Document:

EXHIBIT
      10.56

     

    STOCK
      OPTION FUNDS ESCROW AGREEMENT

     

    This
      Agreement is dated as of the 12th
      day of
      February, 2008 among Rudolf Gunnerman and Doris Gunnerman (“Stockholders”),
      those parties listed on the signature pages hereto, as purchasers (“Optionees”),
      and Grushko & Mittman, P.C. (the "Escrow Agent"):

     

    WITNESSETH:

     

    WHEREAS,
      Optionees and Stockholders have entered into a Stock Option Agreement, of even
      date herewith (“Stock Option Agreement”; all capitalized terms used and not
      defined herein are used as defined in the Stock Option Agreement) for the option
      to purchase by the Optionees up to 2,000,000 shares of Common Stock of Sulphco,
      Inc. (“Shares”) for a per share purchase price of $4.50; and

     

    WHEREAS,
      the Escrow Agent is willing to serve as escrow agent pursuant to the terms
      and
      conditions of this Agreement;

     

    NOW
      THEREFORE, the parties agree as follows:

     

    ARTICLE
      I

     

    INTERPRETATION

     

    1.1. Definitions.
      Whenever used in this Agreement, the following terms shall have the following
      respective meanings:

     

    §
"Agreement"
      means this Agreement and all amendments made hereto by written agreement between
      the parties;

     

    §
“Closing
      Date” shall mean the date of an Option Closing;

     

    §
"Escrowed
      Payment" means a cash payment in the amount equal to the Purchase Price at
      the
      time of exercise of any Option;

     

    §
“Parties”
      shall mean the Stockholders, Optionees, and Escrow Agent;

     

    §
“Release
      Letter” shall mean the letter to Escrow Agent authorizing release of a Stock
      Certificate;

     

    §
“Stock
      Certificate” shall mean one or more stock certificates representing 2,000,000
      shares of Sulphco, Inc. Common Stock being issued upon an exercise of the Option
      under the Stock Option Agreement;

     

    §
Collectively,
      the executed Agreement and Stock Certificate with executed Stock Power are
      referred to as “Stockholder Documents”; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    §
Collectively,
      the Escrowed Payment and the Optionee executed Agreement are referred to as
      "Optionee Documents".

     

    §
The
      Stockholder Documents and Optionee Documents are collectively referred to as
      “Parties Documents”.

     

    1.2. Entire
      Agreement.
      This
      Agreement along with the Stockholder Documents and Optionee Documents constitute
      the entire agreement between the parties hereto pertaining to the Stockholder
      Documents and Optionee Documents and supersedes all prior agreements,
      understandings, negotiations and discussions, whether oral or written, of the
      parties. There are no warranties, representations and other agreements made
      by
      the parties in connection with the subject matter hereof except as specifically
      set forth in this Agreement, the Stockholder Documents and Optionee
      Documents.

     

    1.3. Extended
      Meanings.
      In this
      Agreement words importing the singular number include the plural and vice versa;
      words importing the masculine gender include the feminine and neuter genders.
      The word "person" includes an individual, corporation, partnership, trustee
      or
      trust or unincorporated association, executor, administrator or legal
      representative.

     

    1.4. Waivers
      and Amendments.
      This
      Agreement may be amended, modified, superseded, cancelled, renewed or extended,
      and the terms and conditions hereof may be waived, only by a written instrument
      signed by all parties, or, in the case of a waiver, by the party waiving
      compliance. Except as expressly stated herein, no delay on the part of any
      party
      in exercising any right, power or privilege hereunder shall operate as a waiver
      thereof, nor shall any waiver on the part of any party of any right, power
      or
      privilege hereunder preclude any other or future exercise of any other right,
      power or privilege hereunder.

     

    1.5. Headings.
      The
      division of this Agreement into articles, sections, subsections and paragraphs
      and the insertion of headings are for convenience of reference only and shall
      not affect the construction or interpretation of this Agreement.

     

    1.6. Law
      Governing this Agreement.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York without regard to conflicts
      of laws
      principles that would result in the application of the substantive laws of
      another jurisdiction. Any action brought by either party against the other
      concerning the transactions contemplated by this Agreement shall be brought
      only
      in the state courts of New York or in the federal courts located in the state
      of
      New York. Both parties and the individuals executing this Agreement agree to
      submit to the jurisdiction of such courts and waive trial by jury. The
      prevailing party (which shall be the party which receives an award most closely
      resembling the remedy or action sought) shall be entitled to recover from the
      other party its reasonable attorney's fees and costs. In the event that any
      provision of this Agreement or any other agreement delivered in connection
      herewith is invalid or unenforceable under any applicable statute or rule of
      law, then such provision shall be deemed inoperative to the extent that it
      may
      conflict therewith and shall be deemed modified to conform with such statute
      or
      rule of law. Any such provision which may prove invalid or unenforceable under
      any law shall not affect the validity or enforceability of any other provision
      of any agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.7. Specific
      Enforcement, Consent to Jurisdiction.
      The
      Parties acknowledge and agree that irreparable damage would occur in the event
      that any of the provisions of this Agreement were not performed in accordance
      with their specific terms or were otherwise breached. It is accordingly agreed
      that the parties shall be entitled to an injunction or injunctions to prevent
      or
      cure breaches of the provisions of this Agreement and to enforce specifically
      the terms and provisions hereof or thereof, this being in addition to any other
      remedy to which any of them may be entitled by law or equity. Subject to Section
      1.6 hereof, each of the Parties hereby waives, and agrees not to assert in
      any
      such suit, action or proceeding, any claim that it is not personally subject
      to
      the jurisdiction of such court, that the suit, action or proceeding is brought
      in an inconvenient forum or that the venue of the suit, action or proceeding
      is
      improper. Nothing in this Section shall affect or limit any right to serve
      process in any other manner permitted by law.

