Document:

AGREEMENT
      OF PURCHASE AND SALE OF ASSETS

     

    AMONG

     

    ORGANIC
      TO GO, INC.

     

    ORGANIC
      TO GO FOOD CORPORATION

     

    FPO,
      INC.

    

    doing
      business as

     

    MEL’S
      MARKET

     

    MEL’S
      DELIVERY

     

    JOELLE’S

     

    SOUPS
      DU JOUR

     

    and

     

    SIMON’S

     

    and

     

    LARRY
      J. HAMLIN

     

    May 14,
      2008

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    AGREEMENT
      OF PURCHASE AND SALE OF ASSETS

     

    THIS
      AGREEMENT OF PURCHASE AND SALE OF ASSETS is made as of May 14, 2008,
by
      and
      among FPO, INC., a Washington corporation doing business as “MEL’S MARKET,”
“MEL’S DELIVERY,” “JOELLE’S,” “SOUPS DU JOUR” AND “SIMON’S” (“Company”),
      LARRY
      J. HAMLIN (the “Shareholder”),
      ORGANIC
      TO GO, INC., a Delaware corporation (“Buyer”)
      and
      ORGANIC TO GO FOOD CORPORATION, a Delaware corporation (“Parent”).
      Company and Shareholder are together referred to in this agreement as
“Selling
      Parties.”
      This
      agreement is made under the following circumstances:

    

    A. Buyer
      is
      a wholly owned subsidiary of Parent.

     

    B. Buyer
      desires to purchase from Company and Company desires to sell to Buyer, on the
      terms and subject to the conditions set forth in this agreement, certain
      business and properties of Company.

     

    C. Selling
      Parties desire that this transaction be consummated on the terms and subject
      to
      the conditions of this agreement.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants, agreements,
      representations, and warranties contained in this agreement, the parties agree
      as follows:

     

    ARTICLE
      1

     

    PURCHASE
      AND SALE OF ASSETS

     

    1.1  SALE
      AND TRANSFER OF ASSETS

     

    Subject
      to the terms and conditions set forth in this agreement, at the Closing (as
      hereinafter defined), Company shall sell, convey, transfer, assign, and deliver
      to Buyer, and Buyer shall purchase from Company, all of the assets, properties,
      and business of Company of every kind, character, and description, whether
      tangible, intangible, personal, or mixed, and wherever located, including
      without limitation the assets described on Schedule 1
      attached
      to this agreement, other than the property and rights specifically excluded
      in
Schedule 1
      attached
      to this agreement (the “Excluded
      Assets”).
      The
      assets acquired by Buyer pursuant to this agreement are referred to as the
      “Acquired
      Assets”.

     

    1.2  CONSIDERATION
      FROM BUYER AT CLOSING

     

    The
      total
      purchase price of the Acquired Assets shall be One Million Seven Hundred
      Thousand Dollars ($1,700,000) plus the actual cost to Company of Company’s
      inventory on hand as of the close of business on the day immediately preceding
      the Closing Date (the “Inventory
      Cost”),
      less
      the actual cost to Company’s customers of Company’s outstanding gift
      certificates that are assumed by Buyer, as described on Schedule
      1.3
      attached
      to this agreement (the “Gift
      Certificate Amount”). Inventory
      shall include, without limitation, food, beverages, paper goods, uniforms and
      office supplies, provided that the total Inventory Cost of all items other
      than
      food and beverages shall not exceed Five Hundred Dollars ($500). As payment
      of
      such purchase price, Buyer shall deliver to Company:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.2(a)  Cash
      at Closing.
      At the
      Closing, cash, by bank cashier’s check, or by wire transfer, in the amount of
      Two Hundred Fifty Thousand Dollars ($250,000) plus the Inventory Cost, less
      the
      Gift Certificate Amount.

     

    1.2(b)  Additional
      Cash.
      Cash, by
      checks or by wire transfers, in the total amount of Nine Hundred Fifty Thousand
      Dollars ($950,000) made payable to Company, in six (6) quarterly installments
      beginning three (3) months after the Closing, as provided below. The unpaid
      amount described in this paragraph shall bear interest at the Prime Rate, as
      published in the Wall
      Street Journal,
      as
      adjusted during the term of the obligation, from the Closing Date until paid.
      The first quarterly installment shall equal $225,000 plus accrued interest,
      the
      second, third, fourth and fifth quarterly installment shall equal $158,333
      plus
      accrued interest and the sixth quarterly installment shall equal 91,668 plus
      accrued interest. If at any time or from time to time Buyer shall be entitled
      to
      be paid any amount pursuant to this agreement, Buyer shall be entitled, if
      it so
      elects, to set-off such amount against the amount payable under this paragraph
      1.2(b). This right of set-off shall be in addition to and not in substitution
      of
      any other rights to which Buyer shall be entitled. The obligation described
      in
      this paragraph shall be secured pursuant to a Security Agreement in the form
      of
Schedule
      1.2(b)
      (the
“Security
      Agreement”)
      and
      Financing Statement UCC-1.

     

    1.2(c)  Parent
      Common Stock.
      A stock
      certificate issued to Company (the “Stock
      Certificate”)
      representing a total number of shares of the Common Stock of Parent, par value
      $0.001 per share (the “Parent
      Shares”),
      equal
      to shares having an aggregate Market Value (as hereinafter defined) of Five
      Hundred Thousand Dollars ($500,000) which shall be delivered to Company within
      ten (10) business days after the Closing. For purposes of this Agreement, the
      “Market
      Value”
      of the
      Parent Shares shall equal the average of the closing prices of the Parent Shares
      in the over the counter market (or on any national securities exchange if shares
      of Parent’s Common Stock are listed on a national securities exchange) during
      the ten (10) consecutive trading days ending three (3) trading days before
      the
      Closing. 

     

    1.3  ASSUMPTION
      OF LIABILITIES

     

    Buyer
      shall not assume any contracts, obligations, debts or liabilities under this
      agreement, other than those listed on Schedule 1.3
      attached
      to this agreement (the “Assumed
      Contracts”).
      It is
      expressly understood and agreed that Buyer shall not be liable for any of the
      contracts, obligations, debts or liabilities of Company of any kind and nature,
      other than those listed on Schedule 1.3,
      if
      any.

     

    1.4  ALLOCATION
      OF PURCHASE PRICE

     

    The
      purchase price of the Acquired Assets shall be allocated as
      follows:

     

    
      	
              1. 

            	
              Furniture,
                Fixtures and Equipment

            	
              $105,000

            
	 	 	 
	
              2. 

            	
              Inventory

            	
              Inventory
                Cost

            
	 	 	 
	
              3. 

            	
              Goodwill,
                Trade Names and Intangible Assets

            	
              $1,595,000

            
	 	 	 
	
              4. 

            	
              Gift
                Certificates

            	
              Gift
                Certificate Amount

            
	 	 	 
	 	
              Total
                Purchase Price

            	
              $1,700,000
                plus Inventory Cost less the Gift Certificate
                Amount

            

    

    

    
      
        
        

      

      
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    Each
      of
      the parties shall report this transaction for federal and state tax purposes
      in
      accordance with this allocation of the purchase price.

     

    1.5  TAXES

     

    Buyer
      shall pay all sales and use taxes arising out of the transfer of the Acquired
      Assets. Company shall pay its portion, prorated as of the Closing Date, of
      state
      and local real and personal property taxes, and all other taxes of Company’s
      business. Buyer shall not be responsible for any business, sales, occupation,
      withholding, or similar tax, or any taxes of any kind related to any period
      before the Closing Date.

     

    ARTICLE
      2

     

    SELLING
      PARTIES’ REPRESENTATIONS AND WARRANTIES

     

    Selling
      Parties, jointly and severally, represent and warrant that except as set forth
      in the Disclosure Schedule attached to this agreement as Schedule 2:

     

    2.1  ORGANIZATION,
      STANDING AND QUALIFICATION OF COMPANY

     

    Company
      is a corporation duly organized, validly existing, and in good standing under
      the laws of the State of Washington and has all necessary powers to own its
      properties and to operate its business as now owned and operated by it; and
      neither the ownership of its properties nor the nature of its business requires
      Company to be qualified in any jurisdiction other than the state of its
      organization.

     

    2.2  SHARE
      OWNERSHIP

     

    Shareholder
      owns, beneficially and of record, all of the outstanding shares of capital
      stock
      of Company free and clear of all liens, encumbrances, security agreements,
      equities, options, claims, charges, and restrictions. There are no outstanding
      subscriptions, options, rights, warrants, convertible securities, or other
      agreements or commitments obligating Company to issue or to transfer any
      additional shares of its capital stock, or any other interests in
      Company.

     

    2.3  SUBSIDIARIES

     

    Company
      does not own, directly or indirectly, any interest or investment (whether equity
      or debt) in any Company, partnership, limited liability company, business,
      trust, or other entity.

     

    2.4  FINANCIAL
      STATEMENTS

     

    Schedule 2
      to this
      agreement includes the balance sheets of Company as of December 31,
2005,
      2006 and
      2007,
      together with related statements of operations, stockholder’s equity and cash
      flows for the periods then ended, prepared by Company’s independent public
      accountants (collectively, the “Financial
      Statements”).
      The
      Financial Statements have been prepared in accordance with generally accepted
      accounting principals consistently followed by Company throughout the periods
      indicated, and fairly present the financial position of Company as of the
      respective dates of the balance sheets included in the Financial Statements,
      and
      the results of its operations for the respective periods indicated.

     

    
      
        
        

      

      
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    2.5  ABSENCE
      OF SPECIFIED CHANGES.

     

    Since
      December 31, 2007 there has been no:

     

    2.5(a)  Transaction
      by Company except in the ordinary course of business as conducted on that
      date;

     

    2.5(b)  Capital
      expenditure by Company exceeding $25,000;

     

    2.5(c)  Material
      adverse change in the financial condition, liabilities, assets, business, or
      prospects of Company taken as a whole;

     

    2.5(d)  Destruction,
      damage to, or loss of any asset of Company (whether or not covered by insurance)
      that materially and adversely affects the financial condition, business, or
      prospects of Company;

     

    2.5(e)  Labor
      trouble or other event or condition of any character materially and adversely
      affecting the financial condition, business, assets, or prospects of
      Company;

     

    2.5(f)  Change
      in
      accounting methods or practices (including, without limitation, any change
      in
      depreciation or amortization policies or rates) by Company;

     

    2.5(g)  Revaluation
      by Company of any of its assets;

     

    2.5(h)  Increase
      in the salary or other compensation payable or to become payable by Company
      to
      any of its officers, directors, or employees, or the declaration, payment,
      or
      commitment or obligation of any kind for the payment, by Company, of a bonus
      or
      other additional salary or compensation to any such person;

     

    2.5(i)  Sale
      or
      transfer of any asset of Company, except in the ordinary course of
      business;

     

    2.5(j)  Amendment
      or termination of any contract, agreement, or license to which Company is a
      party, except in the ordinary course of business;

     

    2.5(k)  Loan
      by
      Company to any person or entity, or guaranty by Company of any
      loan;

     

    2.5(l)  Mortgage,
      pledge, or other encumbrance of any asset of Company;

     

    2.5(m)  Waiver
      or
      release of any right or claim of Company except in the ordinary course of
      business;

     

    
      
        
        

      

      
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    2.5(n)  Commencement
      or notice or threat of commencement of any civil litigation or any governmental
      proceeding against or investigation of Company or the affairs of either of
      them;

     

    2.5(o)  Other
      event or condition of any character that has or might reasonably have a material
      and adverse effect on the financial condition, business, assets, or prospects
      of
      Company;

     

    2.5(p)  Agreement
      by Company to do any of the things described in the preceding clauses (a)
      through (o).

     

    2.6  DEBTS,
      LIABILITIES AND OBLIGATIONS

     

    A
      true
      and complete schedule of all debts, liabilities and obligations of Company
      is
      provided in Section 2.6 of Schedule 2.
      Company
      has no debts, liabilities, or obligations of any nature, whether accrued,
      absolute, contingent, or otherwise, and whether due or to become due, that
      are
      not set forth in Section 2.6 of Schedule 2.

     

    2.7  TAX
      RETURNS AND AUDITS

     

    Within
      the times and in the manner prescribed by law, Company has filed all federal,
      state, and local tax returns required by law and has paid all taxes,
      assessments, and penalties due and payable, including without limitation all
      sales taxes. There are no present disputes or claims as to taxes of any nature
      payable by Company. All tax returns and reports filed by Company are true,
      correct and complete. All taxes that Company is or was required to withhold,
      deduct or collect have been withheld, deducted and collected and, to the extent
      required, have been paid to the proper government agency or other
      depository.

     

    2.8  REAL
      PROPERTY

     

    A
      complete list of all real property owned by or leased to Company is provided
      in
      Section 2.8 of Schedule 2
      to this
      agreement. The zoning of each property described in Section 2.8 of
Schedule 2
      permits
      the presently existing improvements and continuation of the business presently
      being conducted on such property. All buildings and other improvements located
      on such real property are in good condition and repair, ordinary wear and tear
      excepted.

