		
      The Company is not a party to, nor is it liable under, a
      lease or hire, hire purchase, credit sale or conditional sale
      agreement.

	 	 	 	 
	11 	
      Intellectual Property

	 	 	 	 
		11.1 	
      Ownership

	 	 	 	 
			11.1.1 	
      As far as the Sellers are aware the Company Intellectual
      Property is valid and enforceable and nothing has been done or omitted to
      be done by which it may cease to be valid.

	 	 	 	 
			11.1.2 	
      The Company Intellectual Property is legally and
      beneficially owned by the Company alone, free from any licence,
      Encumbrance, restriction on use or disclosure obligation or is licensed to
      the Company, as exclusive licensee, pursuant to an Intellectual Property
      Agreement.

	 	 	 	 
			11.1.3 	
      No Intellectual Property in relation to which any third
      party has any right, title or interest is used in or required for or by
      the Company's business.

	 	 	 	 
			11.1.4 	
      All moral rights subsisting in relation to the Company
      Intellectual Property have been irrevocably and unconditionally
    waived.

	 	 	 	 
			11.1.5 	
      The Company has not granted and is not obliged to grant a
      licence, assignment or other right in respect of any of the Company
      Intellectual Property.

	 	11.2 	Claims and infringements

	 	  	  	  
	 		
      11.2.1 
	
      The Company Intellectual Property is not and, so far as
      the Sellers are aware, will not be, the subject of a claim or opposition
      from a person (including an employee or former employee of the Company) as
      to title, validity, enforceability, entitlement or otherwise. 

	 	  	
      
	
      

	 		
      11.2.2 
	
      There is, and has been, no civil, criminal, arbitration,
      administrative or other proceeding, including any infringement
      proceedings, or any other dispute in any jurisdiction concerning any of
      the Company Intellectual Property. As far as the Sellers are aware no
      civil, criminal, arbitration, administrative or other proceeding
      concerning any of the Company Intellectual Property is pending or
      threatened and no fact or circumstance exists which might give rise to a
      proceeding of that type. 

	 	  	
      
	
      

	 		
      11.2.3 
	
      The activities, processes, methods, products or services
      carried out, used, manufactured, dealt in or supplied on or before the
      date of this agreement by the Company: 

	 	  	
      
	
      

	 		(a) 	
      do not involve the unlicensed use of a third party's
      Intellectual Property or confidential information; 

	 	  		
      

	 		(b) 	
      as far as the Sellers are aware, do not at the date of
      this agreement, nor did they at the time carried out, used, manufactured,
      dealt in or 

supplied, infringe the Intellectual
Property (including moral rights) of another person; and

		
      (c) 
	
      as far as the Sellers are aware, have not and will not
      give rise to a claim against the Company or give, have given or will give
      rise to liability to pay compensation. 

	 	
       
	
       

		
      11.2.4 
	
      No third party has made, is making or, so far as the
      Sellers are aware, is likely to make any unauthorized use of any of the
      Company Intellectual Property or has infringed or is infringing any
      Company Intellectual Property. 

	 	
       
	
       

		
      11.2.5 
	
      Neither the Company nor any other contracting party to
      any Intellectual Property Agreement or any other agreement in relation to
      the Company Intellectual Property is in breach of such agreement.
  

	11.3 	
      Adequacy of Company Intellectual
Property

	 	 	 
		11.3.1 	
      The Company Intellectual Property comprises all the
      Intellectual Property necessary for the Company to operate its business as
      carried on at the date of this agreement.

	 	 	 
		11.3.2 	
      There is no Company Intellectual Property due to lapse,
      expire or terminate within the next twelve months, the loss, termination
      or expiry of which would cause material adverse effect to the
    Company.

	 	 	 
		11.3.3 	
      All Company Intellectual Property will either be owned by
      the Company or available for use on substantially the same terms and
      conditions immediately following Completion and none of these rights shall
      be adversely affected by anything contemplated by this
agreement.

	 	 	 
	11.4 	
      Creation of Intellectual
Property

All Company Intellectual Property
created, concerned, developed or discovered by any persons retained,
commissioned, employed or otherwise engaged by the Company from time to time is
fully vested in the Company and no claim for compensation under section 40
Patents Act 1977 (or otherwise under any analogous or equivalent legislation
anywhere in the world) has been made or is likely to be made against the Company
in relation to the Company Intellectual Property.

	11.5 	
      Dealings in and maintenance of Company Intellectual
      Property

	 	 	 
		11.5.1 	
      The Company has not authorised any use of, or granted any
      rights under the Company Intellectual Property other than as disclosed in
      the Disclosure Letter.

	 	 	 
		11.5.2 	
      As far as the Sellers are aware, nothing has been done or
      omitted to be done which jeopardises the validity, subsistence or
      enforceability of any Company Intellectual Property.

	 	 	 
		11.5.3 	
      Other than in respect of license agreements entered into
      by the Company with its customers and disclosed in the Disclosure Letter,
      all agreements concerning the Company Intellectual Property, which are
      material to the Company's business as at the date of this agreement are
      valid and in force (and where applicable have been recorded at the
      relevant registry). Details of those agreements are set out in the
      Disclosure Letter and complete copies of them are included in the
      Disclosure Documents.

	 	11.5.4 	
      All material documents concerning title to and interest
      in the Company Intellectual Property (including registration certificates)
      form part of the records of the Company and will be delivered to the Buyer
      at Completion.

	 	 	 
	 	11.5.5 	
      The Company has taken all steps necessary to maintain and
      protect the Company Intellectual Property.

	12 	
      Confidential Information and Technical
      Information

	 	 	 
		12.1 	
      The Confidential Information and Technical Information
      has at all times been kept strictly confidential by the Company and this
      confidentiality has not at any time been breached.

	 	 	 
		12.2 	
      The Company has not disclosed any Confidential
      Information or Technical Information to any person except where such
      disclosure was properly made in the ordinary course of the Company's
      business pursuant to a binding confidentiality agreement (the details of
      which are set out in the Disclosure Letter and a complete copy of which is
      included in the Disclosure Documents) which requires the recipient to keep
      such information confidential, to use it only for the purpose for which it
      was disclosed by the Company and which prevents the recipient from further
      disclosing it.

	 	 	 
	13 	
      Computer Systems

	 	 	 
		13.1 	
      The Company is the owner of all elements of the Computer
      Equipment free from all Encumbrances.

	 	 	 
		13.2 	
      The functions of the Company's business dependent on the
      Computer Equipment or the Computer Software, or in connection with which
      the Computer Equipment or the Computer Software are or have been used, are
      disclosed in the Disclosure Letter and the Computer Systems have
      sufficient capacity for the efficient carrying on of the Company's
      business as at the date of this agreement.

	 	 	 
		13.3 	
      Full details of the Computer Equipment used by the
      Company and of all Computer Software are set out in the Disclosure Letter
      and accurate copies of all licences, maintenance agreements, escrow
      agreements and (where the warranties have not expired) development
      agreements in respect of that Computer Software are included in the
      Disclosure Documents. The licences of that Computer Software have been
      complied with in all material respects by the Company and any restrictions
      in those licences do not adversely affect the present conduct of the
      Company's business or any plans for its conduct currently under
      consideration.

	 	 	 
		13.4 	
      All Intellectual Property in all Computer Software used
      by the Company except that referred to in paragraph 13.3 or as otherwise
      disclosed in the Disclosure Letter, is owned by the Company.

	 	 	 
		13.5 	
      Full details of all maintenance and support agreements in
      place in respect of the Computer Equipment and/or Computer Software are
      set out in the Disclosure Letter and complete copies are included in the
      Disclosure Documents. The maintenance and support provided under those
      agreements are sufficient for the full uninterrupted use of the Computer
      Equipment and/or Computer Software.

	 	 	 
		13.6 	
      The individual components and items which together
      constitute the Computer Equipment and the Computer Software are compatible
      with each other and are not to any material extent redundant.

	 	 	 
		13.7 	
      The Company's employees at the date of this agreement
      include a sufficient number of persons who are sufficiently technically
      competent and appropriately trained to ensure the proper operation and use
      of the Computer Systems both before and after

Completion. The Computer Systems are
sufficiently documented to enable their full and proper use without reliance on
the special knowledge or memory of any person.

	 	13.8 	
      No third party has any right to prevent the Company from
      continuing to use the Computer Systems except pursuant to provisions
      contained in the documents referred to in paragraph 13.3 and no such right
      has arisen or been purportedly exercised.

	 	 	 	 
	 	13.9 	
      None of the Company's records, systems, controls, data or
      information are recorded, stored, maintained, operated or otherwise wholly
      or partly dependent upon or held by any means (including any electronic,
      mechanical or photographic process whether computerised or not) which
      (including all means of access thereto and therefrom) are not under the
      exclusive ownership and direct control of the Company.

	 	 	 	 
	 	13.10 	
      The Company has a disaster recovery plan in respect of
      damage to or destruction of some or all of the Computer Systems which is
      prudent and would permit all of the critical functions of the Company's
      business which are run on the Computer Systems to be restored within 24
      hours, the balance of functions being restored within 48 hours. The
      Company has tested that disaster recovery plan in the last twelve months
      and that test resulted in full restoration of those functions within those
      time scales.

	 	 	 	 
	 	13.11 	
      The Company has prudent procedures in place to ensure the
      security of the Computer Systems and data stored on it including by the
      use of properly administered and run password protection, data encryption,
      up to date industry standard virus checking software, procedures for
      taking and storing on site (at least once every 12 hours) and off site (at
      least once every 24 hours) back up copies of the Computer Software and all
      data stored on the Computer Equipment.

	 	 	 	 
	 	13.12 	
      The Company is not a party to a facilities management
      agreement (whether as a provider or a recipient of services) nor is the
      Company a subscriber to or provider of bureau, out sourcing or similar
      services.

	 	 	 	 
	 	13.13 	
      In the twelve month period immediately preceding the date
      of this agreement, the Company has not suffered any failures or breakdowns
      of any of the Computer Systems.

	 	 	 	 
	 	13.14 	
      The Company has in its possession or control all
      executable versions of all Computer Software in both source and object
      code except that which is licensed to the Company as referred to in
      paragraph 13.3.

	 	 	 	 
	 	13.15 	
      The Computer Software is able to perform:

	 	 	 	 
	 		13.15.1 	
      all the monetary transactions of the Company's business
      in euro in addition to sterling; and

	 	 	 	 
	 		13.15.2 	
      any conversion and rounding requirements necessary to
      give effect to the substitution of sterling by the euro as the currency of
      the United Kingdom in accordance with all applicable legislation and
      regulations.

	14 	
      Debtors / creditors

	 	 	 
		14.1 	
      No debt shown in the Accounts or the Company's accounting
      records is overdue by more than 12 weeks or is the subject of an
      arrangement not made in the ordinary course of business. A list of all
      debts of the Company as at the close of business on the Business Day prior
      to the date of this agreement is included in the Disclosure
    Documents.

	 	14.2 	
      The Company has not released a debt shown in the Accounts
      or the Company's accounting records so that the debtor has paid or will
      pay less than the debt's book value. None of those debts has been
      deferred, subordinated or written off or become non-recoverable to any
      extent.

	 	 	 
	 	14.3 	
      The Company is not entitled to the benefit of any debt
      shown in the Accounts or the Company's accounting records otherwise than
      as the original creditor and is not, and has not agreed to become, a party
      to any factoring or discounting arrangement in respect of such
    debts.

	 	 	 
	 	14.4 	
      All the debts shown in the Accounts or the Company's
      accounting records will be recoverable in full in the ordinary course of
      business, and in any event no later than three months after the date of
      Completion, and none of them is subject to dispute, counterclaim or set
      off nor is there any fact or circumstance which might give rise to any
      such dispute, counterclaim or set off.

	 	 	 
	 	14.5 	
      The Company is not owed any sums other than trade debts
      incurred in the ordinary course of its business.

	 	 	 
	 	14.6 	
      The Company has paid its creditors within the times
      agreed with them. No amount owing by the Company to a creditor has been
      due for more than four weeks. A list of all creditors of the Company as at
      the close of business on the Business Day prior to the date of this
      agreement is included in the Disclosure
Documents.

	15 	
      Agreements

	 	 	 	 
		15.1 	
      Complete copies of all material contracts to which the
      Company is a party are included in the Disclosure Documents and the
      Company is not a party to or subject to any contract, agreement or
      arrangement which:

	 	 	 	 
			15.1.1 	
      is of an onerous or unusual nature or is not of an
      entirely arms' length nature or is likely to be loss making;

	 	 	 	 
			15.1.2 	
      was entered into other than in the ordinary course of
      business;

	 	 	 	 
			15.1.3 	
      is incapable of being fully performed in accordance with
      its terms within six months of the date on which it was entered into or
      undertaken;

	 	 	 	 
			15.1.4 	
      is incapable of termination in accordance with its terms
      by the Company on 60 days' notice or less;

	 	 	 	 
			15.1.5 	
      restricts the Company's freedom to operate the whole or
      part of its business or to use or exploit any of its assets as it
      decides;

	 	 	 	 
			15.1.6 	
      constitutes a sale or purchase, option or similar
      agreement, arrangement or obligation affecting the Company's business or
      any of its assets;

	 	 	 	 
			15.1.7 	
      is one with which the Company cannot comply on time or
      without undue or unusual expenditure of money or effort;

	 	 	 	 
			15.1.8 	
      is of a loss making nature (that is to say, likely to
      result in a loss to the Company on completion of performance);

	 	 	 	 
			15.1.9 	
      involves payment by the Company by reference to
      fluctuations in the index of retail prices or any other index or in the
      rate of exchange for any currency;

	 	15.1.10 	
      is one by which the Company grants or is granted sole or
      exclusive rights;

	 	 	 
	 	15.1.11 	
      is a distributorship, agency, franchise or management
      agreement or arrangement;

	 	 	 
	 	15.1.12 	
      has or is likely to have a material effect on the
      financial or trading position or prospects of the Company;

	 	 	 
	 	15.1.13 	
      requires the performance by the Company of any
      obligations outside the United Kingdom; or

	 	 	 
	 	15.1.14 	
      confers or purports to confer a benefit or right on any
      person who is not a party to the relevant contract, agreement or
      arrangement;

	 	15.2 	
      All the material contracts, agreements or arrangements to
      which the Company is a party are in full force and effect and constitute
      valid and binding obligations on the parties to such contracts, agreements
      and arrangements which are enforceable in accordance with their
    terms.

	 	 	 
	 	15.3 	
      Neither the Company nor the Sellers have any knowledge of
      the invalidity of, or a ground for termination, avoidance or repudiation
      of, a contract, agreement or arrangement to which the Company is a party.
      No party with whom the Company has entered into a contract, agreement or
      arrangement has given notice of its intention to terminate, or has sought
      to repudiate or disclaim, the contract, agreement or arrangement. The
      Company has received no written notice of any actual or proposed changes
      to the prices or other material terms of any contracts, agreements or
      arrangements to which it is a party.

	 	 	 
	 	15.4 	
      As far as the Sellers are aware, the contracts,
      agreements and arrangements entered into by the Company have been duly
      complied with, no party to such a contract, agreement or arrangement is in
      breach of any such contract, agreement or arrangement and there is no fact
      or circumstance which might give rise to a such breach. No contract,
      agreement or arrangement to which the Company is a party is the subject of
      any dispute or claim and there is no fact or circumstance which might give
      rise to any such dispute or claim.