     

    ARTICLE
      II

     

    DELIVERIES
      TO THE ESCROW AGENT

     

    2.1. Stockholders’
      Deliveries.
      On the
      date of execution of this Agreement, the Stockholders will deliver to the Escrow
      Agent all the Stockholder Documents other than the Release Letter. On or before
      each Option Closing date, the Stockholders will deliver to the Escrow Agent
      the
      Release Letter.

     

    2.2. Optionee
      Deliveries.
      On the
      date of execution of this Agreement, the Optionees will deliver to the Escrow
      Agent executed copies of this Agreement. Each Optionee agrees that exercise
      of
      its Allocated Portion of the Option will be in minimum increments of 25,000
      shares and agrees to deliver the written notice in paragraph 1(e) of the Stock
      Option Agreement as specified therein. On or before the Option Closing date,
      Optionee shall deliver to the Escrow Agent the applicable Purchase Price and
      Release Letter. The Escrowed Payment will be delivered pursuant to the following
      wire transfer instructions:

     

    Citibank,
      N.A.

    1155
      6th
      Avenue

    New
      York,
      NY 10036, USA

    ABA
      Number: 0210-00089

    For
      Credit to: Grushko & Mittman, IOLA Trust Account

    Account
      Number: 45208884

     

    2.3. Intention
      to Create Escrow Over Stockholder Documents and Optionee
      Documents.
      The
      Parties intend that the Stockholder Documents and Optionee Documents shall
      be
      held in escrow by the Escrow Agent pursuant to this Agreement for their benefit
      as set forth herein.

     

    2.4. Escrow
      Agent to Deliver the Stockholder Documents and Optionee
      Documents.
      The
      Escrow Agent shall hold and release the Stockholder Documents and Optionee
      Documents only in accordance with the terms and conditions of this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.5. Authority
      to Escrow Agent.
      The
      Escrow Agent is authorized from time to time to deliver the Stock Certificates
      to the transfer agent of Sulphco, Inc., for the purpose of reissuing the Shares
      in such denominations as required to be able to deliver Shares in compliance
      with this Agreement.

     

    ARTICLE
      III

     

    RELEASE
      OF ESCROW

     

    3.1. Release
      of Escrow.
      Subject
      to the provisions of Section 4.2, the Escrow Agent shall release the Stockholder
      Documents and Optionee Documents as follows:

     

    (a) On
      each
      Option Closing, the Escrow Agent will simultaneously release the Purchase Price
      to Stockholders and the applicable Stock Certificate with Stock Power endorsed
      in blank to the Optionee.

     

    (b) All
      funds
      to be delivered to the Stockholders shall be delivered pursuant to the following
      wire instructions:

    

    Bank
      of
      Nevada

    4985
      B.
      Kietzke Lane

    Reno,
      NV
      89509

    ABA
      Routing #: 122401778

    Account
      #: 20010000022

    Rudolf
      and Doris Gunnerman

     

    (c) Notwithstanding
      the above, upon receipt by the Escrow Agent of joint written instructions
      ("Joint Instructions") signed by the Parties, it shall deliver the Stockholder
      Documents and Optionee Documents in accordance with the terms of the Joint
      Instructions.

     

    (e) Notwithstanding
      the above, upon receipt by the Escrow Agent of a final and non-appealable
      judgment, order, decree or award of a court of competent jurisdiction (a "Court
      Order"), the Escrow Agent shall deliver the Stockholder Documents and Optionee
      Documents in accordance with the Court Order. Any Court Order shall be
      accompanied by an opinion of counsel for the party presenting the Court Order
      to
      the Escrow Agent (which opinion shall be satisfactory to the Escrow Agent)
      to
      the effect that the court issuing the Court Order has competent jurisdiction
      and
      that the Court Order is final and non-appealable.

