Document:

Exhibit
10.13

 

ETELOS,
INC

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into and effective
this 11th day of August, 2007 (the “Effective Date”), by and between Etelos, Inc.
a Washington corporation (“Company”), and Daniel J. Kolke
(“Employee”).

 

RECITALS

 

A.            Company wishes to
employ Employee and Employee wishes to be employed by Company pursuant to the
terms and conditions of this Agreement; and

 

B.            Company’s Board of
Directors (“Board”) believes in the best interests of Company and its
shareholders to provide Employee with appropriate incentive to be employed by
Company and to motivate Employee to maximize the value of Company; and

 

C.            Board may consider
certain organizational changes, and believes it appropriate to provide Employee
with certain benefits upon termination of employment or upon a Change in
Control, which benefits are designed to provide sufficient incentive for
Employee to remain with Company notwithstanding the possibility of a Change in
Control.

 

NOWTHEREFORE, in consideration of the promises and mutual covenants set
forth in this Agreement, the parties agree as follows:

 

1.             Position, Duties,
and Standards of Performance.  (a)  
Effective August 11, 2007, (“Employment Date”) Company shall employ
Employee in the position of Chairman of the Board &
Chief Technology Officer with such duties and responsibilities as
are generally described in Exhibit A to this Agreement, or such other
position with duties and responsibilities as mutually agreed.  The Board has the right, subject to the
provisions and limitations of this Agreement, to revise the position, duties,
responsibilities, and compensation, provided that such position, duties and
responsibilities and compensation are consistent with Employee’s skills and
background and are no less favorable than his current position, duties,
responsibilities and compensation.

 

(b) 
Employee will perform his duties in a fully professional manner pursuant to the
standards of skill, competence and efficiency expected of his position, and
subject to the direction and control of the Company and Board of
Directors.  Employee shall comply and be
bound by the Company’s operating policies, procedures and practices from time
to time in effect during his employment. 
During the term of Employee’s employment with the Company, Employee
shall devote his full time, skill and attention to his duties and
responsibilities, and shall perform them faithfully, diligently, and
competently, and Employee shall use his best efforts to further the business of
Company.

 

2.             Term; Employment at
Will.  The parties acknowledge that
this Agreement is for an indefinite term, and that Employee’s employment is and
shall continue to be at-will, as defined under applicable law.  If Employee’s employment terminates for any
reason, Employee shall only be entitled to the benefits and compensation as
provided in this Agreement, or as may be otherwise provided in accordance with
Company’s established employee plans and policies in 

 

 

effect
at the time of termination.

 

3.             Compensation,
Benefits, and Policies.   (a) 
As compensation for all services pursuant to this Agreement, Employee shall be
paid a base salary (“Base Salary”) in a gross amount of not less than $175,000
on an annualized basis, payable pursuant to Company’s regular payroll
practices, but not less frequently than monthly.  Base Salary is subject to periodic review,
not less frequently than annually, and adjustment, upward but not downward, as
recommended and approved by the Board.

 

(b)           In addition,
Employee is eligible for payment of a performance bonus (“Bonus”), payable at
the sole discretion of the Board and pursuant to standards based on Company’s
achievement of objectives pursuant to its own business plan, and Employee’s
achievement of specific objectives, the latter objectives to be mutually agreed
upon not more than thirty (30) days following the Employment Date, and annually
thereafter based on Company’s fiscal year.

 

(c)           In addition, the
Board shall grant and issue to Employee 10,300,000 Options to purchase Common
Stock in Company (“Shares”), at the fair market value price of such Common
Stock set by the Board on the Effective Date (the “Original Grant”).  The Original Grant shall vest according to
the following schedule: (i) 25% of the Original Grant shall vest
immediately on the date of issuance; (ii) 25% of the Original Grant shall vest
in full 12 months after the Effective Date of this Agreement; and (iii) the
remainder of the Original Grant shall vest at the monthly rate of 1/24th
per month for 24 months following the 12 months’ anniversary of the Effective
Date .  These Options shall be incentive
stock options to the maximum extent allowed by the Internal Revenue Code of
1986, as amended, and will be subject to Company’s 2007 Stock Incentive Plan
and the Stock Option Agreement between Company and Employee. Subject to the
discretion of the Board, Employee may be eligible to receive additional grants
of stock, stock options or purchase rights from time to time in the future, on
such terms and conditions as the Board shall determine at the grant date.

 

(d)           The Company shall
cause Employee to be nominated for election as Chairman of the Company’s Board
of Directors.

 

(e)           Employee is
eligible to participate in such other and additional employee benefit plans and
executive compensation programs as may be developed and maintained by Company
and as may be applicable to other key executives of Company from time to time,
including (without limitation) retirement plans, savings or profit-sharing
plans, stock option, incentive or other bonus plans, life, disability, health,
accident and other insurance programs, paid vacations and similar plans or
programs, subject in each case to the generally applicable terms and conditions
of the particular plan or program and to the determination of any committee
administering such plan or program.

 

(f)  Employee is subject to and is bound by Company’s financial,
personnel, and other operating policies, practices and procedures as they may
be developed and modified and as are in effect from time to time, including the
Company’s indemnification of officers.

 

(g)    Employee will be
reimbursed for expenses reasonably incurred in connection with the performance
of his duties under this Agreement in accordance with Company’s policies and
practices.

 

(h)    Within a reasonable
time after the Effective Date, the Company will obtain Director’s 

 

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and
Officer’s liability and other customary insurance coverage, and Employee shall
be entitled to be covered under the terms of such policy(s).

 

4.             Termination of
Employment.

 

(a)    By Company for
Cause.  Company
may terminate this Agreement at any time, with or without prior notice, for
Cause, which for these purposes is defined as:

 

(i) any material act of personal dishonesty by Employee in
connection with his responsibilities as an employee intended to result in
substantial personal enrichment to Employee at the expense of Company or its
shareholders;

 

(ii) Employee’s conviction of or plea of nolo contendere to any
felony charge brought in any court of competent jurisdiction;

 

(iii) an act of fraud against Company; or

 

(iv) material breach of this Agreement, or repeated or continued
failure of Employee to perform his obligations under this Agreement or any
related agreement which are demonstrably willful and deliberate on Employee’s
part, after receiving written demand for performance from the Company
describing the manner in which Employee has not substantially performed his
duties, and providing at least thirty (30) days to cure the failure.

