Document:

SUBSIDIARY GUARANTEE

 Exhibit 4.10 
  
 SUBSIDIARY GUARANTY 
  

			
	 New York, New York
	 	January 30, 2004

  
 FOR VALUE RECEIVED,
and in consideration of note and securities purchases from, loans made or to be made or credit otherwise extended or to be extended by Laurus Master Fund, Ltd. (“Laurus”) to or for the account of Innovative Companies, Inc. and Innovative
Companies Inc. Subsidiary ( collectively, “Debtor”) from time to time and at any time and for other good and valuable consideration and to induce Laurus, in its discretion, to purchase such notes, make such loans or extensions of credit
and to make or grant such renewals, extensions, releases of collateral or relinquishments of legal rights as Laurus may deem advisable, each of the undersigned (and each of them if more than one, the liability under this Guaranty being joint and
several) (jointly and severally referred to as “Guarantors “ or “the undersigned”) unconditionally guaranties to Laurus, its successors, endorsees and assigns the prompt payment when due (whether by acceleration or otherwise) of
all present and future obligations and liabilities of any and all kinds of Debtor to Laurus and of all instruments of any nature evidencing or relating to any such obligations and liabilities upon which Debtor or one or more parties and Debtor is or
may become liable to Laurus, whether incurred by Debtor as maker, endorser, drawer, acceptor, guarantors, accommodation party or otherwise, and whether due or to become due, secured or unsecured, absolute or contingent, joint or several, and however
or whenever acquired by Laurus, whether arising under, out of, or in connection with that certain Securities Purchase Agreement dated as of the date hereof by and between Debtor and Laurus (the “Securities Purchase Agreement”); that
certain Secured Convertible Note dated as of the date hereof made by Debtor in favor of Laurus (the “Note”) the Warrant dated as of the date hereof made by Debtor in favor of Laurus (the “Warrant”)or that certain Registration
Rights Agreement dated as of the date hereof by and between Debtor and Laurus (the “Registration Rights Agreement”) (the Securities Purchase Agreement, the Note, the Warrant and the Registration Rights Agreement, as each may be amended,
modified, restated or supplemented from time to time, are collectively referred to herein as the “Documents”), or any documents, instruments or agreements relating to or executed in connection with the Documents or any documents,
instruments or agreements referred to therein or otherwise (all of which are herein collectively referred to as the “Obligations”), and irrespective of the genuineness, validity, regularity or enforceability of such Obligations, or of any
instrument evidencing any of the Obligations or of any collateral therefor or of the existence or extent of such collateral, and irrespective of the allowability, allowance or disallowance of any or all of the Obligations in any case commenced by or
against Debtor under Title 11, United States Code, including, without limitation, obligations or indebtedness of Debtor for post-petition interest, fees, costs and charges that would have accrued or been added to the Obligations but for the
commencement of such case. In furtherance of the foregoing, the undersigned hereby agrees as follows: 
  
 1. No Impairment. Laurus may at any time and from time to time, either before or after the maturity thereof, without notice to or further consent
of the undersigned, extend the time of payment of, exchange or surrender any collateral for, renew or extend any of the Obligations or increase or decrease the interest rate thereon, and may also make any agreement with Debtor or with any other
party to or person liable on any of the Obligations, or interested therein, for the extension, renewal, payment, compromise, discharge or release thereof, in whole or in part, or for any modification of the terms thereof or of any agreement between
Laurus and Debtor or any such other party or person, or make any election of rights Laurus may deem desirable under the United States Bankruptcy Code, as amended, or any other federal or state 

 bankruptcy, reorganization, moratorium or insolvency law relating to or affecting the enforcement of creditors’
rights generally (any of the foregoing, an “Insolvency Law”) without in any way impairing or affecting this Guaranty. This instrument shall be effective regardless of the subsequent incorporation, merger or consolidation of Debtor, or any
change in the composition, nature, personnel or location of Debtor and shall extend to any successor entity to Debtor, including a debtor in possession or the like under any Insolvency Law. 
  