     

    3.2. Acknowledgement
      of Parties; Disputes.
      The
      Parties acknowledge that the only terms and conditions upon which the
      Stockholder Documents and the Optionee Documents are to be released are set
      forth in Sections 3 and 4 of this Agreement. The Parties reaffirm their
      agreement to abide by the terms and conditions of this Agreement with respect
      to
      the release of the Stockholder Documents and Optionee Documents. Any dispute
      with respect to the release of the Stockholder Documents and the Optionee
      Documents shall be resolved pursuant to Section 4.2 or by agreement between
      the
      Parties.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IV

     

    CONCERNING
      THE ESCROW AGENT

     

    4.1. Duties
      and Responsibilities of the Escrow Agent.
      The
      Escrow Agent's duties and responsibilities shall be subject to the following
      terms and conditions:

     

    (a) The
      Parties acknowledge and agree that the Escrow Agent (i) shall not be responsible
      for or bound by, and shall not be required to inquire into whether any of the
      Parties is entitled to receipt of the Stockholder Documents and Optionee
      Documents pursuant to, any other agreement or otherwise; (ii) shall be obligated
      only for the performance of such duties as are specifically assumed by the
      Escrow Agent pursuant to this Agreement; (iii) may rely on and shall be
      protected in acting or refraining from acting upon any written notice,
      instruction, instrument, statement, request or document furnished to it
      hereunder and believed by the Escrow Agent in good faith to be genuine and
      to
      have been signed or presented by the proper person or party, without being
      required to determine the authenticity or correctness of any fact stated therein
      or the propriety or validity or the service thereof; (iv) may assume that any
      person believed by the Escrow Agent in good faith to be authorized to give
      notice or make any statement or execute any document in connection with the
      provisions hereof is so authorized; (v) shall not be under any duty to give
      the
      property held by Escrow Agent hereunder any greater degree of care than Escrow
      Agent gives its own similar property; and (vi) may consult counsel satisfactory
      to Escrow Agent, the opinion of such counsel to be full and complete
      authorization and protection in respect of any action taken, suffered or omitted
      by Escrow Agent hereunder in good faith and in accordance with the opinion
      of
      such counsel.

     

    (b) The
      Parties acknowledge that the Escrow Agent is acting solely as a stakeholder
      at
      their request and that the Escrow Agent shall not be liable for any action
      taken
      by Escrow Agent in good faith and believed by Escrow Agent to be authorized
      or
      within the rights or powers conferred upon Escrow Agent by this Agreement.
      The
      Stockholders and Optionees, jointly and severally, agree to indemnify and hold
      harmless the Escrow Agent and any of Escrow Agent's partners, employees, agents
      and representatives for any action taken or omitted to be taken by Escrow Agent
      or any of them hereunder, including the fees of outside counsel and other costs
      and expenses of defending itself against any claim or liability under this
      Agreement, except in the case of gross negligence or willful misconduct on
      Escrow Agent's part committed in its capacity as Escrow Agent under this
      Agreement. The Escrow Agent shall owe a duty only to the Stockholders and
      Optionees under this Agreement and to no other person.

     

    (c) The
      Stockholders and Optionees, jointly and severally agree to reimburse the Escrow
      Agent for outside counsel fees, to the extent authorized hereunder and incurred
      in connection with the performance of its duties and responsibilities
      hereunder.

     

    (d) The
      Escrow Agent may at any time resign as Escrow Agent hereunder by giving five
      (5)
      days prior written notice of resignation to the Parties. Prior to the effective
      date of the resignation as specified in such notice, the Stockholders and
      Optionees will issue to the Escrow Agent a Joint Instruction authorizing
      delivery of the Stockholder Documents and Optionee Documents to a substitute
      Escrow Agent selected by the Optionees and Stockholders. If no successor Escrow
      Agent is named by the Optionees and Stockholders, the Escrow Agent may apply
      to
      a court of competent jurisdiction in the State of New York for appointment
      of a
      successor Escrow Agent, and to deposit the Stockholder Documents and Optionee
      Documents with the clerk of any such court.

     

    (e) The
      Escrow Agent does not have and will not have any interest in the Stockholder
      Documents and Optionee Documents, but is serving only as escrow agent, having
      only possession thereof. The Escrow Agent shall not be liable for any loss
      resulting from the making or retention of any investment in accordance with
      this
      Escrow Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (f) This
      Agreement sets forth exclusively the duties of the Escrow Agent with respect
      to
      any and all matters pertinent thereto and no implied duties or obligations
      shall
      be read into this Agreement.

     

    (g) The
      Escrow Agent shall be permitted to act as counsel for the Optionees in any
      dispute as to the disposition of the Stockholder Documents and Optionee
      Documents, in any other dispute between the Parties, whether or not the Escrow
      Agent is then holding the Stockholder Documents and Optionee Documents and
      continues to act as the Escrow Agent hereunder.

     

    (h) The
      provisions of this Section 4.1 shall survive the resignation of the Escrow
      Agent
      or the termination of this Agreement.

     

    4.2. Dispute
      Resolution: Judgments.
      Resolution of disputes arising under this Agreement shall be subject to the
      following terms and conditions:

     

    (a) If
      any
      dispute shall arise with respect to the delivery, ownership, right of possession
      or disposition of the Stockholder Documents and Optionee Documents, or if the
      Escrow Agent shall in good faith be uncertain as to its duties or rights
      hereunder, the Escrow Agent shall be authorized, without liability to anyone,
      to
      (i) refrain from taking any action other than to continue to hold the
      Stockholder Documents and Optionee Documents pending receipt of a Joint
      Instruction from Stockholders and the Optionees, or (ii) deposit the Stockholder
      Documents and Optionee Documents with any court of competent jurisdiction in
      the
      State of New York, in which event the Escrow Agent shall give written notice
      thereof to the Stockholders and Optionees and shall thereupon be relieved and
      discharged from all further obligations pursuant to this Agreement. The Escrow
      Agent may, but shall be under no duty to, institute or defend any legal
      proceedings which relate to the Stockholder Documents and Optionee Documents.
      The Escrow Agent shall have the right to retain counsel if it becomes involved
      in any disagreement, dispute or litigation on account of this Agreement or
      otherwise determines that it is necessary to consult counsel.