	 	 	 
	 	15.5 	
      There has been no delay, negligence or other default on
      the part of the Company and as far as the Sellers are aware no event has
      occurred which, with the giving of notice or passage of time, could
      constitute a breach by the Company of any of its obligations under any
      contract, agreement or arrangement to which it is a party.

	 	 	 
	 	15.6 	
      None of the other parties to any contract, agreement or
      arrangement to which the Company is a party is entitled to exercise any
      set off or counterclaim or to delay or withhold payment of any monies
      falling due under that contract, agreement or arrangement or to make
      payment to any party other than the party specified in such contract,
      agreement or arrangement.

	 	 	 
	 	15.7 	
      No offer, tender or similar arrangement is outstanding
      which is capable of being converted into an obligation of the Company by
      an acceptance or act of a third party other than any such offers, tenders
      or similar arrangements made in the ordinary course of business.

	 	 	 
	 	15.8 	
      Except for a condition or warranty implied by law or
      contained in its standard terms of business or otherwise given in the
      ordinary course of business, the Company has not given a condition or
      warranty, or made a representation, in respect of goods manufactured or
      sold (or agreed to be manufactured or sold), or services supplied (or
      agreed to be supplied), by it nor has the Company accepted an obligation
      that

could give rise to a liability after
the goods have been manufactured or sold, or services have been supplied, by
it.

	16 	
      Joint ventures and partnerships

	 	 	 	 
		16.1 	
      The Company is not, nor has it agreed to become, a member
      of any joint venture, consortium, partnership or other unincorporated
      association or a party to any agreement or arrangement for sharing
      commissions or other income.

	 	 	 	 
		16.2 	
      The Company is not a member of any partnership, trade
      association, society or other group, whether formal or informal, and
      whether or not having a separate legal identity and no such body is
      relevant to or has any material influence over the Company.

	 	 	 	 
	17 	
      Suppliers and customers

	 	 	 	 
		17.1 	
      During the year ending on the date of this agreement no
      substantial customer (being a customer from whom the Company derived
      income exceeding 5% of the

	 	 	 	 
			
      Company’s annual turnover in the year to the Accounts
      Date) or supplier of the Company has:

	 	 	 	 
			17.1.1 	
      stopped, or indicated an intention to stop, trading with
      or supplying the Company;

	 	 	 	 
			17.1.2 	
      reduced, or indicated an intention to reduce, to a
      material extent its trading with or supplies to the Company; or

	 	 	 	 
			17.1.3	
      changed, or indicated an intention to change, to a
      material extent the terms on which it is prepared to trade with or supply
      the Company (other than normal price and quota
changes).

		
      17.2 
	
      As far as the Sellers are aware, no substantial customer
      (as defined in paragraph 17.1 above) or supplier of the Company is likely
      to: 

	
      
	
      
	
      
	
      

	
      
	
      
	
      17.2.1 
	
      stop trading with or supplying the Company; 

	
      
	
      
	
      
	
       

			
      17.2.2 
	
      reduce to a material extent its trading with or supplies
      to the Company; or 

	
      
	
      
	
      
	
       

			
      17.2.3 
	
      change the terms on which it is prepared to trade with or
      supply the Company (other than normal price and quota changes). 

	
      
	
      
	
      
	
       

		
      17.3 
	
      As far as the Sellers are aware, the attitude of clients,
      customers, suppliers and employees with regard to the Company will not be
      prejudicially affected by the execution or performance of this agreement
      or a document to be executed at or before Completion. 

	
      
	
      
	
      
	
       

		
      17.4 
	
      The Company has not entered into an agreement or
      arrangement with a client, customer or supplier on terms materially
      different to its standard terms of business, a copy of which is included
      in the Disclosure Documents. 

	
      
	
      
	
      
	
       

	
      18 
	
               Data protection
      and privacy 

	
      
	
      
	
      
	
       

		
      18.1 
	
      The Company has at all times fully complied with, and at
      the date of this agreement fully complies with, the Data Protection
      Legislation including: 

	
      
	
      
	
      
	
       

	
      
	
      
	
      18.1.1 
	
      the data protection principles;

	 	18.1.2 	
      the requirements relating to notification of processing
      of personal data;

	 	 	 
	 	18.1.3 	
      data subject access requests;

	 	 	 
	 	18.1.4 	
      the obtaining of appropriate consents for direct
      marketing; and

	 	 	 
	 	18.1.5 	
      the creation and regular maintenance of appropriate
      suppression lists.

	 	18.2 	
      No information notice or enforcement notice or other
      correspondence has been received by the Company from the Information
      Commissioner or any other competent authority or industry body alleging
      non-compliance or requiring compliance with the Data Protection
      Legislation and no fact or circumstance exists that may give rise to the
      issue of such notices or correspondence.

	 	 	 
	 	18.3 	
      There is no claim or action or as far as the Sellers are
      aware, any fact or circumstance that may give rise to a claim or action
      against the Company for non- compliance with the Data Protection
      Legislation.

	19 	
      Employees

	 	 
		
      19.1 General

	
       
	
      19.1.1 
	
      There is no employment or other contract of engagement
      (written or otherwise) between the Company and any of its directors or
      other officers. The Company is not a party to a consultancy contract.
      There is no shadow director of the Company. 

	
       
	
      
	
      

	
       
	
      19.1.2 
	
      There is no employment contract between the Company and
      any of its employees which cannot be terminated by three months' notice or
      less without giving rise to a claim for damages or compensation (other
      than a statutory redundancy payment or statutory compensation for unfair
      dismissal). The Company has not received notice of resignation from any
      person occupying a senior, managerial, or sales position and the Sellers
      have no reason to believe that the sale of the Shares to the Buyer will
      result in any officer or senior employee leaving the Company. 

	
       
	
      
	
      

	
       
	
      19.1.3 
	
      There is no employment or consultancy contract or other
      contract of engagement between the Company and any person which is in
      suspension or has been terminated but is capable of being revived or
      enforced or in respect of which the Company has a continuing obligation.
      

	
       
	
      
	
      

	
       
	
      19.1.4 
	
      The Disclosure Letter contains details of: 

	
       
	
      
	
      

	
       
	(a) 	
      the total number of the Company's employees including
      details of those who are on maternity leave or absent because of
      disability or other long-term leave of absence and (in each case) have or
      may have a right to return to work with the Company; 

	
       
		
      

	
       
	(b) 	
      the name, date of start of employment, period of
      continuous employment, salary and other benefits, grade and age of each
      employee of the Company and, where an employee has been continuously
      absent from work for more than one month, the reason for the absence;
    

	
       
		
      

	 	(c) 	
      the terms of the contract of each director, other officer
      and employee of the Company; 

	 	(d) 	
      information of any disciplinary procedure taken against
      an employee within the two years ending on the date of this agreement in
      circumstances where the Employment Act 2002 (Dispute Resolution)
      Regulations 2004 apply; and 

	 	  	
       

	 	(e) 	
      information of any grievance procedure taken by an
      employee within the two years ending on the date of this agreement in
      circumstances where the Employment Act 2002 (Dispute Resolution)
      Regulations 2004 apply. 

	 	  	
       

	 	19.1.5 	Since the Accounts Date:

	 	(a) 	
      the basis of the remuneration payable to the Company's
      employees has not altered and the Company is not obliged to increase, nor
      has it made provision to increase, the total annual remuneration payable
      to its employees; and

	 	 	 
	 	(b) 	
      no alterations have been made in the terms of employment
      or conditions of service of any of the Company's employees or in the
      pension or other benefits of any of the employees or any past officer or
      employee of the Company or any of their dependants or in the terms of any
      agreement or arrangement (whether written or unwritten and whether binding
      or not) with any trade union, employee representative or body of employees
      or their representatives.

	 	19.1.6 	
      The Company owes no amount to a present or former
      director, other officer or employee of the Company (or his dependant)
      other than in respect of the Outstanding Loans, or for accrued
      remuneration, or in respect of outstanding business expenses which, to the
      extent due, have been paid or discharged in full by the officer or
      employee in question.

	 	 	 
	 	19.1.7 	
      There is no agreement or arrangement between the Company
      and an employee or former employee with respect to his employment, his
      ceasing to be employed or his retirement which is not included in the
      written terms of his employment or previous employment. The Company has
      not provided, or agreed to provide a gratuitous payment, loan or benefit
      to a director, officer or employee or to any of their
dependants.

	 	 	 
	 	19.1.8 	
      The Company has maintained up-to-date, full and accurate
      records regarding the employment of each of its employees (including
      details of terms of employment, payments of statutory sick pay and
      statutory maternity pay, income tax and social security contributions,
      disciplinary and health and safety matters) and termination of
      employment.

	 	 	 
	 	19.1.9 	
      The Company has not entered into any agreement and no
      event has occurred which may involve the Company in the future acquiring
      any undertaking or part of one such that the Transfer of Undertakings
      (Protection of Employment) Regulations 2006 may apply thereto.

	 	 	 
	 	19.1.10 	
      The Company has not dismissed any employee in
      contemplation of this transaction or in the 12 month period immediately
      preceding the date of this agreement.

	 	 	 
	 	19.1.11 	
      No outstanding offer of employment has been made by the
      Company to any person nor has any person accepted an offer of
      employment

made by the Company but who has not
yet commenced such employment.

	19.2 Payments on termination 
	 
	         Except as disclosed in
      the Accounts, the Company has not: 

	 	19.2.1 	
      incurred a liability for breach or termination of an
      employment contract including a redundancy payment, protective award or
      compensation for wrongful dismissal, unfair dismissal or failure to comply
      with an order for the reinstatement or re-engagement of an
  employee;

	 	 	 
	 	19.2.2 	
      incurred a liability for breach or termination of a
      consultancy agreement;

	 	 	 
	 	19.2.3 	
      made or agreed to make a payment or provided or agreed to
      provide a benefit to a present or former director, other officer or
      employee of the Company (or to any of his dependants) or made any other
      agreement or arrangement in connection with the actual or proposed
      termination or retirement or suspension of employment or variation of an
      employment contract; or

	 	 	 
	 	19.2.4 	
      incurred a liability in respect of any accident or injury
      which is not covered by insurance, or received notice of claim from a
      director, officer, employee or former employee indicating a potential
      liability in respect of any of the foregoing.

	 19.3 	Compliance with law 
	 	 
	 	As far as the Sellers are aware, the Company
      has complied with: 

	 	19.3.1 	
      each obligation imposed on it by, and each order and
      award made under, statute, the Treaty of Rome, EC Directive, regulation,
      code of conduct and practice, collective agreement, custom and practice
      relevant to the relations between it and its employees or a trade union or
      the terms of employment of its employees;

	 	 	 
	 	19.3.2 	
      each recommendation made by the Advisory, Conciliation
      and Arbitration Service and each award and declaration made by the Central
      Arbitration Committee;

	 	 	 
	 	19.3.3 	
      the provisions of the Employment Rights Act 1996 in
      relation to its employees;

	 	 	 
	 	19.3.4 	
      each obligation under the Working Time Regulations 1998,
      in particular, as to the hours worked by its employees and as to its
      record-keeping obligations; and

	 	 	 
	 	19.3.5 	
      the provisions of the Information and Consultation of
      Employees Regulations 2004,

and there are no enquiries or
investigations existing, pending or threatened affecting the Company in relation
to any directors, officers or employees or former officers or employees by the
Equal Opportunities Commission, the Commission for Racial Equality or the Health
and Safety Executive or any other bodies with similar functions or powers in
relation to workers.

	 	19.4 	
      Redundancies and transfer of
  business

Within the year ending on the date of
this agreement the Company has not:

	 	19.4.1 	
      given notice of redundancies to the relevant Secretary of
      State or started consultations with a trade union under Chapter II of Part
      IV of the Trade Union and Labour Relations (Consolidation) Act 1992 or
      failed to comply with its obligations under Chapter II of Part IV of that
      Act; or

	 	 	 
	 	19.4.2 	
      been a party to a relevant transfer (as defined in the
      Transfer of Undertakings (Protection of Employment) Regulations 2006) or
      failed to comply with a duty to inform and consult employee
      representatives or a trade union under those
Regulations.

	 	19.5 	
      Trade unions

	 	 	 	 
	 		19.5.1 	
      The Company has no agreement or arrangement with and does
      not recognise a trade union, works council, staff association or other
      body representing any of its employees.

	 	 	 	 
	 		19.5.2 	
      The Company is not involved in, and no fact or
      circumstance exists which might give rise to, a dispute with a trade
      union, works council, staff association or other body representing any of
      its employees.

	 	 	 	 
	 		19.5.3 	
      The Company has not received any formal request under the
      Information and Consultation of Employees Regulations 2004.

	 	 	 	 
	 	19.6 	
      Incentive schemes

The Company does not have and is not
proposing to introduce a share incentive, share option, profit sharing, bonus,
commission or other incentive scheme for any of its directors, other officers or
employees.

	 	19.7 	
      Employment claims

	 	 	 	 
	 		19.7.1 	
      There are no legal or other proceedings between the
      Company on the one hand and any director or employee of the Company or
      consultant or former director or employee of the Company or consultant on
      the other hand nor are any such proceedings pending or
  threatened.

	 	 	 	 
	 		19.7.2 	
      There are no facts, matters or circumstances which could
      give rise to any such proceedings to the best of the knowledge,
      information and belief of the Sellers.

	 	 	 	 
	 		19.7.3 	
      No court or Tribunal case, claim or action has been
      brought by any employee against the Company within the two years ending on
      the date of this agreement.

	20 	
      Pensions and other benefits

	 	 
		
      Save as set out in the Disclosure Letter the Company has
      no present, past or future obligations to make any contributions of or to
      provide any pension benefits to the employees or officers of the Company.
      All payments in respect of such benefits are up to date.

	 	 
	21 	
      Effect of sale

	 	 
		
      As far as the Sellers are aware, neither the execution
      and delivery nor the performance of this agreement or of a document or
      agreement entered into pursuant to this agreement or of any obligation
      under it will:

	 	21.1 	
      conflict with or constitute or result in a breach of or
      default under or require the consent of a person under:

	 	 	 	 
	 		21.1.1 	
      any governmental, public or contractual obligation which
      is binding upon the Company or any Seller, including the provisions of any
      Encumbrance to which the Company or any Seller is a party or by which any
      of the Shares or the Company's assets are bound or subject;

	 	 	 	 
	 		21.1.2 	
      any court order, judgment, decree, award or injunction
      which is binding upon the Company or any Seller or by which any of the
      Shares or the Company's assets are bound or subject; or

	 	 	 	 
	 		21.1.3 	
      an agreement, arrangement or obligation to which the
      Company or any Seller is a party or a legal or administrative requirement
      in relation to the Company or any Seller in any jurisdiction;

	 	 	 	 
	 	21.2 	
      result in the Company losing the benefit of an asset,
      licence, grant, subsidy, right or privilege which it enjoys at the date of
      this agreement in any jurisdiction;

	 	 	 	 
	 	21.3 	
      relieve any person from any obligation under any
      contracts to which the Company is a party or entitle any person to
      terminate any such obligation or any right or benefit enjoyed by the
      Company under any such contract;

	 	 	 	 
	 	21.4 	
      result in the creation, imposition, crystallisation or
      the enforcement of any Encumbrance on or over any of the Company's assets;
      or

	 	 	 	 
	 	21.5 	
      make the Company liable to offer for sale, transfer or
      otherwise dispose of or purchase or otherwise acquire any assets,
      including shares held by it in other bodies corporate under their articles
      of association or any agreement or
arrangement.