 2. Guaranty Absolute. Each of the undersigned jointly and severally
guarantees that the Obligations will be paid strictly in accordance with the terms of the Documents and/or any other document, instrument or agreement creating or evidencing the Obligations, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the rights of Debtor with respect thereto. Guarantors hereby knowingly accept the full range of risk encompassed within a contract of “continuing guaranty” which risk
includes the possibility that Debtor will contract additional indebtedness for which Guarantors may be liable hereunder after Debtor’s financial condition or ability to pay its lawful debts when they fall due has deteriorated, whether or not
Debtor has properly authorized incurring such additional indebtedness. The undersigned acknowledge that (i) no oral representations, including any representations to extend credit or provide other financial accommodations to Debtor, have been made
by Laurus to induce the undersigned to enter into this Guaranty and (ii) any extension of credit to the Debtor shall be governed solely by the provisions of the Documents. The liability of each of the undersigned under this Guaranty shall be
absolute and unconditional, in accordance with its terms, and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever,
including, without limitation: (a) any waiver, indulgence, renewal, extension, amendment or modification of or addition, consent or supplement to or deletion from or any other action or inaction under or in respect of the Documents or any other
instruments or agreements relating to the Obligations or any assignment or transfer of any thereof, (b) any lack of validity or enforceability of any Document or other documents, instruments or agreements relating to the Obligations or any
assignment or transfer of any thereof, (c) any furnishing of any additional security to Laurus or its assignees or any acceptance thereof or any release of any security by Laurus or its assignees, (d) any limitation on any party’s liability or
obligation under the Documents or any other documents, instruments or agreements relating to the Obligations or any assignment or transfer of any thereof or any invalidity or unenforceability, in whole or in part, of any such document, instrument or
agreement or any term thereof, (e) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to Debtor, or any action taken with respect to this Guaranty by any trustee or
receiver, or by any court, in any such proceeding, whether or not the undersigned shall have notice or knowledge of any of the foregoing, (f) any exchange, release or nonperfection of any collateral, or any release, or amendment or waiver of or
consent to departure from any guaranty or security, for all or any of the Obligations or (g) any other circumstance which might otherwise constitute a defense available to, or a discharge of, the undersigned. Any amounts due from the undersigned to
Laurus shall bear interest until such amounts are paid in full at the highest rate then applicable to the Obligations. Obligations include post-petition interest whether or not allowed or allowable. 
  
 3. Waivers. 
  
 (a) This Guaranty is a guaranty of payment and not of
collection. Laurus shall be under no obligation to institute suit, exercise rights or remedies or take any other 
  

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 action against Debtor or any other person liable with respect to any of the Obligations or resort to any
collateral security held by it to secure any of the Obligations as a condition precedent to the undersigned being obligated to perform as agreed herein and each of the Guarantors hereby waives any and all rights which it may have by statute or
otherwise which would require Laurus to do any of the foregoing. Each of the Guarantors further consents and agrees that Laurus shall be under no obligation to marshal any assets in favor of Guarantors, or against or in payment of any or all of the
Obligations. The undersigned hereby waives all suretyship defenses and any rights to interpose any defense, counterclaim or offset of any nature and description which the undersigned may have or which may exist between and among Laurus, Debtor
and/or the undersigned with respect to the undersigned’s obligations under this Guaranty, or which Debtor may assert on the underlying debt, including but not limited to failure of consideration, breach of warranty, fraud, payment (other than
cash payment in full of the Obligations), statute of frauds, bankruptcy, infancy, statute of limitations, accord and satisfaction, and usury. 
  
 (b) Each of the undersigned further waives (i) notice of the acceptance of this Guaranty, of the making of any such loans or extensions of
credit, and of all notices and demands of any kind to which the undersigned may be entitled, including, without limitation, notice of adverse change in Debtor’s financial condition or of any other fact which might materially increase the risk
of the undersigned and (ii) presentment to or demand of payment from anyone whomsoever liable upon any of the Obligations, protest, notices of presentment, non-payment or protest and notice of any sale of collateral security or any default of any
sort. 
  
 (c) Notwithstanding any payment or
payments made by the undersigned hereunder, or any setoff or application of funds of the undersigned by Laurus, the undersigned shall not be entitled to be subrogated to any of the rights of Laurus against Debtor or against any collateral or
guarantee or right of offset held by Laurus for the payment of the Obligations, nor shall the undersigned seek or be entitled to seek any contribution or reimbursement from Debtor in respect of payments made by the undersigned hereunder, until all
amounts owing to Laurus by Debtor on account of the Obligations are paid in full and the Documents have been terminated. If, notwithstanding the foregoing, any amount shall be paid to the undersigned on account of such subrogation rights at any time
when all of the Obligations shall not have been paid in full and the Documents shall not have been terminated, such amount shall be held by the undersigned in trust for Laurus, segregated from other funds of the undersigned, and shall forthwith
upon, and in any event within two (2) business days of, receipt by the undersigned, be turned over to Laurus in the exact form received by the undersigned (duly endorsed by the undersigned to Laurus, if required), to be applied against the
Obligations, whether matured or unmatured, in such order as Laurus may determine, subject to the provisions of the Documents. Any and all present and future debts and obligations of Debtor to any of the undersigned are hereby waived and postponed in
favor of, and subordinated to the full payment and performance of, all present and future debts and obligations of Debtor to Laurus. 
  
 4. Security. All sums at any time to the credit of the undersigned and any property of the undersigned in Laurus’ possession or in the
possession of any bank, financial institution or other entity that directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, Laurus (each such entity, an “Affiliate”) shall
be 
  

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 deemed held by Laurus or such Affiliate, as the case may be, as security for any and all of the undersigned’s
obligations to Laurus and to any Affiliate of Laurus, no matter how or when arising and whether under this or any other instrument, agreement or otherwise. Notwithstanding anything to the contrary contained herein, the security interest granted to
Laurus shall be limited to goods (including but not limited to equipment and expressly excluding inventory) of the undersigned. 
  