     

    (b) The
      Escrow Agent is hereby expressly authorized to comply with and obey any Court
      Order. In case the Escrow Agent obeys or complies with a Court Order, the Escrow
      Agent shall not be liable to the Parties or to any other person, firm,
      corporation or entity by reason of such compliance.

     

    ARTICLE
      V

     

    GENERAL
      MATTERS

     

    5.1. Termination.
      This
      escrow shall terminate upon the release of all of the Stockholder Documents
      and
      Optionee Documents or at any time upon the agreement in writing of the
      Stockholders and Optionees.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.2. Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: 

     

    (a) If
      to
      Stockholders, to:

     

    Rudolf
      Gunnerman and Doris Gunnerman

    6601
      Windy Hill Way

    Reno,
      NV
      89511

    Fax:
      (775) 826-2727

    

    (b) If
      to
      Optionees, to:

    

    the
      addresses and fax numbers as listed on the signature pages hereto

    

    (c) If
      to the
      Escrow Agent, to:

     

    Grushko
      & Mittman, P.C.

    551
      Fifth
      Avenue, Suite 1601

    New
      York,
      New York 10176

    Fax:
      212-697-3575

     

    or
      to
      such other address as any of them shall give to the others by notice made
      pursuant to this Section 5.2.

     

    5.3. Interest.
      The
      Escrowed Payment shall not be held in an interest bearing account nor will
      interest be payable in connection therewith. In the event the Escrowed Payment
      is deposited in an interest bearing account, the Stockholders and Optionees
      shall be entitled to receive its pro rata
      portion
      of any accrued interest thereon, but only if the Escrow Agent receives from
      such
      party the party’s United States taxpayer identification number and other
      requested information and forms.

     

    5.4. Assignment;
      Binding Agreement.
      Neither
      this Agreement nor any right or obligation hereunder shall be assignable by
      any
      party without the prior written consent of the other parties hereto. This
      Agreement shall inure to the benefit of and be binding upon the parties hereto
      and their respective legal representatives, successors and assigns.

     

    5.5. Invalidity.
      In the
      event that any one or more of the provisions contained herein, or the
      application thereof in any circumstance, is held invalid, illegal, or
      unenforceable in any respect for any reason, the validity, legality and
      enforceability of any such provision in every other respect and of the remaining
      provisions contained herein shall not be in any way impaired thereby, it being
      intended that all of the rights and privileges of the parties hereto shall
      be
      enforceable to the fullest extent permitted by law. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.6. Counterparts/Execution.
      This
      Agreement may be executed in any number of counterparts and by different
      signatories hereto on separate counterparts, each of which, when so executed,
      shall be deemed an original, but all such counterparts shall constitute but
      one
      and the same instrument. This Agreement may be executed by facsimile
      transmission and delivered by facsimile transmission.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.7. Agreement.
      Each of
      the undersigned states that he has read the foregoing Stock Option Funds Escrow
      Agreement and understands and agrees to it.

     

    RUDOLF
      GUNNERMAN     

    “Stockholder”

    

    

    _____________________________________ 

    

    DORIS
      GUNNERMAN     

    “Stockholder”

    

    

    _____________________________________ 

    

    

    

    ESCROW
      AGENT:

    

    

    

    _____________________________________

    GRUSHKO
      & MITTMAN, P.C.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [OPTIONEE
      SIGNATURE PAGES TO STOCK OPTION ESCROW]

    

    IN
      WITNESS WHEREOF the undersigned have executed this Stock Option Funds Escrow
      Agreement as of the first date above written.

    

    Name
      of
      Optionee: Iroquois
      Master Fund Ltd.

     

    Signature
      of Authorized Signatory of Optionee:
      _______________________________________

    

    Name
      of
      Authorized Signatory:
      ____________________________________________________

    

    Title
      of
      Authorized Signatory:
      _____________________________________________________

    

    Fax
      Number of Optionee: 212-207-3452

    

    Address
      for Notice to Optionee:

    

    641
      Lexington Avenue

    New
      York, NY 10022

    

    With
      a
      copy to (which shall not constitute notice):

    

    Grushko
      & Mittman, P.C.

    551
      Fifth Avenue, Suite 1601

    New
      York, NY 10176

    Attn:
      Eliezer Drew, Esq.

