Document:

SECURITY
        AGREEMENT

       

      THIS
        SECURITY AGREEMENT
        (this
“Agreement”)
        is
        made and entered into as of the 20th day of February, 2007, by and among
        Celsia
        Technologies, Inc., a Nevada corporation (the “Company”),
        Celsia Technologies UK Limited, a company formed under the laws of England
        and
        Wales (“Celsia
        UK”),
        Axiom
        Capital Management, Inc. (the “Agent”)
        and
        each other person or entity listed as a Secured Party on Schedule
        1
        attached
        to this Agreement, as such Schedule I shall be revised from time to time
        (the
“Purchasers”
and
        together with the Agent the “Secured
        Party”).
        

       

      Recitals

       

      WHEREAS,
        the
        Company desires to sell and issue Secured Convertible Promissory Notes in
        the
        aggregate principal amount of not less than Two Hundred Fifty Thousand Dollars
        ($250,000) and not more than One Million Dollars ($1,000,000) (individually,
        a
“Convertible
        Note,”
and
        collectively, the “Convertible
        Notes”);

       

      WHEREAS,
        the
        Convertible Notes will be sold in multiple closings to the Purchasers pursuant
        to Securities Purchase Agreements between the Company and each Purchaser
        (each a
“Purchase
        Agreement”
and
        collectively the “Purchase
        Agreements”);
        and

       

      WHEREAS,
        Secured
        Party has required, as a condition to purchasing the Convertible Notes, that
        Company grant Secured Party a first priority security interest in all of
        Company’s Collateral (as defined herein) and to that end has required the
        execution and delivery of this Agreement by Company.

       

      NOW,
        THEREFORE,
        in
        consideration of the mutual covenants and agreements contained in the Purchase
        Agreements, the parties hereto, intending to be legally bound, agree as
        follows:

       

      1. Incorporation
        of Recitals.
        The
        foregoing Recitals are hereby incorporated herein in their entirety by this
        reference.

       

      2. Definitions.
        Capitalized terms used herein and not otherwise defined shall have the meanings
        set forth in the Convertible Notes. The following terms shall have the meanings
        set forth below:

       

      “Collateral”
shall
        mean (i) all Accounts; (ii) all Inventory; (iii) all Goods;
        (iv) all Equipment, Vehicles, furniture and Fixtures; (v) all Chattel
        Paper, Instruments, Documents, General Intangibles and Investment Property;
        (vi) all books and records (including, without limitation, customer lists,
        credit files, computer programs, print-outs and other computer materials
        and
        records) of the Company pertaining to any of the foregoing; (vii) the
        Pledged Securities; and (viii) Proceeds. The terms used herein to identify
        the Collateral but not otherwise defined herein shall have the respective
        meanings assigned to such terms as of the date hereof in the Uniform Commercial
        Code of the State of New York (the “New
        York UCC”).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Obligations”
means
        each and every debt, liability, and obligation of every kind and description
        arising under or in connection with the Convertible Notes which the Company
        may
        now or at any time hereafter owe to Secured Party.

       

      “Permitted
        Liens”
shall
        mean, collectively, the following: (i) liens for current taxes or other
        governmental or regulatory assessments which are not delinquent, or which
        are
        being contested in good faith by the appropriate procedures and for which
        appropriate reserves are maintained; (ii) liens in favor of Agent and/or
        the Secured Party; (iii) liens relating to trade payables incurred in the
        ordinary course of business, (iv) liens related to a Qualified Debenture
        Financing, and (v) liens consented to by the Required Majority.

       

      “Proceeds”
shall
        mean any consideration received from the sale, exchange, lease or other
        disposition of any asset or property which constitutes Collateral, any other
        value received as a consequence of the possession of any Collateral and any
        payment received from any insurer or other person or entity as a result of
        the
        destruction, loss, theft or other involuntary conversion of whatever nature
        of
        any asset or property that constitutes Collateral and all “proceeds” as defined
        in the New York UCC.

       

      “Security
        Interest”
has
        the
        meaning given in Section 3(b).

       

      3. Security
        for Obligations; Pledge of Securities.

       

      (a) This
        Agreement secures, and the Collateral is collateral security for, the prompt
        payment or performance in full when due, whether at stated maturity, by required
        prepayment, declaration, acceleration, conversion, demand or otherwise
        (including the payment of amounts that would become due but for the operation
        of
        the automatic stay under Section 363(a) of the Bankruptcy Code, 11 U.S.C.
§362(a)) of all obligations and liabilities of every nature of Company now
        or
        hereafter existing under or arising out of or in connection with the Convertible
        Notes and this Agreement and all extensions or renewals thereof, whether
        for
        principal, interest, (including, without limitation, interest that, but for
        the
        filing of a petition in bankruptcy with respect to Company, would accrue
        on such
        obligations), fees, expenses, indemnities or otherwise, whether voluntary
        or
        involuntary, direct or indirect, absolute or contingent, liquidated or
        unliquidated, whether or not jointly owed with others, and whether or not
        from
        time to time decreased or extinguished and later increased, created or incurred,
        and all or any portion of such obligations or liabilities that are paid,
        to the
        extent all or any part of such payment is avoided or recovered directly or
        indirectly from Agent or any Secured Party as a preference, fraudulent transfer
        or otherwise (all such obligations of Company, together with the Obligations,
        being the “Secured
        Obligations”).

       

      (b) Security
        Interest.
        As
        security for the payment or performance, as the case may be, of the Secured
        Obligations, the Company hereby creates and grants to the Agent, its successors
        and its assigns, for its own benefit and for the pro rata benefit of the
        Purchasers, their successors and their assigns, a security interest in the
        Collateral (the “Security Interest”). Without limiting the foregoing, the Agent
        is hereby authorized to file one or more financing statements, continuation
        statements or other documents for the purpose of perfecting, confirming,
        continuing, enforcing or protecting the Security Interest, naming the Company
        as
        debtors and the Secured Parties as secured parties. The Company agrees that
        Agent may file any appropriate document in the appropriate index or filing
        office as a financing statement for any of the items specified in this Agreement
        as part of the Collateral and the Company shall reimburse Agent for all fees
        and
        expenses associated with such filing, including but not limited to reasonable
        attorneys’ fees and expenses. In addition, the Company agrees to execute and
        deliver to the Agent, upon the Agent’s request, any financing statements, as
        well as extensions, renewals and amendments thereof, and reproductions of
        this
        Agreement in such form as the Agent may reasonably require to perfect a security
        interest with respect to said items. The Company shall pay all costs of filing
        such financing statements and any extensions, renewals, amendments, and releases
        thereof, and shall pay all reasonable costs and expenses of any record searches
        for financing statements that the Agent may reasonably require.

       

      
        
          
          

        

        
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      (c) Pledge
        of Subsidiary Shares.
        As
        collateral security for the payment and performance when due of all the Secured
        Obligations, but subject to the limitations set forth herein, (i) the
        Company hereby pledges, assigns, transfers and grants to the Agent for its
        benefit and the benefit of the Purchasers, a continuing first priority security
        interest in and to all of the right, title and interest of the Company in
        all of
        the shares of capital stock of Celsia UK owned by the Company (the “UK
        Pledged Securities”)
        and
        (ii) Celsia UK hereby pledges, assigns, transfers and grants to the Agent
        for its benefit and the benefit of the Purchasers, a continuing first priority
        security interest in and to all of the right, title and interest of Celsia
        UK in
        all of the shares of capital stock of Celsia Technologies Korea, Inc. owned
        by
        Celsia UK (the “Korean
        Pledged Securities”
and,
        collectively with the UK Pledged Securities, the “Pledged
        Securities”).
        Prior
        to or upon the execution hereof, all certificates, agreements or instruments
        representing or evidencing the Pledged Securities shall have been delivered
        to
        and be held by or on behalf of Agent pursuant hereto. All certificated Pledged
        Securities shall be in suitable form for transfer by delivery or shall be
        accompanied by duly executed instruments of transfer or assignment in blank,
        all
        in form and substance satisfactory to Agent and subject to any applicable
        law or
        regulations. The Agent shall have the right, at any time upon the occurrence
        and
        during the continuance of any Event of Default and without notice to the
        Company
        or Celsia UK, to endorse, assign or otherwise transfer to or to register
        in the
        name of Agent or any of its nominees or endorse for negotiation any or all
        of
        the Pledged Securities, subject to any applicable law or regulations. In
        addition, the Agent shall have the right at any time to exchange certificates
        representing or evidencing the Pledged Securities for certificates of smaller
        or
        larger denominations.