     

    2.9  HAZARDOUS
      MATERIALS

     

    To
      the
      best knowledge and belief of Selling Parties, there are no underground storage
      tanks located on the real property described in Section 2.8 of Schedule 2
      in which
      any hazardous material, as defined below, has been or is begin stored, nor
      has
      there been any spill, disposal, discharge or release of any hazardous material
      into, upon, from or over that real property or into or upon ground or surface
      water on that real property. As used in this paragraph, “hazardous material”
means any hazardous or toxic substance, material or waste that is regulated
      by
      any federal authority or by any state or local governmental authority where
      the
      substance, material or waste is located.

     

    2.10  ENVIRONMENTAL

     

    Except
      as
      disclosed in Section 2.10 of Schedule 2,
      (i) Company complies in all respects with all applicable federal, state or
      local environmental, health and safety statutes and regulations,
      (ii) Company is not the subject of any pending judicial or administrative
      proceeding alleging the violation of any federal, state or local environmental,
      health or safety statute or regulation, (iii) Company is not the subject of
      any federal or state investigation evaluating whether any remedial action is
      needed to respond to a release of any hazardous or toxic waste, substance or
      constituent, or other substance into the environment, (iv) Company has not
      filed any notice under any federal or state law indicating past or present
      treatment, storage or disposal of hazardous waste, or reporting a spill or
      release of a hazardous or toxic waste, substance or constituent, or other
      substance into the environment, nor does Company have or has it had any problems
      relating to toxic or hazardous wastes, and (v) Company does not have any
      contingent liability in connection with any release of any hazardous or toxic
      waste, substance or constituent, or other substance into the
      environment.

     

    
      
        
        

      

      
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    2.11  INVENTORY

     

    The
      inventories of raw materials, work in progress, and finished goods
      (collectively, “Inventories”)
      shown
      on Company’s balance sheet as of December 31, 2007, included in the Financial
      Statements, consist of items that are usable and salable in the ordinary course
      of business by Company. The value of the Inventories has been determined on
      a
      first-in, first-out basis consistent with prior years. Except for sales made
      in
      the ordinary course of business since that date, all the Inventories are the
      property of Company. No items are subject to any security interest, except
      as
      set forth in Schedule 2.

     

    2.12  OTHER
      TANGIBLE PERSONAL PROPERTY

     

    The
      books
      and records of Company contain a complete and accurate description, and specify
      the location, of all motor vehicles, machinery, equipment, furniture, fixtures,
      supplies, tools, and all other tangible personal property owned by, in the
      possession of, or used by Company in connection with its business. The Acquired
      Assets constitute all tangible personal property necessary for the conduct
      by
      Company of its business as now conducted. No personal property used by Company
      in connection with its business is held under any lease, security agreement,
      conditional sales contract, or other title retention or security arrangement,
      or
      is other than in the possession and under the control of Company except as
      stated in Schedule 2.
      All
      such personal property is in good operating condition and repair, ordinary
      wear
      and tear excepted.

     

    2.13  INTELLECTUAL
      PROPERTY

     

    Company
      has not infringed, and is not now infringing, on any trade name, trademark,
      service mark, copyright, patent, trade secret, or other intellectual property
      right belonging to any other person, firm, or Company. A schedule of all
      intellectual property, including without limitation, trade names, trademarks,
      service marks, copyrights, patents and trade secrets and their registrations,
      if
      any, owned by Company or in which it has any rights or licenses, together with
      a
      brief description of each, is provided in Section 2.13 of Schedule 2
      (“Company
      Intellectual Property”).
      Except
      as set forth in Schedule 2,
      Company
      is not a party to any license, agreement or arrangement, whether as licensor,
      licensee or otherwise, with respect to any intellectual property necessary
      for
      its business as now conducted by it (including without limitation those listed
      in Section 2.13 of Schedule 2),
      and
      that use does not, and will not, conflict with, infringe, on or otherwise
      violate any rights of others. Company has the right and authority to use Company
      Intellectual Property as currently used by it, and that use does not, and will
      not, conflict with, infringe on, or violate any intellectual property rights
      of
      others. Each trade secret’s documentation is current, accurate, and sufficient
      in detail and content to identify and explain it, and to allow its full and
      proper use by Buyer without reliance on the special knowledge or memory of
      others.

     

    
      
        
        

      

      
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    2.14  TITLE
      TO ASSETS

     

    Company
      has good and marketable title to all its assets and interests in assets, whether
      real, personal, mixed, tangible, or intangible, which constitute all the assets
      and interests in assets that are used in the business of Company. All these
      assets are free and clear of mortgages, liens, pledges, charges, encumbrances,
      equities, claims, easements, rights of way, covenants, conditions, or
      restrictions, except for (i) the lien of current taxes not yet due and
      payable, and (ii) possible minor matters that, in the aggregate, are not
      substantial in amount and do not materially detract from or interfere with
      the
      present or intended use of any of these assets, nor materially impair business
      operations. Company is in possession of all premises leased to it from others.
      Company does not occupy any real property in violation of any law, regulation,
      or decree.

     

    2.15  CUSTOMERS
      AND SALES

     

    Correct
      and current lists of Company’s twenty (20) largest customers together with
      summaries of the sales made to each customer during 2006 and during 2007 are
      included in Section 2.15 of Schedule 2.
      Except
      as indicated in Section 2.15 of Schedule 2,
      no
      Selling Party has any information, nor is aware of any fact, indicating that
      any
      of these customers intends to cease doing business with Company or materially
      alter the amount of the business that such customer is presently doing with
      Company.

     

    2.16  EMPLOYMENT
      AGREEMENTS

     

    A
      list of
      all employment agreements, severance agreements, collective bargaining
      agreements, pension, bonus, profit-sharing, stock option, or other agreements
      providing for employee remuneration or benefits to which Company is a party
      or
      is bound is included in Section 2.16 of Schedule 2.
      All of
      these agreements are in full force and effect, and neither Company nor any
      other
      party is in default under any of these agreements. There is no pending nor,
      to
      Selling Parties’ knowledge, threatened labor dispute, strike, slowdown, employee
      grievance process, or work stoppage affecting Company’s business. There is no
      organizational activity or other labor dispute against or affecting Company,
      nor
      is any application or petition for an election of or for certification of a
      collective bargaining agent pending. Company
      does not provide or sponsor any retirement plan or retirement benefits for
      any
      of its current or past employees.

     

    2.17  INSURANCE
      POLICIES.

     

    A
      description of all insurance policies held by Company concerning its business
      and properties, and the respective principal amounts of each, is provided in
      Section 2.17 of Schedule 2.
      Company
      has maintained and now maintains (i) insurance on all its assets and business
      of
      a type customarily insured, covering property damage and loss of income by
      fire
      or other casualty, and (ii) adequate insurance protection against all
      liabilities, claims, and risks against which it is customary to insure. Company
      is not in default with respect to payment of premiums on any such policy. No
      claim is pending under any such policy.

     

    
      
        
        

      

      
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    2.18  OTHER
      CONTRACTS

     

    Except
      for the agreements listed in Section 2.18 of Schedule 2,
      copies
      of which have been furnished or made available to Buyer, Company is not a party
      to, nor is its property bound by, any representative or agency agreement, any
      output or requirements agreement, any agreement not entered into in the ordinary
      course of business, any indenture, mortgage, deed of trust, lease, or any
      agreement that is unusual in nature, duration, or amount (including, without
      limitation, any agreement requiring the performance by Company of any obligation
      for a period of time extending beyond six months from the Closing Date or
      calling for consideration of more than $25,000). There is no default or event
      that with notice or lapse of time, or both, would constitute a default by any
      party to any of these agreements. Company has received no notice that any party
      to any of these agreements intends to cancel or terminate any of these
      agreements or to exercise or not exercise any options under any of these
      agreements. No consent or approval of any other party is required in connection
      with the assignment to and assumption by Buyer of the agreements listed in
      Section 2.18 of Schedule 2.

     

    2.19  COMPLIANCE
      WITH LAWS

     

    Company
      has complied with and is not in violation of applicable federal, state, and
      local statutes, laws, and regulations (including, without limitation, any
      applicable employment, immigration, building, zoning or other law, ordinance,
      or
      regulation) affecting or relating to its properties, employees, or the operation
      of its business. Company has all licenses and permits required to operate its
      business, and no governmental or third party approval is required to assign
      and
      transfer such licenses and permits to Buyer pursuant to this
      agreement.

     

    2.20  LITIGATION

     

    There
      is
      no suit, action, arbitration, or legal, administrative, or other proceeding,
      or
      governmental investigation, pending or threatened, to the best knowledge of
      Selling Parties, against or affecting Company or its businesses, assets, or
      financial condition, except as set forth in Schedule 2.
      The
      litigation matters set forth in Schedule 2,
      if
      decided adversely to Company, will not result in a material adverse change
      in
      the business, assets, or financial condition of Company. Selling Parties have
      furnished or made available to Buyer copies of all relevant court papers and
      other documents relating to the matters set forth in Schedule 2.
      Company
      is not in default with respect to any order, writ, injunction, or decree of
      any
      federal, state, local, or foreign court, department, agency, or instrumentality.
      Except as set forth in Schedule 2,
      Company
      is not presently engaged in any legal action to recover monies due to it or
      damages sustained by it.

     

    2.21  AGREEMENT
      WILL NOT CAUSE BREACH OR VIOLATION

     

    The
      consummation of the transactions contemplated by this agreement will not result
      in or constitute any of the following: (i) a default or an event that, with
      notice or lapse of time or both, would be a default, breach, or violation of
      the
      articles of incorporation or bylaws of Company or any lease, license, promissory
      note, conditional sales contract, commitment, indenture, mortgage, deed of
      trust, or other agreement, instrument, or arrangement to which any Shareholder
      or Company is a party or by which any of them or the property of any of them
      is
      bound; or (ii) the creation or imposition of any lien, charge, or
      encumbrance on any of the properties of Company.

     

    
      
        
        

      

      
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    2.22  AUTHORITY
      AND CONSENTS

     

    Selling
      Parties have the right, power, legal capacity, and authority to enter into,
      and
      perform their respective obligations under, this agreement, and no approvals
      or
      consents of any persons other than Selling Parties are necessary in connection
      with it. The execution and delivery of this agreement by Company has been duly
      authorized by all necessary corporate action.

     

    2.23  INTEREST
      IN CUSTOMERS, SUPPLIERS, AND COMPETITORS

     

    No
      Shareholder, nor any officer, director, or employee of Company nor any spouse
      or
      child of any of them, has any direct or indirect interest in any competitor,
      supplier, or customer of Company or in any person from whom or to whom Company
      leases or licenses any real or personal property, or in any other person with
      whom Company is doing business, except as stated in Schedule 2.

     

    2.24  IDENTIFICATION
      AND COMPENSATION

     

    A
      list of
      all officers, directors, employees, and agents of Company stating the rates
      of
      compensation payable to them is included in Schedule 2.

     

    2.25  COMPANY
      DOCUMENTS

     

    Selling
      Parties have furnished to Buyer, for its examination, copies of Company’s
      articles of incorporation and bylaws.

     

    2.26  ACQUISITION
      OF SHARES FOR OWN ACCOUNT

     

    The
      Parent Shares will be acquired for investment for Company’s own account, not as
      a nominee or agent, and not with a view to the resale or distribution of any
      part thereof, and Company has no present intention of selling, granting any
      participation in, or otherwise distributing the Parent Shares. Company does
      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 Parent Shares.

     

    2.27  DISCLOSURE
      OF INFORMATION

     

    Company
      believes it has received all of the information it considers necessary or
      appropriate for deciding whether to acquire the Parent Shares. Company has
      had
      an opportunity to ask questions and receive answers from Buyer regarding the
      terms and conditions of the issuance of the Parent Shares and the business,
      properties, prospects and financial condition of Buyer. The foregoing, however,
      does not limit or modify the representations and warranties of Buyer in
      Article 3 of this agreement or the right of Company to rely
      thereon.

     

    2.28  INVESTMENT
      EXPERIENCE

     

    Selling
      Parties are investors in securities of companies in the development stage and
      are able to fend for themselves, can bear the economic risk of the ownership
      of
      the Parent Shares, and have such knowledge and experience in financial or
      business matters that they are capable of evaluating the merits and risks of
      the
      acquisition of the Parent Shares.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    2.29  ACCREDITED
      INVESTOR

     

    Shareholder
      has a net worth in excess of $1,000,000.

     

    2.30  RESTRICTED
      SECURITIES

     

    Selling
      Parties understand that the Parent Shares will be characterized as “restricted
      securities” under the federal securities laws inasmuch as they are being
      acquired in a transaction not involving a public offering and that under such
      laws and applicable regulations the
      Parent Shares may be resold without registration under the Securities Act of
      1933 (the “Act”) only in certain limited circumstances.
      Selling
      Parties are familiar with SEC Rule 144, as presently in effect, and
      understand the resale limitations imposed thereby and by the Act.