 

(b)           By Company without
Cause.  Company may terminate this
Agreement without Cause by providing Employee with written notice of
termination, which termination shall become effective on the thirtieth (30th)
day after receipt by Employee.

 

(c)           By Employee for
Good Reason.  Employee may
terminate this Agreement for Good Reason (defined below) by giving written
notice of termination, which termination shall become effective on the
fifteenth (15th) day after receipt of notice by Company or such
other date as specified by Employee not greater than thirty (30) days, unless
mutually agreed.  Employee agrees to
comply with any reasonable instruction issued by Company or his supervisor
concerning the performance of his duties until the termination for Good Reason
becomes effective.  For this purpose, “Good
Reason” means:

 

(i) without Employee’s express written consent, the assignment of
any duties or the significant reduction of Employee’s duties, either of which
is inconsistent with Employee’s position with Company and responsibilities in
effect immediately prior to such assignment, or the removal of Employee from
such position and responsibilities; or

 

(ii) without Employee’s express written consent, a substantial
reduction, without good business reasons, of the facilities and perquisites
(including office space, support staff and location) available to Employee
immediately prior to such reduction; or

 

(iii) a reduction by Company in Employee’s Base Salary in effect
immediately prior to such reduction; or

 

(iv) a material reduction by Company in the kind or level of
employee benefits to which Employee is entitled immediately prior to such
reduction with the result that Employee’s 

 

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overall
benefits package is significantly reduced; or

 

(v) without Employee’s express written consent, the relocation of
Employee to a facility or a location more than 50 miles from Employee’s then
present location; or

 

(vi) any purported termination of Employee by Company which is
effected for Disability or for Cause or any purported termination for which the
grounds relied upon are not valid; or

 

(vii) the failure of Company to obtain the assumption of this
Agreement by any successors contemplated in Section 7 below.

 

(d)           Related to a Change
of Control.  Company, or any
successor or assignee, on the one hand, or Employee on the other hand, may
terminate this Agreement in connection with a Change of Control, the
terminating party giving written notice to the other, and termination taking
effect on the thirtieth (30th) following receipt of notice.  For purposes of this Agreement, “Change of
Control” shall mean the occurrence of any of the following events:

 

(i)            Any “person” (as
such term is used in Section 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in
Rule 13d-3 under said Act) directly or indirectly, of securities
representing fifty percent (50%) or more of the total voting power represented
by Company’s then outstanding voting securities; or

 

(ii)           A merger,
combination or consolidation of Company with any other corporation or business
entity, other than a merger, combination or consolidation which would result in
the voting securities of Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least fifty percent (50%) of
the total voting power represented by the voting securities of Company or such
surviving entity outstanding immediately after such merger or consolidation; or

 

(iii)          Effectiveness of an agreement for the sale, lease or
disposition by Company of all or substantially all of Company’s assets; or

 

(iv)          Liquidation or
dissolution of Company.

 

Further, for purposes of this Agreement, “Related to a Change of
Control” shall mean any time during the period beginning on the date the Board
makes a decision to seek to sell or otherwise to effect a Change of Control
with respect to Company and directs any officer and/or agent to take steps to
effectuate that decision, and ending on the date eighteen (18) months after a
Change of Control becomes effective (“No Change Period”), except as otherwise
specifically provided in this Agreement. 
The foregoing notwithstanding, if Employee resigns Related to a Change
of Control, the No Change Period shall be deemed to begin sixty (60) days prior
to the Change of Control and end eighteen (18) months following a Change of
Control.

 

(e)           By Company for
Disability.  Company may
terminate this Agreement because Employee is unable to perform, with or without
accommodation, due to Disability.  For
purposes of this Agreement, “Disability” shall mean: Employee has been unable
to perform his duties under terms of this Agreement due to physical or mental
illness for at least 26 weeks after its commencement, and further, it is
determined, by a physician selected by Company or its insurers 

 

4

 

and
acceptable to Employee or Employee’s legal representative (agreement to such
acceptability not to be unreasonably withheld) that such Disability is likely
to be indeterminate or permanent, and total. 
Termination for Disability shall become effective after thirty (30) days’
written notice by the Company, provided however that Company shall have
continued to pay Employee’s Base Salary during the period of Disability,
pursuant to insurance or otherwise.  In
the event that Employee resumes the performance of substantially all of his or
her duties under this Agreement before the termination of employment becomes
effective, the notice of termination shall automatically be deemed to have been
revoked.

 

(f)            Upon Death.  This Agreement shall terminate upon Employee’s
death, such termination to be effective on the last day of the month in which
Employee dies.

 

5.             Benefits on
Termination.

 

(a)           Termination without
Cause, Termination Upon Disability, or Resignation for Good Reason, all Other
than Related to a Change of Control.  In the event Company terminates Employee’s
employment without Cause or Due to Disability, or in the event Employee
terminates his employment for Good Reason, all other than Related to a Change
of Control, Employee shall be entitled to receive the following:

 

(i)            all accrued unpaid
Base Salary earned prior to the effective date of such termination plus a
payment equal to the value of accrued but unused vacation, all payable on or
before termination; plus

 

(ii)           severance pay equal
to twelve (12) months’ Base Salary in effect at the time of termination,
payable in a lump sum on the effective date of Employee’s termination; plus

 

(iii)          the Bonus pro-rated through the date of termination,
that Employee would have received in the termination year, payable promptly
following calculation of the appropriate amount; plus

 

(iv)          with respect to any
stock held by Employee which may be subject to the Company’s Right to
Repurchase and any unvested (unexercisable) options, if any, held by Employee
to buy stock under any of the Company’s stock option plans, Employee shall
immediately vest in such additional number of shares and options that would
have vested (or become owned or exercisable, as applicable) had Employee
remained employed by the Company for an additional twelve (12) months, which
additional vesting shall be not less than fifty percent (50%) of the Original
Grant.  These accelerated shares and
options are in addition to any shares and options already vested.

