Document:

AGREEMENT
        FOR PURCHASE AND SALE OF ASSETS

      

      THIS
        AGREEMENT FOR PURCHASE AND SALE OF ASSETS,
        made
        and entered into on June 13, 2006, by and between COMMAND SECURITY CORPORATION,
        a New York corporation (hereinafter referred to as “PURCHASER”), STERLING
        PROTECTIVE GROUP, INC., a Florida corporation (hereinafter referred to as
        “SELLER”), and Howard Chusid, individually and sole stockholder of Seller
        (“Stockholder”); and for purposes of Sections 4.1.2 only, Cliff Ingber
        (“Ingber”). 

      

      WITNESSETH

      

      WHEREAS,
        Seller
        is presently engaged in soliciting and providing security guard services
        (“Security Guard Business”); and

      

      WHEREAS,
        Seller
        and Stockholder desire to sell and Purchaser desires to purchase all of Seller’s
        right, title and interest in and to the Security Guard Business.

      

      NOW,
        THEREFORE,
        in
        consideration of the foregoing, the mutual promises, conditions and covenants
        herein contained, and other good and valuable considerations, the receipt
        of
        which is hereby acknowledged, it is agreed as follows:

      

      1.1 Subject
        to the terms and conditions of this Agreement, Seller does hereby sell, assign
        and transfer to Purchaser, Seller’s Guard Business, including: (a) all of
        Seller’s right, title and interest in and to all Seller’s guard service accounts
        attached hereto, including the Contract rights of Seller to such guard service
        accounts (“Contracts”); and (b) all tangible and intangible property of Seller
        utilized in the ordinary course of business including, without limitation,
        the
        name “Sterling Protective Group” and all variations thereof; all uniforms,
        client books, records and employment files, office equipment, supplies,
        vehicles, radios, and detex or electronic clocks; all general intangibles;
        and
        all telephone and facsimile numbers as described in Schedules 1(b) attached
        hereto; (collectively, “Working Assets”) (assets described in Sections
        1.1(a)
        and
        1.1(b)
        collectively, “Purchased Assets”). For purposes of Section 4.2 below the
        Contract for the Account known as Waterford is defined as the “Waterford
        Account”. 

      

      1.2 Command
        further agrees to assume all obligations arising after the Closing under
        the
        leases set forth in Schedule 1.2. 

      

      2. All
        assets and liabilities of Seller including, but not necessarily limited to,
        accounts receivable to the Effective Date (as defined) bank deposits, tax
        refunds, prepaid insurances and insurance refunds (if any), shareholder
        transactions, as described in Schedule 2 , shall remain the property of Seller
        (“Excluded Assets”).

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.1 Payments
        for services rendered by Seller prior to the Effective Date shall remain
        the
        property of Seller (“Pre Effective Date Receivables”) and any payment received
        by Purchaser for such Pre Effective Date Receivables shall be delivered promptly
        to Seller. Conversely, payments for services rendered on or after the Effective
        Date (“Post Effective Date Receivables”) shall be the property of Purchaser and
        any payment received by Seller for such Post Effective Date Receivables shall
        be
        delivered promptly to Purchaser. In the event payment for service is received
        by
        Seller and the payment does not identify the invoice or date of service for
        which the payment is made, said payment shall be delivered promptly to Purchaser
        and Purchaser shall use commercially reasonable efforts to identify the services
        for which payment is made, and shall notify Seller of the results of its
        efforts. Any payment identified as a Pre Effective Date Receivable shall
        be
        returned to Seller. In the event Purchaser is unable to determine the service
        dates or invoices for which payment has been made, payment shall be applied
        to
        the earliest undisputed and outstanding invoice for said account and shall
        be
        forwarded to Seller or retained by Purchaser, as the case may be.

      

      3.2 As
        set
        forth in Schedule 3.2, there is accrued vacation pay that may be due within
        12
        months from the Seller to employees at the time of Closing. The parties hereby
        agree that when the Purchaser pays any or all of the accrued vacation due
        Purchaser may offset the next scheduled note payment by said amount. Purchaser
        hereby agrees to continue, or improve upon, the Seller’s existing vacation
        policy (as set forth on Schedule 3.2) for 18 months following the
        Closing.