     

    2.31  FURTHER
      LIMITATIONS ON DISPOSITION

     

    Without
      in any way limiting the representations set forth above, Selling Parties shall
      not make any disposition of all or any portion of the Parent Shares unless
      and
      until:

     

    (a)  There
      is
      then in effect a Registration Statement under the Act covering such proposed
      disposition and such disposition is made in accordance with such Registration
      Statement; or

     

    (b)  (i) Selling
      Parties shall have notified Buyer of the proposed disposition and shall have
      furnished Buyer with a detailed statement of the circumstances surrounding
      the
      proposed disposition, and (ii) if reasonably requested by Buyer, Selling
      Parties shall have furnished Buyer with an opinion of counsel, reasonably
      satisfactory to Buyer, that such disposition will not require registration
      of
      such shares under the Act. Buyer will not require opinions of counsel for
      transactions made pursuant to Rule 144 except in unusual
      circumstances.

     

    (c)  Notwithstanding
      subsections (a) and (b) above, no such registration statement or opinion of
      counsel shall be necessary for a transfer by Company to any Shareholder, if
      such
      Shareholder agrees in writing to be subject to the terms of this agreement
      to
      the same extent as if he were acquiring the Parent Shares directly pursuant
      to
      this agreement.

     

    2.32  LEGEND

     

    The
      Stock
      Certificate may bear the following legend:

     

    “THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
      UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
      REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH
      ACT.”

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    2.33  NO
      ADVERTISEMENT

     

    The
      issuance of the Parent Shares has not been accomplished by the publication
      of
      any advertisement.

     

    2.34  FULL
      DISCLOSURE

     

    None
      of
      the representations and warranties made by Shareholder or Company, or made
      in
      any certificate or memorandum furnished or to be furnished by either of them,
      or
      on their behalf, contains or will contain any untrue statement of a material
      fact, or omits any material fact the omission of which would be
      misleading.

     

    ARTICLE
      3

     

    REPRESENTATIONS
      AND WARRANTIES OF BUYER AND PARENT

     

    Buyer
      and
      Parent represent and warrant that:

     

    3.1  ORGANIZATION,
      STANDING AND QUALIFICATION OF BUYER AND PARENT

     

    Buyer
      and
      Parent are each corporations duly organized, validly existing, and in good
      standing under the laws of the State of Delaware and have all necessary powers
      to own their properties and to operate their businesses as now owned and
      operated by them. Buyer is duly qualified to do intrastate business and is
      in
      good standing in California and in each other jurisdiction in which the nature
      of Buyer’s business or of its properties makes such qualification
      necessary.

     

    3.2  SUBSIDIARY

     

    Parent
      is
      the sole stockholder of Buyer.

     

    3.3  SEC
      FILINGS; FINANCIAL STATEMENTS

     

    3.3(a)  Parent
      has filed all forms, reports and documents required to be filed by it with
      the
      Securities and Exchange Commission (the “SEC”)
      from
      February 13, 2007 through the date of this agreement (collectively, the
“Parent
      SEC Reports”).
      As of
      the respective dates they were filed (and if amended or superseded by a filing
      before the date of this agreement, then on the date of such filing),
      (i) the Parent SEC Reports complied in all material respects with the
      requirements of the Act or the Securities Exchange Act of 1934, as the case
      may
      be, and (ii) none of the Parent SEC Reports contained any untrue statement
      of a material fact or omitted or state a material fact required to be stated
      therein or necessary to make the statements made therein, in the light of the
      circumstances under which they were made, not misleading.

     

    3.3(b)  Each
      of
      the consolidated financial statements (including, in each case, any notes
      thereto) contained in the Parent SEC Reports was prepared in accordance with
      generally accepted accounting principles applied on a consistent basis
      throughout the periods indicated (except as may be indicated in the notes
      thereto or,
      in
      the case of unaudited statements, as permitted by Form 10-Q or 8-K
      promulgated by the SEC) and each presented fairly, in all material respects,
      the
      consolidated financial position of Parent and its consolidated subsidiaries
      as
      at the respective dates thereof and for the respective periods indicated
      therein, except as otherwise noted therein (subject, in the case of unaudited
      statements, to normal and recurring year-end adjustments which were not and
      are
      not expected, individually or in the aggregate, to have a material adverse
      effect).

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    3.3(c)  Since
      the
      date of the most recent filing with the SEC by Parent, there has not occurred
      any event that (singly or together with other such events) would reasonably
      be
      expected to have a material adverse effect on Buyer or Parent.

     

    3.4  TAX
      RETURNS AND AUDITS

     

    Within
      the times and in the manner prescribed by law, Buyer and Parent each have filed
      all federal, state, and local tax returns required by law and have paid all
      taxes, assessments, and penalties due and payable, including without limitation
      all sales taxes. There are no present disputes as to taxes of any nature payable
      by Buyer or Parent.

     

    3.5  COMPLIANCE
      WITH LAWS

     

    Buyer
      and
      Parent each have complied with and are not in violation of applicable federal,
      state, or local statutes, laws, and regulations (including, without limitation,
      any applicable employment, immigration, building, zoning, or other law,
      ordinance, or regulation) affecting or relating to their properties, employees,
      or the operation of its business.

     

    3.6  LITIGATION

     

    There
      is
      no material suit, action, arbitration, or legal, administrative, or other
      proceeding, or governmental investigation, pending or threatened, to the best
      knowledge of Buyer or Parent, against or affecting Buyer or Parent or either
      of
      their businesses, assets, or financial condition. Neither Buyer nor Parent
      is in
      default with respect to any order, writ, injunction, or decree of any federal,
      state, local, or foreign court, department, agency, or instrumentality. Buyer
      is
      not presently engaged in any legal action to recover monies due to it or damages
      sustained by it.

     

    3.7  AGREEMENT
      WILL NOT CAUSE BREACH OR VIOLATION

     

    The
      consummation of the transactions contemplated by this agreement will not result
      in or constitute any of the following: (i) a default or an event that, with
      notice or lapse of time or both, would be a default, breach, or violation of
      the
      articles of in Company or bylaws of Buyer or Parent or any lease, license,
      promissory note, conditional sales contract, commitment, indenture, mortgage,
      deed of trust, or other agreement, instrument, or arrangement to which Buyer
      or
      Parent is a party or by either of them or their property is bound; or
      (ii) the creation or imposition of any lien, charge, or encumbrance on any
      of the properties of Buyer or Parent.

     

    3.8  AUTHORITY
      AND CONSENTS

     

    Buyer
      and
      Parent each have the right, power, legal capacity, and authority to enter into,
      and perform their obligations under, this agreement, and no approvals or
      consents of any persons are necessary in connection with it. The execution
      and
      delivery of this agreement by Buyer and Parent and the performance by them
      of
      their respective obligations under this agreement have been duly authorized
      by
      all necessary corporate action of Buyer and Parent.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    3.9  FULL
      DISCLOSURE

     

    None
      of
      the representations and warranties made by Buyer and/or Parent, or made in
      any
      certificate or memorandum furnished or to be furnished by Buyer or Parent,
      or on
      its behalf, contains or will contain any untrue statement of a material fact,
      or
      omits any material fact the omission of which would be misleading.

     

    ARTICLE
      4

     

    SELLING
      PARTIES' OBLIGATIONS BEFORE CLOSING

     

    Selling
      Parties covenant that from the date of this agreement until the Closing they
      are
      bound by the obligations stated in this Article 4.

     

    4.1  BUYER'S
      ACCESS TO PREMISES AND INFORMATION

     

    Buyer
      and
      its counsel, accountants, and other representatives shall have full access
      during normal business hours to all properties, books, accounts, records,
      contracts, and documents of or relating to Company. Company shall furnish or
      cause to be furnished to Buyer and its representatives all data and information
      concerning Company's business, finances, and properties that may reasonably
      be
      requested.

     

    4.2  CONDUCT
      OF BUSINESS IN NORMAL COURSE

     

    Company
      will carry on its business and activities diligently and in substantially the
      same manner as they previously have been carried out, and shall not make or
      institute any unusual or novel methods of production, purchase, sale, lease,
      management, accounting, or operation that will vary materially from those
      methods used by Company as of the date of this agreement.

     

    4.3  PRESERVATION
      OF BUSINESS AND RELATIONSHIPS

     

    Company
      will use its best efforts to preserve its business organization intact, to
      keep
      available its present officers and employees, and to preserve its present
      relationships with suppliers, customers, and others having business
      relationships with it. In so doing, Company will make no commitments on Buyer's
      behalf.

     

    4.4  MAINTENANCE
      OF INSURANCE

     

    Company
      will continue to carry its existing insurance, subject to variations in amounts
      required by the ordinary operations of its business.

     

    4.5  EMPLOYEES
      AND COMPENSATION.

     

    Company
      will not do or agree to do any of the following acts: (i) grant any increase
      in
      salaries payable or to become payable by either of them, to any officer,
      employee, sales agent, or representative; (ii) increase benefits payable to
      any
      officer, employee, sales agent, or representative under any bonus or pension
      plan or other contract or commitment; or (iii) enter into or modify any
      collective bargaining agreement to which it is a party or by which it may be
      bound.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    4.6  NEW
      TRANSACTIONS

     

    Company
      will not, without Buyer's written consent, enter into any contract, commitment,
      or transaction not in the usual and ordinary course of its
      business.

     

    4.7  EXISTING
      AGREEMENTS

     

    Company
      will not modify, amend, cancel or terminate any of its existing contracts or
      agreements, or agree to do any of these acts.

     

    4.8  CONSENTS
      OF OTHERS

     

    As
      soon
      as reasonably practical after the execution and delivery of this agreement,
      and
      in any event on or before the Closing Date, Selling Parties will obtain and
      furnish executed copies of the written consents of the persons described in
      Schedule 4.8.
      Buyer
      will exercise its best efforts, and execute and deliver any documents and
      instruments that may be reasonably required, to assist Selling Parties in
      obtaining such consents. Buyer shall not be obligated under this paragraph
      to
      execute any guaranty, assumption of liability, or other document or instrument
      requiring it to assume obligations not contemplated by this
      agreement.

     

    4.9  DOCUMENTATION
      OF PROCEDURES AND TRADE SECRETS

     

    At
      the
      written request of Buyer, Company will document and describe any of its trade
      secrets, processes, or business procedures specified by Buyer, in form and
      content satisfactory to Buyer.

     

    4.10  REPRESENTATIONS
      AND WARRANTIES TRUE AT CLOSING

     

    All
      representations and warranties of Selling Parties set forth in this agreement
      and in any written statements delivered to Buyer by Selling Parties under this
      agreement will also be true and correct as of the Closing Date as if made on
      that date.

     

    4.11  NOTIFICATION

     

    Between
      the date of this agreement and the Closing, Selling Parties shall promptly
      notify Buyer in writing if any of them becomes aware of (a) any fact or
      condition that causes or constitutes a breach of any of Selling Parties’
representations and warranties made as of the date of this agreement or (b)
      the
      occurrence after the date of this agreement of any fact or condition that would
      or be reasonably likely to (except as expressly contemplated by this agreement)
      cause or constitute a breach of any such representation or warranty had that
      representation or warranty been made as of the time of the occurrence of, or
      such Selling Party’s discovery of, such fact or condition. Should any such fact
      or condition require any change to the Disclosure Schedule, Selling Parties
      shall promptly deliver to Buyer a supplement to the Disclosure Schedule,
      specifying such change. Such delivery shall not affect any rights of Buyer
      under
      this agreement. During the same period, Selling Parties also shall promptly
      notify Buyer of the occurrence of any breach of any covenant of Selling Parties
      in this Article 4 or of the occurrence of any event that may make the
      satisfaction of the conditions in Article 6 impossible or
      unlikely.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    4.12  NO
      NEGOTIATION

     

    Until
      such time as this agreement shall be terminated, no Selling Party shall directly
      or indirectly solicit, initiate, encourage or entertain any inquiries or
      proposals from, discuss or negotiate with, provide any nonpublic information
      to
      or consider the merits of any inquiries or proposals from any person (other
      than
      Buyer) relating to any business combination transaction involving Company,
      including the sale by Shareholder of Company’s stock, the merger or
      consolidation of Company or the sale of Company’s business or any of the
      Acquired Assets (other than in the ordinary course of business). Selling Parties
      shall notify Buyer of any such inquiry or proposal within twenty-four (24)
      hours
      of receipt or awareness of the same by either Selling Party.

     

    ARTICLE
      5

     

    BUYER'S
      OBLIGATIONS BEFORE CLOSING

     

    5.1  SECURING
      CONSENTS OF THIRD PARTIES

     

    Buyer
      will use its best efforts to assist Company in obtaining the consent of all
      necessary persons and agencies to the assignment and transfer to Buyer of any
      and all properties, assets, and agreements, to be assigned and transferred
      under
      this agreement.