 5. Representations and Warranties. Each of the undersigned respectively, hereby jointly and severally represents and warrants (all of which
representations and warranties shall survive until all Obligations are indefeasibly satisfied in full and the Documents have been irrevocably terminated), that: 
  
 (a) Corporate Status. The undersigned is a corporation duly organized, validly existing and in good
standing under the laws of the state of incorporation indicated on the signature page hereof and has full power, authority and legal right to own its property and assets and to transact the business in which it is engaged. 
  
 (b) Authority and Execution. The undersigned has full
power, authority and legal right to execute and deliver, and to perform its obligations under, this Guaranty and has taken all necessary corporate and legal action to authorize the execution, delivery and performance of this Guaranty. 
  
 (c) Legal, Valid and Binding Character. This Guaranty
constitutes the legal, valid and binding obligation of the undersigned enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general
application affecting the enforcement of creditor’s rights and general principles of equity that restrict the availability of equitable or legal remedies. 
  

(d) Violations. The execution, delivery and performance of this Guaranty will not violate any requirement of law applicable to
the undersigned or any material contract, agreement or instrument to which the undersigned is a party or by which the undersigned or any property of the undersigned is bound or result in the creation or imposition of any mortgage, lien or other
encumbrance other than to Laurus on any of the property or assets of the undersigned pursuant to the provisions of any of the foregoing. 
  
 (e) Consents or Approvals. No consent of any other person or entity (including, without limitation, any creditor of the
undersigned) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required in connection with the execution, delivery,
performance, validity or enforceability of this Guaranty. 
  
 (f) Litigation. No litigation, arbitration, investigation or administrative proceeding of or before any court, arbitrator or governmental authority, bureau or agency is currently pending or, to the best
knowledge of the undersigned, threatened (i) with respect to this Guaranty or any of the transactions contemplated by this Guaranty or (ii) against or affecting the undersigned, or any of property or assets of the undersigned, which, if adversely
determined, would have a material adverse effect on the business, operations, assets or condition, financial or otherwise, of the undersigned. 
  

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 (g) Financial Benefit. Each of the undersigned has derived or expects to derive a
financial or other advantage from each and every loan, advance or extension of credit made under the Documents or other Obligation incurred by Debtor to Laurus. 
  

6. Acceleration. 
  
 (a) If any breach of any covenant or condition or other event of default shall occur and be continuing under any agreement made by Debtor
or any of the undersigned to Laurus, or either Debtor or any of the undersigned should at any time become insolvent, or make a general assignment, or if a proceeding in or under any Insolvency Law shall be filed or commenced by, or in respect of,
any of the undersigned, or if a notice of any lien, levy, or assessment is filed of record with respect to any assets of any of the undersigned by the United States of America or any department, agency, or instrumentality thereof, or if any taxes or
debts owing at any time or times hereafter to any one of them becomes a lien or encumbrance upon any assets of the undersigned in Laurus’ possession, or otherwise, any and all Obligations shall for purposes hereof, at Laurus’ option, be
deemed due and payable without notice notwithstanding that any such Obligation is not then due and payable by Debtor. 
  
 (b) Each of the undersigned will promptly notify Laurus of any default by such undersigned in its respective performance or observance of
any term or condition of any agreement to which the undersigned is a party if the effect of such default is to cause, or permit the holder of any obligation under such agreement to cause, such obligation to become due prior to its stated maturity
and, if such an event occurs, Laurus shall have the right to accelerate such undersigned’s obligations hereunder. 
  
 7. Payments from Guarantors. Laurus, in its sole and absolute discretion, with or without notice to the undersigned, may apply on account of the
Obligations any payment from the undersigned or any other guarantors, or amounts realized from any security for the Obligations, or may deposit any and all such amounts realized in a non-interest bearing cash collateral deposit account to be
maintained as security for the Obligations. 
  
 8. Costs.
The undersigned shall pay on demand, all costs, fees and expenses (including expenses for legal services of every kind) relating or incidental to the enforcement or protection of the rights of Laurus hereunder or under any of the Obligations.

  
 9. No Termination. This is a continuing irrevocable
guaranty and shall remain in full force and effect and be binding upon the undersigned, and each of the undersigned’s successors and assigns, until all of the Obligations have been paid in full and the Documents have been irrevocably
terminated. If any of the present or future Obligations are guarantied by persons, partnerships or corporations in addition to the undersigned, the death, release or discharge in whole or in part or the bankruptcy, merger, consolidation,
incorporation, liquidation or dissolution of one or more of them shall not discharge or affect the liabilities of any undersigned under this Guaranty. 
  