 

(b)           Termination Related
to a Change of Control.  Subject to the limitation on
payments set forth in Section 7 below, if Company terminates Employee’s
employment for any reason other than Cause or Disability during the No Change
Period, or if Employee resigns his employment for any reason whatsoever during
the No Change Period (as defined in Section 4(d) above), then
Employee shall be entitled to receive the following:

 

(i)            all accrued unpaid
Base Salary earned prior to the effective date of such termination plus a
payment equal to the value of accrued but unused vacation, all payable on or
before termination; plus

 

5

 

(ii)           severance pay in an
amount equal to twelve (12) months’ Base Salary in effect at the time of
termination, payable in a lump sum on the effective date of Employee’s
termination; plus

 

(iii)          the Bonus pro-rated through the date of termination,
that Employee would have received in the termination year, payable promptly
following calculation of the appropriate amount; plus

 

(iv)          with respect to any
stock held by Employee which might be subject to the Company’s Right to
Repurchase and any unvested (unexercisable) options, if any, held by Employee
to buy stock under any of the Company’s stock option plans, Employee shall
immediately vest in and shall own free and clear all such additional number of
shares subject to the Company’s Right to Repurchase and in all such additional
number of unvested shares and options, as of the date ten (10) days prior to the closing date
of the Change in Control.  These accelerated shares and options are in
addition to any shares and options already vested.

 

(c)           Termination for
Cause.  Notwithstanding anything else
contained in this Agreement, if Company terminates Employee’s employment for
Cause, then Employee shall not be entitled to receive severance or other
benefits pursuant to this Agreement, including acceleration of exercisability
of stock options or vesting of stock purchased from Company, except for those
benefits (if any) as then established under Company’s then existing severance
and benefits plans and policies at the time of such termination.  Nothing in this Agreement shall affect any
rights Employee may have to any shares or options already vested.

 

(d)           Voluntary
Resignation Other than Related to a Change of Control.  In the event Employee voluntarily resigns,
other than for Good Reason or other than Related to a Change of Control,
Employee shall only be entitled to such severance and other payments as in
accordance with Company’s existing severance and benefit plans and policies
generally at the time of such resignation.

 

(e)           Medical Benefits. In the event Employee is
entitled to severance benefits pursuant to this Agreement, whether payable over
time or in a lump sum, then in addition to such severance benefits, Employee
shall receive Company-paid health insurance coverage to the extent provided to
such Employee immediately prior to Employee’s termination (the “Company-Paid
Coverage”) for the period set forth in the appropriate subsections of this Section 5.  If Employee’s health insurance coverage
included Employee’s dependents immediately prior to Employee’s termination,
such dependent also shall be covered at Company expense.  Company-Paid Coverage shall continue for
twelve (12) months following termination or until Employee becomes covered
under another employer’s group health insurance plan, whichever occurs
first.  For purposes of the continuation
health coverage required under COBRA, the date of the “qualifying event” giving
rise to Employee’s COBRA election period (and that of his “qualifying
beneficiaries”) shall be the last date on which Employee received Company-Paid
Coverage under this Agreement.

 

(f)            Termination on
Death.   In the event of Employee’s
death, his estate shall be entitled to receive the following:

 

(i)            all accrued unpaid
Base Salary earned prior to the effective date of such termination plus a
payment equal to the value of accrued but unused vacation, all payable as
promptly as practicable following termination; plus

 

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(ii)           any benefits otherwise provided
pursuant to Company’s plans and policies at the time of such death.

 

6.             Limitation on
Payments.  To the extent
that any of the payments and benefits provided for in this Agreement or
otherwise payable to Employee constitute “parachute payments” within the
meaning of Section 280G of the Code, as amended and, but for this Section 6,
would be subject to the excise tax imposed by Section 4999 of the Code,
then Employee’s benefits under Section 5(a) and (b) above, as applicable,
shall be payable either:

 

(a)  in full, or

 

(b)  as to such lesser amount as would result in no portion of
such severance benefits being subject to excise tax under Section 4999 of
the Code,

 

whichever
of the foregoing amounts, taking into account the applicable federal, state and
local income taxes and excise tax imposed by Section 4999, results in the
receipt by Employee on an after-tax basis of the greatest amount of severance
benefits under Sections 5(a) or (b) above, notwithstanding that all or
some portion of such severance benefits may be taxable under Section 4999
of the Code. Unless Company and Employee otherwise agree in writing, any
determination required under this Section 6 shall be made in writing by
Company’s independent public accountants (the “Accountants”), whose
determination shall be conclusive and binding upon Employee and Company for all
purposes.  For purposes of making the
calculations required by this Section 6, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of Sections
280G and 4999 of the Code.  Company and
Employee shall furnish to the Accountants such information and documents as the
Accountants may reasonably request in order to make a determination under this
Section.  Company shall bear all costs
the Accountants may reasonably incur in connection with any calculations contemplated
by this Section 6.

 

7.             Successors.

 

(a)           Company’s
Successors.     Any successor to Company (whether direct or indirect and
whether by purchase of stocks, purchase of assets, lease, merger,
consolidation, liquidation, or otherwise) to all or substantially all of
Company’s business and assets shall assume the obligations under this Agreement
and agrees expressly to perform the obligations under this Agreement in the
same manner and to the same extent as Company would be required to perform such
obligations in the absence of a succession. 
For all purposes under this Agreement, the term “Company” shall include
any successor to Company’s business and assets which executes and delivers the
assumption agreement described in this paragraph or which becomes bound by the
terms of this Agreement by operation of law.

 

(b)           Employee’s
Successors.     The terms of this Agreement and all rights of Employee
under this Agreement shall inure to the benefit of, and be enforceable by,
Employee’s personal or legal representatives, executors, administrators, successors,
heirs, devises, and legatees.

 

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8.             Notice.