	22 	
      Insurance

	 	 	 
		22.1 	
      Each insurable asset of the Company has at all times been
      and is at the date of this agreement insured to its full replacement value
      against each risk normally insured against by a person operating the types
      of business operated by the Company.

	 	 	 
		22.2 	
      The Company has at all times been and is at the date of
      this agreement adequately insured against accident, damage, injury, third
      party loss (including product liability), loss of profits and all other
      risks normally insured against by a person operating the types of business
      operated by the Company.

	 	 	 
		22.3 	
      The Disclosure Letter contains a list of each current
      insurance and indemnity policy in respect of which the Company has an
      interest (together the "Policies").

	 	 	 
		22.4 	
      Each of the Policies is valid and enforceable and is not
      void or voidable. The Company has not done anything or omitted to do
      anything which might make any of the Policies void or voidable.

	 	 	 
		22.5 	
      All premiums due in respect of the Policies have been
      paid up to date and the Company has not done or omitted to do anything
      which might result in an increase in the premium payable under any of the
      Policies.

	 	 	 
		22.6 	
      No claim is outstanding under any of the Policies and
      there is no fact or circumstance which might give rise to a claim under
      any of the Policies.

	23 	
      EHS Matters

	 	 	 
		23.1 	
      The Company does not have, nor as far as the Sellers are
      aware, is it required to have any Environmental Permits.

	 	 	 
		23.2 	
      As far as the Sellers are aware, the Company has at all
      times fully complied with all EHS Laws and there is no fact or
      circumstance which might lead to any breach of, or liability under, any
      EHS Laws.

	 	 	 
		23.3 	
      There are no civil, criminal, arbitration or
      administrative actions, claims or proceedings pending or threatened
      against the Company arising from or relating to any EHS Laws and there is
      no fact or circumstance which might lead to such actions, claims or
      proceedings.

	 	 	 
		23.4 	
      The Company has not received any communication from any
      regulatory authority with regard to any alleged breach of EHS Laws and
      there have been no complaints, investigations, enquiries, requests for
      information or other formal or informal indications of any possible claims
      or legal actions in respect of EHS Matters from any person including any
      neighbour, current or former employee, or regulatory authority.

	 	 	 
		23.5 	
      There are no Hazardous Substances in, on or under the
      Property, nor have any Hazardous Substances been emitted, escaped or
      migrated from the Property.

	 	 	 
		23.6 	
      As far as the Sellers are aware, there are no asbestos
      containing materials or underground storage tanks in, on or under the
      Property.

	 	 	 
	24 	
      Finance, borrowing and guarantees

	 	 	 
		24.1 	
      Bank accounts

The Disclosure Letter contains full
details of all investment, deposit and bank accounts maintained by or on behalf
of the Company and of the banks of other financial institutions at which those
accounts are kept.

	 	24.2 	Borrowings 	  
	 	  	  	  
			
      24.2.1 
	
      Accurate details of all overdrafts, loans or other
      financial facilities outstanding or available to the Company are set out
      in the Disclosure Letter, whether or not such facilities are of a type
      which would be required to be shown in or reflected in the Accounts
      (including any indebtedness for moneys borrowed or raised under any
      acceptance credit, bond, note, bill of exchange or commercial paper,
      finance, lease, hire purchase agreement, trade bills (other than those on
      terms normally obtained) forward sale or purchase agreement or conditional
      sale agreement or other transaction having the commercial effect of a
      borrowing) and copies of all documents relating to such matters are
      included in the Disclosure Documents. Neither the Sellers nor the Company
      has done anything whereby the continuance of any such facilities in full
      force and effect might be affected or prejudiced. 

	 	  	
       
	
       

			
      24.2.2 
	
      The total amount borrowed by the Company does not exceed
      any limitations on the borrowing powers of the Company contained in:
    

	 	  	
       
	
       

	 	  	(a) 	
      the memorandum or articles of association of the Company;
      or 

	 	  		
       

	 	  	(b) 	
      any debenture or other deed or document binding on the
      Company. 

	 	  	
       
	
       

			
      24.2.3 
	
      The Company has not incurred any indebtedness other than
      in the ordinary course of business. 

	 	24.3 	
      Guarantees, indemnities and Encumbrances

	 	 	 	 
	 		24.3.1 	
      The Company is not a party to and is not liable
      (including contingently) under a guarantee, indemnity or other agreement
      to secure or incur a financial or other obligation with respect to another
      person's obligation.

	 	 	 	 
	 		24.3.2 	
      No part of the loan capital, borrowing or indebtedness in
      the nature of borrowing of the Company is dependent on the guarantee or
      indemnity of, or security provided by, another person.

	 	 	 	 
	 		24.3.3 	
      The Company does not have outstanding any Encumbrance or
      any obligation (including a conditional obligation) to create any
      Encumbrance.

	 	 	 	 
	 	24.4 	
      Events of default

	 	 	 	 
	 		24.4.1 	
      No event has been alleged or, as far as the Sellers are
      aware, has occurred which:

	 	(a) 	
      constitutes an event of default, or otherwise gives rise
      to an obligation to repay, under an agreement relating to borrowing or
      indebtedness in the nature of borrowing (or will do so with the giving of
      notice or lapse of time or both); or

	 	 	 
	 	(b) 	
      will lead to an Encumbrance constituted or created in
      connection with borrowing or indebtedness in the nature of borrowing, a
      guarantee, an indemnity or other obligation of the Company becoming
      enforceable (or will do so with the giving of notice or lapse of time or
      both).

	 	24.4.2 	 The Company has not during the two years ending on the
        date of this agreement, repaid any sum in the nature of borrowings in
        advance of any due date.

	  	24.5 	
      Grants 

	  	  	  
	
	
      The Company is not liable to repay an investment or other
      grant or subsidy made to it by a body (including the Department of
      Business, Enterprise and Regulatory Reform or its predecessor). No fact or
      circumstance (including the execution and performance of this agreement)
      exists which might entitle a body to require repayment of, or refuse an
      application by the Company for, the whole or part of a grant or subsidy.
      

	  	
      
	
      

	25 	
             
       Litigation 

	  	
      
	
      

		
      25.1 
	
      Except in relation to the collection of unpaid debts
      arising in the ordinary course of business, neither the Company nor a
      person for whose acts or defaults the Company may be vicariously liable is
      involved, or has during the two years ending on the date of this agreement
      been involved, in a civil, criminal, arbitration, administrative or other
      proceeding in any jurisdiction. No civil, criminal, arbitration,
      administrative or other proceeding in any jurisdiction is pending or
      threatened by or against the Company or a person for whose acts or
      defaults the Company may be vicariously liable. 

	  	
      
	
      

		
      25.2 
	
      To the best of the Sellers' knowledge, information and
      belief no fact or circumstance exists which might give rise to a civil,
      criminal, arbitration, administrative or other proceeding in any
      jurisdiction involving the Company or a person for whose acts or defaults
      the Company may be vicariously liable. 

		25.3 	
      There is no outstanding judgment, order, decree, arbitral
      award or decision of a court, tribunal, arbitrator or governmental agency
      in any jurisdiction against the Company or a person for whose acts or
      defaults the Company may be vicariously liable.

	 	 	 	 
		25.4 	
      Details of all material customer claims, complaints or
      returns relating to the Company that have occurred during the 12 months
      ending on the date of this agreement are contained in the Disclosure
      Letter.

	 	 	 	 
	26 	
      Insolvency, winding up, bankruptcy
    etc.

	 	 	 	 
		26.1 	
      No order or application has been made or resolution
      passed for the winding up of the Company or for the appointment of a
      provisional liquidator to the Company or for an administration order in
      respect of the Company.

	 	 	 	 
		26.2 	
      No receiver or receiver and manager has been appointed of
      the whole or part of the Company's business or assets.

	 	 	 	 
		26.3 	
      No voluntary arrangement has been proposed under section
      1 of the Insolvency Act 1986 in respect of the Company. No compromise or
      arrangement has been proposed, agreed to or sanctioned under section 425
      CA1985 in respect of the Company.

	 	 	 	 
		26.4 	
      The Company is not insolvent or unable to pay its debts
      within the meaning of section 123 of the Insolvency Act 1986. The Company
      has not stopped paying its debts as they fall due.

	 	 	 	 
		26.5 	
      No distress, execution or other process has been levied
      on an asset of the Company.

	 	 	 	 
		26.6 	
      There is no unsatisfied judgment or court order
      outstanding against the Company.

	 	 	 	 
		26.7 	
      None of the Company's assets have been the subject of a
      transaction at an undervalue within the meaning of Part IX or Part VI of
      the Insolvency Act 1986.

	 	 	 	 
		26.8 	
      No action is being taken by the registrar of companies to
      strike the Company off the register under section 652 CA1985.

	 	 	 	 
		26.9 	
      No bankruptcy order has been made in respect of any
      Seller nor has any petition been presented to make any of the Sellers
      bankrupt.

	 	 	 	 
		26.10 	
      No application has been made in respect of any Seller for
      an interim order under section 253 Insolvency Act 1986, no person has been
      appointed by the court to prepare a report in respect of any Seller under
      section 273 Insolvency Act 1986 and no interim receiver has been appointed
      to the property of any Seller under section 286 Insolvency Act
  1986.

	 	 	 	 
		26.11 	
      No Seller is unable to pay or has no reasonable prospect
      of being able to pay any debt as those expressions are defined in section
      268 Insolvency Act 1986.

	 	 	 	 
		26.12 	
      Neither the Company nor any Seller has suffered any
      equivalent or analogous proceedings or orders to any of those described
      above in this paragraph 26 under the law of any other
  jurisdiction.

	 	 	 	 
	27 	
      Compliance with law

	 	 	 	 
		27.1 	
      General

	 	 	 	 
			
      27.1.1 As far as the Sellers are aware, the Company has
      at all times carried on its business and used and dealt with its assets in
      compliance with

	 			
      all applicable legal and administrative requirements,
      laws and regulations whether of the United Kingdom or elsewhere.

	 	 	 	 
	 		27.1.2 	
      As far as the Sellers are aware, there has been no
      violation of, or default with respect to, any statute, regulation,
      directive, order, decree or judgement of any court or any governmental
      agency of the United Kingdom (or any other country in which the Company
      conducts business) by the Company.

	 	 	 	 
	 		27.1.3 	
      The Company does not carry on (and has not, at any time
      when not an authorised person under Part III Financial Services and
      Markets Act 2000, carried on) a regulated activity in the United Kingdom
      within the meaning of section 22 Financial Services and Markets Act
      2000.

	 	 	 	 
	 		27.1.4 	
      There is no outstanding liability for any industrial
      training levy or for any other statutory or governmental levy or charge in
      relation to the Company or any present or former employees.

	 	 	 	 
	 		27.1.5 	
      The Company is not and has not at any time been engaged
      in any activity governed by any consumer credit laws.

	 	 	 	 
	 	27.2 	
      Investigations

There is and has been no governmental
or other investigation, enquiry or disciplinary proceeding concerning the
Company in any jurisdiction and none is pending or threatened. As far as the
Sellers are aware, no fact or circumstance exists which might give rise to an
investigation, enquiry or proceeding of that type.

	 	27.3 	
      Unlawful payments

	 	 	 	 
	 		27.3.1 	
      Neither the Sellers, the Company nor a person for whose
      acts or defaults the Company may be vicariously liable
  has:

	 	(a) 	
      induced a person to enter into an agreement or
      arrangement with the Company by means of an unlawful or immoral payment,
      contribution, gift, or other inducement;

	 	 	 
	 	(b) 	
      offered or made an unlawful or immoral payment,
      contribution, gift or other inducement to a government official or
      employee; or

	 	 	 
	 	(c) 	
      directly or indirectly made an unlawful contribution to a
      political activity.

	 	27.3.2 	
      The Company has not:

	 	(a) 	
      acquired any asset with monies representing the proceeds
      of crime; or

	 	 	 
	 	(b) 	
      at any time received monies representing the proceeds of
      crime.

	 	27.3.3 	
      The Shares were not purchased or subscribed for by the
      Sellers with monies representing the proceeds of
crime.

	 	
      27.4 
	
      Brokerage or commissions 

	 	
       
	
       

	 		
      No person is entitled to receive from the Company a
      finder's fee, brokerage or commission in connection with this agreement or
      anything contained in it and the Company is not liable to pay to any of
      its directors, employees, agents or advisors any sum whatsoever in
      connection with the sale of the Shares. 

	28 	
      Permits

	 	 	 
		28.1 	
      For the purposes of this paragraph 28, "Permit"
      shall mean a permit, licence, consent, approval, certificate,
      qualification, specification, registration or other authorisation, or a
      filing of a notification, report or assessment, necessary in any
      jurisdiction for (i) the proper and effective operation of the Company's
      business, (ii) the Company's ownership, possession, occupation or use of
      any of its assets, (iii) the manufacture, sale or supply of any goods or
      services by the Company or (iv) the marketing of such goods or
      services.

	 	 	 
		28.2 	
      The Company has obtained and complied with the terms and
      conditions of each Permit (complete copies of which are included in the
      Disclosure Documents).

	 	 	 
		28.3 	
      Each Permit is in full force and effect and is
      unconditional or subject only to a condition that has been satisfied (and
      nothing more remains to be done under the condition). No expenditure or
      work is or will be necessary to comply with, maintain or obtain a Permit.
      There is no indication that any Permit might be revoked, suspended,
      cancelled, varied or not renewed and each action required for the renewal
      or extension of each Permit has been taken. No Permit and no condition to
      which any Permit is subject is personal to the Sellers and there are no
      circumstances which indicate that equivalent Permits (on no less
      favourable terms) would not be granted to the Company following the
      acquisition of the Shares by the Buyer.

	29 	
      Insider agreements

	 	 	 
		29.1 	
      The business of the Company is not carried on by or for
      the benefit of any person other than the Company.

	 	 	 
		29.2 	
      None of the Sellers nor any person connected with any of
      the Sellers has any direct or indirect interest in any business which has
      a close trading relationship with the Company or which is, or is likely to
      become, competitive with the Company.

	 	 	 
		29.3 	
      There is, and during the three years ending on the date
      of this agreement there has been, no agreement or arrangement (legally
      enforceable or not) affecting the Company to which a Seller is or was a
      party and in which a Seller, a director or former director of the Company
      or a person connected with any of them is or was interested in any way,
      other than a bona fide contract of employment made between the Company and
      a Seller or a director or former director of the Company in the ordinary
      course of business.

	 	 	 
		29.4 	
      Save in respect of properly accrued remuneration or
      business expenses, there is no amount owing by the Company to any Seller,
      director or former director of the Company (or any person connected with
      any such Seller, director or former director) nor does any Seller,
      director or former director of the Company (or any person connected with
      any such Seller, director or former director) have any claims against the
      Company on any account whatsoever including claims for compensation for
      loss of office, unfair dismissal or redundancy.

	 	 	 
		29.5 	
      There is no amount owing to the Company from any Seller,
      director or former director of the Company (or any person connected with
      any such Seller, director or former director) nor does the Company have
      any claims against any Seller, director or former director of the Company
      (or any person connected with any such Seller, director or former
      director) on any account whatsoever.

	30 	
      Real Property

	 	 
		
      30.1 Property comprises all
land

The Properties comprises all land and
premises owned, occupied or used by, or in the possession of, the Company or in
which the Company has an interest.

	 	30.2 	
      Title

	 	 	 	 
	 		30.2.1 	
      The Company is solely legally and beneficially entitled
      to the Properties under the terms of the lease relating to the same a
      complete copy of which is included in the Disclosure Documents (‘the
      Lease’).