       

      (d) Certain
        Limitations.
        Notwithstanding
        anything to the contrary contained herein, (i) the term “Collateral”
and
        “Pledged
        Securities”
shall
        not include securities representing at any time more than 65% of the aggregate
        voting power of the capital stock or other equity interests of a “controlled
        foreign corporation,” as defined in Section 957 of the Internal Revenue
        Code of 1986, as amended, and (ii) nothing contained herein shall be deemed
        to constitute an assignment, pledge or encumbrance of any securities or leased
        equipment, intellectual property or general intangibles, including licenses
        thereof, to the extent that (A) they are not capable of being assigned, pledged
        or encumbered as a matter of law or under the terms of any license or other
        agreement applicable thereto or such assignment, pledge or encumbrance would
        invalidate the rights under terms of any license, lease or other agreements
        applicable thereto without the consent of the licensor thereof or other
        applicable party thereto, and (B) such consent has not been obtained (in
        each
        case to the extent that such applicable law is not overridden by
        Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable
        law).

       

      
        
          
          

        

        
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      (e) Accounting
        Records.
        The
        Company agrees at all times to keep in all material respects accurate and
        complete accounting records with respect to the Collateral, including, but
        not
        limited to, a record of all payments and Proceeds received.

       

      4. Representations
        and Warranties.
        Company
        represents and warrants as follows:

       

      (a) Financing
        Statements.
        Except
        for the financing statements in favor of Secured Party, the Company agrees not
        to execute or authorize the filing of any financing statement in favor of
        any
        person, entity or governmental agency (whether federal, state or local) other
        than Secured Party as long as any portion of the Obligations evidenced by
        the
        Convertible Notes remain unsatisfied, other than with respect to Permitted
        Liens.

       

      (b) Legal
        Name.
        Company’s exact legal name is as set forth in the first paragraph of this
        Security Agreement. Company shall not change its legal name or its form of
        organization without 30 days’ prior written notice to Secured
        Party.

       

      (c) Title
        and Authority.
        Company
        has (i) rights in and good title to the Collateral (other than the Korean
        Pledged Securities) in which it is granting a security interest hereunder
        and
        (ii) the requisite corporate power and authority to grant to the Agent the
        Security Interest in such Collateral pursuant hereto and to execute, deliver
        and
        perform its obligations in accordance with the terms of this Agreement, without
        the consent or approval of any other person other than any consent or approval
        which has been obtained. Celsia UK has (i) rights in and good title to the
        Korean Pledged Securities and (ii) the requisite corporate power and authority
        to grant to the Agent the Security Interest in such Collateral pursuant hereto
        and to execute, deliver and perform its obligations in accordance with the
        terms
        of this Agreement, without the consent or approval of any other person other
        than any consent or approval which has been obtained. 

       

      (d) Security
        Interests.
        Except
        for Permitted Liens, the Company is the sole owner of the Collateral (except
        for
        the Korean Pledged Securities and non-exclusive licenses granted by the Company
        in the ordinary course of business), free and clear of any liens, security
        interests, encumbrances, rights or claims, and is fully authorized to grant
        the
        Security Interest in accordance with the terms hereof. Except
        for Permitted Liens, Celsia UK is the sole owner of the Korean Pledged
        Securities, free and clear of any liens, security interests, encumbrances,
        rights or claims, and is fully authorized to grant the Security
        Interest
        in
        accordance with the terms hereof.

       

      (e) Validity
        of Security Interest.
        The
        Security Interest constitutes a valid security interest in all of the Collateral
        for payment and performance of the Secured Obligations subject only to Permitted
        Liens and the limitations specifically set forth herein.

       

      5. Covenants
        and Agreements.
        Company
        covenants and agrees as follows:

       

      (a) Restrictions.
        Company
        agrees that until the Obligations shall have been satisfied in full, Company
        shall not, without the prior written consent of holders of a majority of
        the
        principal amount of the Convertible Notes then outstanding, assign, transfer,
        encumber or otherwise dispose of the Collateral, or any interest therein,
        other
        than in the ordinary course of business.

       

      
        
          
          

        

        
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      (b) Defense.
        Company
        shall, at its own cost and expense, take any and all actions reasonably
        necessary to defend title to the Collateral owned by it against all persons
        and
        to defend the Security Interest of the Agent in such Collateral, and the
        priority thereof, against any adverse lien of any nature whatsoever (other
        than
        Permitted Liens).

       

      (c) Maintenance.
        Except
        as otherwise provided herein, Company shall at all times and at its own expense
        maintain and keep, or cause to be maintained and kept, the Collateral. Company
        shall perform all acts and execute all documents reasonably requested by
        the
        Agent at any time to evidence, perfect, maintain, record and enforce the
        Secured
        Party’s interest in the Collateral or otherwise in furtherance of the provisions
        of this Agreement, and Company hereby authorizes the Agent to execute and
        file
        one or more financing statements (and similar documents) or copies thereof
        or of
        this Agreement with respect to the Collateral signed only by the Agent.

       

      (d) Secured
        Party’s Right to Take Action.
        If,
        after fifteen (15) days written notice from Secured Party, Company fails
        to
        perform or observe any of its covenants or agreements set forth in this
        Section 5 or if Company notifies Secured Party that it intends to abandon
        all or any part of the Collateral, Secured Party may (but need not) perform
        or
        observe such covenant or agreement or take steps to prevent such intended
        abandonment on behalf and in the name, place, and stead of Company (or, in
        the
        case of intended abandonment, in Secured Party’s own name) and may (but need
        not) take any and all other actions that Secured Party may reasonably deem
        necessary to cure or correct such failure or prevent such intended
        abandonment. 

       

      (e) Costs
        and Expenses.
        Except
        to the extent that the effect of such payment would be to render any loan
        or
        forbearance of money usurious or otherwise illegal under any applicable law,
        Company shall pay Secured Party on demand the amount of all reasonable moneys
        expended and all reasonable costs and expenses (including reasonable attorneys’
fees and disbursements) incurred by Secured Party in connection with or as
        a
        result of Secured Party’s taking action under subsection 5(d), except for
        intended abandonment of the Collateral by Company, or exercising its rights
        under Section 7.

       