       

      4.1.1 In
        consideration for the sale and transfer of Seller’s Guard Business including
        without limitation the Purchased Assets, Purchaser agrees to pay to Seller
        as
        the full purchase price the amount of SEVEN HUNDRED FIFTY THOUSAND ($750,000)
        DOLLARS (“Purchase Price”) payable as follows: (i) Fifty-five (55%) percent, or
        $412,500, payable in cash or check at the time of Closing; (ii) Fifteen (15%)
        percent or $112,500 payable six months from the Closing Date; (iii) fifteen
        (15%) percent or $112,500 payable twelve months from the Closing Date; and
        (iv)
        the remaining Fifteen (15%) percent or $112,500 payable eighteen (18) months
        from the Closing Date. Purchaser’s obligations with respect to payments “ii”,
“iii” and “iv” shall be evidenced by a Promissory Note in the form as set forth
        in Exhibit
        4.1
        (hereinafter “Note”) executed and delivered by Purchaser at the Closing. Said
        Note shall bear interest at the rate of 7.75% per annum and shall be subject
        to
        adjustments pursuant to the provisions of Sections
        3.2, 4.2,
        9.2 and
        10.1 herein. 

      

      4.1.2 The
        parties hereby acknowledge that the initial portion of the Purchase Price
        is not
        sufficient for Seller to pay all liabilities due and transfer clear title
        to all
        Working Assets at the time of Closing. Specifically, there are liens and
        claims
        by federal and state taxing authorities as set forth in Schedule 4.1.2
        (“Seller’s Tax Lien(s)”). Based on this knowledge and to ensure that Purchaser
        ultimately obtains clear title to all assets, the parties have agreed that
        the
        Purchase Price proceeds from this Agreement shall be paid to an escrow account
        (“Escrow Account”) maintained by Cliff Ingber. All of the proceeds shall be
        disbursed as provided on Schedule 4.1.2. To pay the Seller’s Tax Lien(s) and any
        and all interest and penalties assessed therein.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.2 The
        Purchase Price shall be reduced in proportion to the amount by which the
        average
        permanent monthly revenue from the Seller’s Security Guard Business during the
        twelve months following the Closing Date (excluding the Waterford Account)
        is
        less than the Closing Monthly Revenue (excluding the Waterford Account) (as
        defined in Section 6.13 below). In the event the Purchase Price is reduced
        by an
        amount exceeding any monies owed by Purchaser then Seller shall promptly
        pay to
        Purchaser all amounts due. Said reduction may, in turn, be offset by Replacement
        Business as provided in Section 4.3
        below.
        In the event there is to be a reduction in the Purchase Price due to a reduction
        in the monthly revenue from Seller’s Security Guard Business, Purchaser may
        reduce the upcoming Note payment by notifying Seller thereof and setting
        forth
        the basis for such reduction at the time the Note payment is due. Purchaser’s
        failure to reduce any Note payment shall not be deemed a waiver of its rights
        to
        setoff or repayment of any portion of the Purchase Price otherwise due
        hereunder. Additionally, the same reductions shall be made for the Waterford
        Account by comparing the Waterford account Closing Monthly Revenue to the
        average monthly revenue from the Waterford account during the eighteen months
        following the Closing Date.

       

      4.3 Notwithstanding
        anything to the contrary, any reduction due under Section 4.2
        will be
        offset by any new or expanded security guard services in Miami Dade County
        obtained by Purchaser which commences within three months after Closing
        (“Replacement Business”). In addition, any new or expanded security guard
        services in Miami Dade County which is proposed on during the first three
        months
        and commences within the first six months after Closing will also be considered
        Replacement Business. Replacement Business shall not exceed 504 hours per
        week.
        Any Replacement Business must be at terms and conditions acceptable to and
        accepted in writing by Purchaser. As part hereof, Purchaser agrees (i)
        to provide security services to the guard service Accounts minimally at the
        same
        level of service that is provided to all of Purchaser’s accounts in Miami-Dade
        County subsequent to the Effective Date; (ii) to offer employment to all of
        Seller's Security officers assigned to each Account, who meet the standards
        of employment of Purchaser, minimally on the terms and conditions currently
        provided by Purchaser ; provided, that during the eighteen month period
        following the Closing Employees’ wages will not be reduced from rates paid to
        said employees by Seller immediately prior to Closing. The offset value
        amount of such Replacement Business will be the amount of revenues during
        the
        twelfth full calendar month following commencement of services by Purchaser
        to
        each such Replacement Business account multiplied by a factor of “3.5”. Any
        adjustment due pursuant to this section shall occur on the thirteenth month
        following commencement of services to the Replacement Business. In addition
        to
        the above, the accounts listed on Schedule 4.3 will be considered Replacement
        Business provided that they commence within 6 months after Closing.