	 	 	 	 
	 	30.3 	
      Appurtenant rights

	 	 	 	 
	 		30.3.1 	
      Each service necessary for the existing use of Properties
      (including, without limitation, electricity, gas and water supplies,
      sewerage and telecommunications lines) is available to the
  Company.

	 	 	 	 
	 		30.3.2 	
      So far as the Sellers are aware, the Company's access to
      the Properties is sufficient for the existing use of the Properties and is
      by means of a road adopted by the local highway authority and maintainable
      at public expense.

	 	 	 	 
	 	30.4 	
      Outgoings

So far as the Sellers are aware the
Properties are not subject to outgoings other than the uniform business rate,
water and sewerage rates and, in the case of a property held under a lease,
tenancy or licence, rent, service charge and insurance premiums or other
payments under the lease, tenancy or licence or documents ancillary thereto; all
such outgoings have been paid to date.

	 	30.5 	
      Adverse interests

	 	 	 	 
	 		30.5.1 	
      So far as the Sellers are aware the Properties are not
      nor any of the title deeds is subject to an unregistered interest which
      overrides (as set out and included in Schedules 1 and 3 of the Land
      Registration Act 2002), lease, agreement for lease or other interest and
      none is in the course of being acquired by or against the
  Property.

	 	 	 	 
	 		30.5.2 	
      There is no person in possession or occupation of, or so
      far as the Sellers are aware who has or claims a right or interest of any
      kind in, the Properties adversely to the Company's interest. The Company
      is entitled to and has exclusive vacant possession of the Properties under
      and subject to the terms of the Lease.

	 	 	 	 
	 		30.5.3 	
      So far as the Sellers are aware no fact or circumstance
      exists which adversely affects the Company's use of the
  Properties.

	 	 	 	 
	 	30.6 	
      Performance of obligations affecting the
      Property

The Company has not received any
notice stating it has breached any permit, obligation, covenant, exception,
reservation, stipulation, condition, restriction, agreement (including, without
limitation, the term of any lease) and legal, regulatory and administrative
requirement affecting the Company's ownership, occupation, possession,
development or existing use of the Properties.

	30.7 	Notices 
	 	 
		There are no outstanding notices
      affecting the Properties. 
	 
	30.8 	Compulsory acquisition

		There is no resolution for compulsory acquisition
      of the Properties by a local or other authority. 
	 	 	 	 
	30.9 	Use and construction 
	 	 	 	 
	 	 	 30.9.1 	 The Properties’ existing use is the
        lawful use permitted under: 

	 	(a) 	
      applicable town and country planning legislation;
    and

	 	 	 
	 	(b) 	
      the terms of the lease, tenancy or licence, as varied by
      any supplemental deed or document,

	 	  	
      and in neither case is that permission temporary or
      personal. 

	 	  	
       
	
       

	 		
      30.9.2 
	
      Any permission necessary for any of the Properties’
      existing use, its original construction and any subsequent alteration and
      development has been obtained and is in force. 

	 	  	
       
	
       

	 	  	
       
	
       

	 	  	
       
	
       

	 		
      30.9.3 
	
      There is no outstanding order, notice or other
      requirement of any local or other authority that affects the Properties’
      existing use or involves expenditure by the Company in complying with it
      nor any circumstances known which may result in any such order or notice
      being made or served. 

	 	  	
       
	
       

	 	30.10 	
      Condition of Property 

	 	  	
       
	
       

	 		
      30.10.1 
	
      The Sellers are not aware of a material deficiency which
      requires correction in the state or condition of any building or other
      structure on or forming part of the Properties. 

	 	  	
       
	
       

	 	
       
	
      30.10.2 
	
      So far as the Sellers are aware no flooding has affected
      the Properties. 

	 	  	
       
	
       

	 		
      30.10.3 
	
      So far as the Sellers are aware, no building or other
      structure on or forming part of the Properties contains a substance which
      was not at the date of the construction of the building or structure used
      in generally accepted good building practice. 

	 	  	
       
	
       

	 	30.11 	
      Leasehold Confirmations 

	 	  	
       
	
       

	 	         The Sellers
      confirm that so far as they are aware: 
	 	  	
       
	
       

	 		
      30.11.1 
	
      no person (including, without limitation, the landlord or
      licensor) may bring the term to an end before the expiry of the Lease by
      effluxion of time (except by forfeiture); 

	 	  	
       
	
       

	 	  	
      30.11.2 
	
      as far as the sellers are aware, there is no fact or
      circumstance which: 

	 	(a) 	
      could entitle or require a person (including, without
      limitation, a landlord or licensor) to forfeit or enter on, or take
      possession of, or occupy, any of the Properties; or

	 	 	 
	 	(b) 	
      could restrict or terminate the Company's continued and
      uninterrupted possession or occupation of the
Properties;

	 	30.11.3 	
      a rent or fee payable in respect of the Properties is not
      at the date of this agreement being reviewed;

	 		30.11.4 	
      no person (including, without limitation, a landlord or
      licensor) has elected to waive an exemption from payment by the Company of
      value added tax in respect of a payment made under the lease, tenancy or
      licence; and

	 	 	 	 
	 	30.12 	
      Outstanding property
liabilities

The Company has not been the tenant,
licensee, assignee or guarantor of any lease, licence or tenancy agreement other
than in relation to the Properties and the Company has not at any time acquired,
assigned or otherwise disposed of any leasehold property in such a way that it
retains any residence liability in respect of it.

	 	30.13 	Title Deeds 
	 	 	  
		The Company has under
      its control all title deeds and documents necessary to prove its title to
      the Properties. 

Schedule 6 – Sellers' Protections

This schedule 6 shall not apply in respect of a Claim which
arises by reason of dishonesty, wilful default, concealment or fraud.. 

	1 	
      Financial Limits

	 	 	 
		1.1 	
      The Sellers shall not be liable in respect of any
      individual Claim unless the amount claimed in respect of that particular
      Claim exceeds £2,000.00.

	 	 	 
		1.2 	
      The Sellers shall not be liable in respect of a Claim
      unless the amount of the liability in respect of that Claim when
      aggregated with the amount of the liability in respect of all other Claims
      exceeds £50,000 (in which event the Sellers shall be liable in respect of
      the full amount and not simply in respect of the excess). For the purposes
      of this paragraph 1.2 any individual Claim which does not exceed £2000.00
      shall be ignored.

	 	 	 
		1.3 	
      The total aggregate liability of all the Sellers in
      respect of all Claims and Tax Claims is limited to the aggregate value of
      the Consideration received by them.

	 	 	 
		1.4 	
      The total aggregate liability of each Seller in respect
      of all Claims and Tax Claims is limited to the aggregate value of the
      Consideration received by him.

	 	 	 
	2 	
      Time Limits

	 	 	 
	2.1 	
      The Sellers shall not be liable in respect of any Claim
      unless written notice of that Claim specifying in as much detail as is
      reasonably practicable the matter giving rise to the Claim and the nature
      and amount of the Claim is given to the Sellers on or before the 30th June
      2009.

	 	 	 
	2.2 	
      The Sellers shall not be liable in respect of any Claim
      or Tax Claim (if not previously satisfied, settled or withdrawn) unless
      legal proceedings have been issued and served on the Sellers within 9
      months of the service of notice of that Claim pursuant to paragraph 2.1 or
      within 9 months of the service of notice of that Tax Claim pursuant to
      paragraph 6.3 of Schedule 7.

	 	 	 
	3 	
      Exclusion of Liability: General

	 	 	 
		3.1 	
      Provisions in the Accounts

	 	 	 
			
      The Sellers shall not be liable in respect of a Claim to
      the extent that the Accounts include any specific provision, accrual,
      reserve or allowance for any matter relating to the subject of the
      Claim.

	 	 	 
		3.2 	
      Insurance Policies

	 	 	 
			
      Without prejudice to the subrogated rights of any
      insurer, if, in respect of any matter which would give rise to a Claim,
      the Company obtains recovery from its insurers, then to the extent that
      such recovery is made, the Claim shall then reduce by the amount recovered
      or be extinguished (as the case may be) less all reasonable costs incurred
      in connection therewith.

	 	 	 
	4 	
      Specific Limitations

	 	 	 
		4.1 	
      The Buyer shall not have any claim whatsoever against the
      Sellers in respect of any Claim to the extent:

			
4.1.1 		
that such breach or claim occurs as a result of any legislation not in force at the date hereof which takes effect retrospectively;

	
	 	 	 	 
			
4.1.2 		
that the liability to which the claim relates arises as a result of any change in the accounting policies adopted by the Company after Completion (whether or not relating to a period prior to Completion), save to the extent any
such change is required to comply with generally accepted accounting policies or principles; and

	
	 	 	 	 
			
4.1.3 		
that it would not have arisen but for a transaction entered into or other voluntary act on the part of the Company or the Buyer after Completion which is not in the ordinary course or the normal business of the Company carried on
at the date of the agreement and is not pursuant to a legally binding obligation entered into before Completion.

	
	 	 	 	 
	
5 		
Mitigation

	
	 	 	 	 
		
For the avoidance of doubt nothing in this schedule 6 shall be deemed to relieve the Buyer from its general duty to the Sellers to mitigate its loss.

	
	 	 	 	 
	
6 		
Subsequent Recovery from Third Party

	
	 	 	 	 
		
6.1 		
If the Sellers pay to the Buyer an amount in respect of a Claim and the Buyer or the Company subsequently recovers from another person an amount which specifically relates to the matter giving rise to the Claim

	
	 	 	 	 
			
6.1.1 		
if the amount paid by the Sellers in respect of the Claim is more than the Sum Recovered, the Buyer shall , as soon as reasonably practicable after it or the Company has received such amount, pay to the Seller the Sum Recovered;
and

	
	 	 	 	 
			
6.1.2 		
if the amount paid by the Sellers in respect of the Claim is less than or equal to the Sum Recovered, the Buyer shall, as soon as reasonably practicable after it or the Company has received such amount, pay to the Sellers an
amount equal to the amount paid by the Sellers.

	
	 	 	 	 
		
6.2 		
For the purposes of paragraph 6.1, "Sum Recovered" means an amount equal to the total of the amount recovered from the other person plus any interest in respect of the amount recovered from the person less all reasonable
costs and expenses (including any Taxation payable by the Buyer) incurred by the Buyer in recovering the amount from the person.

	

Schedule 7 – Tax

	1 	
      Definitions and Interpretation

	 	 	 	 
		1.1 	
      In this schedule, the following words and expressions
      have the following meanings:-

	 	 	 	 
			
      "Actual Liability to Taxation" 
any liability
      of the Company to make an actual payment of (or of an amount in respect
      of) Taxation;

	 	 	 	 
			
      "Auditors" 
the auditors for the time being of
      the Company;

	 	 	 	 
			
      "Claim" 
any claim, notice or demand,
      assessment, letter or other document issued, or action taken, by or on
      behalf of any Taxation Authority, by which it appears that:-

	 	 	 	 
			(a) 	
      the Company is or may be subject to a Liability to
      Taxation, whether or not the Company is primarily so liable and whether or
      not the Company has any right of reimbursement against any other person;
      or

	 	 	 	 
			(b) 	
      any liability or any encumbrance of the kind mentioned in
      paragraph 3.7 of this schedule may arise.

	 	 	 	 
			
      "Event"

	 	 	 	 
			
      any event whatsoever including but not limited to any
      disposition, transaction, action or omission (whether or not the Company
      and/or the Buyer is party thereto), the earning, accrual or receipt of any
      income, profits or gains, the declaration, payment or making of any
      dividend or other distribution and Completion and reference to any Event
      occurring on or before Completion shall be deemed to include any
      combination of two or more Events only the first or some of which shall
      have taken place on or before Completion where the Event or Events
      occurring after Completion is or are:

	 	 	 	 
			(a) 	
      the completion of the disposal of any asset which was
      contracted to be sold on or before Completion or the performance of any
      other act by virtue of an obligation entered into on or before Completion
      or by virtue of any other obligation howsoever imposed;

	 	 	 	 
			(b) 	
      the satisfaction of a condition to which the disposal of
      any asset pursuant to a contract entered into on or before Completion is
      subject (in which case the disposal shall, for the purposes of this
      Agreement be treated as having been made before Completion and any
      Taxation Liability arising from such disposal shall be treated as having
      arisen before Completion);

	 	 	 	 
			(c) 	
      the failure of any person (other than the Buyer or the
      Company) to discharge a liability for Tax within a specified period or the
      expiry of such a period;

	 	 	 	 
			(d) 	
      the issue or making of any Claim or the disclosure of any
      matter to a Taxation Authority in accordance with any Taxation
    statute;

	 	 	 	 
			(e) 	
      the bringing into the United Kingdom of any document
      executed prior to Completion outside the United Kingdom or the
      presentation of any document executed prior to Completion for
    stamping;

	 	 	 	 
			(f) 	
      the making of any chargeable payment (as defined in
      section 214 of the Taxes Act);

	 	 	 	 
			(g) 	
      the exercise of any option granted on or before
      Completion; or

	 	 	 	 
			(h) 	
      the first assignment of a lease that is not exempt from
      charge by virtue of any of the provisions specified in paragraph 11(3)
      Schedule 17A FA 2003 and in relation to which the assignee does not
      acquire the lease as a bare trustee of the assignor;

	 	 	 	 
			
      "FA" 
Finance Act;

"IHTA"
Inheritance Tax Act
1984;

"ITA"
Income Tax Act
2007;

"ITEPA"
Income Tax (Earnings
and Pensions) Act 2003;

"Liability to Taxation" 

	 	(a) 	
      any Actual Liability to Taxation (and, for the purposes
      of paragraph 3, the amount of such Liability to Taxation shall be the
      amount of actual payment of Taxation or the payment in respect of or by
      reference to Taxation which in each case the Company is liable to
      make);

	 	 	 
	 	(b) 	
      the loss, cancellation, nullification or clawing back (in
      whole or in part) of any Relevant Pre-Completion Relief (and, for the
      purposes of paragraph 3, if the Relevant Pre-Completion Relief lost,
      nullified, cancelled or clawed back was a deduction from or set-off
      against Taxation, the amount of such Liability to Taxation shall be the
      amount of the Relevant Pre-Completion Relief lost or if the Relevant
      Pre-Completion Relief lost was a deduction from or a set-off against
      income, profits or gains, the amount of such a Liability to Taxation shall
      be the amount of Taxation which would have been saved but for the loss of
      the Relevant Pre-Completion Relief on the basis of rates of Taxation
      current at the date of the loss);

	 	 	 
	 	(c) 	
      the set-off of any Relevant Pre-Completion Relief or any
      Post-Completion Relief against any Actual Liability to Taxation in respect
      of which the Sellers would, but for such set-off, have been liable under
      paragraph 3, or against any income, profits or gains of the Company
      earned, accrued or received on or before Completion in circumstances
      where, but for such set-off, the Company would have suffered an Actual
      Liability to Taxation in respect of which the Sellers would have been
      liable under paragraph 3 (and, for the purposes of paragraph 3, the amount
      of such a Liability to Taxation shall be the amount of the Relevant Pre-
      Completion Relief or Post-Completion Relief set-off against an Actual
      Liability to Taxation or the amount of Taxation saved as a result of the
      set-off of the Relevant Pre-Completion Relief or Post-Completion Relief
      against income, profits or gains, as the case may be);

	 	 	 
	 	(d) 	
      the loss by the Company (in whole or in part) of any
      right to repayment of Taxation or the set-off of any such right to
      repayment of Taxation or any right to repayment of Taxation which arises
      wholly or mainly as a result of any Event occurring after Completion
      against any Actual Liability to Taxation in respect of which the Sellers
      would, but for such set-off, have been liable under paragraph 3 (and for
      the purposes of paragraph 3, the amount of such a Liability to Taxation
      shall be the amount of the repayment of Taxation which would have been
      obtained but for the loss or set-off).