      (f) Use
        and Disposition of Collateral.
        Company
        shall not make or permit to be made any assignment, pledge or hypothecation
        of
        the Collateral other than Permitted Liens, or grant any security interest
        in the
        Collateral except for the Security Interest and Permitted Liens. Company
        shall
        not make or permit to be made any transfer of any Collateral, except in the
        ordinary course of business, and Company shall remain at all times in possession
        of the Collateral owned by it other than transfers to the Secured Party pursuant
        to the provisions hereof and except as otherwise provided in this Agreement.
        The
        Agent shall have the right, as the true and lawful agent of the Company,
        with
        power of substitution for the Company and in the Company's name, the Agent's
        name or otherwise, for the use and benefit of the Secured Party and solely
        as
        and to the extent required to effect the terms of this Agreement, (i) to
        endorse
        the Company’s name upon any notes, acceptances, checks, drafts, money orders or
        other evidences of payment with respect to the Collateral that may come into
        its
        possession; (ii) to sign the name of the Company on any invoice relating
        to any
        of the Collateral and (iii) upon the occurrence and during the continuance
        of an
        event of default under this Agreement or under the Convertible Notes, (A)
        to
        receive, endorse, assign and/or deliver any and all notes, acceptances, checks,
        drafts, money orders or other evidences or instruments of payment relating
        to
        the Collateral or any part thereof, and Company hereby waives notice of
        presentment, protest and non-payment of any instrument so endorsed, (B) to
        demand, collect, receive payment of, give receipt for, extend the time of
        payment of and give discharges and releases of all or any of the Collateral
        and/or release the obligor thereon, (C) to commence and prosecute any and
        all
        suits, actions or proceedings at law or in equity in any court of competent
        jurisdiction to collect or otherwise realize on all or any of the Collateral
        or
        to enforce any rights in respect of any Collateral, (D) to settle, compromise,
        compound, adjust or defend any actions, suits or proceedings relating to
        or
        pertaining to all or any of the Collateral, and (H) to use, sell, assign,
        transfer, pledge, make any agreement with respect to or otherwise deal with
        all
        or any of the Collateral, and to do all other acts and things necessary to
        carry
        out the purposes of this Agreement, as fully and completely as though the
        Secured Party was the absolute owner of the Collateral for all purposes;
        provided,
        however,
        that
        nothing herein contained shall be construed as requiring or obligating the
        Secured Party to make any commitment or to make any inquiry as to the nature
        or
        sufficiency of any payment received by the Secured Party or to present or
        file
        any claim or notice, or to take any action with respect to the Collateral
        or any
        part thereof or the moneys due or to become due in respect thereof or any
        property covered thereby, and no action taken by the Secured Party or omitted
        to
        be taken with respect to the Collateral or any part thereof shall give rise
        to
        any defense, counterclaim or offset in favor of Company or to any claim or
        action against the Secured Party in the absence of the gross negligence or
        willful misconduct of the Secured Party; and
        provided further that,
        the
        Agent shall at all times act reasonably and in good faith. It is understood
        and
        agreed that the appointment of the Agent as the agent of the Company for
        the
        purposes set forth above in this Section 5(f) is coupled with an interest
        and is irrevocable. The provisions of this Section 5(f) shall in no event
        relieve Company of any of its obligations hereunder with respect to the
        Collateral or any part thereof (other than obligations which are impaired
        as a
        result of actions taken by the Agent pursuant to this Section 5(f)) or
        impose any obligation on the Secured Party to proceed in any particular manner
        with respect to the Collateral or any part thereof, or in any way limit the
        exercise by the Secured Party of any other or further right which it may
        have on
        the date of this Agreement or hereafter, whether hereunder or by law or
        otherwise. Secured Party shall provide advance written notice to the Company
        at
        least ten days prior to taking any action hereunder; provided, however, that
        if
        in the Agent’s good faith determination such notice could not be provided within
        such time period, advance notice shall be provided as soon as practicable
        prior
        to the taking of such action.

       

      
        
          
          

        

        
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      (g) Further
        Assurances.
        Company
        agrees, at its expense, to execute, acknowledge, deliver and cause to be
        duly
        filed all such further instruments and documents and take all such actions
        as
        the Agent may from time to time reasonably request for the assuring and
        preserving of the Security Interest and the rights and remedies created hereby,
        including, without limitation, the payment of any fees and taxes required
        in
        connection with the execution and delivery of this Agreement, the granting
        of
        the Security Interest and the filing of any financing statements or other
        documents in connection herewith. If any amount payable under or in connection
        with any of the Collateral shall be or become evidenced by any promissory
        note
        or other instrument, such note or instrument shall be promptly pledged and
        delivered to the Agent, duly endorsed in a manner satisfactory to the Agent.
        Company agrees to notify promptly the Agent of any change in its corporate
        name
        or in the location of its chief executive office, its chief place of business
        or
        the office where it keeps its records. 

       

      
        
          
          

        

        
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      6. Events
        of Default.
        Each of
        the following occurrences shall constitute an event of default under this
        Agreement (herein called “Event
        of Default”):
        

       

      (a) an
        Event
        of Default under the Convertible Notes shall occur (subject to any cure period
        provided for in the Convertible Notes); or 

       

      (b) Company
        shall fail promptly to observe or perform any covenant or agreement herein
        binding on it or shall fail to satisfy any Obligations to the Secured Party
        in
        accordance with the terms of the Convertible Notes, if applicable, which
        failure
        is not cured within fifteen (15) days; or

       

      (c) there
        is
        any levy, seizure, or attachment of all or any material portion of the
        Collateral, other than as set forth in this Agreement; or

       

      (d) any
        of
        the representations or warranties contained in Section 4 or in the Purchase
        Agreement shall prove to have been incorrect in any material respect when
        made.

       

      7. Remedies.
        Upon
        the occurrence of an Event of Default and at any time thereafter, Agent may,
        at
        its option and on behalf of the Secured Party, take any or all of the following
        actions:

       

      (a) exercise
        any or all remedies available under this Agreement including, without
        limitation, any and all rights afforded to a secured party under, and subject
        to
        its obligations contained in, the Uniform Commercial Code as in effect in
        any
        state or other applicable law; or

       

      (b) sell,
        assign, transfer, pledge, encumber, or otherwise dispose of the Collateral;
        or

       

      (c) incur
        reasonable expenses, including attorneys' fees at the regular hourly rates
        of
        Secured Party's counsel from time to time in effect, reasonable legal expenses
        and costs for the exercise of any right or power under this Security Agreement,
        which expenses are secured by this Security Agreement.

       

      Any
        disposition of Collateral by Agent shall be subject to the mandatory
        requirements of applicable law and subject to the requirement that Agent
        act
        reasonably and in good faith. Subject to such conditions, Agent may sell
        or
        otherwise dispose of all or any part of the Collateral, at public or private
        sale, for cash, upon credit or for future delivery as the Agent shall deem
        appropriate. Each purchaser at any such sale shall hold the property sold
        absolutely free from any claim or right on the part of the Company, and Company
        hereby waives (to the extent permitted by law) all rights of redemption,
        stay
        and appraisal which Company now has or may at any time in the future have
        under
        any rule of law or statute now existing or hereafter enacted. The Agent shall
        give the Company ten (10) days' written notice (which Company agrees is
        reasonable notice within the meaning of Section 9-504(3) of the Uniform
        Commercial Code) of the Agent's intention to make any sale of Collateral.
        Such
        notice, in the case of a public sale, shall state the time and place for
        such
        sale. Any such public sale shall be held at such time or times within ordinary
        business hours and at such place or places as the Agent may fix and state
        in the
        notice (if any) of such sale. At any such sale, the Collateral, or portion
        thereof, to be sold may be sold in one lot, as an entirety or in separate
        parcels, as the Agent may (in its sole and absolute discretion) determine.
        The
        Agent shall not be obligated to make any sale of any Collateral if it shall
        determine not to do so, regardless of the fact that notice of sale of such
        Collateral shall have been given. The Agent may, without notice or publication,
        adjourn any public or private sale or cause the same to be adjourned from
        time
        to time by announcement at the time and place fixed for sale, and such sale
        may,
        without further notice, be made at the time and place to which the same was
        so
        adjourned. In case any sale of all or any part of the Collateral is made
        on
        credit or for future delivery, the Collateral so sold may be retained by
        the
        Agent until the sale price is paid by the purchaser or purchasers thereof,
        but
        the Agent shall not incur any liability in case any such purchaser or purchasers
        shall fail to take up and pay for the Collateral so sold and, in case of
        any
        such failure, such Collateral may be sold again upon like notice. At any
        public
        sale made pursuant to this Section 7, any Purchaser may bid for or
        purchase, free (to the extent permitted by law) from any right of redemption,
        stay or appraisal on the part of Company (all said rights being also hereby
        waived and released to the extent permitted by law), with respect to the
        Collateral or any part thereof offered for sale and any such Purchaser may
        make
        payment on account thereof by using any claim then due and payable to any
        such
        Purchaser from Company as a credit against the purchase price, and any such
        Purchaser may, upon compliance with the terms of sale, hold, retain and dispose
        of such property without further accountability to Company therefor. For
        purposes hereof, a written agreement to purchase the Collateral or any portion
        thereof shall be treated as a sale thereof; the Agent shall be free to carry
        out
        such sale and purchase pursuant to such agreement, and Company shall not
        be
        entitled to the return of the Collateral or any portion thereof subject thereto,
        notwithstanding the fact that after the Agent shall have entered into such
        an
        agreement all events of default shall have been remedied and the Secured
        Obligations paid in full. Company shall remain liable for any deficiency.
        As an
        alternative to exercising the power of sale herein conferred upon it, the
        Agent
        may proceed by a suit or suits at law or in equity to foreclose this Agreement
        and to sell the Collateral or any portion thereof pursuant to a judgment
        or
        decree of a court or courts having competent jurisdiction or pursuant to
        a
        proceeding by a court appointed receiver.