     

    ARTICLE
      6

     

    CONDITIONS
      PRECEDENT TO BUYER'S PERFORMANCE

     

    The
      obligations of Buyer to purchase the Acquired Assets under this agreement are
      subject to the satisfaction, at or before the Closing, of all the conditions
      set
      out below in this article. Buyer may waive any or all of these conditions in
      whole or in part without prior notice; provided, however, that no such waiver
      of
      a condition shall constitute a waiver by Buyer of any of its other rights or
      remedies, at law or in equity, if any Shareholder or Company shall be in default
      of any of their representations, warranties, or covenants under this
      agreement.

     

    6.1  ACCURACY
      OF SELLING PARTIES' REPRESENTATIONS AND WARRANTIES

     

    Except
      as
      otherwise permitted by this agreement, all representations and warranties by
      the
      Selling Parties, or any of them, in this agreement or in any written statement
      that shall be delivered to Buyer by any of them under this agreement shall
      be
      true (in all material respects), on and as of the Closing Date as though made
      at
      that time.

     

    6.2  PERFORMANCE
      BY SELLING PARTIES

     

    Selling
      Parties shall have performed, satisfied, and complied with all covenants,
      agreements, and conditions required by this agreement to be performed or
      complied with by them, or any of them, on or before the Closing
      Date.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    6.3  NO
      MATERIAL ADVERSE CHANGE

     

    There
      shall not have been any Material (as defined below) adverse change in the
      financial condition or the results of operations of Company and Company shall
      not have sustained any Material loss or damage to its assets, whether or not
      insured, that materially affects its ability to conduct a material part of
      its
      business, during the period ending on the Closing Date and beginning December
      31, 2007. For purposes of this Section, “Material” means more than
      $75,000.

     

    6.4  CERTIFICATION
      BY COMPANY

     

    Buyer
      shall have received a certificate, dated the Closing Date, signed and verified
      by Company's president or vice president and treasurer or assistant treasurer,
      certifying, in such detail as Buyer and its counsel may reasonably request,
      that
      the conditions specified in Sections 6.1,  6.2, and  6.3 of this
      agreement have been satisfied (the “Closing
      Certificate”).

     

    6.5  ABSENCE
      OF LITIGATION

     

    No
      action, suit, or proceeding before any court or any governmental body or
      authority, pertaining to the transaction contemplated by this agreement or
      to
      its consummation, shall have been instituted or threatened on or before the
      Closing Date.

     

    6.6  CORPORATE
      APPROVAL

     

    The
      execution and delivery of this agreement by Company and the performance of
      its
      covenants and obligations under it, shall have been duly authorized by all
      necessary corporate action, and Buyer shall have received copies of all
      resolutions pertaining to that authorization, certified respectively by the
      secretary of Company.

     

    6.7  CONSENTS

     

    All
      necessary agreements and consents to the consummation of the transactions
      contemplated by this agreement, or otherwise pertaining to the matters covered
      by it, shall have been obtained by Selling Parties and delivered to
      Buyer.

     

    6.8  CONSULTING
      AGREEMENT

     

    A
      Consulting Agreement, dated the Closing Date, shall have been executed and
      delivered by Larry J. Hamlin to Buyer in the form set forth in Schedule 6.8
      attached
      to this agreement (the “Consulting
      Agreement”).

     

    6.9  APPROVAL
      OF DOCUMENTATION

     

    The
      form
      and substance of all certificates, instruments, and other documents delivered
      to
      Buyer under this agreement shall be satisfactory in all reasonable respects
      to
      Buyer and its counsel.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    6.10  ASSIGNMENTS
      OF REAL PROPERTY LEASES AND CONSENTS TO ASSIGNMENT 

     

    Selling
      Parties shall have delivered or caused to be delivered an Assignment of Lease
      and Landlord’s Consent to Assignment (including without limitation landlords’
consent to the assignment of all rights held by Company), each in form and
      substance reasonably satisfactory to Buyer, with respect to each of the
      locations listed in Section 2.8 of Schedule
      2
      to this
      agreement.

     

    6.11  ASSIGNMENT
      OF EQUIPMENT LEASES AND CONSENTS TO ASSIGNMENT 

     

    Selling
      Parties shall have delivered or caused to be delivered an Assignment of Lease
      and Lessor’s Consent to Assignment,
      each
      in
      form and substance reasonably satisfactory to Buyer, with respect to the
      personal property leases listed in Section 2.12 of Schedule
      2
      to this
      agreement.

     

    6.12  AMENDMENT
      OF REAL PROPERTY LEASES

     

    Selling
      Parties shall have delivered or caused to be delivered an Amendment of Lease,
      each in form and substance reasonably satisfactory to Buyer, with respect to
      each of the locations listed in Section 2.8 of Schedule
      2
      to this
      agreement.

     

    ARTICLE
      7

     

    CONDITIONS
      PRECEDENT TO SELLING PARTIES’ PERFORMANCE

     

    The
      obligations of Company to sell and transfer the Acquired Assets under this
      agreement are subject to the satisfaction, at or before the Closing, of all
      the
      following conditions. Company may waive any or all of these conditions in whole
      or in part without prior notice; provided, however, that no such waiver of
      a
      condition shall constitute a waiver by Company of any of its other rights or
      remedies, at law or in equity, if Buyer should be in default of any of its
      representations, warranties, or covenants under this agreement.

     

    7.1  ACCURACY
      OF BUYER'S REPRESENTATIONS AND WARRANTIES

     

    All
      representations and warranties by Buyer contained in this agreement or in any
      written statement delivered by Buyer under this agreement shall be true on
      and
      as of the Closing as though such representations and warranties were made on
      and
      as of that date.

     

    7.2  BUYER'S
      PERFORMANCE

     

    Buyer
      shall have performed and complied with all covenants and agreements, and
      satisfied all conditions that it is required by this agreement to perform,
      comply with, or satisfy, before or at the Closing.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    7.3  BUYER'S
      CORPORATE APPROVAL

     

    The
      execution and delivery of this agreement and all corporate action necessary
      or
      proper to fulfill the obligations of Buyer to be performed under this agreement
      on or before the Closing Date shall have been duly authorized by Buyer's board
      of directors.

     

    7.4  ABSENCE
      OF LITIGATION

     

    No
      action, suit, or proceeding before any court or any governmental body or
      authority, pertaining to the transaction contemplated by this agreement or
      to
      its consummation, shall have been instituted or threatened on or before the
      Closing Date.

     

    ARTICLE
      8

     

    SELLING
      PARTIES’ OBLIGATIONS AFTER CLOSING

     

    8.1  INDEMNIFICATION

     

    8.1(a)  Selling
      Parties shall, jointly and severally, indemnify, defend, and hold Buyer harmless
      against and in respect of any and all claims (including without limitation
      third
      party claims), demands, losses, costs, expenses, obligations, liabilities,
      damages, recoveries, and deficiencies, including without limitation, interest,
      penalties, and reasonable attorneys’ fees (collectively, “Damages”),
      incurred or suffered by Buyer that arise from, result from, or relate to any
      (i) breach of, or failure by Selling Parties to perform, any of their
      representations, warranties, covenants, or agreements in this agreement or
      in
      any schedule, certificate, exhibit, or other instrument furnished or to be
      furnished by Selling Parties under this agreement or (ii) any contract,
      debt, liability, or obligation of Company (other than performance of obligations
      under the Assumed Contracts accruing after the Closing Date), including without
      limitation any liability for sales taxes, interest or penalties on sales
      taxes.

     

    8.1(b)  Buyer
      and
      Parent shall, jointly and severally, indemnify, defend, and hold Selling Parties
      harmless against and in respect of any and all Damages (as defined in
      Section 8.1(a)) incurred or suffered by either Selling Party that arise
      from, result from, or relate to any (i) breach of, or failure by Buyer or
      Parent to perform, any of their representations, warranties, covenants, or
      agreements in this agreement or in any schedule, certificate, exhibit, or other
      agreement, instrument or document furnished or to be furnished by Buyer or
      Parent under or pursuant to this agreement, or (ii) any matter in any way
      related to or arising out of the ownership and/or use of the Acquired Assets
      or
      satisfaction and performance of the Assumed Contracts after the Closing
      Date.

     

    8.1(c)  A
      party
      that desires to assert a claim for indemnity (an “Indemnified
      Party”)
      shall
      notify each party from whom it seeks indemnification (an “Indemnifying
      Party”)
      of the
      existence of any claim, demand, or other matter to which the Indemnifying
      Party’s indemnification obligations would apply, and shall give the Indemnifying
      Party a reasonable opportunity to defend the same at their own expense and
      with
      counsel of their own selection; provided that the Indemnified Party shall at
      all
      times also have the right to fully participate in the defense at its own
      expense. If an Indemnifying Party shall, within a reasonable time after this
      notice, fail to defend, the Indemnified Party shall have the right, but not
      the
      obligation, to undertake the defense of, and to compromise or settle (exercising
      reasonable business judgment), the claim or other matter on behalf, for the
      account, and at the risk, of the Indemnifying Party. If the claim is one that
      cannot by its nature be defended solely by the Indemnifying Party (including,
      without limitation, any federal or state tax proceeding), then the Indemnified
      Party shall make available and cause to be made available all information and
      assistance that the Indemnifying Party may reasonably request.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    8.1(d)  Notwithstanding
      any other provision of this agreement, no claim may be made after the date
      of
      this agreement by any party against any other party based on any claimed breach
      of any representation or warranty, covenant or agreement contained in this
      Agreement (or in any of the agreements to be executed and delivered by any
      party
      hereto), except to the extent and in the manner provided in this
      Section 8.1. In addition, no claim may be made by any party against any
      other party based on any alleged breach or inaccuracy of a representation or
      warranty of the other party unless such claim is asserted within the survival
      period applicable to such representation and warranty as set forth in
      Section 8.3, and in the manner provided in this
      Section 8.1.

     

    8.1(e)  The
      amount of an Indemnifying Party’s liability under this Agreement shall be net of
      any insurance proceeds actually received by such Indemnified Party in connection
      with the Loss (it being understood that there shall be no obligation on the
      part
      of the Indemnified Party to seek insurance recovery).

     

    8.2  INDEMNIFICATION
      AS EXCLUSIVE REMEDY. 

     

    Subject
      to the limitations set forth in this Article VIII, the Parties acknowledge
      and agree that, from and after the Closing Date, the indemnification provided
      in
      this Article VIII shall be the exclusive remedy of the Parties and the other
      Indemnified Parties with respect to any Losses under or relating to this
      Agreement.

     

    8.3  SURVIVAL
      OF REPRESENTATIONS AND OBLIGATIONS

     

    All
      representations, warranties, covenants, and agreements of the parties contained
      in this agreement, or in any instrument, certificate, opinion, or other writing
      provided for in it, shall survive the Closing as follows: (a) the
      representations and warranties in Sections 2.21 (Authority and Consents)
      and 3.8 (Authority and Consents) shall survive indefinitely; (b) the
      representations and warranties in Sections 2.7 (Tax Returns and
      Audits), 2.9 (Hazardous Materials), 2.10 (Environmental), 3.1
      (Organization, etc.), 3.3 (SEC Filings; Financial Statements), and 3.4
      (Tax Returns and Audits) shall survive the Closing until the expiration of
      the
      applicable statute of limitations; (c) all other representations and warranties
      shall survive until twenty-four (24) months after the Closing Date; (d) the
      obligations in Section 8.4 (Non-Competition) shall survive the Closing for
      the period specified in Section 8.3; and (e) the obligations in
      Sections 8.5 (Confidential Information) and 8.6 (Company Not To Use
      Names) and all other covenants and agreements of the parties shall survive
      indefinitely.

     

    8.4  NON-COMPETITION

     

    During
      the twenty-four (24) month period immediately after the Closing Date (a) no
      Selling Party shall directly or indirectly engage in, or have any interest
      in
      any person, firm, corporation, or business (as an employee, partner,
      shareholder, officer, director, agent, security holder, or creditor) that
      engages in any Competing Business (as defined below), and (b) Larry J. Hamlin
      shall not devote more than fifty percent (50%) of his productive time to
      providing consulting services to any one or more related businesses engaged
      in a
      Competing Business other than Buyer. A “Competing
      Business”
      means
      (a) a café within a two (2) block radius of a location of a business owned by
      Buyer as of the date of this Agreement or a business purchased under this
      Agreement,
      or
      (b) a
      catering or food delivery business in King County, Washington.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    8.5  CONFIDENTIAL
      INFORMATION

     

    Selling
      Parties shall not divulge, communicate, use to the detriment of Buyer or for
      the
      benefit of any other person or persons, or misuse in any way, any confidential
      information or trade secret of Company, including without limitation personnel
      information, secret processes, know-how, customer lists, recipes, formulas,
      or
      other technical data. Any information or data Selling Parties have acquired
      on
      any of these matters or items was received in confidence and as fiduciaries
      of
      Company.