      

      

      5. The
        Closing Date shall be June 13, 2006 at Noon at the offices of Moffa &
Gainor, P.A. or at such other time or place as may be mutually agreed upon
        in
        writing (“Closing” or “Closing Date”). The effective date shall be June, 5, 2006
        at 12:01 a.m. (“Effective Date”). 

      

      6. With
        respect to its Security Guard Business, Seller and Stockholder jointly and
        severally represent and warrant to Purchaser as follows:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6.1 The
        Seller is a corporation duly organized, validly existing, and in good standing
        under the laws of the State of Florida and has full corporate power and
        authority to carry on the Security Guard Business as now conducted and to
        own
        and operate said Security Guard Business. The Seller has full corporate power
        and authority to execute and deliver this Agreement and the other agreements
        contemplated hereby, to perform its obligations hereunder and thereunder
        and to
        consummate the transactions contemplated hereby and thereby.

      

      6.2 All
        of
        the issued and outstanding shares of capital stock of Seller is owned by
        Stockholder. No other person, firm or entity has any right, option or privilege
        (whether preemptive, contractual or otherwise) to purchase any shares of
        Seller’s capital stock or any other equity ownership interests in Seller.

      

      6.3 Seller
        has the full power and authority necessary to enter into and perform its
        obligations under this Agreement and to consummate the transaction contemplated
        hereby. The execution and delivery of this Agreement and the other agreements
        contemplated herein and the performance of Seller of its obligations hereunder
        have been duly authorized by all necessary corporate action and no other
        corporate act or proceeding on the part of Seller, its Board of Directors,
        the
        Stockholder or any third party is necessary to authorized the execution,
        delivery or performance by Seller of this Agreement or any other agreement
        contemplated hereby or the consummation of the transactions contemplated
        herein.

      

      6.4 The
        execution, delivery and performance by Seller of this Agreement and the other
        agreements contemplated herein do not (i) violate, conflict with, result
        in any
        breach of, constitute a default under, result in the termination or acceleration
        of, create in any part the right to accelerate, terminate, modify or cancel,
        or
        require any notice under Seller’s certificate of incorporation or bylaws, or any
        contract, agreement, indenture, mortgage, loan agreement, lease, sublease,
        license, sublicense, franchise, permit, indenture, mortgage, obligation or
        instrument to which Seller or Stockholder is a party or by which either of
        them
        is bound or affected or to which any of the Purchased Assets is bound or
        affected, (ii) result in the creation or imposition of any lien, security
        interest, charge, restriction or encumbrance upon any of the Purchased Assets,
        (iii) other than the Defined Consents (as defined at Section 6.13
        below),
        require any authorization, consent, approval, exemption by any other person
        or
        entity under the provisions of any law, statute, rule, regulation, judgment,
        order or decree or any contract, agreement, lease, sublease, license, franchise
        permit, indenture, mortgage, obligation or instrument to which Seller is
        subject, bound or affected, or (iv) violate or require any consent or notice
        under law, statute, regulation, rule, judgment, decree, order, stipulation,
        injunction, charge or other restriction of any government, governmental agency
        or court to which Seller or the Security Guard Business is subject, bound
        or
        affected.

      

      6.5 Intentionally
        left blank.

       

      6.6 Seller
        has conducted its business only in the ordinary course of business consistent
        with past practice and has not made any changes in its accounting methods
        or
        practices, and (ii) there has been no material adverse change in its Business
        and no event has occurred which is reasonably anticipated to result in such
        a
        material adverse change. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6.7 Schedule
        6.7 is a correct and complete listing of the trade accounts receivable of
        Seller
        as of the date set forth on such Schedule. All trade accounts receivable
        represent monies due for, and have arisen solely out of, bona
        fide
        sales
        and deliveries of goods, performance of services and other business transactions
        entered into in the ordinary course of business. 

      

      6.8 Except
        as
        set forth in Schedule 4.1.2 (“Seller’s Tax Lien(s)”), the Purchased Assets shall
        be conveyed by the Purchaser free and clear of all liens, claims, liabilities,
        liens, licenses or other encumbrances. As a condition subsequent to Closing
        the
        Seller shall satisfy each obligation underlying the Seller’s Tax Lien(s) and
        obtain proof of termination thereof in accordance with Schedule
        4.1.2.