       

      
        
          
          

        

        
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      8. Designation
        of Agent; Indemnity.
        

       

      (a) The
        Purchasers hereby irrevocably designate Axiom (and its successors and assigns)
        as their agent and Axiom hereby accepts such designation, in order to execute
        any and all instruments or other documents on behalf of the Purchasers and
        to do
        any and all other acts or things on behalf of the Purchasers that Axiom (or
        its
        successors or assigns) in its sole discretion deems necessary or advisable
        or
        that may be required pursuant to this Agreement or otherwise, to exercise
        Secured Party’s rights and remedies under this Agreement. None of the Purchasers
        may take any action or exercise any rights under this Agreement except through
        Axiom as their agent. Company hereby appoints the Agent the attorney-in-fact
        of
        Company solely for the purpose of carrying out the provisions of this Agreement
        and taking any action and executing any instrument which the Agent may
        reasonably deem necessary or advisable to accomplish the purposes hereof,
        which
        appointment is irrevocable so long as this Agreement and the Security Interest
        have not been terminated and coupled with an interest. Notwithstanding anything
        to the contrary set forth herein, this Agreement may be waived, modified,
        amended, terminated or discharged only pursuant to Section 11
        hereof.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (b) Axiom,
        as
        agent, shall have no duties or responsibilities whatsoever with respect to
        the
        Collateral except as are specifically set forth herein. Axiom, in its capacity
        as agent for the Purchasers, shall neither be responsible for or under, nor
        chargeable with knowledge of the terms and conditions of, any other agreement,
        instrument or document in connection herewith. Axiom may conclusively rely
        upon,
        and shall be fully protected from all liability, loss, cost, damage or expense
        in acting or omitting to act pursuant to any written notice, instrument,
        request, consent, certificate, document, letter, telegram, opinion, order,
        resolution or other writing hereunder without being required to determine
        the
        authenticity of such document, the correctness of any fact stated therein,
        the
        propriety of the service thereof or the capacity, identity or authority of
        any
        party purporting to sign or deliver such document. Axiom shall have no
        responsibility for the contents of any such writing contemplated herein and
        may
        rely without any liability upon the contents thereof.

       

      (c) Axiom,
        in
        its capacity as agent for the Purchasers, shall not be liable for any action
        taken or omitted by it in good faith and reasonably believed by it to be
        authorized hereby or with the rights or powers conferred upon it hereunder,
        nor
        for action taken or omitted by it in good faith, and in accordance with advice
        of counsel (which counsel may be of Axiom’s own choosing), and shall not be
        liable for any mistake of fact or error of judgment or for any acts or omissions
        of any kind except for its own willful misconduct or gross
        negligence.

       

      (d) Each
        of
        the Purchasers (each, an “Indemnifying
        Parties”)
        agrees
        to indemnify Axiom, in its capacity as agent for the Purchasers, and its
        employees, directors, officers and agents and hold each harmless against
        any and
        all liabilities incurred by it hereunder as a consequence of such party's
        action, and each Indemnifying Party agrees to indemnify Axiom, in its capacity
        as agent for the Purchasers, and hold it harmless against any claims, costs,
        payments, and expenses (including the reasonable fees and expenses of counsel)
        and all liabilities incurred by it in connection with the performance of
        its
        duties hereunder, except in the case for claims, costs, payments, and expenses
        (including the reasonable fees and expenses of counsel) and liabilities incurred
        by Axiom resulting from its own willful misconduct or gross
        negligence.

       

      9. Application
        of Proceeds.
        The
        proceeds of any collection or sale of Collateral, as well as any Collateral
        consisting of cash, shall be applied by the Agent as follows:

       

      FIRST,
        to
        the payment of all reasonable costs and expenses incurred by the Agent in
        connection with such collection or sale or otherwise in connection with this
        Agreement or any of the Secured Obligations, including, but not limited to,
        all
        court costs and the reasonable fees and expenses of its agents and legal
        counsel, the repayment of all advances made by the Agent hereunder on behalf
        of
        the Company and any other reasonable costs or expenses incurred in connection
        with the exercise of any right or remedy hereunder;

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      SECOND,
        pro rata to the payment in full of the Obligations outstanding (pro rata
        as
        among the Purchasers in accordance with the outstanding Obligations held
        by
        them); 

       

      THIRD,
        to
        the Company or Celsia UK, as the case may be, its successors and assigns,
        or as
        a court of competent jurisdiction may otherwise direct.

       

      10. Security
        Interest Absolute.
        All
        rights of the Agent hereunder, the Security Interest, and all obligations
        of the
        Company hereunder, shall be absolute and unconditional irrespective of (i)
        any
        partial invalidity or unenforceability of any Obligations, any other agreement
        with respect to any of the Secured Obligations or any other agreement or
        instrument relating to any of the foregoing, (ii) any change in the time,
        manner
        or place of payment of, or in any other term of, all or any of the Secured
        Obligations, or any other amendment or waiver of or consent to any departure
        from the Convertible Notes or any other agreement or instrument, (iii) any
        exchange, release or nonperfection of any other Collateral, or any release
        or
        amendment or waiver of or consent to or departure from any guarantee, for
        all or
        any of the Secured Obligations, or (iv) any other circumstance which might
        otherwise constitute a defense available to, or discharge of the Company
        in
        respect of the Secured Obligations or in respect of this Agreement.

       

      11. Miscellaneous.
        This
        Agreement can be waived, modified, amended, terminated or discharged only
        explicitly in a writing signed by the Company and the Required Majority;
        provided, however, that Schedule
        1
        hereto
        shall be revised by the Company from time to time to reflect additional
        Purchasers as parties to this Agreement without the written consent of any
        other
        party to this Agreement. A waiver signed by Secured Party shall be effective
        only in the specific instance and for the specific purpose given. Mere delay
        or
        failure to act shall not preclude the exercise or enforcement of any of Secured
        Party’s rights or remedies. All rights and remedies of Secured Party shall be
        cumulative and may be exercised singularly or concurrently, at Secured Party’s
        option, and the exercise or enforcement of any one such right or remedy shall
        neither be a condition to nor bar the exercise or enforcement of any other.
        Secured Party shall not be obligated to preserve any rights Company may have
        against prior parties, to realize on the Collateral at all or in any particular
        manner or order, or to apply any cash proceeds of the Collateral in any
        particular order of application. This Agreement shall be binding upon and
        inure
        to the benefit of Company and Secured Party and their respective participants,
        successors, and permitted assigns and shall take effect when signed by Company
        and Secured Party, and Company waives notice of Secured Party’s acceptance
        hereof; provided, however, that the Secured Party’s rights hereunder may not be
        transferred or assigned to any third party without the prior written consent
        of
        Company. This Agreement shall be governed by the internal law of the State
        of
        New York without regard to conflicts of law provisions. Any legal action
        or
        proceeding with respect to this Agreement shall be brought exclusively in
        the
        courts of the State of New York or of the United States of America sitting
        in
        New York County, and, by execution and delivery of this Agreement, the parties
        hereto hereby accept for itself and in respect of its property, generally
        and
        unconditionally, the jurisdiction of the aforesaid courts. If any provision
        or
        application of this Agreement is held unlawful or unenforceable in any respect,
        such illegality or unenforceability shall not affect other provisions or
        applications which can be given effect and this Agreement shall be construed
        as
        if the unlawful or unenforceable provision or application had never been
        contained herein or prescribed hereby. All representations and warranties
        contained in this Agreement shall survive until the indefeasable payment
        of the
        Secured Obligations or termination of this Agreement.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      12. Waiver
        of Jury Trial:
        EACH
        OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES
        THE
        RIGHT COMPANY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
        HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT AND
        ANY
        AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE
        OF
        CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS
        OF
        EITHER PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR SECURED PARTY ENTERING
        INTO THIS AGREEMENT.

       

      13. Termination.
        This
        Agreement and the Security Interest shall terminate when all the Secured
        Obligations have been fully and indefeasibly paid in full or upon the
        consummation of a Qualified Debenture Financing, at which time the Agent
        shall
        execute and deliver to the Company all Uniform Commercial Code termination
        statements and similar documents which the Company shall reasonably request
        to
        evidence such termination; provided,
        however,
        that
        all indemnification obligations of the parties contained in this Agreement
        shall
        survive, and remain operative and in full force and effect regardless of,
        the
        termination of this Agreement for a period of six (6) months following the
        termination of this Agreement.