 10. Recapture. Anything in this Guaranty to the contrary notwithstanding, if Laurus receives any payment or payments on account of the liabilities
guaranteed hereby, which payment or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver, or any other party under any Insolvency Law,
common law or equitable doctrine, then to the extent of any sum not 
  

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 finally retained by Laurus, the undersigned’s obligations to Laurus shall be reinstated and this Guaranty shall
remain in full force and effect (or be reinstated) until payment shall have been made to Laurus, which payment shall be due on demand. 
  
 11. Books and Records. The books and records of Laurus showing the account between Laurus and Debtor shall be admissible in evidence in any action
or proceeding, shall be binding upon the undersigned for the purpose of establishing the items therein set forth and shall constitute prima facie proof thereof. 
  

12. No Waiver. No failure on the part of Laurus to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise by Laurus of any right, remedy or power hereunder preclude any other or future exercise of any other legal right, remedy or power. Each and every right, remedy and power hereby granted to
Laurus or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by Laurus at any time and from time to time. 
  
 13. Waiver of Jury Trial. EACH OF THE UNDERSIGNED DOES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE
RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR WITH RESPECT TO THIS GUARANTY OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR RELATING OR INCIDENTAL HERETO. THE UNDERSIGNED DOES HEREBY CERTIFY THAT NO REPRESENTATIVE OR AGENT OF
LAURUS HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LAURUS WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION. 
  

14. Governing Law; Jurisdiction; Amendments. THIS INSTRUMENT CANNOT BE CHANGED OR TERMINATED ORALLY, AND SHALL BE GOVERNED, CONSTRUED AND
INTERPRETED AS TO VALIDITY, ENFORCEMENT AND IN ALL OTHER RESPECTS IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EACH OF THE UNDERSIGNED EXPRESSLY CONSENTS TO THE JURISDICTION AND VENUE OF THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF
NEW YORK, AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR ALL PURPOSES IN CONNECTION HEREWITH. ANY JUDICIAL PROCEEDING BY THE UNDERSIGNED AGAINST LAURUS INVOLVING, DIRECTLY OR INDIRECTLY ANY MATTER OR CLAIM IN ANY
WAY ARISING OUT OF, RELATED TO OR CONNECTED HEREWITH SHALL BE BROUGHT ONLY IN THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. THE UNDERSIGNED FURTHER CONSENTS
THAT ANY SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT LIMITATION, ANY NOTICE OR MOTION OR OTHER APPLICATION TO EITHER OF THE AFOREMENTIONED COURTS OR A JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER,
MAY BE SERVED INSIDE OR OUTSIDE OF THE STATE OF NEW YORK OR THE SOUTHERN DISTRICT OF NEW YORK BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY PERSONAL SERVICE PROVIDED A REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR IN SUCH OTHER
MANNER AS MAY BE PERMISSIBLE UNDER THE RULES OF SAID COURTS. EACH OF THE UNDERSIGNED WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREON AND SHALL NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE OR BASED UPON
FORUM NON CONVENIENS. 
  

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 15. Severability. To the extent permitted by applicable law, any provision of this Guaranty which
is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 16. Amendments, Waivers. No amendment or waiver of any provision of this Guaranty nor consent to any departure by the undersigned therefrom shall
in any event be effective unless the same shall be in writing executed by each of the undersigned and Laurus. 
  
 17. Notice. All notices, requests and demands to or upon the undersigned, shall be in writing and shall be deemed to have been duly given or made
(a) when delivered, if by hand, (b) three (3) days after being sent, postage prepaid, if by registered or certified mail, (c) when confirmed electronically, if by facsimile, or (d) when delivered, if by a recognized overnight delivery service in
each event, to the numbers and/or address set forth beneath the signature of the undersigned. 
  
 18. Successors. Laurus may, from time to time, without notice to the undersigned, sell, assign, transfer or otherwise dispose of all or any part of the Obligations and/or rights under this Guaranty. Without
limiting the generality of the foregoing, Laurus may assign, or grant participations to, one or more banks, financial institutions or other entities all or any part of any of the Obligations. In each such event, Laurus, its Affiliates and each and
every immediate and successive purchaser, assignee, transferee or holder of all or any part of the Obligations shall have the right to enforce this Guaranty, by legal action or otherwise, for its own benefit as fully as if such purchaser, assignee,
transferee or holder were herein by name specifically given such right. Laurus shall have an unimpaired right to enforce this Guaranty for its benefit with respect to that portion of the Obligations which Laurus has not disposed of, sold, assigned,
or otherwise transferred. 
  
 19. Release. Nothing except
cash payment in full of the Obligations shall release any of the undersigned from liability under this Guaranty. 
  
 [REMAINDER OF THIS PAGE IS BLANK. 
 SIGNATURE PAGE IMMEDIATELY FOLLOWS]

  

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 IN WITNESS WHEREOF, this Guaranty has been executed by the undersigned this 30th day of January, 2004.