"PAYE" 
the mechanism
described by Taxation Statutes for the collection of income tax and national
insurance contributions from payments and benefits received by an individual in
connection with his employment;

"Post-Completion Relief"

any Relief which arises wholly or mainly as a result of or by reference to
any Event occurring after Completion;

"Relevant Pre-Completion
Relief" 
any Relief which arises wholly or mainly as a result of or by
reference to any Event occurring on or before Completion and which is treated as
an asset in the Accounts; 

"Relief" 

any relief, allowance, exemption,
set-off, deduction or credit available from, against or in relation to Taxation
or in the computation of income, profits or gains for any Taxation purpose;

"Seller Associate" 
means
any Seller and any other person with whom the Sellers or the Company is either
associated (within the meaning of section 253 of ITA) or connected (within the
meaning of sections 993 and 994 of ITA);

"Tax" or "Taxation"

	 	(a) 	
      any tax, duty, impost or levy, past or present, of the
      United Kingdom or elsewhere, whether governmental, state, provincial,
      local governmental or municipal, including, but not limited to, income tax
      (including income tax required to be deducted or withheld from or
      accounted for in respect of any payment under Part II ITEPA or otherwise),
      corporation tax, advance corporation tax, any tax required to be accounted
      for under section 419 of the Taxes Act, capital gains tax, any liability
      arising under section 207 of the Finance Act 2004, inheritance tax, value
      added tax, insurance premium tax, landfill tax, stamp duty, stamp duty
      reserve tax, stamp duty land tax, customs and other import or export
      duties, rates, national insurance and social security contributions;
      and

	 	 	 
	 	(b) 	
      any fine, penalty, charge or interest relating to any
      such tax, duty, impost or levy mentioned in paragraph (a) of this
      definition or to any account, record, form or return required to be
      submitted to any competent authority for the purposes of any such tax,
      duty, impost or levy;

"Taxation Authority" 
any
taxing or other authority, whether of the United Kingdom or elsewhere, competent
to impose any Liability to Taxation including but not limited to HM Revenue
& Customs; 

"Taxation Statute" 
any
statute (and all regulations whatsoever and other documents having the force of
law under such statute howsoever made) ordinance, directive or Act providing
for, imposing or relating to Taxation; 

"Taxes Act" 
the Income and
Corporation Taxes Act 1988;

"TCGA"
Taxation of
Chargeable Gains Act 1992; and 

"VATA"
Value Added Tax Act
1994.

	 	1.2 	
      In interpreting this schedule:

	 	 	 	 
	 		1.2.1 	
      words and expressions defined elsewhere in this agreement
      shall, unless the context otherwise requires, have the same meanings in
      this schedule as in the agreement;

	 	 	 	 
	 		1.2.2 	
      references to Events include Events which are deemed to
      have occurred for any Taxation purpose and references to income, profits
      or gains earned, accrued or received include income, profits or gains
      which are deemed to have been earned, accrued or received for any Taxation
      purpose and any reference to any Event occurring on or before Completion
      shall be deemed to include a reference to an Event which is deemed for any
      purposes of any Taxation to have occurred on or before
  Completion;

	 		1.2.3 	
      references to the loss of a Relief include the
      disallowance of a Relief, a failure to obtain a Relief or the inability of
      the Company to set off or otherwise use a Relief howsoever in the way it
      was assumed to be set off or otherwise used and references to the loss of
      a right to repayment of Taxation include the disallowance of a repayment
      of Taxation and the failure to obtain a repayment of Taxation;
  and

	 	 	 	 
	 		1.2.4 	
      the Company shall mean the Company and any or all of the
      Group Companies so that this schedule applies to each and to any of the
      Group Companies.

	 	 	 	 
	 	1.3 	
      It shall be assumed for all of the purposes of this Tax
      Schedule (and in particular for calculating any Liability to Taxation or
      any Relief) that the date of completion is the end of an accounting period
      for the purposes of section 12 of the Taxes Act (basis of and periods of
      account) and all such adjustments and apportionments as may be required
      consequent upon such assumption shall be made in assessing any liability
      or in making any calculation required under this
  Schedule.

PART 2 - TAX WARRANTIES

	2 	
      The Tax Warranties

	 	 	 
		2.1 	
      All returns, computations, accounts, information,
      notifications and payments which should be or should have been made or
      provided by the Company for any Taxation purpose have been made within the
      requisite periods and are up-to-date, correct and on a proper basis and
      none of them is or is likely to be the subject of any dispute with HM
      Revenue & Customs or any other Taxation Authority.

	 	 	 
		2.2 	
      The Company has duly deducted and accounted for all
      amounts which it has been obliged to deduct in respect of Taxation and, in
      particular, has properly operated the PAYE system by deducting Taxation,
      as required by law, from all payments made or treated as made to its
      employees or former employees and accounting to HM Revenue & Customs
      or other appropriate Taxation Authority for all Taxation deducted by it or
      Taxation in respect of which the Company is otherwise required to account
      to HM Revenue & Customs or other appropriate Taxation Authority and
      for all Taxation chargeable on benefits provided for its employees or
      former employees.

	 	 	 
		2.3 	
      The Company has complied with all relevant reporting
      obligations contained in Part 7 of ITEPA.

	 	 	 
		2.4 	
      No employee or director of the Company has acquired
      shares in any Group Company or any other company before 16 April 2003 in
      circumstances where Chapter 2 (conditional acquisition of shares) of Part
      7 of ITEPA as originally enacted could apply to the acquisition and no
      employee or director of any Group Company has acquired shares on or after
      16 April 2003 which are restricted securities within the meaning of
      section 423 ITEPA as substituted by Finance Act 2003 or has any right or
      option to acquire any such shares.

	 	 	 
		2.5 	
      No employee or director of the Company has acquired
      shares in any Company or any other company before 16 April 2003 in
      circumstances where Chapter 3 (convertible shares) of Part 7 of ITEPA as
      originally enacted could apply to the acquisition and no employee or
      director of the Company has acquired shares to which any of the provisions
      of chapters 3, 3A, 3B, 3C, 3D or 4 of Part 7 of ITEPA as substituted by FA
      2003 could apply.

	 	 	 
		2.6 	
      No employee of the Company has been granted a right to
      acquire shares in the Company or any other company to which the provisions
      of section 485 ITEPA as originally enacted or section 483 ITEPA as
      substituted by Finance Act 2003 could apply.

	 	2.7 	
      There are no employee share incentive schemes (such as
      share option schemes, savings-related share option schemes, employee share
      ownership plans or profit sharing schemes) established by the Company
      whether approved by HM Revenue & Customs or not and the Company has
      not granted any employee or director any right to acquire shares under a
      Enterprise Management Incentive scheme under Chapter 9 of Part 7 of ITEPA
      or otherwise.

	 	 	 
	 	2.8 	
      The Company will be entitled to corporation tax relief
      under Schedule 23 FA 2003 on shares acquired by its employees or on the
      acquisition of such shares, whether pursuant to the exercise of an option
      or not.

	 	 	 
	 	2.9 	
      The Company is not liable nor is it likely to become
      liable to pay, or make reimbursement or indemnity in respect of, any
      Taxation (or any amount corresponding to Taxation) in consequence of the
      failure by any other person to discharge that Taxation or amount within
      any specified period or otherwise, where the Taxation or amount relates to
      a profit, income, gain, transaction, event, omission or circumstances
      arising, occurring or deemed to arise or occur (whether wholly or partly)
      prior to Completion.

	 	 	 
	 	2.10 	
      No relief (whether by way of deduction, reduction,
      set-off, exemption, repayment or allowance, or otherwise) from, against or
      in respect of any Taxation has been claimed and/or given to the Company
      which could or might be effectively withdrawn, postponed, restricted or
      otherwise lost as a result of any act, omission, event or circumstances
      arising or occurring at any time after Completion.

	 	 	 
	 	2.11 	
      The Company has maintained and has in its possession and
      under its control all records and documentation which it is required by
      any of the Tax Statutes to maintain and the Company has complete and
      accurate books and records and/or information to enable it to calculate
      its future liability to Tax upon the disposal of any asset owned by the
      Company at the date of this agreement.

	 	 	 
	 	2.12 	
      Since the Accounts Date, the Company has not incurred or
      become liable to incur expenditure which will not be wholly deductible in
      computing its taxable profits.

	 	 	 
	 	2.13 	
      There has not been a change in the basis of computing
      trade profits in the last three accounting periods.

	 	 	 
	 	2.14 	
      The provision for Taxation both current and deferred
      contained in the Accounts is complete and accurate in all respects and
      without prejudice to the generality of the foregoing makes full provision
      for all Taxation liable to be assessed on the Company or for which it will
      become accountable in respect of the period ended on the Accounts Date
      whether or not the Company has or may have any right of reimbursement
      against any other person.

	 	 	 
	 	2.15 	
      The Company has not at any time been a close company as
      defined in section 414 of the Taxes Act or a close investment holding
      company as defined in section 13A of the Taxes Act.

	 	 	 
	 	2.16 	
      The Company has not at any time made any payment or
      incurred any expense or provided any benefit or facility of whatever kind
      falling to be dealt with under section 418 of the Taxes Act or made any
      loan or advance or payment or given any consideration or effected any
      transactions falling within sections 419 to 422 of the Taxes Act
      (inclusive).

	 	 	 
	 	2.17 	
      There are not in existence any circumstances whereby any
      such power as is mentioned in section 212 IHTA could be exercised in
      relation to any shares in, securities of, or assets of, the
  Company.

	 	2.18 	
      The Company is not liable to be assessed to corporation
      tax on chargeable gains or to inheritance tax as donor or donee of any
      gift as transferor or transferee of value.

	 	 	 
	 	2.19 	
      The Company has not been a party to associated operations
      in relation to a transfer of value within the meaning of section 268
      IHTA.

	 	 	 
	 	2.20 	
      No HM Revenue & Customs charge (as defined in section
      237 IHTA) is outstanding over any asset of the Company or in relation to
      any shares in the capital of the Company.

	 	 	 
	 	2.21 	
      The Company has not received any asset as mentioned in
      section 282 TCGA.

	 	 	 
	 	2.22 	
      The Company has not been party to any transaction in
      respect of which the relevant Tax Authority may substitute for Tax
      purposes a different amount or value than the amount or value of the
      actual consideration given or received by the Company including, for the
      avoidance of doubt, any transactions to which sections 770 and 770A or
      Schedule 28AA of the Taxes Act might apply.

	 	 	 
	 	2.23 	
      No deduction for a payment of interest by the Company has
      been or is likely to be disallowed by Schedule 28AA of the Taxes
    Act.

	 	 	 
	 	2.24 	
      On disposal of an asset of the Company for a
      consideration equal to the value attributed to the asset in the Accounts,
      no chargeable gain or profit (disregarding the effects of any indexation
      relief available) will arise and no liability to corporation tax will
      arise (disregarding a statutory right to claim an allowance or
    relief).

	 	 	 
	 	2.25 	
      In preparing the Accounts, the value used for each asset
      or class of assets in respect of which a separate computation for capital
      allowances is required (whether as a result of an election or otherwise)
      is such that, on a disposal of that asset or all the assets in that class
      for a consideration equal to the value used (and disregarding a statutory
      right to claim an allowance or relief), no balancing charge would be
      made.

	 	 	 
	 	2.26 	
      No Liability to Taxation (other than value added tax)
      would arise if the Company were to dispose of an asset acquired since the
      Accounts Date for a consideration equal to the consideration actually
      given for the acquisition.

	 	 	 
	 	2.27 	
      Since the Accounts Date, the Company has not entered into
      or been a party to a transaction which will or may give rise to a
      liability to corporation tax on chargeable gains.

	 	 	 
	 	2.28 	
      Neither the execution nor the performance of, nor any
      action taken in pursuance of, this agreement, nor any other event,
      transaction, act or omission since the Accounts Date will result in any
      asset of the Company being deemed to have been disposed of and reacquired
      under section 179 TCGA.

	 	 	 
	 	2.29 	
      The Company has never been a partner in a partnership to
      which the rules of schedule 15 FA 2006 apply.

	 	 	 
	 	2.30 	
      The Company has not entered into or been a party to any
      election of the kind specified in section 179A TCGA.

	 	 	 
	 	2.31 	
      The Company has not been a party to a loan relationship
      which has been or which may be treated as being for an unallowable purpose
      within the meaning of paragraph 13 schedule 9 FA 1996.

	 	 	 
	 	2.32 	
      The Company has not engaged in or been a party to any
      scheme or arrangement of which the main purpose, or one of the main
      purposes, was the avoidance of or a reduction in the Liability to
      Taxation.

	 	2.33 	
      The Company has not been a party to, or acted as a
      promoter of, any notifiable arrangements or notifiable proposals within
      the meaning of sections 306 and 307 FA 2004.

	 	 	 	 
	 	2.34 	
      The Company is registered for the purposes of the VATA,
      has made, given, obtained and kept up-to-date, full and accurate records,
      invoices and documents appropriate or required for the purposes of the
      VATA, has complied in all respects with all other applicable VAT
      legislation and in particular has filed all returns and made all payments
      of VAT on a timely basis and has not been required by a Taxation Authority
      to give security under the VATA.

	 	 	 	 
	 	2.35 	
      The Company is not and has never been a member of a group
      of companies for the purpose of section 43 VATA.

	 	 	 	 
	 	2.36 	
      The Company has not been liable to a penalty under
      section 63 VATA.

	 	 	 	 
	 	2.37 	
      The Company does not own any asset which is a capital
      item, the input tax on which may be subject to adjustment in accordance
      with Part XV of the Value Added Tax Regulations 1995.

	 	 	 	 
	 	2.38 	
      Neither the Company, nor a company of which the Company
      is a relevant associate within the meaning of paragraph 3(7) schedule 10
      VATA, has elected to waive the exemption under paragraph 2 schedule 10
      VATA in relation to any land or buildings.

	 	 	 	 
	 	2.39 	
      All value added tax payable on the import of goods and
      all customs duties and duties of excise payable to a Taxation Authority in
      respect of any asset (including, without limitation, trading stock)
      imported or owned by the Company has been paid.

	 	 	 	 
	 	2.40 	
      The Company has not been a party to, or acted as a
      promoter of, any designated scheme or notifiable scheme within the meaning
      of Schedule 11A VATA 1994.

	 	 	 	 
	 	2.41 	
      All documents to which the Company is a party and which
      are chargeable with stamp duty have been duly stamped with the correct
      amount of duty. In the event of any breach of this warranty, the amount of
      damages payable shall be an amount equal to the appropriate amount of
      stamp duty together with any interest, penalties, costs and expenses
      relating thereto.

	 	 	 	 
		2.42 	
      The Company has never made any claim for relief or
      exemption under section 42 FA 1930, section 151 FA 1995, or sections 75 to
      77 FA 1986 (inclusive) and no circumstances exist whereby any relief
      claimed under section 42 FA 1930 or section 151 FA 1995 may be withdrawn
      including but not limited to the operation of section 111 FA
  2002.

	 	 	 	 
	 	2.43 	
      The Company has not entered into any agreement in respect
      of property in the UK which has been executed outside the UK with an
      agreement to keep the original of such an agreement outside the
  UK.