       

      14. Notices.
        Any
        notices, consents, waivers, or other communications required or permitted
        to be
        given under the terms of this Agreement (“Notices”)
        shall
        be given in accordance with Section 5.7 of the Purchase Agreements; provided,
        however, that all Notices to Celsia UK shall be sent to the Company and Agent
        shall be copied on all notices at Axiom Capital Management, Inc., 780 Third
        Avenue, 43rd Floor, New York, New York 10017, attn: Marcelo Martins, facsimile
        (212) 251-3888.

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        parties have duly executed and delivered this Security Agreement as of the
        date
        and year first written above.

      
        	 	 	 
	 	
                SECURED
                  PARTY AND AGENT:

                 

                AXIOM
                  CAPITAL MANAGEMENT, INC.

              
	 
 	 
 	 
 
	 	By:  	/s/ Mark
                D.
                Martino 
	 	
                

                Name:
                  Mark D. Martino

                Title:
                  President

              
	 	
                 

              

      

      
        	 	 	 
	 	
                COMPANY:

                 

                CELSIA
                  TECHNOLOGIES, INC.

              
	 
 	 
 	 
 
	 	By:  	/s/ Michael
                Karpheden 
	 	
                

                Name:
                  Michael Karpheden

                Title:
                  Chief Financial Officer

              
	 	
              

      

      
        	 	 	 
	 	
                CELSIA
                  UK:

                 

                CELSIA
                  TECHNOLOGIES UK LIMITED

              
	 
 	 
 	 
 
	 	By:  	/s/ Michael
                Karpheden 
	 	
                

                Name:
                  Michael Karpheden

                Title:
                  Chief Financial Officer

              
	 	
              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      COUNTERPART
        SIGNATURE PAGE

      TO
        SECURITY AGREEMENT

      DATED
        FEBRUARY __, 2007

      AMONG
        CELSIA TECHNOLOGIES,
        INC.,

      AXIOM
        CAPITAL MANAGEMENT, INC.

      AND

      THE
        PURCHASERS IDENTIFIED THEREIN

       

      The
        undersigned hereby executes and delivers the Security Agreement to which
        this
        Signature Page is attached, which, together with all counterparts of the
        Security Agreement and Signature Pages of the Company, Agent, and other
“Purchasers” under the Security Agreement, shall constitute one and the same
        document in accordance with the terms of the Security Agreement.

       

      
        	
                PURCHASER:___________________________*

                 

              	 	 	 
	By: 	 	 	 	 
	Name: 	 	 	 	 
	
                Title: 

              	
                 

              	 	 	 

      

       

      *
        Executed by each Purchaser

      

      
        
          
          

        

        
          13SECURITIES
        PURCHASE AGREEMENT

       

      THIS SECURITIES
        PURCHASE AGREEMENT
        (“Agreement”)
        is
        made and entered into as of February __, 2007, between Celsia Technologies,
        Inc., a Nevada corporation, (the “Company”),
        and
        the purchaser set forth on the signature page hereto (“Purchaser”).
        Capitalized terms used herein and not otherwise defined shall have the meanings
        set forth in the form of Secured Convertible Promissory Note attached hereto
        as
Exhibit
        A.

       

      WHEREAS,
        the
        Company desires to sell and issue Secured Convertible Promissory Notes in
        the
        aggregate principal amount of not less than Two Hundred Fifty Thousand Dollars
        ($250,000) and not more than One Million Dollars ($1,000,000) substantially
        in
        the form attached hereto as Exhibit
        A
        (individually, a “Convertible
        Note,”
and
        collectively, the “Convertible
        Notes”),
        on
        the terms and conditions set forth herein;

       

      WHEREAS,
        the
        Convertible Notes will be sold in multiple closings to purchasers (collectively
        with the Purchaser hereunder, the “Purchasers”)
        entering into Securities Purchase Agreements with the Company in substantially
        the form of this Agreement (collectively with this Agreement, the “Purchase
        Agreements”).

       

      WHEREAS,
        the
        Convertible Notes will be convertible into securities of the Company issuable
        in
        connection with a Qualified Debenture Financing (as such term is defined
        in the
        Convertible Note).

       

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

       

      ARTICLE
        I

      

        PURCHASE
          AND SALE OF CONVERTIBLE NOTES

      

       

      Section
        1.1  Issuance
        of Convertible Notes.
        Upon
        the following terms and conditions, the Company shall issue and sell to the
        Purchaser under this Agreement, and the Purchaser shall purchase from the
        Company, a Convertible Note in the principal amount set forth on the signature
        page hereto.

       

      Section
        1.2  Purchase
        Price.
        The
        purchase price for the Convertible Note to be acquired by the Purchaser shall
        equal the principal amount of such Convertible Note, and is referred to herein
        as the “Purchase
        Price.”
The
        total aggregate purchase price for all Convertible Notes sold to all Purchasers
        shall be not less than Two Hundred Fifty Thousand Dollars ($250,000) and
        not
        more than One Million Dollars ($1,000,000). 

       

      Section
        1.3  The
        Closing.

       

      (a)  Timing.
        The
        purchase and sale of the Convertible Notes subject to this Agreement shall
        take
        place no later than February 20, 2007, or on such other date as the Purchaser
        and the Company may agree upon (the “Closing
        Date”).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  Form
        of Payment and Closing.
        At the
        Closing, the Company shall deliver the Convertible Note purchased hereunder
        to
        the Purchaser, registered in the name of the Purchaser,
        and
        Purchaser shall deliver the Purchase Price for the Convertible
        Note
        by
        wire transfer hereunder to an account designated in writing by the Company.
        In
        addition, each party shall deliver all documents, instruments and writings
        required to be delivered by such party pursuant to this Agreement (collectively,
        the “Closing
        Documents”)
        at or
        prior to the Closing. Upon delivery and execution of the Closing Documents,
        the
Convertible
        Notes
        will be fully owned
        and
        paid for by the Purchaser as of the Closing Date.

       

      ARTICLE
        II

      

        REPRESENTATIONS
          AND WARRANTIES

      

       

      Section
        2.1  Representations
        and Warranties of the Company.
        The
        Company hereby makes the representations and warranties set forth below to
        the
        Purchaser as of the date hereof and the Closing Date. 

       

      (a)  Corporate
        Status.
        The
        Company is a corporation duly organized, validly existing and in good standing
        under the laws of Nevada, and has all requisite corporate power and authority
        to
        own and lease its properties, to carry on its business as currently conducted,
        to execute and deliver this Agreement and to carry out the transactions
        contemplated by this Agreement. The Company is duly licensed or qualified
        to do
        business as a foreign corporation in each jurisdiction in which the conduct
        of
        its business or ownership or leasing of is properties requires it to be so
        qualified, except where the failure to be so qualified would not have a material
        adverse effect on the business, assets, financial condition or results of
        operations of the Company or its subsidiaries taken as a whole (a “Material
        Adverse Effect”).

       

      (b)  Capital
        Stock.
        Other
        than certain grants and awards issued pursuant to the Company’s stock incentive
        plan subsequent to September 30, 2006, the authorized, issued and outstanding
        capital stock of the Company prior to the consummation of the transactions
        contemplated hereby is as set forth in the filings of the Company pursuant
        to
        the Securities Exchange Act of 1934, as amended (the “1934
        Act”)
        and
        the Securities Act of 1933, as amended (the “1933
        Act”)
        filed
        no later than five (5) days prior to the Closing (the “SEC
        filings”).
        

       

      (c)  Options.
        Except
        as disclosed in the SEC filings or Supplemental Information (as defined in
        Section 2.2(b)), and other than the Convertible Notes and certain grants
        and awards issued pursuant to the Company’s stock incentive plan subsequent to
        September 30, 2006, there are not, nor shall there be immediately prior to
        the
        Closing, any outstanding warrants, options, agreements, convertible or
        exchangeable securities, preemptive rights to subscribe for or other commitments
        pursuant to which the Company or any of its Subsidiaries is, or may become,
        obligated to issue any shares of its capital stock or other securities of
        the
        Company and this Agreement. 