  

			
	BELCHER PHARMACEUTICALS, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

		
	 Address:
	 	  

  

		
	 Telephone:
	 	  

	 Facsimile:
	 	  

	 State of Incorporation: Florida

	
	GO2PBM SERVICES, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

		
	 Address:
	 	  

  

		
	 Telephone:
	 	  

	 Facsimile:
	 	  

	 State of Incorporation: Florida

	
	IHP MARKETING, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

		
	 Address:
	 	  

  

		
	 Telephone:
	 	  

	 Facsimile:
	 	  

	 State of Incorporation: Florida

	
	BREAKTHROUGH ENGINEERED NUTRITION, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 8 

			
	 Address:
	 	  

  

		
	 Telephone:
	 	  

	 Facsimile:
	 	  

	 State of Incorporation: Florida

	
	BREAKTHROUGH MARKETING, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

		
	 Address:
	 	  

  

		
	 Telephone:
	 	  

	 Facsimile:
	 	  

	 State of Incorporation: Florida

  

 9 

			
	 STATE OF _____________
	 	 )

	 	 	 ) SS

	 COUNTY OF___________
	 	 )

  
 On the
         day of February, 2004, before me personally came
                                        
     to me known, who being by me duly sworn, did depose and say s/he is the                      of
                                 the corporation described in and which executed
the foregoing instrument; and that s/he signed her/his name thereto by order of the board of directors of said corporation. 
  

			
	  

 Notary
Public

		
	 My Commission Expires:
	 	  

  

 10SERIES A BANK ESCROW AGREEMENT

 Exhibit 4.11 
  
 FUNDS ESCROW AGREEMENT 
  
 This Agreement is dated as of the 10th day of February, 2004 among Innovative Companies, Inc., a Florida corporation (the “Company”),
Laurus Master Fund, Ltd. (the “Purchaser”), and Dechert LLP (the “Escrow Agent”). The Company and Belcher Capital Corporation (“the Subsidiary”) are collectively referred to herein as the
“Borrower”). 
  
 W I T N
E S S E T H: 
  
 WHEREAS, the Borrower and the Purchaser have entered into a Securities Purchase Agreement (“Purchase Agreement”) for the sale by the Subsidiary to the Purchaser of a Series A Preferred Stock (the “Preferred
Stock”) and issuance by the Company of a common stock purchase warrant (“Warrant”) to the Purchaser in the aggregate principal amounts and in the denominations set forth on Schedule A hereto; and 
  
 WHEREAS, the parties hereto require the Borrower to deliver the Preferred
Stock against payment therefor, with such Preferred Stock and payment to be delivered to the Escrow Agent to be held in escrow and released by the Escrow Agent in accordance with the terms and conditions of this Agreement; and 
  
 WHEREAS, the Escrow Agent is willing to serve as escrow agent pursuant to the
terms and conditions of this Agreement; 
  
 NOW THEREFORE, the
parties agree as follows: 
  
 ARTICLE I 
  
 INTERPRETATION 
  
 1.1. Definitions. Whenever used in this Agreement, the following terms
shall have the meanings set forth below. Terms not otherwise defined herein shall have the meaning set forth in the Purchase Agreement. 
  

	 	(a)	“Agreement” means this Agreement and all amendments made hereto and thereto by written agreement between the parties. 

  

	 	(b)	“Borrower Documents” means collectively, the Securities Purchase Agreement, the Preferred Stock, Registration Rights Agreement, Warrant, the Legal Opinion and the Closing
Payment. 

	 	(c)	“Closing Payment “ means the fees to be paid to Laurus Capital Management LLC set forth on Schedule A hereto. 

  

	 	(d)	“Disbursement Letter” means that certain letter delivered to the Escrow Agent by each of the Purchaser and the Borrower setting forth wire instructions and amounts to be
funded at the Closing. 

  

	 	(e)	“Escrowed Payment” means $5,000,000. 

  

	 	(f)	“Legal Opinion” means the original signed legal opinion of Sichenzia Ross Friedman Ference LLP. 

  

	 	(g)	“Purchaser Documents” means the Escrowed Payment, the Securities Purchase Agreement, Registration Rights Agreement and the Disbursement Letter. 

 

	 	(h)	“Preferred Stock” means the convertible Preferred Stock of the Subsidiary issued to the Purchaser in the amount of $5,000,000 in the form of Exhibit A annexed to the
Securities Purchase Agreement. 

  

	 	(i)	“Registration Rights Agreement” means that certain registration rights agreement executed and delivered pursuant to the Securities Purchase Agreement.

  

	 	(j)	“Warrant” means the common stock purchase warrant of the Company to purchase up to 150,000 shares of the Company’s common stock, issued to Purchaser in connection
with the Preferred Stock . 

  
 1.2. Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the matters contained herein and pertaining to the Company Documents and Purchaser Documents and supersedes all prior agreements,
understandings, negotiations and discussions of the parties, whether oral or written. There are no warranties, representations and other agreements made by the parties in connection with the subject matter hereof except as specifically set forth in
this Agreement. 
  