      

      6.9 Seller
        has not made or committed to make any bribe, kickback payments or other illegal
        payments.

      6.10 No
        party
        (including Seller) has accelerated, terminated, modified, or canceled any
        contract, lease, sublease, license, sublicense or other agreement set forth
        on
        the Schedule
        1(a)
        attached
        hereto.

      

      6.11 Schedule
        1(b)
        contains
        a true and complete list of all Working Assets, including without limitation,
        equipment, tangible or intangible personal property, rights and assets owned,
        leased or used by Seller in connection with the Security Guard Business.
        Seller
        is the sole owner of each and every Purchased Asset and has the right to
        convey
        the Purchased Assets, and upon consummation of the transactions which is
        the
        subject to this Agreement, Purchaser will be vested with good and marketable
        title to the Purchased Assets, free and clear of all liens, mortgages, charges,
        security interest, pledges, or other encumbrances or adverse claims or interests
        of any nature (collectively, “Liens”).

      

      6.12 The
        assets listed in Schedule
        1(b)
        are in
        good condition and repair, and none requires any material repair or replacement
        except for maintenance in the ordinary course of Seller’s operations. Seller has
        good, valid and marketable title to all of the Purchased Assets and is herewith
        transferring the Purchased Assets to Purchaser free and clear of all liens.
        

      

      6.13 Schedule
        1(a)
        identifies every agreement, license, lease and contract, written or oral,
        to
        which Seller is a party and which is related to the Security Guard Business
        (the
“Contracts”) and except as disclosed on Schedule
        1(a),
        all of
        such Contracts may be assigned and transferred to Purchaser without the consent,
        approval, novation or waiver (collectively, “Defined Consents”) of any party to
        such contract (other than Seller) or any other third party or governmental
        authority or instrumentality. Schedule
        1(a)
        lists as
        at the Closing (i) the permanent hours of weekly services provided to each
        account (“Final Closing Hours”), (ii) each billing rate charged to each account,
        (iii) the permanent monthly revenue for each Account; (iv) the average pay
        rate
        paid to employees assigned to each account and the monthly revenue for each
        said
        Account during the last full calendar month period immediately preceding
        Closing
        (“Closing Monthly Revenue”). Seller is not in default, and no event has occurred
        which, with the giving of notice or the passage of time or both would constitute
        a default, under any contract made or obligation owed by Seller with respect
        to
        the Security Guard Business which default would adversely affect, individually
        or together with such other defaults, the financial condition, assets or
        properties of Seller. Attached hereto are accurate and complete copies of
        all of
        the written agreements and contracts referred to in Schedule
        1(a)
        and a
        summary of all oral agreements and contracts so listed.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6.14 Except
        as
        provided in Schedule
        6.14,
        Seller’s activities and conditions at, or in connection with, the Security Guard
        Business do not violate any applicable law, ordinance or regulation of any
        federal, state, local or foreign government or agency. Seller has not received
        notice of any such violation, alleged violation or liability or any
        correspondence from any governmental agency relating thereto.

      

      6.15 Except
        as
        listed in Schedule
        6.15,
        Seller
        is not a party to or obligated in connection with the Security Guard Business
        with respect to any (a) outstanding contracts with current or former employees,
        agents, consultants, advisers, salesman, sales representatives, distributors,
        sales agents or dealers or, (b) collective bargaining agreements or contracts
        with any labor union or other representative of employees or any employee
        benefits provided for by any such agreement. Attached hereto is a true and
        complete copy of each document listed in Schedule
        6.15.
        No
        strike, union organizational activity, allegation, charge or complaint of
        employment discrimination or other similar occurrence has occurred which
        is
        related to the Security Guard Business during Seller’s past three years, or is
        pending or threatened against Seller or otherwise might affect the Security
        Guard Business; nor does Seller know any basis for any such allegation, charge
        or complaint. Seller has complied with all applicable laws relating to the
        employment of labor, including provisions thereof relating to wages, hours,
        equal opportunity, collective bargaining and the payment of social security
        and
        other taxes. Except as set forth in Schedule
        6.15.1,
        there
        are no administrative charges or court complaints pending or threatened against
        the Seller before the U.S. Equal Employment Opportunity Commission or any
        state
        or federal court of agency concerning alleged employment discrimination or
        any
        other matter relating to the employment of labor. There is no unfair labor
        practice charge or complaint pending or threatened against Seller before
        the
        National Labor Relations Board or any similar state or local body.  