       

      (d)  Financial
        Statements.
        The
        historical financial statements included in the SEC filings are: (i) in
        accordance with all books, records and accounts of the Company; (ii) are
        true,
        correct and complete in all material respects; and (iii) have been prepared
        in
        accordance with generally accepted accounting principles. 

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (e)  Title
        to Assets.
        Except
        as disclosed in the SEC filings or Supplemental Information, each of the
        Company
        and its subsidiaries has good and marketable title to their respective
        properties and assets, free and clear of all liens, charges, encumbrances
        or
        restrictions (“Liens”),
        except Liens for the payment of current taxes which are not yet delinquent,
        Liens which arise in the ordinary course of business and Liens which will
        not
        result in a Material Adverse Effect. To the Company’s knowledge, all of the
        leases and subleases under which the Company or any subsidiary is the lessor
        or
        sublessor of properties or assets or under which the Company or any subsidiary
        holds properties or assets as lessee or sublessee are in full force and effect,
        and to the Company’s knowledge, neither the Company (nor any subsidiary) is in
        default in any material respect with respect to any of the terms or provisions
        of any of such leases or subleases, and to the Company’s knowledge, no material
        claim has been asserted by anyone adverse to rights of the Company or any
        subsidiary as lessor, sublessor, lessee or sublessee under any of the leases
        or
        subleases mentioned above, or affecting or questioning the right of the Company
        or any subsidiary to continued possession of the leased or subleased premises
        or
        assets under any such lease or sublease in each case other than any
        non-effectiveness, default or claim which could not be reasonably expected
        to
        cause a Material Adverse Effect. The Company and each subsidiary owns or
        leases
        all such properties as are necessary to their respective operations as now
        conducted. 

       

      (f)  Legal
        Matters.
        Except
        as set forth in the SEC filings or Supplemental Information, there is no
        action,
        suit, investigation, inquiry or similar governmental proceeding, claim or
        proceeding at law or in equity by or before any arbitrator, governmental
        instrumentality or other agency now pending or, to the knowledge of any of
        the
        Company or its subsidiaries, threatened against the Company or any subsidiary
        or, to the knowledge of the Company, any officer or director of the Company
        or
        any subsidiary (or basis therefor known to the Company or any subsidiary),
        the
        adverse outcome of which would have a Material Adverse Effect or that seeks
        to
        prevent, enjoin, alter or delay the transactions contemplated hereby. Neither
        the Company nor any subsidiary is subject to any judgment, order, writ,
        injunction or decree of any federal, state, municipal or other governmental
        instrumentality, commission, board, bureau, agency or instrumentality, domestic
        or foreign or self-regulatory organization that seeks to prevent, enjoin,
        alter
        or delay the transactions contemplated by this Agreement. 

       

      (g)  Contracts.
        Except
        for the agreements described in Section 2.1(g) of Schedule
        A
        hereto,
        to the Company’s knowledge, neither the Company nor any of the subsidiaries is
        in breach of, or in default under, any material term or provision of any
        indenture, mortgage, deed of trust, lease, note, loan or credit agreement
        or any
        other agreement or instrument evidencing an obligation for borrowed money,
        or
        any other agreement or instrument to which it is a party or by which it or
        any
        of its properties may be bound or affected, other than any default or breach
        which could not reasonably be expected to have a Material Adverse Effect.
        Neither the Company nor any of the subsidiaries is in violation of (i) any
        provision of its charter or Bylaws or (ii) any franchise, license, permit,
        judgment, decree or order, or any statute, rule or regulation that, in the
        case
        of this clause (ii), would, individually or in the aggregate, have a Material
        Adverse Effect. 

       

      (h)  Taxes.
        Each of
        the Company and its subsidiaries has filed all U.S. federal, state, local
        and
        foreign tax returns which are required to be filed by each of them and all
        such
        returns are true and correct in all material respects, except for such failures
        to file which could not reasonably be expected to have a Material Adverse
        Effect. The Company and each subsidiary has paid all taxes pursuant to such
        returns or pursuant to any assessments received by any of them or by which
        any
        of them are obligated to withhold from amounts owing to any employee, creditor
        or third party. The Company and each subsidiary has properly accrued all
        taxes
        required to be accrued and/or paid, except where the failure to accrue would
        not
        have a Material Adverse Effect. To the knowledge of the Company, the tax
        returns
        of the Company and its subsidiaries are not currently being audited by any
        state, local or federal authorities. Neither the Company nor any subsidiary
        has
        waived any statute of limitations with respect to taxes or agreed to any
        extension of time with respect to any tax assessment or deficiency. The Company
        has set aside on its books adequate provision for the payment of any unpaid
        taxes.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (i)  Noncompliance;
        Licenses and Permits.
        Neither
        the Company nor any subsidiary has received notice of any violation of or
        noncompliance with any federal, state, local or foreign, laws, ordinances,
        regulations, and orders applicable to its business, which has not been cured,
        the violation of, or noncompliance with, which would have a Material Adverse
        Effect. To the knowledge of the Company, none of the Company or any of its
        directors, officers, agents or employees (in their capacities as such) has
        violated any provision of the Foreign Corrupt Practices Act of 1977, as amended.
        To the knowledge of the Company, the Company and each subsidiary has all
        licenses required by every federal, state and local government or regulatory
        body for the operation of its business as currently conducted and the use
        of its
        properties, except where the failure to be so licensed would not have a Material
        Adverse Effect. To the knowledge of the Company, all material licenses held
        by
        the Company are in full force and effect and no violations are or have been
        recorded in respect of any license and no proceeding is pending or threatened
        to
        revoke, modify or limit any thereof.

       

      (j)  Authorization;
        Enforcement.
        To the
        extent required, each of the Closing Documents (as defined herein) have been
        duly executed and delivered by the Company and the execution, delivery and
        performance by the Company of the Closing Documents, and the issuance of
        the
        securities pursuant to the terms of this Agreement, have been duly authorized
        by
        the Company’s board of directors and no further consent or authorization of its
        board of directors or its stockholders is required by the Company and constitute
        the legal, valid and binding obligations of the Company, enforceable in
        accordance with their respective terms, except as enforceability may be limited
        by general equitable principles, bankruptcy, insolvency, reorganization,
        moratorium or other laws affecting creditors’ rights generally.

       

      (k)  Consents
        and Approvals.
        Except
        as set forth in the SEC filings or Supplemental Information, and except for
        any
        state and federal securities filings, no consent, approval, order or
        authorization of, or registration, qualification, designation, declaration
        or
        filing with, or notice to, any court, federal, state or local governmental
        authority or regulatory or self regulatory agency or authority or other person
        on the part of the Company or any Subsidiary is required in connection with
        the
        issuance of the securities or the consummation of the other transactions
        contemplated by this Agreement.

       

      (l)  Bankruptcy.
        Neither
        the Company nor any subsidiary has taken any steps to seek protection pursuant
        to any bankruptcy or reorganization law, nor does the Company nor any subsidiary
        have any knowledge or reason to believe that its creditors intend to initiate
        involuntary bankruptcy or reorganization proceedings or any actual knowledge
        of
        any fact which would reasonably lead a creditor to do so. 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (m)  Labor
        Relations.
        Except
        as set forth in Section 2.1(m) of Schedule
        A
        hereto,
        no material labor dispute exists or, to the knowledge of the Company, is
        threatened with respect to any of the employees of the Company or its
        subsidiaries. 

       

      (n)  Brokers.
        Other
        than as described in Section 2.1(n) of Schedule
        A
        hereto,
        the Company has taken no action which would give rise to any claim by any
        person
        for brokerage commissions, finder’s fees or similar payments by the Company or
        the Purchaser relating to this Agreement or the transactions contemplated
        hereby.

       

      Section
        2.2  Representations
        and Warranties of the Purchasers.
        Each
        Purchaser hereby makes the following representations and warranties to the
        Company as of the date hereof and the Closing Date:

       

      (a)  Accredited
        Investor Status; Sophisticated Purchaser.
        The
        Purchaser is an “accredited investor” as that term is defined in Rule 501 (a) of
        Regulation D under the 1933 Act. The Purchaser and each of the members,
        stockholders or unitholders of the Purchaser (collectively, the “Members”)
        has
        such knowledge and experience in financial and business matters that they
        are
        capable of evaluating the merits and risks of the purchase of the Convertible
        Note. The Purchaser is not registered as a broker or dealer under Section
        15 (a)
        of the 1934 Act, affiliated with any broker or dealer registered under Section
        15(a) of the 1934 Act, or a member of the National Association of Securities
        Dealers, Inc.