 

(a)           General.  Notices and all other
communications contemplated by this Agreement shall be in writing and shall be
deemed to have been duly given as follows: (i)  personal delivery; (ii) 
three (3) days after deposit by first class mail, postage prepaid; (iii)  upon receipt by registered or certified mail,
return receipt requested, postage prepaid (if delivery is confirmed); (iv) upon
delivery when delivered by an authorized overnight delivery service, charges
prepaid or charged to sender’s account (if delivery is confirmed); (v) when
sent by facsimile transmission to the last number known to the party giving
notice (if delivery is confirmed in writing or a duplicate copy is mailed
first-class or by overnight delivery). 
In the case of Employee, mailed notices shall be addressed to him at the
home address which he most recently communicated to the Company in writing.  In the case of Company, mailed notices shall
be addressed to its corporate headquarters, and all notices shall be directed
to the attention of its Secretary.

 

(b)           Notice of
Termination.  Any termination
notice by either party shall: (i) be communicated in accordance with the notice
provisions of this Agreement; (ii) indicate the specific termination provision
in this Agreement relied upon; (iii) set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination under the
provision so indicated; and (iv) specify the termination date (which shall be
not more than 30 days after the giving of such notice).  Failure by Employee to include in the notice
any fact or circumstance which contributes to a showing of Involuntary
Termination shall not waive any right of Employee under this Agreement or
preclude Employee from asserting such fact or circumstance in enforcing his or
her rights under this Agreement.

 

9.             Miscellaneous
Provisions.

 

(a)           No Duty to Mitigate.  Employee shall not be required to mitigate
the amount of any payment contemplated by this Agreement (whether by seeking
new employment or in any other manner) nor shall any such payment be reduced by
any earnings that Employee may receive from any other source.

 

(b)           Waiver.  No provision of this Agreement shall be modified,
waived or discharged unless the modification, waiver or discharge is agreed to
in writing and signed by Employee and by an authorized officer of Company
(other than Employee).  No waiver by
either party of any breach of, or of compliance with, any condition or
provision of this Agreement by the other party shall be considered a waiver of
any other condition or provision or of the same condition or provision at
another time.

 

(c)           Whole Agreement.  No agreements, representations or
understandings (whether oral or written, whether express or implied) which are
not expressly set forth in this Agreement have been made or entered into by
either party with respect to the subject matter of this Agreement.

 

(d)           Choice of Law.  The validity, interpretation, construction,
performance of this Agreement shall be governed by the laws of the State of
California, without giving effect to its conflicts of law principles.

 

(e)           Severability.  The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain
full in force and effect.

 

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(f)            Arbitration.  In the event of any dispute or controversy
arising under or in connection with this Agreement, the parties first shall
attempt to settle the issue by negotiation or other informal means including,
if amenable to both parties, mediation. 
Should such efforts fail, the controversy shall be settled by binding
arbitration, and either party, within one year of the occurrence of the event
giving rise to the claim or controversy or within the period of the applicable
statute of limitations, if shorter, may submit such claim or controversy to
binding arbitration in San Francisco, California, before one arbitrator in
accordance with the Employment Rules of the American Arbitration Association
then in effect.  Failure to serve notice
of arbitration upon the other within such time shall be deemed a waiver of the
right to remedy such claim or controversy. 
Costs shall be shared, but the arbitrator shall be authorized to award
reasonable attorneys’ fees and costs to the prevailing party.  The parties shall request that all testimony
in front of such arbitrator be transcribed, and that any award be accompanied
by findings of fact and a statement of the reasons for the decision.  Judgment may be entered on the arbitrator’s
award in any court having competent jurisdiction.  Punitive damages and specific performance
shall not be awarded.  The provisions of
this Section 9(f) constitutes a complete defense to, and may be asserted
or pleaded successfully as such, in any motion to a court of competent
jurisdiction for a stay of any action or proceeding commenced contrary to the
intent of this provision.

 

(g)           No Assignment of
Benefits.   The rights of
any person to payments or benefits under this Agreement shall not be made
subject to option or assignment, either by voluntary or involuntary assignment
or by operation of law, including (without limitation) bankruptcy, garnishment,
attachment or other creditor’s process, and any action in violation of this
paragraph shall be void.

 

(h)           Employment Taxes.  All payments made pursuant to this Agreement
will be subject to withholding of applicable income and employment taxes,
calculated at the lowest permissible rate.

 

(i)            Assignment by
Company.  Company may assign
its rights under this Agreement only to a successor or other affiliated
company.

 

(j)            Construction.        Headings in this
Agreement are for reference purposes only and do not affect the provisions of
this Agreement.  Pronouns are used
without regard to gender or number.

 

(j)            Counterparts.        This Agreement may
be executed in counterparts, each of which shall be deemed an original, but all
of which together will constitute one and the same instrument.

 

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IN WITNESS WHEREOF, the parties has executed this
Agreement effective on the date written above.

 

	
   

  	
   

  	
  ETELOS,
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
  /s/ Ronald A. Rudy

  	
   

  	
  By:

  	
  /s/ Jeffrey L. Garon

  
	
   

  	
   

  	
   

  	
   

  
	
  Name/Title:

  	
  Director

  	
   

  	
  Name/Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
  President/CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Danny J. A. Kolke

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   

  
											

 

[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT]

 

10Exhibit
10.14

 

SECURITIES
PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT (the “Agreement”) made and is
entered into as of  August 28,
2007, by and between Etelos, Incorporated, a Washington corporation (the “Company”),
with its principal office at 200 Mill Ave. South, Suite 400, Renton, WA 98057,
and each of the purchasers listed on Exhibit “A” attached hereto (each, a “Purchaser,”
and, together, the “Purchasers”).

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions
contained herein, the parties hereto agree as follows:

 

 

ARTICLE
I.  COMPANY’S AUTHORIZATION AND SALE OF
SECURITIES

 

1.1           Authorization. 
The Company has authorized the sale and issuance of up to $2,150,000 in
aggregate principal amount of Units, which consist of 6% Convertible Senior
Subordinated Notes (the “Notes”), in the form of the Note at Exhibit “B”,
and Warrants (the “Warrants”), in the form of the Warrant at Exhibit “C”.