     

    8.6  COMPANY
      NOT TO USE NAMES

     

    Immediately
      after the Closing, Selling Parties shall not use or employ in any manner
      directly or indirectly the names “Mel’s Market,” “Mel’s Delivery,” “Joelle’s,”
“Soups du Jour” or “Simon’s” or any other name containing the same or similar
      terms alone or in combination with any other words. Promptly following the
      Closing, Selling Parties shall terminate any fictitious business name statement
      that Company has filed for the use of the fictitious business names “Mel’s
      Market,” “Mel’s Delivery,” “Joelle’s,” “Soups du Jour” and
“Simon’s.”

    

    8.7  PAYMENT
      OF RETAINED LIABILITIES

     

    Company
      shall pay, or make adequate provision for the payment, in full all of the debts,
      liabilities and obligations of Company other than those expressly assumed by
      Buyer pursuant to this Agreement (the “Retained
      Liabilities”).
      If
      any Retained Liabilities are not so paid or provided for and Buyer determines
      that failure to make any payments will impair Buyer’s use or enjoyment of the
      Acquired Assets or conduct of the business previously conducted by Company
      with
      the Acquired Assets, Buyer may, at any time after the Closing Date, elect to
      make all such payments directly (but shall have no obligation to do so) and
      set
      off and deduct the full amount of all such payments from the first maturing
      installments pursuant to Section 1.2(b).

     

    8.8  RETENTION
      OF AND ACCESS TO RECORDS

     

    After
      the
      Closing Date, Buyer shall retain for a period consistent with Buyer’s
      record-retention policies and practices those books and records of Company
      delivered to Buyer. Buyer also shall provide Selling Parties and their
      representatives reasonable access thereto, during normal business hours and
      on
      at least three days’ prior written notice, to enable them to prepare financial
      statements or tax returns or deal with tax audits. After the Closing Date,
      Selling Parties shall (a) retain all of Company’s books and records (other than
      those delivered to Buyer) until Buyer and its accountants have prepared audited
      financial statements reflecting the assets, liabilities and results of
      operations of Company for the period from January 1, 2004 until the Closing
      Date
      and (b) provide Buyer and its representatives reasonable access to all books
      and
      records that are Excluded Assets, during normal business hours and on at least
      three days’ prior written notice, for any reasonable business purpose, including
      without limitation the preparation of the audited financial statements described
      above.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    ARTICLE
      9

     

    THE
      CLOSING

     

    9.1  TIME
      AND PLACE

     

    The
      transfer of the Acquired Assets by Company to Buyer (the “Closing”)
      shall
      occur on May 14, 2008 at the offices of Buyer, 3317 3rd
      Avenue
      S, Suite A, Seattle, WA 98134 unless the parties otherwise agree in writing.
      That date, or if the Closing is advanced or postponed under this paragraph,
      then
      the date to which it is advanced or postponed, is called (the “Closing
      Date”).

     

    9.2  SELLING
      PARTIES' OBLIGATIONS AT CLOSING

     

    At
      the
      Closing, Selling Parties shall deliver or cause to be delivered to
      Buyer:

     

    9.2(a)  A
      Bill of
      Sale with respect to the Acquired Assets.

     

    9.2(b)  An
      Assignment and Assumption of Lease and Landlord’s Consent to Assignment signed
      by Company and Landlord with respect to each of the locations listed in Section
      2.8 of Schedule
      2
      to this
      agreement.

     

    9.2(c)  An
      Assignment and Assumption of Lease and Lessor’s Consent to Assignment signed by
      Company and Lessor with respect to each of the personal property leases listed
      in Section 2.12 of Schedule
      2
      to this
      agreement.

     

    9.2(d)  An
      Amendment to Lease signed by Company and Landlord with respect to each of the
      locations listed in Section 2.8 of Schedule
      2
      to this
      agreement.

     

    9.2(e)  Instruments
      of assignment and transfer of all other Acquired Assets (if any).

     

    9.2(f)  The
      Consulting Agreement signed by Larry J. Hamlin.

     

    9.2(g)  The
      Closing Certificate.

     

    9.2(h)  The
      Security Agreement signed by Company.

     

    Simultaneously
      with the consummation of the transfer, Company, through its officers, agents,
      and employees, will put Buyer into full possession and enjoyment of all
      properties and assets to be conveyed and transferred by this
      agreement.

     

    Selling
      Parties, at any time before or after the Closing Date, shall execute,
      acknowledge, and deliver any further deeds, assignments, conveyances, and other
      assurances, documents, and instruments of transfer reasonably requested by
      Buyer, and will take any other action consistent with the terms of this
      agreement that may reasonably be requested by Buyer for the purpose of
      assigning, transferring, granting, conveying, and confirming to Buyer, or
      reducing to possession, any or all property to be conveyed and transferred
      by
      this agreement. If requested by Buyer, Company shall prosecute or otherwise
      enforce in its own name for the benefit of Buyer any claims, rights, or benefits
      that are transferred to Buyer by this agreement and that require prosecution
      or
      enforcement in Company's name. Any prosecution or enforcement of claims, rights,
      or benefits under this paragraph shall be solely at Buyer's expense, unless
      the
      prosecution or enforcement is made necessary by a breach of this agreement
      by
      the Selling Parties, or any of them.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    9.3  BUYER'S
      OBLIGATIONS AT CLOSING

     

    At
      the
      Closing, Buyer shall deliver the following instruments and
      documents:

     

    9.3(a)  A
      Bank
      cashier’s check, or wire transfer, in the amount of $250,000 plus the Inventory
      Cost less the Gift Certificate Amount.

     

    9.3(b)  An
      Assignment and Assumption of Lease and Landlord’s Consent to Assignment signed
      by Buyer with respect to each of the locations listed in Section 2.8 of
Schedule
      2
      to this
      agreement.

     

    9.3(c)  An
      Assignment and Assumption of Lease and Lessor’s Consent to Assignment signed by
      Buyer with respect to each of the personal property leases listed in Section
      2.12 of Schedule
      2
      to this
      agreement.

     

    9.3(d)  An
      Amendment to Lease signed by Buyer with respect to each of the locations listed
      in Section 2.8 of Schedule
      2
      to this
      agreement.

     

    9.3(e)  The
      Consulting Agreement executed by Buyer.

     

    9.3(f)  A
      check
      representing the security deposit and prorated rent, if any, for each of the
      locations listed in Section 2.8 of Schedule
      2
      to this
      agreement.

     

    9.3(g)  The
      Security Agreement signed by Buyer.

     

    The
      Stock
      Certificate shall be delivered within ten (10) days after the
      Closing.

     

    ARTICLE
      10

     

    TERMINATION

     

    10.1  TERMINATION
      EVENTS

     

    By
      notice
      given prior to or at the Closing, subject to Section 10.2, this agreement
      may be terminated as follows:

     

    10.1(a)  by
      Buyer
      if a material breach of any provision of this agreement has been committed
      by
      Company or Shareholder and such breach has not been waived by
      Buyer;

     

    10.1(b)  by
      Selling Parties if a material breach of any provision of this agreement has
      been
      committed by Buyer and such breach has not been waived by Selling
      Parties;

     

    10.1(c)  by
      Buyer
      if any condition in Article 6 has not been satisfied as of the Closing Date
      or if satisfaction of such a condition by such date is or becomes impossible
      (other than through the failure of Buyer to comply with its obligations under
      this agreement), and Buyer has not waived such condition on or before such
      date;

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    10.1(d)  by
      Selling Parties if any condition in Article 7 has not been satisfied as of
      the Closing Date or if satisfaction of such a condition by such date is or
      becomes impossible (other than through the failure of Company or the Shareholder
      to comply with their obligations under this agreement), and Selling Parties
      have
      not waived such condition on or before such date;

     

    10.1(e)  by
      mutual
      written consent of Buyer and Selling Parties; 

     

    10.1(f)  by
      Buyer
      if the Closing has not occurred on or before the Closing Date, unless Buyer
      is
      in material breach of this agreement; or

     

    10.1(g)  by
      Selling Parties if the Closing has not occurred on or before the Closing Date,
      unless Company or Shareholder are in material breach of this
      agreement.

     

    10.2  EFFECT
      OF TERMINATION

     

    Each
      party's right of termination under Section 10.1 is in addition to any other
      rights it may have under this agreement or otherwise, and the exercise of such
      right of termination will not be an election of remedies. If this agreement
      is
      terminated pursuant to Section 10.1, all obligations of the parties under
      this agreement will terminate, except that the obligations of the parties in
      this Section 10.2 and Article 11 will survive, provided, however,
      that, if this agreement is terminated because of a breach of this agreement
      by
      the nonterminating party or because one or more of the conditions to the
      terminating party's obligations under this agreement is not satisfied as a
      result of the party's failure to comply with its obligations under this
      agreement, the terminating party's right to pursue all legal remedies will
      survive such termination unimpaired.

     

    ARTICLE
      11

     

    MISCELLANEOUS

     

    11.1  PUBLICITY

     

    All
      notices to third parties and all other publicity concerning the transactions
      contemplated by this agreement shall be jointly planned and coordinated by
      and
      between Buyer and Selling Parties. None of the parties shall act unilaterally
      in
      this regard without the prior written approval of the others; provided that
      this
      approval shall not be unreasonably withheld, and Buyer may act unilaterally
      to
      the extent necessary to comply with the applicable securities laws.

     

    11.2  FINDER’S
      OR BROKER’S FEES

     

    Each
      of
      the parties represents and warrants that it has dealt with no broker or finder
      in connection with any of the transactions contemplated by this agreement,
      and,
      insofar as it knows, no broker or other person is entitled to any commission
      or
      finder’s fee in connection with any of these transactions.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    11.3  EXPENSES

     

    Each
      of
      the parties shall pay all costs and expenses incurred or to be incurred by
      it in
      negotiating and preparing this agreement and in Closing and carrying out the
      transactions contemplated by this agreement.

     

    11.4  INTERPRETATION
      AND EFFECT OF HEADINGS

     

    This
      agreement shall be construed as if drafted jointly by all the parties. The
      subject headings of the paragraphs and subparagraphs of this agreement are
      included for purposes of convenience only, and shall not affect the construction
      or interpretation of any of its provisions.

     

    11.5  ENTIRE
      AGREEMENT; MODIFICATION; WAIVER

     

    This
      agreement constitutes the entire agreement among the parties pertaining to
      the
      subject matter contained in it and supersedes all prior and contemporaneous
      agreements, representations, and understandings of the parties with respect
      to
      such subject matter. No supplement, modification, or amendment of this agreement
      shall be binding unless executed in writing by all the parties. No waiver of
      any
      of the provisions of this agreement shall be deemed, or shall constitute, a
      waiver of any other provision, whether or not similar, nor shall any waiver
      constitute a continuing waiver. No waiver shall be binding unless executed
      in
      writing by the party making the waiver.

     

    11.6  COUNTERPARTS

     

    This
      agreement may be executed in multiple counterparts, each of which constitutes
      an
      original, and all of which, collectively, constitute only one agreement. The
      signatures of all of the parties need not appear on the same counterpart, and
      delivery of an executed counterpart signature page by U.S. mail, overnight
      courier, facsimile, or email is as effective as executing and delivering this
      agreement in the presence of the other parties to this agreement.

     

    11.7  PARTIES
      IN INTEREST

     

    Nothing
      in this agreement, whether express or implied, is intended to confer any rights
      or remedies under or by any reason of this agreement on any persons other than
      the parties to it and their respective successors and assigns, nor is anything
      in this agreement intended to relieve or discharge the obligation or liability
      of any third persons to any party to this agreement, nor shall any provision
      give any third persons any right of subrogation or action over against any
      party
      to this agreement.

     

    11.8  ASSIGNMENT

     

    This
      agreement shall be binding on, and shall inure to the benefit of, the parties
      to
      it and their respective heirs, legal representatives, successors, and assigns,
      but shall not be assignable by any party without the prior written consent
      of
      the other parties.

     

    11.9  ARBITRATION

     

    Any
      dispute, claim or controversy arising out of or relating to this agreement
      or
      the breach, termination, enforcement, interpretation or validity thereof,
      including the determination of the scope or applicability of this agreement
      to
      arbitrate, shall be determined by arbitration in Seattle, Washington. The
      arbitration shall be administered by JAMS pursuant to its Comprehensive
      Arbitration Rules and Procedures. Judgment on the arbitration award may be
      entered in any court having jurisdiction. This clause shall not preclude the
      parties from seeking provisional remedies in aid of arbitration from a court
      of
      appropriate jurisdiction.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    11.10  RECOVERY
      OF LITIGATION COSTS

     

    If
      any
      legal action, arbitration 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 of the provisions of this agreement,
      the successful or prevailing party or parties shall be entitled to recover
      reasonable attorneys’ fees and other costs incurred in that action or
      proceeding, in addition to any other relief to which it or they may be
      entitled.