      

      6.16 Attached
        hereto as Schedule
        6.16 is
        a
        correct and complete list setting forth the names and current salaries or
        wage
        rates, as the case may be, of the employees of Seller, regardless of the
        amount
        of annual compensation. Except as set forth in Schedule
        6.16,
        Seller
        has made no promise to any employee orally or in writing of any bonus or
        increase in compensation or a general increase or change in any Employee
        Benefit
        Plan, whether or not legally binding.

      

      6.17 Except
        as
        provided in Schedule
        6.17
        there is
        no claim, counterclaim, action, suit, proceeding or governmental investigation
        pending or threatened against or involving Seller with respect to or affecting
        Seller or the Security Guard Business. Seller knows of or has any reasonable
        grounds to know of any basis for any such claim, action, suit, proceeding
        or
        governmental investigation. Seller nor the Security Guard Business is directly
        subject to or affected by any order, judgment, decree or ruling of any court
        of
        governmental agency.

      

      6.18 Except
        as
        identified in schedule 4.1.2, all taxes due and payable by the Seller shall
        have
        at or before the Closing been paid in full by Seller and/or Stockholder.
        The
        liens, claims and underlying obligations set forth in Schedule 6.18 are not
        obligations of Seller or any predecessor entity and do not and will not affect
        or attach to any of the Purchased Assets. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6.19 Other
        than the Defined Consents, no consent, approval or authorization of, or
        declaration, filing or registration with, any federal, state or local
        governmental or regulator authority, or any other party, is required to be
        made
        or obtained by Seller in connection with the execution, delivery and performance
        of this Agreement and the transactions contemplated hereby. Obtaining all
        Defined Consents shall be a condition of Purchaser’s obligation under this
        Agreement.

      

      6.20 All
        plans, programs and agreements which Seller has maintained, sponsored, adopted,
        made contributions to or obligated itself to make contributions to or to
        pay any
        benefits or grant rights under or with respect to any plan of deferred
        compensation, medical plan, life insurance plan, long-term disability plan,
        dental plan, or other plan providing for the welfare of any of the Seller’s
        employees or former employees or beneficiaries thereof, personnel policy
        (including but not limited to, vacation time, holiday pay, bonus program,
        moving
        expense reimbursement programs, tool allowance or other allowance, and sick
        leave), excess benefit plan, bonus or incentive plan (including but not limited
        to, stock options, restricted stock, stock bonus, deferred bonus plans),
        salary
        reduction agreement, change-of-control agreement, employment agreement,
        consulting or any other benefit, program or contract, whether or not written
        or
        pursuant to a collective bargaining agreement, which could give rise to Seller
        or Purchaser or result in Seller or Purchaser having any debt, liability,
        claim
        or obligation of any kind or nature, whether accrued, absolute, contingent,
        direct, indirect, known or unknown, perfected or inchoate or otherwise and
        whether or not due or to become due, are set forth in Schedule
        6.20
        attached
        hereto.

      

      6.21 Seller
        represents that none of the contracts set forth in Schedule
        1(a)
        were
        awarded to Seller on the basis of its representation to be or status as a
        Small,
        Disadvantaged or Minority Business Enterprise as such term is defined by
        the
        United States Small Business Administration or any federal, state or local
        governmental agency or authority.

      

      6.22 Except
        as
        set forth in Schedule
        6.22,
        (i)
        neither Seller nor Stockholder has any direct or indirect interest in any
        competitor, supplier or customer of the Security Guard Business; and (ii)
        Seller
        is not a successor of or to SHPA, Inc., a Florida corporation. 

      

      6.23 All
        financial information provided by Seller or Stockholder, to the best of their
        knowledge, to Purchaser is correct and complete in all material
        respects.

      

      6.24 During
        the six (6) month period preceding the execution of this Agreement there
        has
        been no material adverse change in the status or operations of Seller’s Security
        Guard Business transferred herein.