 1.3. Extended Meanings. In this
Agreement words importing the singular number include the plural and vice versa; words importing the masculine gender include the feminine and neuter genders. The word “person” includes an individual, body corporate, partnership, trustee
or trust or unincorporated association, executor, administrator or legal representative. 
  

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 1.4. Waivers and Amendments. This Agreement may be amended, modified, superseded, cancelled,
renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by all parties, or, in the case of a waiver, by the party entitled to the benefit thereof waiving compliance. Except as expressly stated
herein, no delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder preclude any other or future
exercise of any other right, power or privilege hereunder. 
  
 1.5. Headings. The division of this Agreement into articles, sections, subsections and paragraphs and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this
Agreement. 
  
 1.6. Law Governing this Agreement. This
Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by any party against any other party concerning the transactions contemplated by
this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state of New York. Each of the parties hereto and the individuals executing this Agreement and other agreements on behalf of the Company
agree to submit to the jurisdiction of such courts and waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or
any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified
to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. 
  
 1.7. Consent to Jurisdiction. Subject to Section 1.6 hereof, each of
the Company, the Escrow Agent and the Purchaser hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is
brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. Nothing in this Section shall affect or limit any right to serve process in any other manner permitted by law. 
  
 1.8. Construction. Each party acknowledges that its legal counsel
participated in the preparation of this Agreement and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Agreement to favor any party
against any other. 
  

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 ARTICLE II 
  
 DELIVERIES TO THE ESCROW AGENT 
  
 2.1. Delivery of Company Documents to Escrow Agent. On or about the date hereof, the Company shall deliver to the
Escrow Agent the Company Documents executed by the Company to the extent it is a party thereto. 
  
 2.2 Delivery of Purchaser Documents to Escrow Agent. On or about the date hereof, the Purchaser shall deliver to the Escrow Agent the Purchaser
Documents executed by the Purchaser. 
  
 2.3. Intention to
Create Escrow Over Company Documents and Purchaser Documents. The Purchaser and the Company intend that the Company Documents and Purchaser Documents shall be held in escrow by the Escrow Agent pursuant to this Agreement for their benefit as set
forth herein. 
  
 2.4. Escrow Agent to Deliver Company
Documents and Purchaser Documents. The Escrow Agent shall hold and release the Company Documents and Purchaser Documents only in accordance with the terms and conditions of this Agreement. 
  
 ARTICLE III 
  
 RELEASE OF COMPANY DOCUMENTS AND PURCHASER DOCUMENTS 
  
 3.1. Release of Escrow. Subject to the provisions of Section 4.2, the
Escrow Agent shall release the Company Documents and Purchaser Documents pursuant to (a), (b) or (c) below, as follows: 
  
 (a) Upon receipt by the Escrow Agent of the Company Documents and the corresponding Purchaser Documents, the Escrow Agent will simultaneously release the
Company Documents to the Purchaser and release the corresponding Purchaser Documents to the Company except that (i) the Closing Payment will be delivered to Laurus Capital Management, LLC ; and (ii) the due diligence and legal fees for counsel to
the Purchaser, which shall be paid pursuant to Section 2(c) of the Securities Purchase Agreement, will be released to the Purchaser. At the request of the Escrow Agent, the Company will provide written facsimile or original instructions to the
Escrow Agent as to the disposition of all funds releasable to the Company. 
  
 (b) Upon receipt by the Escrow Agent of joint written instructions (“Joint Instructions”) signed by the Company and the Purchaser, it shall deliver the Company Documents and Purchaser Documents in
accordance with the terms of the Joint Instructions. 
  

 4 

 (c) Upon receipt by the Escrow Agent of a final and non-appealable judgment, order, decree or award of a
court of competent jurisdiction (a “Court Order”), the Escrow Agent shall deliver the Company Documents and Purchaser Documents in accordance with the Court Order. Any Court Order shall be accompanied by an opinion of counsel for
the party presenting the Court Order to the Escrow Agent (which opinion shall be reasonably satisfactory to the Escrow Agent) to the effect that the court issuing the Court Order has competent jurisdiction and that the Court Order is final and
non-appealable. 
  
 3.2. Acknowledgement of Company and
Purchaser; Disputes. The Company and the Purchaser acknowledge that the only terms and conditions upon which the Company Documents and Purchaser Documents are to be released are set forth in Articles 3 and 4 of this Agreement. The Company and
the Purchaser reaffirm their agreement to abide by the terms and conditions of this Agreement with respect to the release of the Company Documents and Purchaser Documents. Any dispute with respect to the release of the Company Documents and
Purchaser Documents shall be resolved pursuant to Section 4.2 or by agreement among the Company and Purchaser. 
  