     

    11.11  NOTICES

     

    All
      notices, requests, demands, and other communications under this agreement shall
      be in writing and shall be deemed to have been duly given on the date of service
      or mailing if served personally on the party to whom notice is to be given,
      or
      if mailed to the party to whom notice is to be given, by first class mail,
      registered or certified, postage prepaid, and properly addressed as
      follows:

     

    
      	
              To
                Selling Parties at:

               

            	
              Mr.
                Larry J. Hamlin

              The
                Hamlin Group

              1001
                4th
                Avenue, Suite 50

              Seattle,
                WA 98154

            
	 	 
	
              With
                a copy to:

               

            	
              W.
                John Sinsheimer, Esq.

              1001
                4th
                Avenue, Suite 2120

              Seattle,
                WA 98154

            
	 	 
	
              To
                Buyer and Parent at:

               

            	
              Mr. Jason
                Brown

              Chief
                Executive Officer

              Organic
                To Go, Inc.

              3317 3rd
                Ave. S, Suite A

              Seattle,
                WA 98134

            
	 	 
	
              With
                a copy to:

               

            	
              Edward
                J. Willig, Esq.

              Carr,
                McClellan, Ingersoll, Thompson & Horn, Professional Law
                Corporation

              216
                Park Road

              Burlingame,
                CA 94010

            

    

    

    Any
      party
      may change its address for purposes of this paragraph by giving the other
      parties written notice of the new address in the manner set forth
      above.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    11.12  GOVERNING
      LAW

     

    This
      agreement shall be construed in accordance with, and governed by, the laws
      of
      the State of Washington.

     

    11.13  SEVERABILITY

     

    If
      any
      provision of this agreement is held invalid or unenforceable by any court of
      final jurisdiction, it is the intent of the parties that all other provisions
      of
      this agreement be construed to remain fully valid, enforceable, and binding
      on
      the parties.

     

    [Signature
      page follows.]

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties to this agreement have duly executed it as of
      the
      day and year first above written.

     

    
      	
              ORGANIC
                TO GO, INC.

              a
                Delaware corporation

               

            	 	
              FPO,
                INC.

              a
                Washington corporation

              doing
                business as “Mel’s
                Market,” “Mel’s Delivery,” “Joelle’s,” “Soups du Jour” and
                “Simon’s”

            
	 	 	 
	
              By:

            	
              /s/
                Jason Brown

            	 	
              By:

            	
              /s/
                Larry J. Hamlin

            
	 	
              Jason
                Brown

              Chief
                Executive Officer

            	 	 	
              Larry
                J. Hamlin

              President

            
	 	 	 	 	 
	
              ORGANIC
                TO GO FOOD CORPORATION

              a
                Delaware corporation

            	 	 
	 
	 	 	 	 
	
              By:

            	
              /s/
                Jason Brown

            	 	
              /s/
                Larry J. Hamlin

            
	 	
              Jason
                Brown

              Chief
                Executive Officer

            	 	
              LARRY
                J. HAMLIN, Individually

            

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    CONSENT
      OF SPOUSE 

    

    The
      undersigned spouse of Shareholder has read and hereby approves the foregoing
      agreement. In consideration of Buyer’s purchase of certain business and
      properties of Company as set forth in the agreement, the undersigned hereby
      agrees to be irrevocably bound by the agreement and further agrees that any
      community property interest shall be similarly bound by the agreement. I hereby
      appoint my spouse as my attorney-in-fact with respect to any amendment or
      exercise of any rights under the agreement. 

     

     

    
      	 	
              /s/
                Lea B. Hamlin

            
	 	LEA B.
              HAMLIN

    

    

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    LIST
      OF EXHIBITS AND SCHEDULES

     

    
      	
              Schedule

            	
              Description

            
	 	 
	
              1

            	
              Assets
                of Company

            
	 	 
	
              1.2(b)

            	
              Security
                Agreement

            
	 	 
	
              1.3

            	
              Assumed
                Liabilities

            
	 	 
	
              2

            	
              Disclosure
                Schedule

            
	 	 
	
              4.8

            	
              Consents
                of Others

            
	 	 
	
              6.8

            	
              Consulting
                Agreement

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 1

     

    ASSETS
      OF FPO, INC.

     

    dba
      “Mel’s Market,” “Mel’s Delivery,” “Joelle’s,” “Soups du Jour” and
“Simon’s”

     

    Acquired
      Assets:

     

    Inventory

    Furniture

    Fixtures

    Equipment

    Real
      property leases

    Equipment
      leases

    Motor
      vehicle financing agreement

    Equipment
      financing agreement 

    Leasehold
      improvements

    Telephone
      numbers

    Web
      sites
      including but not limited to www.melsmarket.com 

    URLs
      including but not limited to www.melsmarket.com 

    Trademarks

    Trade
      names (including the names “Mel’s Market,” “Mel’s Delivery,” “Joelle’s,” “Soups
      du Jour” and “Simon’s”)

    Customer
      lists

    Recipes

    Trade
      secrets

    Goodwill

    Licenses
      and permits

    Gift
      Certificates

     

    Excluded
      Assets:

     

    Cash

    Accounts
      receivable

    Company’s
      minute book, stock book, tax records, employment and personnel files, and other
      records related to Excluded Assets

    Rights
      to
      tax refunds, claims and credits

    Insurance
      policies and rights thereunder, including any premium refunds

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1.2(b)

    

      SECURITY
        AGREEMENT

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 1.3

     

    ASSUMED
      LIABILITIES

     

    
      	1.	
              Lease
                for 1001 4th
                Avenue, Suite 50, Seattle, Washington
                98154

            

    

     

    
      	2.	
              Lease
                for 1001 4th
                Avenue, Suite 510, Seattle, Washington
                98154

            

    

     

    
      	3.	
              Lease
                for 925 4th
                Avenue, Suite 490, Seattle, Washington
                98104

            

    

     

    
      	4.	
              Lease
                No. 600-0057001-000 with US Bank

            

    

     

    
      	5.	
              Lease
                No. 600-0069374-000 with US Bank

            

    

     

    
      	6.	
              Lease
                No. 600-0144550-000 with US Bank

            

    

     

    
      	7.	
              Lease
                No. 019-7021944-000 with Leaf Financial
                Corporation

            

    

     

    
      	8.	
              Payments
                for Toyota Scion XB, VIN
                #JTLKT324864116425

            

    

     

    
      	9.	
              Payments
                for Equipment Financing Agreement No. 136168-000 with Balboa
                Capital

            

    

     

    
      	10.	
              The
                following gift certificates:

            

    

     

    

      
        	
                 

              	
                Number

                 

              	
                Amount

                 

              
	
                a)  

                 

              	
                 

              	
                 

              
	
                b)  

                 

              	
                 

              	
                 

              
	
                c)  

                 

              	
                 

              	
                 

              
	
                d)  

                 

              	
                 

              	
                 

              
	
                e)  

                 

              	
                 

              	
                 

              
	
                f)  

                 

              	
                 

              	
                 

              

      

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

    

    SCHEDULE 2.4

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    FINANCIAL
      STATEMENTS

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2.6 

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    DEBTS,
      LIABILITIES AND OBLIGATIONS

     

    
      	1.	
              Lease
                for 1001 4th
                Avenue, Suite 50, Seattle, Washington
                98154

            

    

     

    
      	2.	
              Lease
                for 1001 4th
                Avenue, Suite 510, Seattle, Washington
                98154

            

    

     

    
      	3.	
              Lease
                for 925 4th
                Avenue, Suite 490, Seattle, Washington
                98104

            

    

     

    
      	4.	
              Lease
                No. 600-0057001-000 with US Bank

            

    

     

    
      	5.	
              Lease
                No. 600-0069374-000 with US Bank

            

    

     

    
      	6.	
              Lease
                No. 600-0144550-000 with US Bank

            

    

     

    
      	7.	
              Lease
                No. 019-7021944-000 with Leaf Financial
                Corporation

            

    

     

    
      	8.	
              Payments
                for Toyota Scion XB, VIN
                #JTLKT324864116425

            

    

     

    
      	9.	
              Payments
                for Equipment Financing Agreement No. 136168-000 with Balboa
                Capital

            

    

     

    
      	10.	
              The
                following gift certificates:

            

    

     

    
      
        	 	
                Number

                 

              	
                Amount

                 

              
	
                a)  

                 

              	
                 

              	
                 

              
	
                b)  

                 

              	
                 

              	
                 

              
	
                c)  

                 

              	
                 

              	
                 

              
	
                d)  

                 

              	
                 

              	
                 

              
	
                e)  

                 

              	
                 

              	
                 

              
	
                f)  

                 

              	
                 

              	
                 

              

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 2.8

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    REAL
      PROPERTY

     

    1.  1001
      4th
      Avenue,
      Suite 50, Seattle, Washington 98154 

     

    2.  1001
      4th
      Avenue,
      Suite 510, Seattle, Washington 98154

     

    3.  925
      4th
      Avenue,
      Suite 490, Seattle, Washington 98104

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2.10

    

    COMPANY’S
      DISCLOSURE SCHEDULE

    

    ENVIRONMENTAL
      DISCLOSURES

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2.11

    

    COMPANY’S
      DISCLOSURE SCHEDULE

    

    INVENTORY

    

    None.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2.12

    

    COMPANY’S
      DISCLOSURE SCHEDULE

    

    OTHER
      TANGIBLE PERSONAL PROPERTY

    

    1.  Lease
      No.
      600-0057001-000 with US Bank

     

    2.  Lease
      No.
      600-0069374-000 with US Bank

     

    3.  Lease
      No.
      600-0144550-000 with US Bank

     

    4.  Lease
      No.
      019-7021944-000 with Leaf Financial Corporation

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 2.13

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    INTELLECTUAL
      PROPERTY

     

    The
      tradenames “Mel’s
      Market,” “Mel’s Delivery,” “Joelle’s,” “Soups du Jour” and
“Simon’s”

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 2.15

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    CUSTOMERS
      AND SALES

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 2.16

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    EMPLOYMENT
      AGREEMENTS

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 2.17

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    INSURANCE
      POLICIES

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 2.18

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    
      MATERIAL
        AGREEMENTS

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 2.20

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    LITIGATION

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 2.23

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    INTEREST
      IN CUSTOMERS, SUPPLIERS, AND COMPETITORS

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 2.24

     

    COMPANY’S
      DISCLOSURE SCHEDULE

     

    IDENTIFICATION
      AND COMPENSATION

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 4.8

     

    CONSENTS
      OF OTHERS

     

    1.  US
      Bank
      regarding Lease No. 600-0057001-000 

     

    2.  US
      Bank
      regarding Lease No. 600-0069374-000 

     

    3.  US
      Bank
      regarding Lease No. 600-0144550-000 

     

    4.  Leaf
      Financial Corporation regarding Lease No. 019-7021944-000 

     

    5.  Toyota
      of
      Seattle regarding Payments for Toyota Scion XB, VIN
      #JTLKT324864116425

     

    6.  Balboa
      Capital regarding Payments for Equipment Financing Agreement No.
      136168-000

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6.8

     

    CONSULTING
      AGREEMENT

     

    (ATTACHED)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      TABLE
        OF CONTENTS
        

          
            	 	 	
                    PAGE 

                  
	 	 	 
	
                    ARTICLE
                      1

                  	
                    PURCHASE
                      AND SALE OF ASSETS

                  	
                    1

                  
	
                    1.1

                  	
                    SALE
                      AND TRANSFER OF ASSETS

                  	
                    1

                  
	
                    1.2

                  	
                    CONSIDERATION
                      FROM BUYER AT CLOSING

                  	
                    1

                  
	
                    1.3

                  	
                    ASSUMPTION
                      OF LIABILITIES

                  	
                    2

                  
	
                    1.4

                  	
                    ALLOCATION
                      OF PURCHASE PRICE

                  	
                    2

                  
	
                    1.5

                  	
                    TAXES

                  	
                    3

                  
	
                    ARTICLE
                      2

                  	
                    SELLING
                      PARTIES’ REPRESENTATIONS AND WARRANTIES

                  	
                    3

                  
	
                    2.1

                  	
                    ORGANIZATION,
                      STANDING AND QUALIFICATION OF COMPANY

                  	
                    3

                  
	
                    2.2

                  	
                    SHARE
                      OWNERSHIP

                  	
                    3

                  
	
                    2.3

                  	
                    SUBSIDIARIES

                  	
                    3

                  
	
                    2.4

                  	
                    FINANCIAL
                      STATEMENTS

                  	
                    3

                  
	
                    2.5

                  	
                    ABSENCE
                      OF SPECIFIED CHANGES

                  	
                    4

                  
	
                    2.6

                  	
                    DEBTS,
                      LIABILITIES AND OBLIGATIONS

                  	
                    5

                  
	
                    2.7

                  	
                    TAX
                      RETURNS AND AUDITS

                  	
                    5

                  
	