	 	 	 	 
	 	2.44 	
      Stamp duty land tax has been paid in full in respect of
      all estates or interests in land acquired on or after 1 December 2003 by
      the Company and there are no contingent liabilities or requirements to
      submit a further land transaction return in relation to:

	 	 	 	 
			
      2.44.1 
	properties acquired as a going concern for the purposes of section 49
      VATA;
	 	 	 	 
	 		2.44.2 	
      contingent, uncertain or unascertained
    consideration;

	 	 	 	 
	 		2.44.3 	
      transactions capable of being treated as linked for the
      purposes of section 108 FA 2003;

	 	2.44.4 	
      any lease subject to the provisions of paragraph 8 of
      Schedule 17A FA 2003 on account of the rent being variable or
      uncertain;

	 	 	 
	 	2.44.5 	
      leases subject to the provisions of paragraph 14 of
      Schedule 17A FA 2003 being leases subject to an abnormal increase of rent
      after the fifth year of grant;

	 	 	 
	 	2.44.6 	
      leases the assignment of which would be deemed to be the
      grant of a new lease; or

	 	 	 
	 	2.44.7 	
      any other arrangement capable of giving rise to a further
      charge to stamp duty land tax.

	 	2.45 	
      The Company has not claimed relief from stamp duty land
      tax under Part 1 (group relief) or Part 2 (reconstruction and acquisition
      relief) of Schedule 7 FA 2003 in relation to any estate or interest in
      land that has been transferred to it.

	 	 	 
	 	2.46 	
      No stamp duty land tax relief was claimed on the grant of
      any lease to the Company which could result in an assignment of the lease
      by the Company being deemed to be the grant of a new lease.

	 	 	 
	 	2.47 	
      The Company has sufficient records to identify which (if
      any) of the intangible fixed assets shown in the Accounts are "existing
      assets" within the meaning of paragraph 118(3) Schedule 29 FA
  2002.

	 	 	 
	 	2.48 	
      If the Company realised each of its intangible fixed
      assets to which Schedule 29 FA 2002 applies for a consideration equal to
      its book value as shown in or adopted for the purposes of the Accounts, no
      credit would be required to be brought into account.

	 	 	 
	 	2.49 	
      The Company does not have nor has had at any time since
      immediately before 6 April 1999 any unrelieved surplus advance corporation
      tax within the meaning given to that term by section 32 FA 1998.

	 	 	 
	 	2.50 	
      Since the Accounts Date the Company has
  not:

	 	2.50.1 	
      made any payment which is or may be treated as a
      distribution for the  purposes of sections 209 to 211 of the
      Taxes Act (inclusive); 

	 	  	
       

		2.50.2 	
      entered into or been a party to any transaction or series
      of transactions outside the ordinary course of normal trading of the
      Company. For the purposes of this warranty none of the following shall be
      regarded as an event which has occurred in the ordinary course of normal
      trading of the Company: 

	 	  	
       

		(a) 	
      an event giving rise to a liability under section 126 and
      schedule 23 FA 1995; 

	 	  	
       

	 	(b) 	
      an event giving rise to a liability under part 13 of ITA;
      

	 	  	
       

		(c) 	
      an event which results in the Company being liable for
      Taxation for which they are not primarily liable; 

	 	  	
       

	 	(d) 	
      the failure by the Company to deduct or account for
      Taxation; or 

	 	  	
       

		(e) 	
      any event which gives rise to a liability in respect of
      Taxation on deemed (as opposed to actual) income, profits or gains.
  

	 	2.51 	
      The Company is and has always been resident only in the
      UK, does not have a permanent establishment outside the UK and has not
      incurred any liability to tax outside the UK and does not own a
      shareholding interest in a company resident outside the UK.

	 	 	 
	 	2.52 	
      The Company has never been subject to any recovery action
      in respect of tax payable to an overseas Taxation
  Authority.

PART 3 - THE COVENANT

	3 	
      Covenant

	 	 	 	 
		
      Subject as hereinafter provided, the Sellers jointly and
      severally hereby covenant with the Buyer to pay to the Buyer an amount
      equal to the amount of:-

	 	 	 	 
		3.1 	
      any Liability to Taxation or any depletion in the value
      of the assets of the Company which has arisen or may arise directly or
      indirectly by reason of or in connection with any Event occurring on or
      before Completion, whether or not in any such case any Taxation in
      question is chargeable against or attributable wholly or partly to or
      recoverable wholly or partly from any other person, and including (without
      prejudice to the generality of the foregoing):

	 	 	 	 
			3.1.1 	
      any Liability to Taxation which arises in connection with
      or in respect of or by reference to any income, profits or gains earned,
      accrued or received on or before Completion or in respect of a period
      ended on or before Completion;

	 	 	 	 
			3.1.2 	
      

	 	3.2 	
      any liability of the Company to make a payment in respect
      of Taxation under any indemnity, covenant, guarantee or charge entered
      into on or before Completion;

	 	 	 	 
	 	3.3 	
      any Liability to Taxation which arises in consequence of
      the Company having at any time on or before Completion been a member of a
      group of companies for any Taxation purpose;

	 	 	 	 
	 	3.4 	
      any Liability to Taxation which arises in consequences of
      the failure by any person who is or has been a Seller Associate to
      discharge a Liability to Taxation which falls upon such Seller Associate
      in respect of any income, profits or gains, earned, accrued or received at
      any time by such Seller Associate;

	 	 	 	 
	 	3.5 	
      any Liability to Taxation arising from the Consideration
      being treated as employment income;

	 	 	 	 
	 	3.6 	
      any Liability to Taxation which arises in respect of a
      chargeable gain as a result of the Company ceasing after Completion to use
      an asset acquired on or before Completion for the purposes of a trade as
      mentioned in section 154(2)(b) TCGA or as a result of the expiry after
      Completion of a period of 10 years beginning on or before Completion with
      the acquisition of an asset as mentioned in section 154(2)(c)
  TCGA;

	 	 	 	 
	 	3.7 	
      any inheritance tax which has not previously been
      satisfied or discharged in full by the Sellers or any of them
  which

	 	 	 	 
	 		3.7.1 	
      arises in consequence of any transfer of value effected
      by the Company prior to Completion; or

	 	3.7.2 	
      is at Completion a charge on any of the shares or assets
      of the Company or which gives rise to a power to sell, mortgage or charge
      any of the shares or assets of the Company; or

	 	 	 
	 	3.7.3 	
      after Completion becomes a charge on or gives rise to a
      power to sell, mortgage or charge any of the shares or assets of the
      Company, being a liability in respect of inheritance tax payable on or by
      reason of the death of any person after a transfer of value occurring
      prior to Completion; and

		3.8 	
      any costs, fees or expenses reasonably incurred by the
      Company or the Buyer in connection with any Liability to Taxation
      mentioned in paragraphs 3.1 to 3.6 (inclusive), or any liability or
      encumbrance mentioned in paragraph 3.7, or with any Claim relating to any
      such Liability to Taxation or other liability or encumbrance, or with
      taking or defending any action under this schedule.

	 	 	 	 
	4 	
      Deductions from Payments

	 	 	 	 
		4.1 	
      Except as required by law all payments under this
      schedule shall be made gross, free of any rights of counterclaim or
      set-off and without any deductions or withholdings of whatever nature save
      that the Sellers shall be entitled to set off against any payments due
      under this schedule any unpaid Consideration that is due to
them.

	 	 	 	 
		4.2 	
      If any deduction or withholding is required by law to be
      made from any payment by the Sellers under this schedule, the Sellers
      undertake to pay to the Buyer such additional amount as is necessary to
      ensure that the net receipt by the Buyer (after any such deduction or
      withholding) is equal to the amount which it would have received and
      retained had the payment in question not been subject to deduction or
      withholding.

	 	 	 	 
		4.3 	
      If the Buyer or the Company is liable to make a payment
      of Taxation in respect of any payment under this schedule (or would have
      been so liable but for the availability of any Relevant Pre-Completion
      Relief or any Post-Completion Relief or right to repayment of Taxation
      which relates to any period after Completion), the Sellers undertake to
      pay to the Buyer such additional amount as would have been required to be
      paid under paragraph 4.2 had the amount of such payment of Taxation been a
      deduction or withholding from the payment which gave rise to the liability
      to make such payment of Taxation.

	 	 	 	 
	5 	
      Due Date for Payment

	 	 	 	 
		5.1 	
      The due date for the making of a payment under paragraphs
      3.1 to 3.7 shall be the date falling five Business Days after the Buyer
      has served notice on the Sellers demanding such payment and, in any case
      involving a liability of the Company to make an actual payment of
      Taxation, if later the date falling five Business Days before the last
      date upon which the Company is obliged to make such payment in order to
      avoid incurring any fine, penalty or interest in respect of unpaid
      Taxation.

	 	 	 	 
		5.2 	
      The due date for the making of a payment under paragraph
      3.8 shall be the date falling five Business Days after the Buyer has
      served notice on the Sellers demanding such payment.

	 	 	 	 
		5.3 	
      The due date for the making of a payment under paragraph
      4 shall be:

	 	 	 	 
			5.3.1 	
      in any case falling within paragraph 4.2, the date upon
      which the Sellers are liable to make the payment from which a deduction or
      withholding is required by law; or

	 		5.3.2 	
      in any case falling within paragraph 4.3, the date
      falling five Business Days after the date upon which the Buyer has served
      notice on the Sellers demanding such payment.

	 	 	 	 
	 	5.4 	
      If any payment required to be made by the Sellers under
      this schedule is not made by the due date, ascertained in accordance with
      paragraphs 5.1, 5.2 or 5.3 (as the case may be), then, except to the
      extent that the Sellers' liability under paragraph 3 compensates the Buyer
      for the late payment by virtue of its extending to interest, such payment
      shall bear interest at the annual rate of 4 per cent above Barclays Bank
      PLC's base lending rate from time to time, accruing on a daily basis, from
      the due date for payment until payment is made, whether before or after
      any judgement.

PART 4 - LIMITATIONS AND GENERAL

	6 	
      Limitations

	 	 	 	 	 
		6.1 	
      The Sellers shall not be liable for breach of the Tax
      Warranties nor shall the covenant contained in paragraph 3.1.1 apply in
      respect of a Liability to Taxation mentioned in paragraph 3.1.1 to the
      extent to which:

	 	 	 	 	 
			6.1.1 	
      a specific provision, or reserve or allowance has been
      made in the Accounts for such Liability to Taxation; or

	 	 	 	 	 
			6.1.2 	
      such Liability to Taxation would not have arisen but for
      any Event occurring in the ordinary course of business of the Company
      between the Accounts Date and Completion; or

	 	 	 	 	 
			6.1.3 	
      such Liability to Taxation would not have arisen but for
      any change in the rates of Taxation or statutorily imposed variation in
      the method of applying or calculating rates of Taxation in each case
      occurring after Completion but with retrospective effect;

	 	 	 	 	 
			6.1.4 	
      such Liability to Taxation would not have arisen but for
      anything voluntarily done or omitted to be done outside the ordinary
      course of business after Completion by the Buyer or the Company other
      than:

	 	 	 	 	 
				(a) 	
      any act carried out pursuant to a legally binding
      obligation of the Company entered into before Completion;

	 	 	 	 	 
				(b) 	
      an act which the Company was required to do by any
      legislation (whether relating to Tax or otherwise);

	 	 	 	 	 
				(c) 	
      any disclosure to a Tax Authority or other government,
      state, municipal, local or federal regulatory authority; or

	 	 	 	 	 
				(d) 	
      the payment of any stamp duty or the bringing into the
      United Kingdom of any document entered into by the Company before
      Completion;

	 	 	 	 	 
			6.1.5 	
      such Liability to Taxation would not have arisen or would
      have been reduced or eliminated but for a failure or omission on the part
      of the Buyer or the Company after Completion to make any claim or election
      or to give any notice or consent or to do any other thing in relation to
      Taxation which was taken into account in the Accounts provided that such
      claim, election, notice or consent was disclosed to the Buyer in the
      Disclosure Letter;

	 	6.1.6 	
      such Liability to Taxation would not have arisen but for
      a change in the accounting reference date of or of any accounting policies
      of the Company other than any changes required to comply with generally
      accepted accounting principles;

	 	 	 
	 	6.1.7 	
      a payment in respect of such Liability to Taxation has
      been made or such Liability to Taxation has otherwise been settled or
      discharged on or before Completion (and such payment, entitlement or
      discharge is taken into account in the Accounts);

	 	 	 
	 	6.1.8 	
      such Liability to Taxation arises in respect of the
      profits earned by the Company since the Accounts Date in the ordinary
      course of its business; or

	 	 	 
	 	6.1.9 	
      such Liability to Taxation relates to unpaid VAT or PAYE
      and associated employer and employee national insurance contributions in
      both cases incurred in the ordinary course of business in so far as they
      have not fallen due to be paid.

	 	6.2 	
      For the purposes of paragraph 6.1.2 and 6.1.4 none of the
      following shall be regarded as an Event occurring in the ordinary course
      of business of the Company:-

	 	 	 	 
	 		6.2.1 	
      any distribution (within the meaning of Part VI (with
      section 418) of the Taxes Act) or deemed distribution;

	 	 	 	 
	 		6.2.2 	
      the acquisition or disposal of any asset (including
      trading stock) or the supply of any service or business facility of any
      kind (including a loan of money or the letting, hiring or licensing of any
      tangible or intangible property) in circumstances where the actual
      consideration (if any) for such acquisition, disposal or supply is
      different from the consideration deemed to have accrued or been received
      for any Taxation purpose;

	 	 	 	 
	 		6.2.3 	
      any Event which gives rise to a Liability to Taxation
      under Part XVII of the Taxes Act;

	 	 	 	 
	 		6.2.4 	
      any Event which gives rise to a Liability to Taxation
      primarily chargeable against or attributable wholly or partly to or
      recoverable wholly or partly from any other person;

	 	 	 	 
	 		6.2.5 	
      a disposal of capital assets;

	 	 	 	 
	 		6.2.6 	
      an Event giving rise to a liability under section 419 of
      the Taxes Act; or

	 	 	 	 
	 		6.2.7 	
      an Event in respect of which Taxation arises as a result
      of a failure of the Company to deduct or account for Taxation whether in
      accordance with any Taxation Statute or
otherwise.

	 	6.3 	
      The Sellers shall not be liable in respect of a Tax Claim
      unless the Buyer has given the Sellers written notice of such Tax Claim
      (stating in reasonable detail the nature of such Tax Claim and, if
      practicable, the amount claimed) on or before the seventh anniversary of
      Completion in respect of such Tax Claim unless a Tax Authority is able to
      assess the Company because of fraudulent or negligent conduct.

	 	 	 
	 	6.4 	
      The total aggregate liability of all the Sellers in
      respect of all Tax Claims is limited to the aggregate value of the
      Consideration received by them.

	 	 	 
	 	6.5 	
      The total aggregate liability of each Seller in respect
      of all Tax Claims is limited to the aggregate value of the Consideration
      received by him.

	7 	
      Claims Procedure

	 	 	 	 
		7.1 	
      Upon the Buyer becoming aware of any Claim, the Buyer
      shall as soon as reasonably practicable, and in any event within seven
      years of the date hereof, give notice of such Claim to the Sellers and
      upon the Buyer becoming aware of any event, fact or circumstance which may
      give rise to such a Claim, the Buyer shall give notice thereof and of the
      possible Claim to the Sellers, provided that the giving of notice under
      this paragraph 7.1 shall not be a condition precedent to the liability of
      the Sellers under this schedule.