    Fax:
      (212) 697-3575

    Email:
      counslers@aol.com

    

    Address
      for Delivery of Securities for Optionee (if not same as above):

     

    

    Proportionate
      Amount: Two-Thirds

    

    Number
      of
      Option Shares: 1,333,333

     

    [SIGNATURE
      PAGES CONTINUE]

     

    [OPTIONEE
      SIGNATURE PAGES TO STOCK OPTION FUNDS ESCROW AGREEMENT]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [OPTIONEE
      SIGNATURE PAGES TO STOCK OPTION ESCROW]

    

    IN
      WITNESS WHEREOF the undersigned have executed this Stock Option Funds Escrow
      Agreement as of the first date above written.

     

    Name
      of
      Optionee: Ellis
      Capital LLC

     

    Signature
      of Authorized Signatory of Optionee:
      ______________________________________

    

    Name
      of
      Authorized Signatory:
      ____________________________________________________

    

    Title
      of
      Authorized Signatory:
      _____________________________________________________

    

    Fax
      Number of Optionee: 516-887-8990

    

    Address
      for Notice to Optionee:

    

    20
      East Sunrise Highway

    Valley
      Stream, New York 11581

    

    

    With
      a
      copy to (which shall not constitute notice):

    

    Grushko
      & Mittman, P.C.

    551
      Fifth Avenue, Suite 1601

    New
      York, NY 10176

    Attn:
      Eliezer Drew, Esq.

    Fax:
      (212) 697-3575

    Email:
      counslers@aol.com

    

    Address
      for Delivery of Securities for Optionee (if not same as above):

     

    

    Proportionate
      Amount: One-Third

    

    Number
      of
      Option Shares: 666,667

    

    [OPTIONEE
      SIGNATURE PAGES TO STOCK OPTION FUNDS ESCROW AGREEMENT]EXHIBIT
      10.57

    

    STOCK
      PURCHASE AGREEMENT

    

    This
      Stock Purchase Agreement (this “Agreement”) is entered into as of February 12,
      2008, by and among Rudolf Gunnerman and Doris Gunnerman (“Gunnerman”), and the
      entities identified on the signature pages hereto, as buyers (each a “Buyer” and
      collectively “Buyers”).

     

    NOW,
      THEREFORE, for good and valuable consideration, Gunnerman, Borrower and Buyer
      agree as follows:

     

    1. Purchase
      and Sale.
      Subject
      to the terms, conditions and representations in this Agreement, Buyers agree
      to
      purchase from Gunnerman and Gunnerman agrees to sell to Buyers in the amounts
      indicated on the signature pages hereto (each a “Proportionate Amount”),
all
      right, title and interest of Gunnerman in and to 2,000,000 shares of $.001
      par
      value common stock (“Common Stock”) of Sulphco, Inc. (the “Company”) (“Purchased
      Stock”) for the purchase price (“Purchase Price”) described below.

    

    2. Consideration
      and Payment of Purchase Price.

    

    (a) The
      Purchase Price of 750,000 shares of Common Stock shall be $4.00 per share of
      Common Stock and be payable on the initial closing date (“Initial Closing
      Date”). On or prior to the Initial Closing Date, Gunnerman will deliver all of
      the Purchased Stock to Grushko & Mittman, P.C. as Escrow Agent, which will
      be held and released pursuant to the terms of an Escrow Agreement among
      Gunnerman, Buyers and the Escrow Agent relating to the Purchased Stock. Seven
      hundred and fifty thousand shares of Purchased Stock will be delivered to the
      Escrow Agent in the Buyer’s names in their Proportionate Amounts or in
      Gunnerman’s name with two medallion signature guaranteed stock powers endorsed
      in blank. If such Purchased Stock is delivered in Gunnerman’s name, the Escrow
      Agent is instructed to arrange for the Company’s transfer agent to reissue the
      Purchased Stock in each Buyer’s Proportionate Amounts. On or prior to the
      Initial Closing Date, each Buyer will deliver its Proportionate Amount of
      $3,000,000 to the Escrow Agent. On the Initial Closing Date, the Escrow Agent
      will release up to $3,000,000 to Gunnerman and up to 750,000 shares of Purchased
      Stock to the Buyers registered in each Buyer’s name, pursuant to the terms of
      the Escrow Agreement. The date such funds and shares are actually released
      is
      the Initial Closing Date.

    