       

      7.
         With
        respect to its Security Guard Business, Purchaser represents and warrants
        to
        Seller as follows:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7.1 Good
        Standing and Authority. Purchaser is a corporation duly organized, validly
        existing and in good standing under the laws of the State of New York and
        has
        the corporate power and authority to enter into this Agreement and to consummate
        the transactions contemplated in this Agreement. This Agreement and the
        consummation of the transactions contemplated in this Agreement have been
        duly
        authorized and approved by all necessary and proper corporate action on
        Purchaser’s part. This Agreement and all related documents required to
        consummate the transactions contemplated in this Agreement to which Purchaser
        is
        a party, when executed and delivered, will constitute legal, valid and binding
        obligations of Purchaser enforceable against Purchaser in accordance with
        their
        respective terms.

       

      7.2 Non-Violative
        Agreement. Neither the execution and delivery of this Agreement and any related
        documents required to consummate the transactions contemplated in this Agreement
        to which Purchaser is a party nor the consummation of the transactions
        contemplated in this Agreement will conflict with, result in the breach or
        violation of or constitute a default under the terms, conditions or provisions
        of Purchaser’s Articles of Incorporation, Bylaws or any other agreement or
        instrument to which Purchaser is a party or to which they may be
        subject.

       

      7.3 Brokerage
        or Finder’s Fee. Except as set forth in paragraph 17 below, no broker, finder,
        agent or similar intermediary has acted for or on behalf of Purchaser in
        connection with this Agreement or the transactions contemplated hereby and
        no
        broker, finder, agent or similar intermediary is entitled to any broker’s,
        finder’s or similar fee or other commission in connection therewith based on any
        agreement, arrangement or understanding with Purchaser. 

       

       

      8.1
        Seller shall, at the Closing, execute and deliver to Purchaser a Bill of
        Sale
        and such other documents as may be necessary to convey, transfer and assign
        to
        Purchaser good and marketable title to the accounts and the Purchased Assets
        which are the subject matter of this Agreement. Subsequent to the Closing,
        Seller and the Stockholder shall, from time to time, execute and deliver,
        at the
        request of Purchaser, all such further instruments of conveyance, transfer
        and
        assignment of such accounts and business as may be reasonably requested by
        Purchaser.    

       

      8.2 Seller
        shall furnish to Purchaser a certified copy of a Resolution of Seller’s Board of
        Directors and Stockholder authorizing and approving Seller’s execution of this
        Agreement and the sale described herein.

       

      9.1 Purchaser
        shall not assume or be responsible for any liability or obligation of Seller,
        or
        any claim of such liability or obligation, or any costs or expenses (legal
        or
        otherwise), including but not limited to those relating to or arising from,
        (a)
        any claim by any customer or supplier of Seller or any other person based
        on
        alleged tort, breach of contract or failure in performance by Seller or other
        cause of action arising as a result of activities of Seller prior to, at
        or
        after the Closing Date; (b) any trade payables due from Seller or vacation,
        sick
        time, overtime or other benefits accrued by Seller’s employees at or prior to
        the Effective Date; (c) Seller is not mailing bulk sales or similar notices;
        and
        (d) Seller’s Tax Liens.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      9.2 All
        obligations and liabilities of the Seller shall remain the obligation and
        responsibility of Seller, and Purchaser shall not become responsible for
        or
        incur any tort or other liability or obligation of any nature of Seller,
        whether
        matured or unmatured, fixed or contingent, known or unknown, arising out
        of
        occurrences prior to, at or after the Effective Date. Notwithstanding the
        above,
        in the event Purchaser incurs, intends to pay, or pays any liability of Seller,
        Purchaser shall give Seller at least ten days prior written notice. In the
        event
        that Purchaser actually pays any obligation, then the amount due under the
        upcoming Note payment shall be reduced by a like amount. If the amount incurred
        or paid by Purchaser exceeds the amount of the upcoming Note payment then
        the
        Seller shall, upon receipt of notice, promptly reimburse Purchaser for the
        difference.

      

      10.1 Without
        limitation of any other provision of this Agreement or any other rights and
        remedies available to Purchaser at law or in equity, Seller and Stockholder,
        jointly and severally, covenant and agree to protect, indemnify, defend and
        hold
        harmless Purchaser and its business and properties and Purchaser’s stockholders,
        officers, directors, employees, representatives, successors and assigns from
        all
        liabilities, losses, claims, demands, damages, interest, penalties, fines,
        costs
        and expenses, whether or not arising out of third party claims (including
        without limitation, diminution in value and consequential damages, reasonable
        attorneys’ and accountants’ fees and expenses) actually or allegedly arising out
        of, in connection with or relating to (i) any act or omission, or any condition
        occurring or existing, or any contract for guard services performed, on or
        prior
        to the Closing Date, in each case by or with respect to Seller or Seller’s
        Security Guard Business, operations or properties of Seller; (ii) any breach
        of
        any covenant, representation or warranty of Seller, or (iii) any debt,
        obligation or liability (including contingent liabilities) incurred by Seller
        with respect to the Security Guard Business.