	 	 	 	 
		7.2 	
      Subject to paragraphs 7.3 to 7.7 (inclusive), the Buyer
      shall procure that the Company (at the Sellers' expense and provided that
      the Sellers shall first secure and indemnify the Company and the Buyer to
      the reasonable satisfaction of the Buyer against the Liability to Taxation
      which is the subject of the Claim and against all losses, costs, damages
      and expenses, including interest on overdue Taxation and additional
      Taxation, which may be incurred thereby) takes such action and gives such
      information and assistance in connection with the dispute of the Claim as
      the Sellers may reasonably and promptly request in writing to avoid,
      resist, appeal against or compromise any Claim relevant for the purposes
      of this schedule, including but not limited to applying to postpone (so
      far as legally possible) the payment of any Taxation provided that the
      Sellers shall not be entitled to require the Company or the Buyer to
      delegate the conduct of such action to the Sellers or any agent or
      professional adviser.

	 	 	 	 
		7.3 	
      The Buyer shall keep the Sellers informed of all material
      matters pertaining to any dispute, appeal, negotiations or other
      proceedings conducted by or at the request of the Sellers pursuant to
      paragraph 7.2 and shall provide the Sellers with copies of all material
      correspondence pertaining thereto.

	 	 	 	 
		7.4 	
      The Buyer shall not be obliged to take or to procure the
      taking of the following action pursuant to paragraph 7.2:

	 	 	 	 
			7.4.1 	
      the submission of any proposal to settle or compromise
      the relevant Claim made by the Sellers of which it does not approve (such
      approval not to be unreasonably withheld or delayed); or

	 	 	 	 
			7.4.2 	
      the agreement to the settlement or compromise of any
      Claim or any proposal for such settlement or compromise which is likely to
      affect the future Liability to Taxation of the Company unless the Sellers
      indemnify and secure the Company to its and the Buyer's reasonable
      satisfaction against such future Liability to Taxation; or

	 	 	 	 
			7.4.3 	
      the contest of any Claim before any court or other
      appellate body (including the General Commissioners of HM Revenue &
      Customs, the Special Commissioners of HM Revenue & Customs and the VAT
      and Duties Tribunal) unless at their cost and expense the Sellers obtain
      the written opinion of tax counsel, being a member of the Revenue Bar
      Association, of not less than fifteen years' call, after disclosure of all
      relevant information and documents and having regard to all the
      circumstances that on the balance of probabilities the action will
      succeed; or

	 	 	 	 
			7.4.4 	
      the compliance with any unreasonable instruction of the
      Sellers or the taking of any action or procuring the taking of any action
      which it reasonably considers will be onerous or prejudicial to the
      Company.

	 	 	 	 
		7.5 	
      If the Sellers do not request the Buyer to take action
      pursuant to paragraph 7.2 or shall fail to indemnify and secure the
      Company and the Buyer in accordance with

paragraph 7.2 within fourteen days of
the giving of notice to the Sellers, the Buyer and the Company shall be free to
settle or pay the Claim on such terms as they shall in their absolute discretion
think fit. 

		7.6 	
      For the avoidance of doubt it is agreed and declared that
      nothing contained in this paragraph 7 shall oblige the Buyer to prevent
      the Company from making a payment of Taxation at the time necessary to
      avoid incurring any fine, penalty or interest in respect of any unpaid
      Taxation.

	 	 	 	 
		7.7 	
      If the Sellers or the Company have committed acts or
      omissions which constitute or are alleged to constitute fraudulent or
      negligent conduct paragraphs 7.2 to 7.4 (inclusive) shall not apply and
      the Sellers shall cease to have any rights thereunder.

	 	 	 	 
	8 	
      Recovery from Third Parties

	 	 	 	 
		8.1 	
      If the Company or the Buyer recovers or becomes aware
      that it is entitled to recover from any third party (including any
      Taxation Authority but excluding the Company, the Buyer and any officer or
      employee of either of them) any amount which is referable to a Liability
      to Taxation in respect of which the Sellers have made payment under
      paragraph 3.1, the Buyer shall as soon as reasonably practicable give
      notice of that fact to the Sellers and shall take or procure that the
      Company takes (at the Sellers' expense and provided that the Sellers
      indemnify and secure the Buyer and the Company to the reasonable
      satisfaction of the Buyer against all losses, costs, damages and expenses
      which may be incurred thereby) any action necessary to effect such
      recovery which the Sellers may reasonably request in writing, and the
      Buyer shall repay to the Sellers the lesser of:

	 	 	 	 
			8.1.1 	
      the amount so recovered; and

	 	 	 	 
			8.1.2 	
      the amount paid by the Sellers under paragraph 3.1 in
      respect of the Liability to Taxation in question less any part of such
      amount previously repaid to the Sellers under any provision of this
      schedule or elsewhere under this agreement or otherwise
howsoever

	 	 	 	 
			
      and less an amount equal to any Taxation which arises in
      consequence of such recovery.

	 	 	 	 
		8.2 	
      Where the Sellers have made payment to the Buyer in
      relation to such a charge, mortgage or other power as is mentioned in
      paragraph 3.8 and they or any of them obtain a certificate of discharge in
      relation thereto pursuant to the provisions of section 239 IHTA, the Buyer
      shall, no later than five Business Days following the presentation to the
      Buyer of such certificate of discharge, make repayment to the Sellers of
      an amount equal to the lesser of:-

	 	 	 	 
			8.2.1 	
      the sum to which such certificate of discharge relates;
      and

	 	 	 	 
			8.2.2 	
      the amount paid by the Sellers under paragraph 3.8 in
      respect of the charge, mortgage or other power in question less any part
      of such previously repaid to the Sellers under any provision of this
      schedule or elsewhere under this agreement or otherwise
  howsoever.

	 	 	 	 
	9 	
      Reliefs

	 	 	 	 
		9.1 	
      If a Liability to Taxation under paragraph 3, which has
      resulted in a payment by the Sellers under Part 3 of this schedule, has
      given rise to a Relief for the Company which would not otherwise have
      arisen, the Sellers shall be entitled to request the preparation, at their
      own expense, of a certificate (a "Relief Certificate"). The Relief
      Certificate shall be prepared by the Auditors and shall state the amount
      of such Relief (if any) and show in detail how such amount is
      determined.

		
9.2 		
If the amount stated in a Relief Certificate is used to eliminate or reduce an Actual Liability to Taxation, then the Buyer shall pay to the Sellers (in such proportion as the Sellers shall notify to the Buyer) an amount equal to
the lesser of-

	
	 	 	 	 
			
9.2.1 		
the Actual Liability to Taxation which has been eliminated; or

	
	 	 	 	 
			
9.2.2 		
the amount by which such Actual Liability to Taxation is reduced.

	
	 	 	 	 
		
9.3 		
Payment shall be due by the Buyer under this paragraph 9 on the date on which the payment of the Actual Liability to Taxation is or would have been due or, where appropriate, the date on which the Company receives a repayment in
respect of the Relief. The amount which the Buyer is liable to pay hereunder shall not in any case exceed the amount paid by the Sellers under this schedule in respect of the Liability to Taxation which has given rise to the Relief in question.

	
	 	 	 	 
	
10 		
Supplemental Provisions

	
	 	 	 	 
		
10.1 		
All payments by the Sellers under this schedule shall be treated as repayments by the Sellers of the consideration paid for the Shares pursuant to this agreement provided that this paragraph 10.1 shall not operate to limit the
liability of the Sellers hereunder.

	
	 	 	 	 
		
10.2 		
The Sellers shall remain liable under this schedule if any Liability to Taxation which is the subject of this schedule is or has been discharged by the Buyer or the Company whether before or after the date of this agreement.

	

Schedule 8
Conduct of Business During the Earn Out
Period

During the Earn Out Period the following provisions shall
apply:

	1 	
      The Company shall carry on its activities in the
      ordinary, usual and normal course in an efficient and business like manner
      on sound commercial profit making principles.

	 	 
	2 	
      The Company shall not compete with the Buyer or any
      member of the Buyer's Group in relation to any of the products or services
      in the Buyer's or any member of the Buyer's Group's portfolio of products
      and services. The Buyer shall not (and shall procure that no member of the
      Buyer's Group shall) compete with the Company in relation to any of the
      products or services in the Company’s portfolio of products and
      services.

	 	 
	3 	
      Subject to paragraph 23, the Company shall be managed by
      the board of directors for the time being of the Company (the
      "Board") who shall have full operational management
    authority.

	 	 
	4 	
      Subject to paragraph 23, the maximum number of directors
      at any one time on the Board shall be four. The Buyer shall be entitled to
      appoint two directors and the Managers shall together be entitled to
      appoint two directors. The Buyer and the Managers shall take all necessary
      steps to ensure that such nominees are appointed Directors. The first
      Directors deemed to be appointed by the Managers shall be Stuart Hobbs and
      Mark James Hla and the first Directors appointed by the Buyer shall be
      Nigel Nicholas and Peter Ahman. Any person appointed as a Director by the
      Buyer or the Managers may be removed from the Board by the person who so
      appointed them, who may then appoint another person in his place. During
      the Earn Out Period only, and provided that the monthly management
      accounts (to be provided in accordance with paragraph 10) shall show over
      any rolling three month period that the Company is anticipated to achieve
      annual Profits of at least 80% of each of the target Profit of, £725,000
      in the 12 months ending 31st March 2009 and £1,025,000 in the
      12 months ending 31st March in 2010 then Stuart Hobbs (or such
      other person as the Managers may nominate) shall be entitled to act as
      Chairman of the Board and shall have a casting vote. At the end of the
      second Cash Consideration according to Clause 3.1.3, or if at any time the
      management accounts show that the Company is unlikely to achieve 80% of
      the required Profit target for each quarter in the year ended 31st
      March 2009 (as stated above) then the Buyer shall be entitled to
      designate who shall be the Chairman of the Board in place of Stuart Hobbs
      (or such other person as the Managers have nominated).

	 	 
	5 	
      The salary and remuneration packages of the Managers
      shall be determined by the Board. During the Earn Out Period the base
      salary of Mark Hla shall not exceed £70,000 per annum. Bonuses, commission
      payments and overtime may be agreed by the Board in addition to his basic
      salary, but his overall remuneration package shall not exceed £100,000 per
      annum in aggregate without the prior approval of the Buyer. During the
      Earn Out Period the salary payable to Stuart Hobbs shall not exceed
      £50,000 per annum. Bonuses, commission payments and overtime may be agreed
      by the Board in addition to his basic salary, but his overall remuneration
      package shall not exceed £100,000 per annum in aggregate without the prior
      approval of the Buyer. In accordance with the contract terms of his
      appointment he will be required to devote such time and attention to the
      Company as is required to ensure the profit targets set out in the
      Business Plan are achieved. Subject to sub-paragraph 25 (s) of this
      Schedule, salaries of other senior staff shall be at the discretion of the
      Board.

	 	 
	6 	
      The Managers shall not be engaged in any other business
      interests to those of the Company without the prior consent of the Buyer.
      In this regard the Buyer shall have regard to the materiality of any
      impact of such business interests on the Company and the compliance of the
      relevant Seller with the terms of his Service Agreement. Provided that
      anticipated annualised profit levels are within those specified in
      paragraph 4 (namely 80% of each of the target Profit of £ 725,000 in the
      12 months ending 31st March 2009 and £1,025,000 the 12 months
      ending 31st March 2010) Stuart Hobbs
will

be permitted to act as a part time
non-executive director for no more than three separate independent companies
with the prior approval of the Buyer (such approval not to be unreasonably
withheld or delayed where such independent companies are not competitors of the
Company or the Buyer).

	7 	
      If a Manager acts in any way which is in material and
      deliberate breach of the terms of his Service Agreement, or the terms of
      this agreement, and does not remedy such breach within 28 days of
      receiving written notice requiring its remedy then (without prejudice to
      the provisions of paragraph 4 above) that Manager shall, if so required by
      the Buyer, immediately resign as a director, but not as an employee of the
      Company.

	 	 
	8 	
      Unless otherwise agreed by the Buyer, Board meetings
      shall be held monthly.

	 	 
	9 	
      The Company shall at all times maintain accurate and
      complete accounting and other financial records in accordance with the
      requirements of all applicable laws and generally accepted principles
      applicable in the UK and, subject thereto, on the basis of the same
      accounting standards and principles as the Buyer shall apply to its own
      accounting and other financial records;

	 	 
	10 	
      The Buyer and its authorised representatives shall be
      allowed access at all reasonable times to examine the books and records of
      the Company;

	 	 
	11 	
      The Company shall prepare monthly management accounts in
      respect of the Company in such form as the Buyer shall reasonably require
      and shall send copies to the Buyer and to each Manager within 20 days of
      the end of the month in question;

	 	 
	12 	
      The Company shall prepare and send copies to the Buyer
      and to each Manager within 23 days of the end of each month a management
      report covering commercial activity of the Company in a format required by
      the Buyer from time to time;

	 	 
	13 	
      The Company shall take out and maintain valid insurances
      in respect of all its insurable assets and business against all the risks
      which are normally issued against by companies carrying on similar
      business for such amounts as are in the circumstances prudent;

	 	 
	14 	
      The Company shall wherever possible use the standard
      terms of business (including, without limit, the terms on which software
      shall be licensed to customers) and other standard documentation produced
      by the Buyer (acting reasonably) from time to time;

	 	 
	15 	
      The Buyer or its duly authorised agent(s) shall be
      entitled at all reasonable times to have access to any property used by
      any member of the Company to inspect the same.

	 	 
	16 	
      Nothing will be done or agreed to be done without the
      approval of the Board which has the effect of artificially increasing or
      inflating (or decreasing or deflating) the profitability of the Company
      for any relevant financial period above the level which would have been
      achieved had the Company's business been carried on in the usual, ordinary
      and normal course.

	 	 
	17 	
      The Buyer will ensure that the Company is provided with
      sufficient financial resources to enable it to achieve the forecasts set
      out in the Business Plan. The cash will be managed centrally by the Buyer
      and sufficient cash will be supplied to the company on a month by month
      basis to ensure it meets its liabilities and can make the investments
      agreed by the Board in line with its Business Plan. The cash generated
      which in excess of the amount needed to meet the Company’s liabilities and
      investments will be transferred into a Group bank account nominated by the
      Buyer. The specific cash to be retained in the Company on a month by month
      basis shall be as set out in the Business Plan. The relevant figure which
      will be retained at the end of any month is the following months budgeted
      expenditure as shown on the Rounded Cash Retained figure contained in the
      Business Plan.

	 	 
	18 	
      The invoicing of goods, products and services will be
      effected in the usual, ordinary and normal course and will not be
      accelerated or advanced.

	 	 
	19 	
      The purchasing of stock and expenditure on capital and
      other items (including marketing) will be effected in the usual, ordinary
      and normal course and will not be delayed or postponed.

	 	 
	20 	
      Equipment will be maintained and repaired in the usual,
      ordinary and normal course.

	 	 
	21 	
      No Manager will enter into any contract or agreement
      under which the Company may incur costs or liabilities in excess of
      £25,000 with any customer or third party which

		
purports to bind the Company unless such contract terms have been previously approved in writing by the Buyer, such approval not be unreasonably withheld or delayed by the Buyer

	
	 	 	 
	
22 		
All transactions and arrangements between any member of the Company and any customer or client of any member of the Buyer’s Group shall be on normal arms length terms.