 

1.2           Company’s Sale of Units. 
Subject to the terms and conditions hereof, each Purchaser agrees to
purchase, and the Company agrees to sell and issue to each Purchaser, the
number of Units specified opposite each Purchaser’s name on Exhibit “A”
hereto, at a purchase price of $1,000 per Unit.

 

ARTICLE II. 
CLOSING DATE AND DELIVERABLES

 

2.1           Closing Date. 
The Units will be sold in one or more closings at such places, dates and
times as may be fixed by the Company (each closing herein, a “Closing”).  The initial Closing of the purchase and sale
of the Units (the “Initial Closing”) shall be held at the office of the
Company, on the date of this Agreement, or at such other time and place upon
which the Company and Purchasers shall agree. 
The date of each Closing shall be referred to as a “Closing Date” and
collectively as the “Closing Dates.”

 

2.2           Delivery.  At the
Closing, the Company will deliver to each Purchaser for each $1,000 Unit
purchased a Note, in the original principal amount of $1,100, and a Warrant to
purchase 1,000 shares of the Company’s Common Stock (the “Warrant Shares”).  The Note shall be made payable and shall be
registered in the name of, and the Warrants shall be issued and registered in
the name of, such Purchaser or Purchaser’s nominee or other designee specified
at Exhibit “A”.  The Notes shall be
issued to each Purchaser in the aggregate principal amount, and the Warrants
shall enable such Purchaser to purchase the total number of Warrant Shares, as
set forth in the Warrants.

 

1

 

2.3           Method of Payment. 
The purchase price to be delivered to the Company pursuant to Section 2.2
shall be paid in cash (through either wire transfer or by check) and shall be
payable to the Company.

 

ARTICLE
III.  REPRESENTATIONS AND WARRANTIES OF
THE COMPANY

 

Except as set forth in the Disclosure Schedule attached hereto as Exhibit “D”,
the Company hereby represents and warrants to the Purchasers as follows:

 

3.1           Organization and Standing; Articles and
Bylaws.  The Company is a corporation duly organized
and validly existing under, and by virtue of, the laws of the State of
Washington.  The Company has the
requisite corporate power to own and operate its properties and assets, and to
carry on its business as presently conducted and as proposed to be conducted.  The Company is duly qualified to transact business
and is in good standing in each jurisdiction in which the failure to so qualify
would have a material adverse effect on its business or properties.  The Company’s Amended and Restated Articles
of Incorporation, as amended (the “Amended and Restated Articles”), and
Restated Bylaws (the “Bylaws”), are incorporated by reference herein.

 

3.2           Corporate Power. 
The Company will have at the Closing Dates all requisite legal and
corporate power to (a) execute and deliver the Agreement, the Warrants, and the
Notes, (b) sell and issue the Notes hereunder, (c) issue the shares of
preferred or other capital stock issuable upon conversion of the Notes (the “Preferred
Shares”), subject to required approval by the Company’s Board of Directors and
shareholders and the filing with the Secretary of State of the State of
Washington (the “Secretary”) amended and/or restated Articles of Incorporation
that designate the rights and preferences of the Preferred Shares (the “Preferred
Shares Designation”), (d) issue the shares of the Company’s Common Stock
issuable upon conversion of the Preferred Shares (the “Common Shares”), (e) sell
and issue the Warrants hereunder, (f) issue the Warrant Shares issuable upon
exercise or conversion of the Warrants, and (g) carry out and perform its
obligations under the terms of the Agreement, including all exhibits and
schedules hereto.

 

3.3           Subsidiaries. 
The Company does not presently own or control, directly or indirectly,
any interest in any other corporation, association or business entity.

 

3.4           Capitalization. 
The authorized capital stock of the Company immediately prior to the
Initial Closing consists of 36,000,000 shares of Common Stock, without par
value, of which 10,469,938 shares are issued and outstanding, and 24,000,000
shares of Preferred Stock; of which 1,250,000 shares are designated “Series A
Preferred Stock” with 66,500 shares issued and outstanding; of which 2,250,000
shares are designated “Series B Preferred Stock” with 118,750 shares
issued and outstanding; and 5,000,000 shares are designated “Series C
Preferred Stock” with 4,540,076 issued and outstanding.  The Company has reserved 5,000,000 shares of
Common Stock for issuance upon the conversion of the Series A, B, and C
Preferred in accordance with the Company’s Amended and Restated Articles.  The Company has committed

 

2

 

to issue an
additional 90,000 shares of Common Stock for services rendered to the company
within the next 10 months.  The Company
has reserved an additional 2,106,978 shares of Common Stock for Warrants that
have been issued and are yet to be exercised. 
No other shares of capital stock are outstanding.  All such issued and outstanding shares have
been duly authorized and validly issued, and are fully paid and
nonassessable.  The Company has reserved
10,000,000 shares of Common Stock for issuance pursuant to its 1999 Stock
Option Plan.  Except as set forth in the
Disclosure Schedule, there are no other options, warrants, conversion
privileges or other rights presently outstanding to purchase or otherwise
acquire any authorized but unissued shares of its capital stock or other
securities of the Company, except pursuant to the Agreement.  Except as set forth in the Disclosure
Schedule, there is no agreement or understanding between any persons or
entities that affects or relates to the voting or giving of written consents by
a director of the Company.

 