    (b) The
      Purchase Price of 1,250,000 shares of Purchased Stock shall be determined as
      follows: one-thirtieth (1/30th)
      of
      1,250,000 shares of Purchased Stock shall be valued each trading day for the
      thirty consecutive trading days commencing on the fiftieth trading after the
      Initial Closing Date (“Pricing Period”) at ninety percent (90%) of the daily
      volume weighted average price as reported by Bloomberg LP for the principal
      trading market for the Common Stock (“VWAP”), but not less than $2.75 nor more
      than $5.50 per share of Purchased Stock. Not later than five trading days after
      the thirtieth trading day of the Pricing Period (the actual date such notice
      is
      given being the “Payment Notice Date”), Grushko & Mittman, P.C. (the “Escrow
      Agent”) will notify Gunnerman and Buyers of the Purchase Price of the Purchased
      Stock priced during the Pricing Period. Not later than five trading days after
      the Payment Notice Date, each Buyer shall deliver to Grushko & Mittman,
      P.C., pursuant to the Escrow Agreement, its Proportionate Amount of the
      aggregate Purchase Price for the 1,250,000 shares of Purchased Stock to be
      priced during the Pricing Period. Thereafter, such Purchased Stock to be
      purchased by each Buyer will be released to each Buyer and the Purchase Price
      for such 1,250,000 shares of Purchased Stock will be released to Gunnerman
      pursuant to the Escrow Agreement. The date of such mutual release is the Second
      Closing Date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    3. Delivery
      of Purchased Stock by Gunnerman.
      Not
      later than five days after the date of this Agreement, Gunnerman shall deliver
      the Purchased Stock referred to in Section 2(b) above, to the Escrow Agent
      issued in the names of the Buyers. Gunnerman will deliver two share certificates
      for each Buyer, with each such certificate representing one-half of the
      Proportionate Amount of each such Buyer’s Purchased Stock. In the alternative,
      Gunnerman will deliver one or more share certificates to the Escrow Agent
      representing 1,250,000 shares of Purchased Stock together with medallion
      signature guaranteed stock powers endorsed in blank. The Escrow Agent is
      instructed, prior to such release and prior to the Second Closing Date, to
      cause
      the Company’s transfer agent to reissue such certificates in the names of the
      Buyers in their respective Proportionate Amounts.

    

    4. Purchase
      and Sale.

    

    (a)  Effective
      upon the date of this Agreement (“Closing Date”), and subject to and conditioned
      upon the terms, covenants, limitations, and conditions contained herein,
      Gunnerman hereby sells, transfers, and assigns to Buyer, and Buyer hereby
      purchases and accepts from Gunnerman, in each case on and as of the Closing
      Date, all of Gunnerman’s right, title and interest, in, to, and under each such
      Buyer’s Proportionate Share of the Purchased Stock.

     

    (b)  If
      Gunnerman receives any dividend or other payments from
      the
      Company with
      respect to the Purchased Stock after the Closing Date, Gunnerman will forward
      to
      each Buyer, such Buyer’s Allocated Portion of such dividends or other payments.

     

    5. Election
      Not to Purchase.
      In the
      event the VWAP for any of the last five trading days of the Pricing Period
      is
      less than $7.00 per share of Common Stock or the trading volume reported by
      Bloomberg LP for the principal trading market for the Common Stock is less
      than
      1,000,000 shares for any such trading day, then each Buyer for himself by
      written notice to Gunnerman and the Escrow Agent not later than the Payment
      Notice Date may elect to not purchase the portion of the Purchased Stock to
      be
      priced during the Pricing Period.

     

    6. Buyer’s
      Obligations.
      In
      connection with the sale and transfer of the Purchased Stock, each Buyer shall
      deliver to Escrow Agent and Gunnerman such Buyer’s Proportionate Amount of the
      Purchase Price and an executed copy of this Agreement.

     

    7. Representations
      and Warranties and Covenants of Gunnerman.
      Each of
      Rudolf and Doris Gunnerman hereby represents and warrants and covenants to
      Buyer
      as follows:

     

    (a)  Gunnerman
      is an individual, who is a U.S. citizen.

    

    (b)  Gunnerman
      has the full power and authority to execute, deliver and perform this Agreement
      and to enter into and consummate the transactions contemplated by and described
      in this Agreement. Gunnerman has duly authorized the execution, delivery and
      performance of this Agreement, has duly executed and delivered this Agreement
      and this Agreement constitutes a legal, valid and binding obligation of
      Gunnerman, enforceable against Gunnerman in accordance with its
      terms.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (c)  As
      of the
      date of issuance of the Purchased Stock to Gunnerman, the Purchased Stock was
      validly issued, fully paid and nonassessable.

    

    (d)  Gunnerman
      is the legal and beneficial owner and holder of the Purchased Stock and
      Gunnerman has not pledged, assigned or otherwise previously transferred the
      Purchased Stock. The Purchased Stock is free and clear of any liens,
      encumbrances, etc. whatsoever. 

    

    (e)  Gunnerman
      has not entered into any agreement or arrangement which would affect their
      ability to sell the Purchased Stock hereunder. 

    

    (f) The
      Gunnermans were provided with the opportunity to present this Agreement and
      related documentation to an attorney for review and have determined upon their
      own free will to not avail themselvesf of such right. They understand that
      the
      transaction contemplated by this Agreement is a sophisticated business and
      financial transaction, and they have the acumen and experience to review this
      Agreement and related documentation and to enter into the transactions set
      forth
      in the Agreement without the aid of counsel. They acknowledge that they have
      not
      relied upon the advice, judgment or counsel of attorneys for either the Borrower
      or Buyer and they waive any claims the ymay have against such counsel arising
      out of this transaction.

    

    (g) Gunnerman
      is responsible for making any filings required to be made by him with all
      regulatory bodies arising from the transactions contemplated
      hereby.

     

    (h) No
      broker, finder or investment banker is entitled to any brokerage, finder's
      or
      other fee or commission in connection with the transactions contemplated hereby
      based upon arrangements made by or on behalf of Gunnerman.