       

      (b)  Information.
        The
        Purchaser, the Members and their respective advisors, if any, have been
        furnished with certain material relating to the business, finances and
        operations of the Company and the offer and sale of the Convertible Note
        (the
“Supplemental
        Information”).
        The
        Purchaser, the Members and their respective advisors have reviewed the contents
        of the Supplemental Information and SEC Filings, including, without limitation,
        the risk factors described therein. The Purchaser, the Members and their
        respective advisors, if any, have been afforded the opportunity to ask questions
        of the Company. In determining whether to enter into this Agreement and purchase
        the Convertible Note, the Purchaser and the Members have relied solely on
        the
        representations and warranties relating to the Company contained in this
        Agreement and the Convertible Note. The Members and the Purchaser understand
        that the Purchaser’s purchase of the Convertible Note involves
        a high degree of risk. The Purchaser and the Members have sought such
        accounting, legal and tax advice as they have considered necessary to make
        an
        informed investment decision with respect to the Purchaser’s acquisition of the
Convertible
        Note.

       

      (c)  No
        Governmental Review.
        The
        Purchaser understands that no federal or state agency or any other government
        or
        governmental agency has passed on or made any recommendation or endorsement
        of
        the Convertible Note or the fairness or suitability of the investment in
        the
        Convertible Note nor have such authorities passed upon or endorsed the merits
        thereof.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (d)  Authorization;
        Enforcement.
        This
        Agreement has been duly and validly authorized, executed and delivered on
        behalf
        of the Purchaser and is a valid and binding agreement of the Purchaser
        enforceable against the Purchaser in accordance with its terms, subject as
        to
        enforceability to general principles of equity and to applicable bankruptcy,
        insolvency, reorganization, moratorium, liquidation and other similar laws
        relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. The Purchaser has the requisite corporate power and
        authority to enter into and perform its obligations under this Agreement
        and
        each other agreement entered into by the parties hereto in connection with
        the
        transactions contemplated by this Agreement.

       

      (e)  No
        Conflicts.
        The
        execution, delivery and performance of this Agreement by the Purchaser and
        the
        consummation by the Purchaser of the transactions contemplated hereby and
        thereby will not (i) result in a violation of the articles of organization,
        limited liability company or operating agreement, by-laws or other documents
        of
        organization of the Purchaser, (ii) conflict with, or constitute a default
        (or
        an event which with notice or lapse of time or both would become a default)
        under, or give others any rights of termination, amendment, acceleration
        or
        cancellation of, any agreement, indenture or instrument to which the Purchaser
        is bound, or (iii) result in a violation of any law, rule, regulation or
        decree
        applicable to the Purchaser.

       

      (f)  Investment
        Representation.
        The
        Purchaser is purchasing the Convertible Note for its own account and not
        with a
        view to distribution in violation of any securities laws. The Purchaser has
        been
        advised and understands that the Convertible Note has been registered under
        the
        1933 Act or under the “blue sky” laws of any jurisdiction and may be resold only
        if registered pursuant to the provisions of the 1933 Act and “blue sky” laws, or
        if an exemption from registration is available.
        The
        Purchaser has been advised and understands that the Company, in issuing the
        Convertible
        Note,
        is
        relying upon, among other things, the representations and warranties of the
        Purchaser contained in this Section 2.2 in concluding that such issuance
        is a
“private offering” and is exempt from the registration provisions of the 1933
        Act.

       

      (g)  Rule
        144.
        The
        Purchaser understands that there is no public trading market for the Convertible
        Notes, that none is expected to develop, and that the Convertible Notes must
        be
        held indefinitely unless and until such Convertible Notes are registered
        under
        the 1933 Act or an exemption from registration is available. The Purchaser
        has
        been advised or is aware of the provisions of Rule 144 promulgated under
        the
        1933 Act.

       

      (h)  Brokers.
        Other
        than as described in Section 2.1(n) of Schedule
        A
        hereto,
        the Purchaser has taken no action which would give rise to any claim by any
        person for brokerage commissions, finder’s fees or similar payments by the
        Company or the Purchaser relating to this Agreement or the transactions
        contemplated hereby.

       

      (i)  Reliance
        by the Company.
        The
        Purchaser understands that the Convertible Notes are being offered and sold
        in
        reliance on a transactional exemption from the registration requirements
        of
        Federal and state securities laws and that the Company is relying upon the
        truth
        and accuracy of the representations, warranties, agreements, acknowledgments
        and
        understandings of the Purchaser set forth herein in order to determine the
        applicability of such exemptions and the suitability of the Purchaser to
        acquire
        the Convertible Note.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (j)  Purchaser
        Actions.
        The
        Purchaser represents that it will not take any affirmative action to cause
        an
        event of default under the Convertible Note other than through the exercise
        of
        rights granted to the Purchaser pursuant to the terms of this Agreement,
        the
        Convertible Note, the Security Agreement (as defined herein) or the Stock
        Transfer Agreement (as defined herein).

       

      ARTICLE
        III

      

        COVENANTS

      

       

      Section
        3.1  Securities
        Compliance.
        The
        Company shall take all necessary action and proceedings as may be required
        and
        permitted by applicable law, rule and regulation, for the legal and valid
        issuance of the Convertible Notes hereunder including, if required, the filing
        of a Form D with the U.S. Securities and Exchange Commission; provided, however,
        that the Company shall not be required in connection therewith to register
        such
        Convertible Notes with any federal or state agency or to register or qualify
        as
        a foreign corporation in any jurisdiction where it is not now so qualified
        or to
        take any action that would subject it to service of process in suits or
        taxation, in each case, in any jurisdiction where it is not now so
        subject.

       

      Section
        3.2  Supplemental
        Information.
        To the
        extent any Supplemental Information constitutes material non-public information
        regarding the Company, the Company shall take such action as necessary for such
        information to cease to constitute material non-public information regarding
        the
        Company no later than four (4) months following the Closing (including, without
        limitation, the public disclosure of such information).

       

      Section
        3.3  Reasonable
        Best Efforts.
        The
        parties shall use their reasonable best efforts to satisfy timely each of
        the
        conditions described in Article IV of this Agreement.

       

      Section
        3.4  Material
        Changes.
        On or
        before the Closing Date, the Company shall forthwith notify the Purchaser
        of any
        material change affecting any of its representations, warranties, undertakings
        and indemnity at any time prior to payment being made to the Company on the
        Closing Date.

       

      ARTICLE
        IV

      

        CONDITIONS
          TO CLOSINGS

      

       

      Section
        4.1  Conditions
        Precedent to the Obligations of the Company.
        The
        obligation hereunder of the Company to issue and/or sell the Convertible
        Note to
        the Purchaser at the Closing is subject to the satisfaction, at or before
        the
        Closing, of each of the applicable conditions set forth below. These conditions
        are for the Company’s sole benefit and may be waived by the Company at any time
        in its sole discretion.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (a)  Accuracy
        of the Purchaser’s Representations and Warranties.
        The
        representations and warranties of the Purchaser will be true and correct
        as of
        the date when made and as of the Closing Date, as though made at that
        time.

       

      (b)  Performance
        by the Purchaser.
        The
        Purchaser shall have performed all agreements and satisfied all conditions
        required to be performed or satisfied by the Purchaser at or prior to the
        Closing, including full payment of the Purchase Price to the Company as provided
        herein.

       

      (c)  No
        Injunction.
        No
        statute, rule, regulation, executive order, decree, ruling or injunction
        shall
        have been enacted, entered, promulgated or endorsed by any court or governmental
        authority of competent jurisdiction which prohibits the consummation of any
        of
        the transactions contemplated by this Agreement or the Convertible
        Notes.