      

      10.2 Without
        limitation of any other provision of this Agreement or any other rights and
        remedies available to Seller or the Stockholder at law or in equity, Purchaser
        covenants and agrees to protect, indemnify, defend and hold harmless Seller
        and
        the Stockholder from all liabilities, losses, claims, demands, damages,
        interest, penalties, fines, costs, and expenses, whether or not arising out
        of
        third party claims (including without limitation, diminution in value and
        consequential damages, reasonable attorneys’ and accountants’ fees and expenses)
        actually 

      or
        allegedly arising out of, in connection with or relating to (i) any act or
        omission or any condition occurring or existing of Purchaser subsequent to
        the
        Closing Date, with respect to Seller’s Security Guard Business, transferred
        herein, or (ii) any breach of any covenant, representation or warranty of
        Purchaser, or (iii) any debts, obligations or liabilities (including contingent
        liabilities) incurred by Purchaser with respect to Purchaser’s obligations
        hereunder.

      

      11.1 As
        additional consideration for entering into this Agreement and the transaction
        contemplated herein, the Seller and the Stockholder, agree, that for a period
        of
        five (5) years subsequent to the later of (i) the Closing Date; or (ii)
        Stockholder’s termination of employment with Purchaser, if applicable, they will
        not, directly or indirectly, do any of the following:

      

      (a) Within
        the City of Miami, Florida and a two hundred (200) mile radius of the City
        of
        Miami, Florida, own, manage, control or participate in the ownership, management
        or control of any corporation, partnership, proprietorship, firm, association,
        or other business entity, which engages, in any manner in the Security Guard
        Business, other than the business of Purchaser;

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)
         Direct,
        interfere or attempt to divert or interfere in any business and/or contractual
        relationship between Purchaser and any third party; 

      

      (c) Induce
        any person who is an employee of Seller or Purchaser to terminate his or
        her
        employment; and

      

      (d) Disclose,
        divulge, discuss or otherwise use, in any manner, the customer account lists
        of
        Seller or Purchaser, except for the direct benefit of Purchaser.

      

      11.2 Covenantors
        expressly agree and understand that the remedy at law for any breach by them
        of
        this covenant will be inadequate and the Purchaser shall be entitled to
        immediate injunctive relief. Covenantors further agree that the in the event
        Purchaser shall bring any action to enforce the provisions of this Covenant
        Not
        to Compete, the prevailing party shall receive from the other party the costs
        and expenses, including reasonable attorney’s fees, incurred by the prevailing
        party in such action. Nothing contained in this Section, however, shall be
        deemed to constitute Purchaser’s exclusive remedy at law or equity for any
        breach of this Covenant Not to Compete by Covenantors. Any Covenant part
        contained hereinabove, which may be specifically enforceable shall,
        nevertheless, if breached, give rise to a cause of action for all other remedies
        available at law or in equity.

      

      11.3 Notwithstanding
        anything to the contrary herein, it is expressly agreed that Stockholder
        may
        operate an investigation business for the purpose of providing investigative
        services only.

      

      12. The
        laws
        of the State of Florida shall apply to the interpretation and enforcement
        of any
        term of this Agreement. If any disputes shall arise concerning the terms
        and
        conditions of this Agreement, or performance thereunder, the parties shall
        submit said dispute to the jurisdiction of the courts of the State of
        Florida.

      

      13. This
        Agreement shall be binding upon, apply and inure to the benefit of the heirs,
        personal representatives, successors and assigns of the respective parties
        hereto.