                    2.8

                  	
                    REAL
                      PROPERTY

                  	
                    5

                  
	
                    2.9

                  	
                    HAZARDOUS
                      MATERIALS

                  	
                    5

                  
	
                    2.10

                  	
                    ENVIRONMENTAL

                  	
                    5

                  
	
                    2.11

                  	
                    INVENTORY

                  	
                    6

                  
	
                    2.12

                  	
                    OTHER
                      TANGIBLE PERSONAL PROPERTY

                  	
                    6

                  
	
                    2.13

                  	
                    INTELLECTUAL
                      PROPERTY

                  	
                    6

                  
	
                    2.14

                  	
                    TITLE
                      TO ASSETS

                  	
                    7

                  
	
                    2.15

                  	
                    CUSTOMERS
                      AND SALES

                  	
                    7

                  
	
                    2.16

                  	
                    EMPLOYMENT
                      AGREEMENTS

                  	
                    7

                  
	
                    2.17

                  	
                    INSURANCE
                      POLICIES

                  	
                    7

                  
	
                    2.18

                  	
                    OTHER
                      CONTRACTS

                  	
                    8

                  
	
                    2.19

                  	
                    COMPLIANCE
                      WITH LAWS

                  	
                    8

                  
	
                    2.20

                  	
                    LITIGATION

                  	
                    8

                  
	
                    2.21

                  	
                    AGREEMENT
                      WILL NOT CAUSE BREACH OR VIOLATION

                  	
                    8

                  
	
                    2.22

                  	
                    AUTHORITY
                      AND CONSENTS

                  	
                    9

                  
	
                    2.23

                  	
                    INTEREST
                      IN CUSTOMERS, SUPPLIERS, AND COMPETITORS

                  	
                    9

                  

          

           

           

          
            
              i

            

            
              
              

              
                

              

            

            
              
              

            

             

            TABLE
              OF CONTENTS

            (continued)

            

              
                	 	 	
                        PAGE 

                      

              

            

             

          

          
            	
                    2.24

                  	
                    IDENTIFICATION
                      AND COMPENSATION

                  	
                    9

                  
	
                    2.25

                  	
                    COMPANY
                      DOCUMENTS

                  	
                    9

                  
	
                    2.26

                  	
                    ACQUISITION
                      OF SHARES FOR OWN ACCOUNT

                  	
                    9

                  
	
                    2.27

                  	
                    DISCLOSURE
                      OF INFORMATION

                  	
                    9

                  
	
                    2.28

                  	
                    INVESTMENT
                      EXPERIENCE

                  	
                    9

                  
	
                    2.29

                  	
                    ACCREDITED
                      INVESTOR

                  	
                    10

                  
	
                    2.30

                  	
                    RESTRICTED
                      SECURITIES

                  	
                    10

                  
	
                    2.31

                  	
                    FURTHER
                      LIMITATIONS ON DISPOSITION

                  	
                    10

                  
	
                    2.32

                  	
                    LEGEND

                  	
                    10

                  
	
                    2.33

                  	
                    NO
                      ADVERTISEMENT

                  	
                    11

                  
	
                    2.34

                  	
                    FULL
                      DISCLOSURE

                  	
                    11

                  
	
                    ARTICLE
                      3

                  	
                    REPRESENTATIONS
                      AND WARRANTIES OF BUYER AND PARENT

                  	
                    11

                  
	
                    3.1

                  	
                    ORGANIZATION,
                      STANDING AND QUALIFICATION OF BUYER AND PARENT

                  	
                    11

                  
	
                    3.2

                  	
                    SUBSIDIARY

                  	
                    11

                  
	
                    3.3

                  	
                    SEC
                      FILINGS; FINANCIAL STATEMENTS

                  	
                    11

                  
	
                    3.4

                  	
                    TAX
                      RETURNS AND AUDITS

                  	
                    12

                  
	
                    3.5

                  	
                    COMPLIANCE
                      WITH LAWS

                  	
                    12

                  
	
                    3.6

                  	
                    LITIGATION

                  	
                    12

                  
	
                    3.7

                  	
                    AGREEMENT
                      WILL NOT CAUSE BREACH OR VIOLATION

                  	
                    12

                  
	
                    3.8

                  	
                    AUTHORITY
                      AND CONSENTS

                  	
                    12

                  
	
                    3.9

                  	
                    FULL
                      DISCLOSURE

                  	
                    13

                  
	
                    ARTICLE
                      4

                  	
                    SELLING
                      PARTIES' OBLIGATIONS BEFORE CLOSING

                  	
                    13

                  
	
                    4.1

                  	
                    BUYER'S
                      ACCESS TO PREMISES AND INFORMATION

                  	
                    13

                  
	
                    4.2

                  	
                    CONDUCT
                      OF BUSINESS IN NORMAL COURSE

                  	
                    13

                  
	
                    4.3

                  	
                    PRESERVATION
                      OF BUSINESS AND RELATIONSHIPS

                  	
                    13

                  
	
                    4.4

                  	
                    MAINTENANCE
                      OF INSURANCE

                  	
                    13

                  
	
                    4.5

                  	
                    EMPLOYEES
                      AND COMPENSATION

                  	
                    13

                  
	
                    4.6

                  	
                    NEW
                      TRANSACTIONS

                  	
                    14

                  
	
                    4.7

                  	
                    EXISTING
                      AGREEMENTS

                  	
                    14

                  

          

           

           

          
            
              ii

            

            
              
              

              
                

              

            

            
              
              

            

             

            
              TABLE
                OF CONTENTS

              (continued)

              

                
                  	 	 	
                          PAGE 

                        

                

              

            

             

          

          
            	
                    4.8

                  	
                    CONSENTS
                      OF OTHERS

                  	
                    14

                  
	
                    4.9

                  	
                    DOCUMENTATION
                      OF PROCEDURES AND TRADE SECRETS

                  	
                    14

                  
	
                    4.10

                  	
                    REPRESENTATIONS
                      AND WARRANTIES TRUE AT CLOSING

                  	
                    14

                  
	
                    4.11

                  	
                    NOTIFICATION

                  	
                    14

                  
	
                    4.12

                  	
                    NO
                      NEGOTIATION

                  	
                    15

                  
	
                    ARTICLE
                      5

                  	
                    BUYER'S
                      OBLIGATIONS BEFORE CLOSING

                  	
                    15

                  
	
                    5.1

                  	
                    SECURING
                      CONSENTS OF THIRD PARTIES

                  	
                    15

                  
	
                    ARTICLE
                      6

                  	
                    CONDITIONS
                      PRECEDENT TO BUYER'S PERFORMANCE

                  	
                    15

                  
	
                    6.1

                  	
                    ACCURACY
                      OF SELLING PARTIES' REPRESENTATIONS AND WARRANTIES

                  	
                    15

                  
	
                    6.2

                  	
                    PERFORMANCE
                      BY SELLING PARTIES

                  	
                    15

                  
	
                    6.3

                  	
                    NO
                      MATERIAL ADVERSE CHANGE

                  	
                    16

                  
	
                    6.4

                  	
                    CERTIFICATION
                      BY COMPANY

                  	
                    16

                  
	
                    6.5

                  	
                    ABSENCE
                      OF LITIGATION

                  	
                    16

                  
	
                    6.6

                  	
                    CORPORATE
                      APPROVAL

                  	
                    16

                  
	
                    6.7

                  	
                    CONSENTS

                  	
                    16

                  
	
                    6.8

                  	
                    CONSULTING
                      AGREEMENT

                  	
                    16

                  
	
                    6.9

                  	
                    APPROVAL
                      OF DOCUMENTATION

                  	
                    16

                  
	
                    6.10

                  	
                    ASSIGNMENTS
                      OF REAL PROPERTY LEASES AND CONSENTS TO ASSIGNMENT

                  	
                    17

                  
	
                    6.11

                  	
                    ASSIGNMENT
                      OF EQUIPMENT LEASES AND CONSENTS TO ASSIGNMENT

                  	
                    17

                  
	
                    6.12

                  	
                    AMENDMENT
                      OF REAL PROPERTY LEASES

                  	
                    17

                  
	
                    ARTICLE
                      7

                  	
                    CONDITIONS
                      PRECEDENT TO SELLING PARTIES’ PERFORMANCE

                  	
                    17

                  
	
                    7.1

                  	
                    ACCURACY
                      OF BUYER'S REPRESENTATIONS AND WARRANTIES

                  	
                    17

                  
	
                    7.2

                  	
                    BUYER'S
                      PERFORMANCE

                  	
                    17

                  
	
                    7.3

                  	
                    BUYER'S
                      CORPORATE APPROVAL

                  	
                    18

                  
	
                    7.4

                  	
                    ABSENCE
                      OF LITIGATION

                  	
                    18

                  
	
                    ARTICLE
                      8

                  	
                    SELLING
                      PARTIES’ OBLIGATIONS AFTER CLOSING

                  	
                    18

                  
	
                    8.1

                  	
                    INDEMNIFICATION

                  	
                    18

                  
	
                    8.2

                  	
                    INDEMNIFICATION
                      AS EXCLUSIVE REMEDY

                  	
                    19

                  

          

           

          
            
              iii

            

            
              
              

              
                

              

            

            
              
              

            

             

            
              TABLE
                OF CONTENTS

              (continued)

              

                
                  	 	 	
                          PAGE 

                        

                

                 

              

            

          

          
            	
                    8.3

                  	
                    SURVIVAL
                      OF REPRESENTATIONS AND OBLIGATIONS

                  	
                    19

                  
	
                    8.4

                  	
                    NON-COMPETITION

                  	
                    19

                  
	
                    8.5

                  	
                    CONFIDENTIAL
                      INFORMATION

                  	
                    20

                  
	
                    8.6

                  	
                    COMPANY
                      NOT TO USE NAMES

                  	
                    20

                  
	
                    8.7

                  	
                    PAYMENT
                      OF RETAINED LIABILITIES

                  	
                    20

                  
	
                    8.8

                  	
                    RETENTION
                      OF AND ACCESS TO RECORDS

                  	
                    20

                  
	
                    ARTICLE
                      9

                  	
                    THE
                      CLOSING

                  	
                    21

                  
	
                    9.1

                  	
                    TIME
                      AND PLACE

                  	
                    21

                  
	
                    9.2

                  	
                    SELLING
                      PARTIES' OBLIGATIONS AT CLOSING

                  	
                    21

                  
	
                    9.3

                  	
                    BUYER'S
                      OBLIGATIONS AT CLOSING

                  	
                    22

                  
	
                    ARTICLE
                      10

                  	
                    TERMINATION

                  	
                    22

                  
	
                    10.1

                  	
                    TERMINATION
                      EVENTS

                  	
                    22

                  
	
                    10.2

                  	
                    EFFECT
                      OF TERMINATION

                  	
                    23

                  
	
                    ARTICLE
                      11

                  	
                    MISCELLANEOUS

                  	
                    23

                  
	
                    11.1

                  	
                    PUBLICITY

                  	
                    23

                  
	
                    11.2

                  	
                    FINDER’S
                      OR BROKER’S FEES

                  	
                    23

                  
	
                    11.3

                  	
                    EXPENSES

                  	
                    24

                  
	
                    11.4

                  	
                    INTERPRETATION
                      AND EFFECT OF HEADINGS

                  	
                    24

                  
	
                    11.5

                  	
                    ENTIRE
                      AGREEMENT; MODIFICATION; WAIVER

                  	
                    24

                  
	
                    11.6

                  	
                    COUNTERPARTS

                  	
                    24

                  
	
                    11.7

                  	
                    PARTIES
                      IN INTEREST

                  	
                    24

                  
	
                    11.8

                  	
                    ASSIGNMENT

                  	
                    24

                  
	
                    11.9

                  	
                    ARBITRATION

                  	
                    24

                  
	
                    11.10

                  	
                    RECOVERY
                      OF LITIGATION COSTS

                  	
                    25

                  
	
                    11.11

                  	
                    NOTICES

                  	
                    25

                  
	
                    11.12

                  	
                    GOVERNING
                      LAW

                  	
                    26

                  
	
                    11.13

                  	
                    SEVERABILITY

                  	
                    26

                  

          

           

          
            
              ivCONSULTING
      AGREEMENT

     

    Effective
      May 14, 2008, Larry J. Hamlin ("Consultant")
      and
      Organic To Go, Inc., a Delaware corporation ("Company")
      agree
      as follows: 

     

    1. Services
      and Payment. Consultant
      shall undertake and complete the services (as described on Exhibit
      A)
      in
      accordance with and on the schedule specified on Exhibit
      A
      (the
“Services”).
      As
      the only consideration due Consultant regarding the subject matter of this
      Agreement, Company will pay Consultant in accordance with Exhibit
      A.