	
	 	 	 
	
23 		
The Company will not do or agree to do anything which has the effect of artificially reducing the overheads of the Company below the level which would have been required had the Company's business been carried on in the usual,
ordinary and normal course

	
	 	 	 
	
24 		
Notwithstanding the provisions of paragraphs 3 and 4, if any Manager or the Company is in breach of any of the provisions of this Schedule and shall fail to rectify such breach within 14 days of written notice from the Buyer or if
the monthly management accounts shall show the anticipated annualised profit levels are below those specified in paragraph 4 then the maximum limit to the number of directors under paragraph 4 shall cease to apply and the Buyer shall be entitled to
appoint further persons as directors of the Company to operate the business of the Company and following any such appointment the Buyer shall use its reasonable endeavours to procure that the business of the Company is run in the ordinary and normal
course.

	
	 	 	 
	
25 		
The Company shall not without the prior consent of both the Buyer and the Managers (whose consent shall not be unreasonably withheld or delayed):

	
	 	 	 
		
(a) 		
issue any loan capital or enter into any commitment with any person with respect to the issue of any loan capital;

	
	 	 	 
		
(b) 		
make any borrowing;

	
	 	 	 
		
(c) 		
enter into any composition or scheme of arrangement with its creditors;

	
	 	 	 
		
(d) 		
engage in any business other than the business of the Company as carried on at Completion (the “Business”) or make any material change in the nature of the Business or in the conduct of the Company's affairs;

	
	 	 	 
		
(e) 		
form any subsidiary or acquire shares in any other company or participate in any partnership or joint venture (incorporated or not) or appoint any distributor or agent of its products or enter into any similar arrangements,
whether in the UK or overseas;

	
	 	 	 
		
(f) 		
enter into any revenue sharing or licensing arrangement;

	
	 	 	 
		
(g) 		
close down any business operation;

	
	 	 	 
		
(h) 		
amalgamate or merge the Business with any other company or business undertaking;

	
	 	 	 
		
(i) 		
enter into any transaction or arrangement of any nature whatsoever with any of the Managers or any member of the Buyer's Group; or with any person who is connected (within the meaning of section 839 Taxes Act) to any of the same
whether or not any other person shall be party to such transaction arrangement;

	
	 	 	 
		
(j) 		
enter into any arrangement, contract or transaction outside the normal course of its business or otherwise than on arms length terms;

	
	 	 	 
		
(k) 		
sell or otherwise dispose of or grant any rights (by licence or otherwise) in or over any intellectual property owned or used by the Company otherwise than in the ordinary, usual and normal course of business;

	
	 	 	 
		
(l) 		
enter into any contract or commitment under which it may incur costs (charged by a person outside the Company) in excess of £25,000 or which may not be fulfilled or completed within the period of one year;

	
	 	 	 
		
(m) 		
change its auditors from the auditors from time to time of the Buyer or alter its accounting reference date;

	
	 	 	 
		
(n) 		
make any loan or grant any credit (other than in the normal course of trading) or give any guarantee (other than in the normal course of trading) or indemnity;

	
	 	 	 
		
(o) 		
factor or assign any of the book debts of the Company;

	

	 	(p) 	
      establish or amend any share option scheme or pension
      scheme;

	 	 	 
	 	(q) 	
      pay any bonuses to the Managers or establish or amend any
      profit sharing, bonus or other incentive scheme of any nature for any of
      the Managers other than as permitted in accordance with this
    schedule;

	 	 	 
	 	(r) 	
      employ anyone other than on the standard terms of
      employment which shall be notified to the Company by the Buyer (acting
      reasonably) from time to time other than as permitted in accordance with
      this schedule;

	 	 	 
	 	(s) 	
      employ or contract with anyone who is connected with any
      of the Sellers or the Buyer, or any of the Buyer’s officers or
      shareholders, or employ or contract with anyone on terms that their
      appointment shall exceed three months or whose appointment is only
      terminable on more than three month's notice;

	 	 	 
	 	(t) 	
      enter into any contract for the provision of services to
      any member of the Company by any person whom the Inland Revenue may regard
      as being employed by the Company for Taxation purposes;

	 	 	 
	 	(u) 	
      authorise or incur or agree to incur any capital
      expenditure not specified in the Business Plan in excess of £10,000 per
      item or £50,000 in aggregate in any one year;

	 	 	 
	 	(v) 	
      issue any legal or administrative or arbitration
      proceedings against any customer or any third party
  whatsoever.

		
      PROVIDED ALWAYS THAT the Buyer may take such action as is
      necessary to (i) comply with all and any statutory obligations or
      regulations of any regulatory or governmental body or any securities
      exchange to which it is subject or submits, wherever situated, including
      (without limitation) the Securities Exchange Commission whether or not
      such regulations have the force of law, (ii) optimise the tax position of
      the Buyer's Group from time to time, taken as a whole, and (iii) in the
      circumstances where the relevant Manager is no longer an employee or
      director of the Company or any member of the Company properly manage and
      carry on the business of the Company or relevant member of the Company,
      PROVIDED THAT appropriate adjustments shall be made such that any such
      action (in (i), (ii) or (iii) above) shall not result in an adverse impact
      on the Company's working capital or reduce the Profit in any
  period.

	 	 
	26 	
      the Company shall promptly on request from the Buyer
      provide information as requested by the Buyer in relation to the business
      activities and finances of the Company;

	 	 
	27 	
      the Company shall ensure that all documents in relation
      to the affairs and activities of each member of the Company are promptly
      filed with the relevant authority or registrar within the relevant filing
      deadlines applicable to such documents;

	 	 
	28 	
      the Company and the Managers shall comply with all such
      regulations and requirements which might be necessary having regard to the
      fact that the Company and its subsidiaries from time to time are members
      of a group of companies of which the shares of the ultimate holding
      company are listed on SEC ; and

	 	 
	29 	
      the Company and the Managers shall comply with all
      policies and rules issued by the Buyer from time to time in relation to
      paragraph 28 above.

	 	 
	30 	
      for the purposes of sub-paragraph 25(s) above the
      expression ‘connected’ shall be interpreted in the same manner as set out
      in clause 1.6.

	 	 
	31 	
      the Company shall continue to repay the Director’s Loan
      at the same rate as which it was being repaid prior to the date of this
      agreement.

Schedule 9
Provisions Applying on the Exercise of
the Right to Buy Back the Shares

In the event that Stuart Hobbs exercises the right to buy back
the Shares pursuant to clause 3.4 then the following provisions shall apply:

1. Upon completion of the buy back of the Shares by Stuart
Hobbs the Buyer shall deliver to him:

(i) executed transfers transferring the Shares to him or to his
nominee(s);

(ii) the share certificates for the Shares or an indemnity in
the agreed form in respect of any missing certificates;

(iii) any waiver, consent or other document necessary to give
Stuart Hobbs or his nominee(s) full legal and beneficial ownership of the
Shares;

(iv) a copy (certified by a solicitor as being a true copy) of
any power of attorney under which any document to be delivered to Stuart Hobbs
pursuant to this schedule 9 has been executed together with a power of attorney
in the agreed form given by the Buyer in favour of Stuart Hobbs enabling him to
exercise all voting and other rights attaching to the Shares prior to the
transfer of the Shares to him being registered in the register of members of the
Company;

(v) each register, minute book and other book required to be
kept by the Company under the Companies Acts (in each case written up to
completion of the buy-back), each certificate of incorporation and certificate
of incorporation on change of name for the Company and the common seal (if any)
of the Company;

(vi) in relation to each bank account maintained by the
Company: 

       a copy of the mandate for
that account; and 

       all cheque books in
respect of that account;

(vii) all credit, debit or other cards in the name of or for
the account of the Company in the possession of any person resigning from his
office or employment on Completion;

(viii) the deeds, certificates and other documents of title to
the assets of the Company including registration certificates and files for
applications and oppositions or other registry proceedings in respect of the
Company Intellectual Property together with all applicable documentation and
information relating to the Domain Names;

(ix) all motor vehicles owned by the Company but in the
possession of any person resigning from his office or employment on Completion,
together with all keys, registration documents and certificates of insurance in
respect thereof; and

2. At completion of the buy-back of the Shares the Buyer shall
be deemed without further formality) to have undertaken with Stuart Hobbs that
it will not, either solely or jointly with or through any other person, on its
own account or as agent, manager, advisor or consultant for any other person or
otherwise howsoever:

(i) during the period of 12 months
(‘the Post Buy-back Restriction Period’) from the date on which the buy-back of
the Shares is completed (‘the Buy-back Completion Date’) carry on or be engaged,
concerned or interested in, or assist, a business which competes, directly or
indirectly, with a business of the Company as operated at the Buy-back
Completion Date in a territory in which such business is operated at that
date;

(ii) during the Post Buy-back
Restriction Period solicit custom or business from any person in respect of
goods and/or services competitive with those manufactured and/or supplied by the
Company during the period of 12 months prior to the Buy-back Completion Date,
such person having been a customer of the Company in respect of such goods
and/or services during such period;

(iii) during the Post Buy-back
Restriction Period accept custom or business from any person in respect of goods
and/or services competitive with those manufactured and/or supplied by the
Company during the period of 12 months prior to the Buy-back Completion Date,
such person having been a customer of the Company in respect of such goods
and/or services during such period;

(iv) during the Post Buy-back
Restriction Period place custom or business with any person in respect of goods
and/or services the same as or similar to those supplied to the Company during
the period of 12 months prior to the Buy-back Completion Date, such person
having been a supplier to the Company in respect of such goods and/or services
during such period;

(v) during the Post Buy-back
Restriction Period induce, solicit or endeavour to entice to leave the service
or employment of the Company any person who, during the period of 12 months
prior to the Buy-back Completion Date, was an employee of the Company occupying
a senior, managerial, technical, sales or research position or was a consultant
of the Company or carried out duties for and on behalf of the Company and who
(in any such case) is in possession of Confidential Information or able to
influence the client, customer, supplier or other relationships or connections
of the Company;

(vi) during the Post Buy-back
Restriction Period employ any person who, during the period of 12 months prior
to the Buy-back Completion Date was an employee of the Company occupying a
senior, managerial, technical, sales or research position or was a consultant of
the Company or carried out duties for and on behalf of the Company and who (in
any such case) is in possession of Confidential Information or able to influence
the client, customer, supplier or other relationships or connections of the
Company;

(vii) in relation to a business which
is competitive with the business of the Company as carried on at the Buy-back
Completion Date use any of the Company Intellectual Property (in particular, a
name including the word "Pure") or use in that context anything which is
intended, or is likely, to be confused with any of the Company Intellectual
Property; or

(viii) do or say anything which is
harmful to the Company’s reputation or which may lead a person to cease to deal
with the Company on substantially equivalent terms to those previously offered
or at all;

PROVIDED ALWAYS that provided always that nothing contained in
paragraphs 2(i) to (iv) inclusive above shall prevent the Buyer from doing any
of the following, namely:

(ix) continuing to carry on or be
engaged, concerned or interested in, or assist, a business in which it was
engaged at the Completion Date;

(x) soliciting or accepting the custom
or business from any person in respect of goods and/or services which the Buyer
has supplied at any time after the Completion Date to any person who is or was a
customer of the Company, provided that such goods and/or services are not the
same as or substantially similar to those supplied by the Company at any time
during the period of 12 months prior to the Completion Date.

3. Each restriction in paragraph 2 above shall constitute an
entirely independent restriction on the Buyers and if one or more of the
restrictions is held to be against the public interest or unlawful or in any way
an unreasonable restraint of trade, or unenforceable in 

whole or in part for any reason, the remaining restrictions or parts thereof (as appropriate) shall continue to bind the Buyers.

4. The Buyers, having taken independent advice, agree that the restrictions in paragraph 2 above are reasonable and entered into for the purpose of protecting the goodwill of the Company. If, however, any restriction in paragraph 2 above shall be
held to be void but would be valid if deleted in part or reduced in application, such undertaking shall apply with such deletion or modification as may be necessary to make it valid and enforceable.

Schedule 10 
Details of the Properties

	Address of Property 	Details of lease or other document
      under 
which such property is occupied by the
      
Company 
	First Floor, 11 Old Stein, Brighton 	Heads of Terms dated 6th September 2007 a copy
      of which appears at pages 103 to 104 inclusive of the Disclosure Documents
    
	Second, Third and Fourth Floors, 11 Old Stein, Brighton 	Lease dated 30th April 2003 a copy of which
      appears at pages 112 to 120 and 125 to 132 inclusive of the Disclosure
      Documents 
	First Floor Front and First Floor Rear, 69 Grand Parade, Brighton 	Licence to Occupy dated 25th June 2007 a copy
      of which appears at pages 134 to 140 inclusive of the Disclosure Documents
    
	Units A to D, South Wing, New England House Business Centre, New
      England Street, Brighton 	Lease dated a copy of which (together with associated
      documentation) appears at pages 681 to 749 of the Disclosure Documents
  

Schedule 11 
Payment of the Seller’s Fees

To the Sellers’ Solicitors – fees (inclusive of any foreign
lawyer’s fees) in the sum of £15,000 plus VAT plus any disbursements incurred
provided that such disbursements do not exceed £250 in total

To the Seller’s broker namely Mr Barry Parsons – fees in the
sum of £10,000 plus VAT plus a further additional payment of £20,000 which shall
be satisfied by the allotment at Completion of such number of Ordinary Shares
which when multiplied by $0.10 USD per share is equal to such sum (assuming a £
- $ USD exchange rate of £1 = $2 USD).

Schedule 12 
The Business Plan

	EXECUTED AND DELIVERED AS A DEED by 	) 	  
	DARRON BROAD 	) 	  
	in the presence of: 	) 	/s/ Darron Broad                        
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness signature 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness name 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness address 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness occupation 	  	  
	  	  	  
	  	  	  
	  	  	  
	EXECUTED AND DELIVERED AS A DEED by 	) 	  
	DARREN FELL 	) 	  
	in the presence of: 	) 	/s/ Darren Fell                          
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness signature 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness name 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness address 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness occupation 	  	  

	EXECUTED AND DELIVERED AS A DEED
      by 	) 	  
	MARK HLA 	) 	  
	in the presence of: 	) 	/s/ Mark Hla                          
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness signature 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness name 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness address 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness occupation 	  	  
	  	  	  
	  	  	  
	  	  	  
	EXECUTED AND DELIVERED AS A DEED
      by 	) 	  
	ASH RICHARDS 	) 	  
	in the presence of: 	) 	/s/ Ash Richards                       
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness signature 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness name 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness address 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness occupation 	  	  

	EXECUTED AND DELIVERED AS A DEED
      by 	) 	  
	STUART HOBBS 	) 	  
	in the presence of: 	) 	/s/ Stuart Hobbs                      
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness signature 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness name 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness address 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness occupation 	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	EXECUTED AND DELIVERED AS A DEED
      by 	) 	  
	TIM BROWN 	) 	  
	in the presence of: 	) 	/s/ Tim Brown                              
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness signature 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness name 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness address 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness occupation 	  	  

	EXECUTED AND DELIVERED AS A DEED
      by 	) 	  
	ROGER NORTH-ROW 	) 	  
	in the presence of: 	) 	/s/ Roger North-Row                  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness signature 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness name 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness address 	  	  
	  	  	  
	  	  	  
	...................................................... 	  	  
	Witness occupation 	  	  
	  	  	  
	  	  	  
	  	  	  
	EXECUTED AND DELIVERED AS A DEED
      BY 	) 	/s/ Peter Ahman                             
	MobiVentures Inc. 	)       Director 	  
	acting by: 	) 	  
	  	  	  
	  	  	................................................ 
	  	  	Director / Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]