       

      Section
        4.2  Conditions
        Precedent to the Obligation of the Purchaser.
        The
        obligation hereunder of the Purchaser to acquire and pay for the Convertible
        Note at the Closing is subject to the satisfaction, at or before the Closing,
        of
        each of the applicable conditions set forth below. These conditions are for
        the
        Purchaser’s benefit and may be waived by the Purchaser at any time in its sole
        discretion.

       

      (a)  Accuracy
        of the Company’s Representations and Warranties.
        The
        representations and warranties of the Company shall be true and correct in
        all
        material respects as of the date when made and as of the Closing Date as
        though
        made at that time (except for representations
        and warranties as of an earlier date, which shall be true and correct in
        all
        material respects as of such date).

       

      (b)  No
        Injunction.
        No
        statute, rule, regulation, executive order, decree, ruling or injunction
        shall
        have been enacted, entered, promulgated or endorsed by any court or governmental
        authority of competent jurisdiction which prohibits the consummation of any
        of
        the transactions contemplated by this Agreement or the Convertible Notes.
        

       

      (c)  Security
        Agreement.
        A
        Security Agreement in substantially the form attached hereto as Exhibit
        B
        dated as
        of February 20, 2007 (the “Security
        Agreement”)
        shall
        have been executed and delivered by the Company.

       

      (d)  Stock
        Transfer Agreement.
        A Stock
        Transfer Agreement in substantially the form attached hereto as Exhibit
        C
        dated as
        of February 20, 2007 (the “Stock
        Transfer Agreement”)
        shall
        have been executed and delivered by the Chief Executive Officer and Chief
        Operating Officer of the Company.

       

      (e)  Convertible Note.
        The
        Convertible Note, in the principal amount of the Purchase Price paid by the
        Purchaser, shall have been executed and delivered by the Company.

       

      (f)  Legal
        Opinion.
        The
        Purchaser shall have received the opinion of legal counsel to the Company
        in the
        form attached hereto as Exhibit
        D
        (the
“Legal
        Opinion”)
        or, in
        the event the Legal Opinion shall have been previously delivered in connection
        with an earlier sale of a Convertible Note pursuant to a Purchase Agreement,
        a
        letter indicating that the Purchaser may rely on such previously issued Legal
        Opinion.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        V

      

        GOVERNING
          LAW; MISCELLANEOUS

         

      

      Section
        5.1  Governing
        Law.
        ALL
        ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND
        INTERPRETATION OF THIS CONVERTIBLE NOTE SHALL BE GOVERNED BY, AND CONSTRUED
        IN
        ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT
        TO ANY
        CHOICE OF LAW OR CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF THE STATE
        OF
        NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE
        LAWS
        OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK- EACH PARTY HERETO
        IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY.

       

      Section
        5.2  Submission
        to Jurisdiction.
        Any
        legal action or proceeding with respect to this Agreement shall be brought
        exclusively in the courts of the State of New York or of the United States
        of
        America sitting in New York County, and, by execution and delivery of this
        Agreement, each of the parties hereto hereby accepts for itself and in respect
        of its property, generally and unconditionally, the jurisdiction of the
        aforesaid courts.

       

      Section
        5.3  Counterparts.
        This
        Agreement may be executed in two or more identical counterparts, all of which
        shall be considered one and the same agreement and shall become effective
        when
        counterparts have been signed by each party and delivered to the other party;
        provided that a facsimile signature shall be considered due execution and
        shall
        be binding upon the
        signatory thereto with the same force and effect as if the signature were
        an
        original, not a facsimile signature.

       

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

       

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

       

      Section
        5.6  Entire
        Agreement: Amendments: Waivers.
        This
        Agreement supersedes all other prior oral or written agreements between the
        Purchaser, the Company, their affiliates and persons acting on their behalf
        with
        respect to the matters discussed herein, and this Agreement and the instruments
        referenced herein contain the entire understanding of the parties with respect
        to the matters covered herein and therein and, except as specifically set
        forth
        herein or therein, neither the Company nor the Purchaser makes any
        representation, warranty, covenant or undertaking with respect to such matters.
        No provision of this Agreement may be amended other than by an instrument
        in
        writing signed by the Company and the Required Majority (as defined in the
        Convertible Note), and upon such approval such amendment shall be binding
        on all
        Purchasers and Purchase Agreements. No provision hereof may be waived other
        than
        by an instrument in writing signed by the party against whom enforcement
        is
        sought.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      Section
        5.7  Notices.
        Any
        notices, consents, waivers or other communications required or permitted
        to be
        given under the terms of this Agreement must be in writing, must be delivered
        by
        (i) courier, mail or hand delivery or
        (ii)
        facsimile, and will be deemed to have been delivered on the first business
        day
        following receipt. The addresses and facsimile numbers for such communications
        shall be:

       

      If
        to the
        Company:

       

      Celsia
        Technologies, Inc.

      1395
        Brickell Avenue, Suite 800

      Miami,
        Florida 33131

      Attn:
        Michael Karpheden

      Facsimile:
        (305) 529-6201

       

      With
        a
        copy to:

       

      DLA
        Piper
        US LLP

      203
        North
        LaSalle Street, Suite 1900

      Chicago,
        Illinois 60601

      Attn:
        Gregory W. Hayes, Esq.

      Facsimile
        (312) 630-5310

       

      If
        to the
        Purchaser, to the address listed on the signature page hereto. 

       

      With
        a
        copy to:

       

      Grushko
        & Mittman, P.C.

      551
        Fifth
        Avenue, Suite 1601

      New
        York,
        New York 10176

      Attn:
        Barbara R. Mittman, Esq.

      Facsimile:
        (212) 697-3575

       

      Each
        party shall provide five (5) days prior written notice to the other party
        of any
        change in address, telephone number or facsimile number. Written confirmation
        of
        receipt (A) given by the recipient of such notice, consent, waiver or other
        communication, (B) mechanically or electronically generated by the sender’s
        facsimile machine containing the time, date, recipient facsimile number and
        an
        image of the first page of such transmission or (C) provided by a nationally
        recognized overnight delivery service, shall be rebuttable evidence of personal
        service, receipt by facsimile or receipt from a nationally recognized overnight
        delivery service in accordance with clause (i), (it) or (in) above,
        respectively.

       

      Section
        5.8  Successors
        and Assigns.
        This
        Agreement shall be binding upon and inure to the benefit of the parties and
        their respective permitted successors and assigns; provided, however, that
        a
        Purchaser may assign some or all of its rights hereunder only to an assignee
        of
        such Purchaser’s Convertible Note (in accordance with the terms and subject to
        the conditions of such Convertible Note); provided, however, that any such
        assignment shall not release the Purchaser from its obligations hereunder
        unless
        such obligations are assumed by such assignee and the Company has consented
        to
        such assignment and assumption in the form and substance reasonably satisfactory
        to the Company.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

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

       

      Section
        5.10  Survival.
        The
        representations, warranties and agreements of the Company and the Purchaser
        contained in the Agreement shall survive so long as the indebtedness under
        the
        Convertible Note is outstanding.

       

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

       

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

       

      [Signature
        Page Follows]

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

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

       

      
        	 	 	 
	 	
                COMPANY:

                 

                CELSIA TECHNOLOGIES,
                  INC.

              
	 
 	 
 	
                
 

              
	
              	By:  	 
	 	
                

                Name:_________________________________

                Title:__________________________________

              

      

       

      Signatures
        of Purchasers on following page(s)

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      COUNTERPART
        SIGNATURE PAGE

      TO
        SECURITIES PURCHASE AGREEMENT

      DATED
        FEBRUARY __, 2007

      AMONG
        CELSIA TECHNOLOGIES, INC.

      AND
        THE
        PURCHASERS IDENTIFIED THEREIN

       

      The
        undersigned hereby executes and delivers the Securities Purchase Agreement
        to
        which this Signature Page is attached, which, together with all counterparts
        of
        the Securities Purchase Agreement and Signature Pages of the Company and
        other
“Purchasers” under the Securities Purchase Agreement, shall constitute one and
        the same document in accordance with the terms of the Securities Purchase
        Agreement. 

       

      PURCHASER:_______________________________

       

      By:_______________________________________

       

      Name:_____________________________________

       

      Title:______________________________________

       

      Principal
        Convertible Note
        Amount:_____________

       

      Address:___________________________________

      ___________________________________

      ___________________________________

      Facsimile:__________________________________

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