 ARTICLE IV 
  
 CONCERNING THE ESCROW AGENT 
  
 4.1. Duties and
Responsibilities of the Escrow Agent. The Escrow Agent’s duties and responsibilities shall be subject to the following terms and conditions: 
  
 (a) The Purchaser and the Company acknowledge and agree that the Escrow Agent (i) shall not be responsible for or bound by, and shall not be required to
inquire into whether either the Purchaser or the Company is entitled to receipt of the Company Documents and Purchaser Documents pursuant to any other agreement or otherwise; (ii) shall be obligated only for the performance of such duties as are
specifically assumed by the Escrow Agent pursuant to this Agreement; (iii) may rely on and shall be protected in acting or refraining from acting upon any written notice, instruction, instrument, statement, request or document furnished to it
hereunder and believed by the Escrow Agent in good faith to be genuine and to have been signed or presented by the proper person or party, without being required to determine the authenticity or correctness of any fact stated therein or the
propriety or validity or the service thereof; (iv) may assume that any person purporting to give notice or make any statement or execute any document in connection with the provisions hereof has been duly authorized to do so; (v) shall not be
responsible for the identity, authority or rights of any person, firm or corporation executing or delivering or purporting to execute or deliver this Escrow Agreement or any document deposited hereunder or any endorsement thereon or assignment
thereof; (vi) shall not be under any duty to give the property held by Escrow Agent hereunder any greater degree of care than Escrow Agent gives its own similar property; and (vii) may consult counsel 
  

 5 

 satisfactory to Escrow Agent, the opinion of such counsel to be full and complete authorization and protection in respect
of any action taken, suffered or omitted by Escrow Agent hereunder in good faith and in accordance with the opinion of such counsel. 
  
 (b) The Purchaser and the Company acknowledge that the Escrow Agent is acting solely as a stakeholder at their request and that the Escrow Agent shall not
be liable for any action taken by Escrow Agent in good faith and believed by Escrow Agent to be authorized or within the rights or powers conferred upon Escrow Agent by this Agreement. The Purchaser and the Company, jointly and severally, agree to
indemnify and hold harmless the Escrow Agent and any of Escrow Agent’s partners, employees, agents and representatives for any action taken or omitted to be taken by Escrow Agent or any of them hereunder, including the reasonable fees of
outside counsel and other costs and expenses of defending itself against any claim or liability under this Agreement, except in the case of gross negligence or willful misconduct on Escrow Agent’s part committed in its capacity as Escrow Agent
under this Agreement. The Escrow Agent shall owe a duty only to the Purchaser and Company under this Agreement and to no other person. 
  
 (c) The Purchaser and the Company jointly and severally agree to reimburse the Escrow Agent for its reasonable out-of-pocket expenses (including
reasonable counsel fees) incurred in connection with the performance of its duties and responsibilities hereunder. 
  
 (d) The Escrow Agent may at any time resign as Escrow Agent hereunder by giving five (5) days prior written notice of resignation to the Purchaser and the
Company. Prior to the effective date of the resignation as specified in such notice, the Purchaser and Company will issue to the Escrow Agent a Joint Instruction authorizing delivery of the Company Documents and Purchaser Documents to a substitute
Escrow Agent selected by the Purchaser and the Company. If no successor Escrow Agent is named by the Purchaser and Company, the Escrow Agent may apply to a court of competent jurisdiction in the State of New York for appointment of a successor
Escrow Agent, and to deposit the Company Documents and Purchaser Documents with the clerk of any such court. 
  
 (e) The Escrow Agent does not have and will not have any interest in the Company Documents and Purchaser Documents, but is serving only as escrow agent,
having only possession thereof. 
  
 (f) The Escrow Agent 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 within the rights or powers conferred upon it hereunder, nor for action taken or omitted by it in good faith, and in accordnace
with advice of counsel (which counsel may be of the Escrow Agent’s own choosing), and shall not be liable for any mistake of fact or error of judgement or for any acts or omissions of any kind except for its own willful misconduct or gross
negligence. 
  

 6 

 (g) This Agreement sets forth exclusively the duties of the Escrow Agent with respect to any and all
matters pertinent thereto and no implied duties or obligations shall be read into this Agreement. 
  
 (h) The Escrow Agent shall be permitted to act as counsel for the Purchaser or the Company, as the case may be, in any dispute as to the disposition of
the Company Documents and Purchaser Documents, in any other dispute among the Purchaser and the Company, whether or not the Escrow Agent is then holding the Company Documents and Purchaser Documents and continues to act as the Escrow Agent
hereunder. 
  
 (i) The provisions of this Section 4.1 shall
survive the resignation of the Escrow Agent or the termination of this Agreement. 
  