    

    8. Representations
      and Warranties of Buyer.
      Each
      Buyer for itself only, hereby represents and warrants to Gunnerman:

     

    (a) Buyer
      has
      all requisite power and authority to execute, deliver and perform this Agreement
      and to enter into and consummate the transactions contemplated by this
      Agreement. The officer or officers of Buyer who shall execute and deliver this
      Agreement have been duly authorized to do so by all requisite action on the
      part
      of Buyer.
      Buyer
      has duly authorized the execution, delivery and performance of this Agreement,
      has duly executed and delivered this Agreement and this Agreement constitutes
      a
      legal, valid and binding obligation of Buyer, enforceable against Buyer in
      accordance with its terms. 

     

    (b) Buyer
      has
      made such examination, review and investigation of the Purchased Stock and
      the
      Company, and of any and all facts and circumstances necessary to evaluate the
      Purchased Stock it has deemed necessary or appropriate. Except for the
      representations and warranties specifically and expressly made by Gunnerman
      above (a) Buyer has been and will continue to be solely responsible for Buyer’s
      own independent investigations as to all aspects of the contemplated
      transactions; and (b) Buyer has not relied upon any expressed or implied,
      written or oral, representation, warranty or other statement by or on behalf
      of
      Gunnerman concerning the Purchased Stock and the Company, except for such
      representations and warranties of Gunnerman as are specifically and expressly
      provided in this Agreement.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (c) Buyer
      is
      acquiring the Purchased Stock without any view either to participate in (other
      than as described in this Agreement), or to sell the Purchased Stock in
      connection with any public distribution thereof, and Buyer has no intention
      of
      making any distribution of the Purchased Stock in a manner which would violate
      applicable securities laws; provided, however, that nothing in this Agreement
      shall restrict or limit in any way Buyer’s ability and right to dispose of all
      or part of the Purchased Stock in accordance with such laws if at some future
      time Buyer deems it advisable to do so.

     

    9. Excluded
      Information.
      Each of
      Gunnerman and the Buyers may have come into possession of non-public information
      related to the Company that may not be known to the other, and will not be
      disclosed to the other, which information, may be material to the Company and/or
      the value of the Purchased Stock (collectively “Excluded Information”). The
      foregoing notwithstanding, each party hereto has decided to proceed with the
      transactions described herein and all other agreements among the parties. Each
      party shall have no liability to the other or its affiliates and each party,
      on
      behalf of itself and its affiliates, waives any and all claims it might have
      against the other or any of its officers, directors, agents, affiliates,
      partners, managers or members, whether under applicable securities laws or
      otherwise, with respect to the non-disclosure of the Excluded Information.
      Each
      party has not requested and does not want to receive any of the Excluded
      Information.

    

    10. Taxes.
      Each
      party shall be responsible for the payment of all taxes and charges, including
      sales and transfer taxes and recording taxes, resulting from or payable in
      connection with the Agreement for which each party is liable as a matter of
      law.
      No party shall have the obligation to pay taxes due by another
      party.

    

    11. Further
      Assurances.
      Effective upon the date of this Agreement, Gunnerman, Borrower and each Buyer
      each hereby covenant and agree to execute and deliver all such documents and
      instruments, and to take such further actions as may be reasonably necessary
      or
      appropriate, from time to time, to carry out the intent and purpose of this
      Agreement and to consummate the transactions contemplated hereby. 

     

    12. Miscellaneous.

     

    (a) Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be:

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
              If
                to Gunnerman:

            	
              Rudolf
                Gunnerman and Doris Gunnerman

            
	 	
              6601
                Windy Hill Way

            
	 	
              Reno,
                NV 89511

            
	 	
              Fax:
                (775) 826-2727

            

    

    

    Notice
      to
      either Rudolf Gunnerman or Doris Gunnerman shall be deemed notice to both of
      Rudolf Gunnerman and Doris Gunnerman.

     

    
      	
              If
                to Buyers:

            	
              To
                the one or more addresses and telecopier

            
	 	
              numbers
                indicated on Schedule A hereto

            
	 	 
	
              With
                a copy to:

            	
              Grushko
                & Mittman, P.C.

            
	 	
              551
                Fifth Avenue, Suite 1601

            
	 	
              New
                York, NY 10176

            
	 	
              Attn:
                Eliezer Drew, Esq.

            
	 	
              Fax:
                (212) 697-3575

            

    

    

    (b)
       No
      Waiver.
      No
      delay or omission by either party hereto in exercising any right or power
      arising from any default by the other party hereto shall be construed as a
      waiver of such default or as an acquiescence therein, nor shall any single
      or
      partial exercise thereof preclude any further exercise thereof or the exercise
      of any other right or power arising from any default by the other party hereto.
      No waiver of any breach of any of the covenants or conditions contained in
      this
      Agreement shall be construed to be a waiver of or an acquiescence in or a
      consent to any previous or subsequent breach of the same or of any other
      condition or covenant.

     

    (c) No
      Third Party Beneficiary.
      This
      Agreement is made for the sole benefit of Gunnerman and Buyers and their
      respective successors and permitted assigns, and no other person or persons
      shall have any rights or remedies under or by reason of this Agreement or any
      right to the exercise of any right or power of either party hereto or arising
      from any default by either party hereto.