3.5           Authorization. 
All corporate action on the part of the Company, its directors and
shareholders necessary for the authorization, execution, delivery and
performance of the Agreement by the Company, the authorization, sale, issuance
and delivery of the Notes (and the Preferred Shares issuable upon conversion of
the Notes and the Common Shares issuable upon conversion of the Preferred
Shares) and the Warrants (and the Warrant Shares issuable upon exercise or
conversion of the Warrants), and the performance of the Company’s obligations
hereunder and thereunder has been taken. 
The Agreement, the Notes and the Warrants, when executed and delivered
by the Company will constitute valid and binding obligations of the Company
enforceable in accordance with their respective terms, subject to laws of
general application relating to bankruptcy, insolvency and the relief of debtors.  The Notes (and the Preferred Shares when
issued in compliance with the provisions of the Notes, and the Common Shares
when issued in compliance with the Preferred Shares, and upon (a) requisite
approval by the Company’s Board of Directors and shareholders as described
above, and (b) the filing with the Secretary of the Preferred Shares
Designation) and the Warrants (and the Warrant Shares when issued in compliance
with the provisions of the Warrants and against payment of any applicable
exercise price), when issued in compliance with this Agreement and against
payment therefor, will be validly issued, fully paid and nonassessable;
provided, however, that the Notes (and the Preferred Shares issuable upon
conversion of the Notes and the Common Shares issuable upon conversion of the
Preferred Shares), and the Warrants (and the Warrant Shares issuable upon
exercise or conversion of the Warrants), may be subject to restrictions on
transfer under state or federal securities laws as set forth herein.  The Preferred Shares issuable upon conversion
of the Notes, upon requisite approval by the Company’s Board of Directors and
shareholders as described above and the filing with the Secretary of the
Preferred Shares Designation, will be duly and validly reserved, and the Common
Shares issuable upon conversion of the Preferred Shares and the Warrant Shares
issuable upon exercise or conversion of the Warrants have been duly and validly
reserved.

 

3.6           Litigation.  No actions,
suits, proceedings or investigations are pending or, to the actual knowledge of
the Company, currently threatened against the Company, or its properties before
any court or governmental agency.  There
is no action, suit, proceeding or investigation which the Company intends to
initiate.

 

3

 

3.7           Governmental Consents. 
No consent, approval or authorization of or designation, declaration or
filing with any governmental authority on the part of the Company is required
in connection with the (a) valid execution and delivery of the Agreement,
the Notes or the Warrants, or (b) the offer, sale or issuance of the Notes
(and the Preferred Shares issuable upon conversion of the Notes and the Common
Shares issuable upon conversion of the Preferred Shares) or the Warrants (and
the Warrant Shares issuable upon exercise or conversion of the Warrants), or
the consummation of any other transaction contemplated hereby or thereby,
except (a) filing of the Preferred Shares Designation with the Secretary,
and (b) qualification (or taking such action as may be necessary to secure
an exemption from qualification, if available) of the offer and sale of the
Notes (and the Preferred Shares issuable upon conversion of the Notes and the
Common Shares issuable upon conversion of the Preferred Shares) and the
Warrants (and the Warrant Shares issuable upon exercise or conversion of the
Warrants) under applicable Blue Sky laws, which filing and qualification, if
required, will be accomplished in a timely manner.

 

3.8           Offering.  Subject to
the accuracy of the Purchasers’ representations in Article IV hereof, the
offer, sale and issuance of the Notes (and the Preferred Shares issuable upon
conversion of the Notes and the Common Shares issuable upon conversion of the
Preferred Shares), and the Warrants (and the Warrant Shares issuable upon
exercise or conversion of the Warrants) constitute transactions exempt from the
registration requirements of Section 5 of the Securities Act of 1933, as
amended (the “Securities Act”).

 

3.10         Disclosure. The Company has fully provided the Purchasers and
their representatives and legal counsel with all the information in the Company’s
possession that they have requested for deciding whether to enter into this
Agreement.  None of the representations
or warranties made by the Company in the Agreement and no information in the
schedules and exhibits hereto contain any untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements
contained herein and therein not misleading; provided, however, that no
warranty or representation is given to opinions, forecasts or other non-factual
matters contained in the One Page Executive Summary, the PDF of the
Corporate Investor Presentation, Copy of the CAP Table in detail, and Copy of
the Business Execution Plan for 2007 & 2008  (collectively referred to as the “Executive
Summary”) and further provided that the parties acknowledge that the Executive
Summary is not intended to state all the material facts concerning the Company or
its business.  Additionally, in certain
documents delivered to the Purchasers by the Company, projected operating
results for the Company have been prepared based upon detailed assumptions.  There can be no assurances that such
assumptions will be realized, and such projections are necessarily
speculative.  The Company is subject to
risks typical of developmental early stage technology companies competing in an
extremely competitive business, including, without limitation: (a) intense
competition in the product marketplace from financially stronger competitors; (b) intense
competition in hiring and retaining personnel; (c) reliance on a limited
number of key employees with unique skills; (d) required significant
additional investment of funds and financing to develop, market and sell
products and services; (e) risks of technological change, uncertainty and
obsolescence; and (f) extreme uncertainty in projecting future operating
results.

 

4

 

3.11         Brokers or Finders.  The Company
has not incurred, and will not incur, any liability for brokerage or finders’
fees or agents’ commissions or any similar charges in connection with the
Agreement.

 

3.12         Right of Participation In Future Financing. 
The Company warrants that any Note Holder who has entered into this
Security Purchase Agreement and who has converted prior to the anticipated
closing (not later than January 31, 2008) of the sale of a series of
preferred stock (the “Series E Shares”) having aggregate gross proceeds to
the Company of not less than $5,000,000, exclusive of proceeds to the Company
in connection with the Securities Purchase Agreement dated July, 2007, the Note
Holder may participate in the Series E Preferred Offering on a prorated
basis with right of first refusal on any amounts not taken by prorating prior
to any new money in.

 

ARTICLE IV. 
REPRESENTATIONS OF THE PURCHASERS

 

Each of the Purchasers hereby represents and warrants
to the Company with respect to its purchase of the Units:

 

4.1           Legal Power. 
Such Purchaser has the requisite legal power to execute and deliver the
Agreement, to purchase the Units and to carry out and perform its obligations
under the terms of the Agreement.  The
consummation of the transactions contemplated hereby (include the ownership of
the Units) by such Purchaser will not result in any violation of, or be in
conflict with, or constitute, with or without the passage of time and giving of
notice, a breach or default under any term, condition or provision of any
agreement, indenture, or other instrument to which such Purchaser is a party,
or by which such Purchaser or its properties or assets are bound, or of any
law, regulation, order, judgment or decree against or binding upon such
Purchaser.

 

4.2           Due Execution. 
The Agreement has been duly authorized, executed and delivered by such
Purchaser and, upon due execution and delivery by the Company, the Agreement
will be a valid and binding agreement of such Purchaser.