     

    2. Ownership;
      Rights; Proprietary Information; Publicity.
      

     

    a. Company
      shall own all right, title and interest (including patent rights, copyrights,
      trade secret rights, trademark rights, and all other intellectual and industrial
      property rights of any sort throughout the world) relating to any and all
      inventions (whether or not patentable), works of authorship, designations,
      designs, know-how, ideas and information made or conceived or reduced to
      practice, in whole or in part, by Consultant in connection with Services or
      any
      Proprietary Information (as defined below) (collectively, "Inventions")
      and
      Consultant will promptly disclose and provide all Inventions to Company. All
      Inventions are work made for hire to the extent allowed by law and, in addition,
      Consultant hereby makes all assignments necessary to accomplish the foregoing
      ownership. Consultant shall assist Company, at Company's expense, to further
      evidence, record and perfect such assignments, and to perfect, obtain, maintain,
      enforce, and defend any rights assigned. Consultant hereby irrevocably
      designates and appoints Company as her agent and attorney-in-fact, coupled
      with
      an interest, to act for and on Consultant's behalf to execute and file any
      document and to do all other lawfully permitted acts to further the foregoing
      with the same legal force and effect as if executed by Consultant.

     

    b. All
      Inventions and all other business, technical and financial information
      (including, without limitation, the identity of and information relating to
      customers or employees) that Consultant learns, develops or obtains in
      connection with the Services or that are received by or for Company in
      confidence, constitute "Proprietary
      Information”.
      Consultant shall hold in confidence and not disclose or, except in performing
      the Services, use any Proprietary Information. However, Consultant shall not
      be
      obligated under this paragraph with respect to information that Consultant
      can
      document is or becomes readily publicly available without restriction through
      no
      fault of Consultant. Upon termination and as otherwise requested by Company,
      Consultant shall promptly return to Company all items and copies containing
      or
      embodying Proprietary Information, except that Consultant may keep her personal
      copies of her compensation records and this Agreement. Consultant has no
      expectation of privacy with respect to Company's telecommunications, networking
      or information processing systems (including, without limitation, stored
      computer files, e-mail messages and voice messages) and Consultant's activity,
      and any files or messages, on or using any of those systems may be monitored
      at
      any time without notice; provided that Consultant has an expectation of privacy
      with respect to his networking or information processing systems (including,
      without limitation, computer(s) which he owns, stored computer files and e-mail
      messages) and Consultant's activity, and any files or messages, on or using
      any
      of those systems may not be monitored or viewed by Company at any
      time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    c. As
      additional protection for Proprietary Information, during the period that
      Consultant provides the Services and for one (1) year thereafter, Consultant
      will not (i) encourage or solicit any employee or consultant of Company to
      leave
      Company for any reason, provided however, that Consultant may hire Carly Sickles
      and Craig Phillips upon termination of this Agreement, (ii) engage in any
      activity that is in any way competitive with the proposed business of Company
      or
      (iii) assist any other person or organization in competing or in preparing
      to
      compete with the proposed business of Company. Without limiting the foregoing,
      Consultant may perform services for any person, provided that (i) such person
      is
      not a restaurant or cafe within a two (2) block radius of a location of a
      business owned by Company as of the date of this Agreement or a business
      purchased under the Agreement
      of Purchase and Sale of Assets among FPO,
      Inc., a Washington corporation doing business as “Mel’s Market,” “Mel’s
      Delivery,” “Joelle’s,” “Soups du Jour” and “Simon’s,” Larry
      J.
      Hamlin, Company and Organic to Go Food Corporation, a Delaware corporation,
      dated as of May
      14,
      2008,
      (ii)
      such
      person does not provide catering or food delivery in King County, Washington
      and
      (iii) such services do not represent a conflict of interest or a breach of
      Consultant’s obligation under this Agreement or otherwise.

     

    d. To
      the
      extent allowed by law, Section 2(a) and any license to Company hereunder
      includes all rights of paternity, integrity, disclosure and withdrawal and
      any
      other rights that may be known as or referred to as "moral rights," "artist's
      rights," "droit moral," or the like. Furthermore, Consultant agrees that
      notwithstanding any rights of publicity, privacy or otherwise (whether or not
      statutory) anywhere in the world and without any further compensation Company
      may and is hereby authorized to use Consultant's name in connection with
      promotion of its business, products and services. 

     

    e. If
      any
      part of the Services or Inventions is based on, incorporates, or is an
      improvement or derivative of, or cannot be reasonably and fully made, used,
      reproduced, distributed and otherwise exploited without using or violating
      any
      other technology or intellectual property rights owned or licensed by Consultant
      and not assigned hereunder, Consultant hereby grants Company and its successors
      a perpetual, irrevocable, worldwide royalty-free, non-exclusive, sublicensable
      right and license to exploit and exercise all such technology and intellectual
      property rights in support of Company's exercise or exploitation of the
      Services, Inventions, other work performed hereunder, or any assigned rights
      (including any modifications, improvements and derivatives of any of
      them).

     

    3. Warranty.
      Consultant warrants that: (a) the Services will be performed in a professional
      and workmanlike manner and that none of such Services or any part of this
      Agreement is or will be inconsistent with any obligation Consultant may have
      to
      others; (b) all work under this Agreement shall be Consultant's original work
      and none of the Services or Inventions nor any development, use, production,
      distribution or exploitation thereof will infringe, misappropriate or violate
      any intellectual property or other right of any person or entity (including,
      without limitation, Consultant); and (c) Consultant has the full right to
      provide the Company with the assignments and rights provided for
      herein.

     

    4. Termination.
      

     

    a. This
      Agreement shall terminate automatically on May 14, 2009.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    b. If
      either
      party materially breaches a material provision of this Agreement, the other
      party may terminate this Agreement upon not less than ten (10) days' notice,
      unless the breach is cured within the notice period. 

     

    c. Company
      may terminate this Agreement at any time, with or without Cause (as defined
      below) upon not less than thirty (30) days' notice, but, if (and only if):
      (i)
      such termination is without Cause and (ii) Consultant signs a written release
      of
      all claims against Company arising from Consultant’s Services under this
      Agreement and the termination of this Agreement, then Company shall continue
      to
      pay Consultant or his personal representative the monthly fee for the Services
      until May 14, 2009. 

     

    d. Company
      may terminate this Agreement due to Consultant’s death or a period of disability
      for ninety (90) days during the term of this Agreement. 

     

    e. For
      purposes of this Agreement, “Cause”
shall
      mean:

     

    (i) An
      unauthorized use or disclosure by Consultant of the Company’s confidential
      information or trade secrets, which use or disclosure causes material harm
      to
      Company;

     

    (ii) Consultant’s
      theft of Company assets; or

     

    (iii) Consultant’s
      conviction of, or plea of “guilty” or “no contest” to, a felony under the laws
      of the United States or any state thereof which causes material harm to
      Company.

     

    This,
      however, shall not be an exclusive list of all acts or omissions that Company
      may consider as grounds for termination for Cause.

     

    f. Sections
      2 through 8 of this Agreement and any remedies for breach of this Agreement
      shall survive any termination or expiration. Company may communicate the
      obligations contained in this Agreement to any other (or potential) client
      or
      employer of Consultant. 

     

    5. Relationship
      of the Parties; Independent Contractor; No Employee
      Benefits.
      Notwithstanding any other provision hereof to the contrary, Consultant is an
      independent contractor and is not an employee, agent, partner or joint venturer
      of Company and shall not bind or attempt to bind Company to any contract.
      Consultant shall accept any reasonable directions issued by Company pertaining
      to the goals to be attained and the results to be achieved by Consultant, but
      Consultant shall be solely responsible for the manner and hours in which the
      Services are performed under this Agreement. Consultant shall not be eligible
      to
      participate in any of Company’s employee benefit plans, fringe benefit programs,
      group insurance arrangements or similar programs. Company shall not provide
      workers’ compensation, disability insurance, Social Security or unemployment
      compensation coverage or any other statutory benefit to Consultant. Consultant
      shall comply at Consultant’s expense with all applicable provisions of workers’
compensation laws, unemployment compensation laws, federal Social Security
      law,
      the Fair Labor Standards Act, federal, state and local income tax laws, and
      all
      other applicable federal, state and local laws, regulations and codes relating
      to terms and conditions of employment required to be fulfilled by employers
      or
      independent contractors. Consultant shall indemnify Company from any and all
      claims, damages, liability, settlement, attorneys’ fees and expenses, as
      incurred, on account of the foregoing or any breach of this Agreement or any
      other action or inaction of Consultant. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    6. Assignment.
      This
      Agreement and the Services contemplated hereunder are personal to Consultant
      and
      Consultant shall not have the right or ability to assign, transfer, or
      subcontract any obligations under this Agreement without the written consent
      of
      Company. Any attempt to do so shall be void. Company may assign its rights
      and
      obligations under this Agreement in whole or in part.

     

    7. Notice.
      All
      notices under this Agreement shall be in writing, and shall be deemed given
      when
      personally delivered, or three days after being sent by prepaid certified or
      registered U.S. mail to the address of the party to be noticed as set forth
      herein or such other address as such party last provided to the other by written
      notice.

     

    8. Miscellaneous.
      Any
      breach of Section 2 or 3 of this Agreement will cause irreparable harm to
      Company for which damages would not be an adequate remedy, and, therefore,
      Company will be entitled to injunctive relief with respect thereto in addition
      to any other remedies. The failure of either party to enforce her or its rights
      under this Agreement at any time for any period shall not be construed as a
      waiver of such rights. This Agreement constitutes the entire agreement between
      the parties pertaining to its subject matter, and supersedes all prior and
      contemporaneous agreements, representations and understandings of the parties
      with respect to such subject matter. No changes or modifications or waivers
      to
      this Agreement will be effective unless in writing and signed by both parties.
      If any provision of this Agreement shall be determined to be illegal or
      unenforceable, that provision will be limited or eliminated to the minimum
      extent necessary so that this Agreement shall otherwise remain in full force
      and
      effect and enforceable. This Agreement shall be governed by and construed in
      accordance with the laws of the State of Washington without regard to the
      conflicts of laws provisions thereof. In any action or proceeding to enforce
      rights under this Agreement, the prevailing party will be entitled to recover
      costs and attorneys fees. Headings herein are for convenience of reference
      only
      and shall in no way affect interpretation of the Agreement. 

     

    9. Arbitration.
      Any
      controversy or claim (except those regarding Inventions, Proprietary Information
      or intellectual property) arising out of or relating to this Agreement, or
      the
      breach thereof, shall be settled by arbitration in accordance with the
      Commercial Arbitration Rules of the American Arbitration Association, and
      judgment on the award rendered by the arbitrator may be entered in any court
      having jurisdiction thereof, provided however, that each party will have a
      right
      to seek injunctive or other equitable relief in a court of law. The prevailing
      party will be entitled to receive from the nonprevailing party all costs,
      damages and expenses, including reasonable attorneys’ fees, incurred by the
      prevailing party in connection with that action or proceeding, whether or not
      the controversy is reduced to judgment or award. The prevailing party will
      be
      that party who may be fairly said by the arbitrator(s) to have prevailed on
      the
      major disputed issues. Consultant hereby consents to the arbitration in the
      State of Washington in the county of King.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	 	 	ORGANIC TO GO,
              INC.
	 	 	 	 	a Delaware corporation
	 	 	 	 	 
	
              /s/
                Larry J. Hamlin

            	 	By:	
              /s/
                Jason Brown

            
	
              
LARRY
              J. HAMLIN	 	 	
              
Jason
              Brown, Chief Executive
              Officer

    

    
    

     

    
      	Address:	
              The
                Hamlin Group 

              1001
                4th
                Avenue, Suite 50 

              Seattle,
                WA 98154

            	 	Address:	
              3317
                3rd Avenue S, Suite A 

              Seattle,
                WA 98134

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    TO

    CONSULTING
      AGREEMENT

     

    SERVICES 

     

    Consultant
      shall spend forty (40) hours
      per
      month during the four-month period commencing the date of this Agreement and
      twenty (20) hours per month during the subsequent eight-month period. Consultant
      shall be permitted to take up to four (4) weeks of vacation during the term
      of
      this Agreement, provided that (i) such vacation is scheduled in advance at
      times
      which do not interfere with Company’s operations, (ii) no vacation is taken
      during the ninety (90) day period commencing the date of this Agreement and
      (iii) not more than ten (10) consecutive business days of vacation are taken
      at
      any one time.

     

    CONSULTING
      FEE

     

    $8,333.33
      per month paid in arrears on the 1st day of each calendar month, prorated for
      any partial calendar month. The consulting fee shall continue to be payable
      during the term of this Agreement regardless of Consultant’s death or
      disability.

     

    EXPENSES 

     

    Subject
      to the limitation provided below, Company shall reimburse Consultant for all
      reasonable expenses incurred by Consultant (including travel related expenses,
      and overtime if any) in performing the services in the same manner and to the
      same extent that Company reimburses or pays such expenses and overtime if any
      incurred by its senior management employees in accordance with its own policies
      and procedures. Advance written approval is required for any expense greater
      than One Hundred Dollars ($100).

     

    
      
        
        

      

      
        6

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