     

    (d) Attorney
      Fees and Costs.
      In the
      event any legal action is undertaken in order to enforce or interpret any
      provision of this Agreement, the prevailing party in such legal action, as
      determined by the court, shall be entitled to receive from the other party
      the
      prevailing party’s reasonable attorneys’ fees and court costs.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (e) No
      Agreement to Third Party.
      This
      Agreement shall not be assigned by either party without the written consent
      of
      the other parties, which consent may be withheld in such other party’s sole
      discretion.

     

    (f) Integration;
      Entire Agreement.
      This
      Agreement and any documents executed in connection herewith or pursuant hereto
      constitute the entire understanding between the parties hereto with respect
      to
      the subject matter hereof, superseding all prior written or oral understandings,
      and may not be terminated, modified or amended in any way except by a written
      agreement signed by each of the parties hereto.

     

    (g) Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which together shall constitute but one and the
      same document. This
      Agreement may be executed by facsimile signature and delivered by facsimile
      transmission.

     

    (h) Legal
      Effect.
      If any
      provision of this Agreement conflicts with applicable law, such provision shall
      be deemed severed from this Agreement, and the balance of this Agreement shall
      remain in full force and effect.

     

    (i) Choice
      of Law and Venue; Jury Trial Waiver.
      This
      Agreement shall be governed by, and construed in accordance with, the internal
      laws of the State of New York, without regard to principles of conflicts of
      law.
GUNNERMAN,
      BORROWER AND BUYER WAIVE
      ANY
      RIGHT
      TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
      THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN, INCLUDING CLAIMS BASED
      ON
      CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER COMMON LAW OR STATUTORY BASES.
      Each
      party hereby
      submits
      to the exclusive jurisdiction of the state and federal courts located in the
      County of New York, State of New York.

     

    (j) Gunnerman,
      Borrower and Buyer shall each bear their own expenses, including legal fees,
      incident to the negotiation and preparation of this Agreement and the
      consummation of the transaction contemplated thereby.

     

    [Balance
      of Page Intentionally Left Blank]

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF the undersigned have executed this Stock Purchase Agreement
      as
      of the date above written.

     

    
      	
              RUDOLF
                GUNNERMAN

               

              ____________________________________________

            
	
               

              DORIS
                GUNNERMAN

               

              ____________________________________________

            

    

     

    [Signature
      Page to Stock Purchase Agreement, etc.]

    [Signatures
      of Buyers Continued Next Page]

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    [BUYER
      SIGNATURE PAGES TO STOCK PURCHASE AGREEMENT]

    

    IN
      WITNESS WHEREOF the undersigned have executed this Agreement as of the first
      date above written.

     

    Name
      of
      Buyer: Iroquois
      Master Fund Ltd.

     

    Signature
      of Authorized Signatory of Buyer:
      __________________________________________

    

    Name
      of
      Authorized Signatory:
      ____________________________________________________

    

    Title
      of
      Authorized Signatory:
      _____________________________________________________

    

    Fax
      Number of Buyer: 212-207-3452

    

    Address
      for Notice to Buyer:

    

    641
      Lexington Avenue

    New
      York, NY 10022

    

    

    With
      a
      copy to (which shall not constitute notice):

    

    Grushko
      & Mittman, P.C.

    551
      Fifth Avenue, Suite 1601

    New
      York, NY 10176

    Attn:
      Eliezer Drew, Esq.

    Fax:
      (212) 697-3575

    Email:
      counslers@aol.com

    

    Address
      for Delivery of Securities for Buyer (if not same as above):

    

    

    Proportionate
      Amount: Two-Thirds

     

    [BUYER
      SIGNATURE PAGES TO STOCK PURCHASE AGREEMENT]

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    [BUYER
      SIGNATURE PAGES TO STOCK PURCHASE AGREEMENT]

    

    IN
      WITNESS WHEREOF the undersigned have executed this Agreement as of the first
      date above written.

     

    Name
      of
      Buyer: Ellis
      Capital LLC

     

    Signature
      of Authorized Signatory of Buyer:
      __________________________________________

    

    Name
      of
      Authorized Signatory:
      ____________________________________________________

    

    Title
      of
      Authorized Signatory:
      _____________________________________________________

    

    Fax
      Number of Buyer: 516-887-8990

    

    Address
      for Notice to Buyer:

    

    20
      East Sunrise Highway

    Valley
      Stream, New York 11581

    

    

    With
      a
      copy to (which shall not constitute notice):

    

    Grushko
      & Mittman, P.C.

    551
      Fifth Avenue, Suite 1601

    New
      York, NY 10176

    Attn:
      Eliezer Drew, Esq.

    Fax:
      (212) 697-3575

    Email:
      counslers@aol.com

    

    Address
      for Delivery of Securities for Buyer (if not same as above):

    

    

    Proportionate
      Amount: One-Third

    

    [BUYER
      SIGNATURE PAGES TO STOCK PURCHASE AGREEMENT]

     

    
      
         

      

      
        9

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