 

4.3           Investment Representations.

 

(a)           Such Purchaser is acquiring the Units
(and the securities issuable upon conversion of the Notes and Warrants, as
applicable), for such Purchaser’s own account, not as nominee or agent, for
investment and not with a view to, or for resale in connection with, any
distribution or public offering thereof within the meaning of the Securities
Act.  By executing this Agreement, each
Purchaser further represents that such Purchaser does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to any such person or to any third person, with respect to the
Units.

 

(b)           Such Purchaser understands that (i) neither
the Notes (and the Preferred Shares issuable upon conversion of the Notes and
the Common Shares issuable upon conversion of the Preferred Shares) nor the
Warrants (and the Warrant Shares issuable upon exercise or conversion of the
Warrants) have been registered under either Securities Act or the securities

 

5

 

laws of any state
by reason of specific exemptions therefrom, (ii) the Notes (and the
Preferred Shares issuable upon conversion of the Notes and the Common Shares
issuable upon conversion of the Preferred Shares) and the Warrants (and the
Warrant Shares issuable upon exercise or conversion of the Warrants) must be
held by such Purchaser indefinitely, and, therefore, such Purchaser must bear
the economic risk of such investment indefinitely, unless a subsequent
disposition thereof is registered under the Securities Act and the securities
laws of any applicable state or is exempt from such registrations; (iii) each
Note (and each certificate that represents the Preferred Shares issued upon
conversion of the Notes and the Common Shares issuable upon conversion of the
Preferred Shares) and each Warrant (and each certificate that represents the
Warrant Shares issued upon exercise or conversion of the Warrants) will be
endorsed with a legend substantially as follows:

 

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”) OR THE SECURITIES
LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED
UNLESS PURSUANT TO SEC RULE 144 OR UNLESS THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE 1933 ACT AND THE SECURITIES LAWS OF ANY STATE
COVERING SUCH SECURITIES OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE
HOLDER OF THE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT
SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE 1933 ACT AND THE
SECURITIES LAWS OF ANY STATE.

 

and (iv) the
Company will instruct any transfer agent not to register the transfer of any of
the Notes (or the Preferred Shares issued upon conversion of the Notes and the
Common Shares issuable upon conversion of the Preferred Shares) or the Warrants
(or the Warrant Shares issued upon exercise or conversion of the Warrants)
unless the conditions specified in the foregoing legend are satisfied.

 

(c)           Such Purchaser has been furnished with
such materials and has been given access to such information relating to the
Company as such Purchaser or such Purchaser’s qualified representative has
requested and such Purchaser has been afforded the opportunity to ask questions
regarding the Company and the Units, all as such Purchaser has found necessary
to make an informed investment decision. 
Such Purchaser has been solely responsible for its own due diligence
investigation of the Company and its proposed business, for its own analysis of
the merits and risks of its investment made pursuant to this Agreement and for
its own analysis of the terms of its investment.

 

(d)           Such Purchaser is an accredited investor
within the meaning of Regulation D under the Securities Act.  Such Purchaser is in a financial position to
hold the Units and is able to bear the economic risk and withstand a complete
loss of its investment in the Units. 
Such Purchaser recognizes that the Units as an investment involve a high
degree of risk.

 

6

 

Such Purchaser
understands and acknowledges that there can be no assurance that the Company
will be able to meet its projected goals and that the Company will need
significant additional capital to be successful, which capital may not be
available readily.

 

(e)           Such Purchaser acknowledges hereby that
it has been advised to and has obtained, to the extent such Purchaser deems
necessary, professional (including legal) advice with respect to the risks
inherent in the investment in the Units, the condition of the Company, the
suitability of the investment in the Units in light of such Purchaser’s
condition and investment needs, and the terms and conditions of this Agreement
and documents relating to the investment in the Units.  Such Purchaser, either alone or with the
assistance of such professional advisors, is a sophisticated investor, is able
to fend for itself in the transaction contemplated by this Agreement, and has
such knowledge and experience in financial and business matters that such
Purchaser is capable of evaluating the merits and risks of the prospective
investment in the Units.

 

(f)            The investment in the Units is suitable
for such Purchaser based upon its investment objectives and financial needs,
and such Purchaser has adequate net worth and means for providing for its
current financial needs and contingencies and has no need for liquidity of the
investment with respect to the Units.  Such
Purchaser’s overall commitments to investments that are illiquid or not readily
marketable are not disproportionate to its net worth, and investment in the
Units will not cause such overall commitment to become excessive.

 

(g)           For purposes of the application of state
securities laws, such Purchaser represents that it is a bona fide resident of,
and is domiciled in, the state set forth in its address on Exhibit “A”.

 

ARTICLE
V.  CONDITIONS TO COMPANY’S OBLIGATIONS
AT CLOSING

 

The Company’s obligation to sell and issue the Units
at the Closing is subject to the fulfillment to its satisfaction on or prior to
the Closing Date of the following conditions:

 

5.1           Representations and Warranties True. 
The representations and warranties made by the Purchasers in Article IV
hereof shall be true and correct at the Closing Date, with the same force and
effect as if they had been made on and as of said date.

 

5.2           Performance of Obligations. 
The Purchasers shall have performed and complied with all agreements and
conditions herein required to be performed or complied with by them on or
before the Closing.

 

5.3           Qualifications, Legal Investment. 
All authorizations, approvals, filings, or permits, if any, of any
governmental authority or regulatory body of the United States, the State of
Washington, or of any other state that are required in connection with the
lawful sale and issuance of the Units pursuant to the Agreement shall have been
duly obtained and shall be effective on and as of the Closing.  At the time of the Closing, the sale and
issuance of the Notes and the proposed issuance of the Preferred Shares
issuable upon conversion of the Notes and the Common Shares issuable upon
conversion of the Preferred Shares, and the sale and

 

7

 

issuance of the Warrants and the proposed issuance of the Warrant
Shares issuable upon exercise or conversion of the Warrants, shall be legally
permitted by all laws and regulations to which the Purchasers and the Company
are subject.

 

ARTICLE
VI.  MISCELLANEOUS PROVISIONS

 

6.1           Governing Law; Venue. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of Washington, and venue for any action taken in connection
herewith or related hereto shall exclusively reside in King County, Washington.