 4.2. Dispute Resolution: Judgments. Resolution of disputes arising under this Agreement shall be subject to the following terms and conditions: 
  
 (a) If any dispute shall arise with respect to the delivery, ownership, right of possession or disposition of the Company
Documents and Purchaser Documents, or if the Escrow Agent shall in good faith be uncertain as to its duties or rights hereunder, the Escrow Agent shall be authorized, without liability to anyone, to (i) refrain from taking any action other than to
continue to hold the Company Documents and Purchaser Documents pending receipt of a Joint Instruction from the Purchaser and Company, or (ii) deposit the Company Documents and Purchaser Documents with any court of competent jurisdiction in the State
of New York, in which event the Escrow Agent shall give written notice thereof to the Purchaser and the Company and shall thereupon be relieved and discharged from all further obligations pursuant to this Agreement. The Escrow Agent may, but shall
be under no duty to, institute or defend any legal proceedings which relate to the Company Documents and Purchaser Documents. The Escrow Agent shall have the right to retain counsel if it becomes involved in any disagreement, dispute or litigation
on account of this Agreement or otherwise determines that it is necessary to consult counsel. 
  
 (b) The Escrow Agent is hereby expressly authorized to comply with and obey any Court Order. In case the Escrow Agent obeys or complies with a Court Order, the Escrow Agent shall not be liable to the Purchaser and
Company or to any other person, firm, corporation or entity by reason of such compliance. 
  

 7 

 ARTICLE V 
  

GENERAL MATTERS 
  
 5.1. Termination. This escrow shall terminate upon the release of all of the Company Documents and Purchaser Documents or at any time upon the
agreement in writing of the Purchaser and Company. 
  
 5.2.
Notices. All notices, request, demands and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given one (1) day after being sent by telecopy (with copy delivered by overnight
courier, regular or certified mail): 
  

					
	 (a)
	 	If to the Company, to:	 	Innovative Companies, Inc.
			
	 	 	 	 	Attention:  Chief Financial Officer
	 	 	 	 	Facsimile:
			
	 	 	With a copy to:	 	Sichenzia Ross Friedman Ference LLP
	 	 	 	 	1065 Avenue of the Americas
	 	 	 	 	21st Floor
	 	 	 	 	New York, NY 10018
			
	 	 	 	 	Attention: Tom Rose, Esq.
	 	 	 	 	Facsimile: 212-930-9725
			
	 (b)
	 	If to the Purchaser, to:	 	 
			
	 	 	 	 	LAURUS MASTER FUND, LTD.
	 	 	 	 	c/o Ironshore Corporate Services Ltd.
	 	 	 	 	P.O. Box 1234 G.T., Queensgate House, South Church St
	 	 	 	 	Grand Cayman, Cayman Islands
	 	 	 	 	Fax: 345-949-9877
			
	 (c)
	 	If to the Escrow Agent, to:	 	 
		
	 	 	 Dechert LLP

	 	 	 30 Rockefeller Plaza

	 	 	 New York, New York 10112

	 	 	 Fax: (212) 698-3599

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

 8 

 5.3. Interest. The Escrowed Payment shall not be held in an interest bearing account nor will
interest be payable in connection therewith. 
  
 5.4.
Assignment; Binding Agreement. Neither this Agreement nor any right or obligation hereunder shall be assignable by any party without the prior written consent of the other parties hereto. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective legal representatives, successors and assigns. 
  
 5.5. Invalidity. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held
invalid, illegal, or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be in any way impaired thereby, it
being intended that all of the rights and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law. 
  
 5.6 Counterparts/Execution. This Agreement may be executed in any number of counterparts and by different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. This Agreement may be executed by facsimile transmission. 
  

 9 

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

			
	 INNOVATIVE COMPANIES, INC.
 the “Company”

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 PURCHASER:

	
	 LAURUS MASTER FUND, LTD.

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 ESCROW AGENT:

	
	 DECHERT LLP

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
  

 10 

 SCHEDULE A TO FUNDS ESCROW AGREEMENT 
  

			
	 PURCHASER

	 	 PREFERRED STOCK AMOUNT

	 LAURUS MASTER FUND, LTD.,
 c/o Ironshore Corporate
Services Ltd., P.O. Box
 1234 G.T., Queensgate House, South Church
 Street, Grand Cayman, Cayman Islands
 Fax: 345-949-9877
	 	$5,000,000 Preferred Stock
		
	TOTAL	 	$5,000,000
		
	 FUND MANAGER

	 	 CLOSING PAYMENT

	 LAURUS CAPITAL MANAGEMENT, L.L.C.
 825 Third Avenue,
14th Floor
 New York,
New York 10022
 Fax: 212-541-4434
	 	Closing payment payable in connection with investment by Laurus Master Fund, Ltd. for which Laurus Capital Management, L.L.C. is the Manager.
		
	TOTAL	 	$180,000
		
	 WARRANTS
	 	 
		
	 WARRANT RECIPIENT

	 	 WARRANTS IN CONNECTION WITH OFFERING

	 LAURUS MASTER FUND, LTD.
 A Cayman Island
corporation
 c/o Ironshore Corporate Services Ltd.
 P.O. Box 1234
G.T.
 Queensgate House, South Church Street
 Grand Cayman, Cayman
Islands
 Fax: 345-949-9877
	 	150,000 Warrants issuable in connection with investment by Laurus Master Fund, Ltd.
		
	TOTAL	 	150,000 Warrants

  

 11

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