 

6.2           Survival.  The
representations, warranties, covenants and agreements made herein shall survive
any investigation made by the Purchasers and the Closing.  All statements as to factual matters
contained in any certificate or other instrument delivered by or on behalf of
the Company pursuant hereto or in connection with the transactions contemplated
hereby shall be deemed to be the representations and warranties hereunder as of
the date of such certificate or instrument.

 

6.3           Successors and Assigns. 
Except as otherwise provided herein, the provisions hereof shall inure
to the benefit of, and be binding upon, the successors, assigns, heirs,
executors and administrators of the parties hereto; provided, however, that the
rights of the Purchasers to purchase the Units shall not be assignable without
the consent of the Company.

 

6.4           Entire Agreement. 
The Agreement and the other documents delivered pursuant hereto
constitute the full and entire understanding and agreement between the parties
with regard to the subjects hereof and thereof.

 

6.5           Notices.  All notices
and other communications required or permitted hereunder shall be in writing
and shall be deemed effectively given upon personal delivery; upon confirmed
transmission by facsimile; or by e-mail
delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof; or upon deposit with the United States Post Office, by
first-class mail, postage prepaid, or otherwise delivered by hand or by
messenger, addressed (a) if to a Purchaser, at the Purchaser’s address or email
address as set forth on Exhibit “A” or at such other address as such
Purchaser shall have furnished to the Company in writing, or (b) if to the
Company, one copy shall be sent to its address or be email set forth above and
addressed to the attention of the President, and another copy shall be sent or
emailed to Desmond Kolke, Secretary/Treasurer for Etelos, Incorporated, P.O. Box
605, Enumclaw, WA  98022, or at such
other addresses as the Company shall have furnished to the Purchasers.

 

6.6           Information Confidential. 
Each Purchaser acknowledges that the information received by it pursuant
hereto is confidential and for the Purchasers’ use only, and such Purchaser
shall use its best efforts to refrain from using such information or
reproducing, disclosing, or disseminating such information to any other person
(other than their employees, affiliates, agents, or partners having a need to
know the contents of such information and their

 

8

 

attorneys), except
in connection with the exercise of its rights arising under the Agreement, the
Notes, or the Warrants, unless the Company has made such information available
to the public generally or the Company is required by a governmental body to
disclose such information.

 

6.7           Attorney’s Fees. 
Each of the parties hereto shall pay its own attorney’s fees incurred in
connection with the transactions contemplated by the Agreement.

 

6.8           Counterparts. 
The Agreement may be executed in counterparts, each of which shall be
enforceable against the party actually executing such counterpart, and which
together shall constitute one instrument. This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall
becomeeffective when counterparts have been signed by each party and delivered
hereunder, it being understood that both parties need not sign the same
counterpart. In the event that any signature is delivered by facsimile
transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such
facsimile or “.pdf” signature page were an original thereof.

 

6.9           Severability. 
In the event that any provision of the Agreement becomes or is declared
by a court of competent jurisdiction to be illegal, unenforceable or void, the
Agreement shall continue in full force and effect without said provision;
provided that no such severability shall be effective if it materially changes
the economic benefit of the Agreement to any party.

 

6.10         Washington Securities Act. 
The sale of the securities that are the subject of the Agreement has not
been qualified with the State of Washington, and the issuance of such
securities or the payment or receipt of any part of the consideration therefor
prior to such qualification, or in the absence of an exemption  from such
qualification, is unlawful.  The rights
of all parties to the Agreement are expressly conditioned upon such
qualification being obtained, or an exemption from such qualification being
available.

 

6.11         Approval of Amendments and Waivers. 
Any term of the Agreement may be amended or terminated, and the
observance of any term of the Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively) with the written
consent of the Company and the holders (other than the Company and its
subsidiaries and affiliates) of a two-thirds majority of the outstanding Notes
(and Preferred Shares issued upon conversion thereof), determined on the basis
of the number of Preferred Shares held on an as-if-converted basis, excluding
from such determination (both in determining the total number of such shares
outstanding and the number of such shares consenting or not consenting) all
shares previously disposed of by the Purchasers or their transferees pursuant
to one or more registration statements under the Securities Act or pursuant to Rule 144
thereunder.  Any amendment, termination
or waiver effected in accordance with this Section 6.11 shall be binding
upon each holder of any securities issued pursuant to the Agreement (including
securities into which such securities have been converted or exchanged), each
future holder of any or all such securities, and the Company.

 

(the remainder of this pagehas been intentionally left blank)

 

9

 

SECURITIES PURCHASE AGREEMENT

SIGNATURE PAGE

 

The parties have
executed this Agreement as of the date first above written.

 

 

	
  ETELOS, INCORPORATED

  	
   

  	
  FOR EXECUTION BY INDIVIDUAL

  
	
   

  	
   

  	
  PURCHASERS

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jeffrey Garon

  	
   

  	
  Print Name:

  	
   

  
	
  Jeffrey Garon, Chief
  Executive Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FOR EXECUTION BY CORPORATIONS,

  PARTNERSHIPS, TRUSTS OR OTHER

  ENTITIES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Enable Opportunity
  Partners LP

  
	
   

  	
   

  	
  Name of Purchaser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Brendan O’Neil

  
	
   

  	
   

  	
  Name of person making
  investment decision

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Brendan O’Neil

  
	
   

  	
   

  	
  Signature of person
  making investment decision

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Principal and Portfolio
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  One
  Ferry Building, Suite 255

  
	
   

  	
   

  	
   

  	
   San Francisco, CA 94111

  
										

 

10

 

Schedule “A”

 

PURCHASERS AT THE INITIAL CLOSING

 

	
  Name and Address of Purchaser

  	
   

  	
  Number of

  Units

  	
   

  	
  Total Purchase

  Price

  	
   

  	
  Principal Amount of

  Notes Purchased

  	
   

  
	
  Enable
  Opportunity Partners LP One Ferry Building, Suite 255 San Francisco, CA 94111

  	
   

  	
  80

  	
   

  	
  $

  	
  80,000

  	
   

  	
  $

  	
  88,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

11

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