      

      14. All
        necessary notices, demands and requests required or permitted to be given
        hereunder shall be deemed duly given when mailed by registered or certified
        mail, return receipt requested, with first class postage pre-paid and properly
        addressed as follows:

      

      
        	
              	If
                to Purchaser:	
                Command
                  Security Corporation

                P.O.
                  Box 340

                1133
                  Route 55, Suite D

                Lagrangeville,
                  NY 12540

                Attn:
                  Barry Regenstein

              

      

       

      

      
        	
              	With
                a copy to:	
                The
                  Ingber Law Firm, PLLC

                6
                  Stallion Trail

                Greenwich,
                  CT 06831

                Attn:
                  Clifford J. Ingber, Esq. 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        
          
            	If
                    to Seller or	
                    Sterling
                      Protective Group, Inc. 

                  

          

        

      

      
        	
                Stockholder:

              	
                3001
                  W. Hallandale Beach Blvd.

                Suite
                  302

                Pembroke
                  Park, FL 33009

                Attn:
                  Howard Chusid

              

      

       

      
        	With
                a copy to:	
                Moffa
                  and Gainor, PA

                One
                  Financial Plaza, Suite 2202

                Ft.
                  Lauderdale, FL 33394

                Attn:
                  Joseph C. Moffa, Esq

              

      

       

      
        
          
            	If
                    to Ingber:	
                    Clifford
                      J. Ingber, Esq.

                    The
                      Ingber Law Firm, PLLC

                    6
                      Stallion Trail

                    Greenwich,
                      CT 06831 

                  

          

        

      

       

      15. This
        Agreement, and the Schedules attached hereto and the other documents referred
        to
        or provided for herein represent the entire contract among the parties with
        respect to the subject matter hereof, and shall not be modified or affected
        by
        any offer, proposal, statement or representation and by or for any party
        in
        connection with the negotiation of the terms hereof, unless evidenced in
        writing
        executed by the duly authorized representatives of the parties
        hereto.

      

      16. Nothing
        herein expressed or implied is intended or shall be construed to confer upon
        or
        give to any person, firm or corporation, other than the parties hereto and
        their
        respective permitted successors and assigns, any rights or remedies under
        or by
        reason of this Agreement, such third parties specifically including, without
        limitation, any employees of Seller.

       

      17.
         The
        only
        broker utilized by either Seller or Purchaser is David Heller & Company,
        LLC, and Seller and Stockholder shall be solely responsible for any payment
        due
        to said broker. 

      

      18.
         No
        amendment, waiver or modification to this Agreement shall be effective unless
        it
        is in writing and has been signed by the parties hereto. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      19.
        The
        failure or delay of any party at any time or times to require strict performance
        of any provision of this Agreement shall in no manner affect such party’s right
        to enforce that provision. No single or partial waiver by any party of any
        condition of this Agreement, or the breach of any term, agreement or covenant
        or
        the inaccuracy of any representation or warranty of this Agreement, whether
        by
        conduct or otherwise, in any one or more instances shall be construed or
        deemed
        to be a further or continuing waiver of any such condition, breach or inaccuracy
        or a waiver of any other condition, breach or inaccuracy. 

      

      20.
        This
        Agreement may be executed in any number of counterparts, each of which shall
        be
        deemed to be an original, but all of which counterparts shall together
        constitute one and the same instrument. Photostatic or facsimile reproductions
        of this Agreement may be made and relied upon to the same extent as
        originals.

      

      
        21. Each
          party shall bear its costs incurred in connection with this transaction.
          

      

       

      22. It
        is
        hereby acknowledged between the parties that during a transition period some
        operating income and expenses paid or received by one party may be for the
        benefit of the other party. Not later than 45 days after the Closing Date,
        the
        parties shall make an accounting of any such amounts and promptly pay or
        reimburse the other party any amounts due. One such reimbursable item to
        Seller
        is uniforms purchased by Seller prior to Closing for which employees pay
        to
        Purchaser. 

      

      23. From
        time
        to time after the Closing Date, either party may request without further
        consideration that the other party execute and deliver or cause to be executed
        and delivered such further instruments of conveyance, assignment and transfer
        and shall take such other action as may reasonably be required to effectively
        consummate the transactions contemplated by this Agreement.
        Purchaser
        hereby agrees to allow Seller access to any books and records from prior
        to the
        Effective Date should they be needed. 

      

      24. This
        Closing will be held in escrow by the respective attorneys until the Purchaser
        obtains an executed employment agreement with Ralph Diaz in the form set
        forth
        in Exhibit 2A.

      

      IN
        WITNESS WHEREOF,
        the
        parties hereto have hereunder set their hands, the day, month and year first
        hereinabove written, and they hereby acknowledge that this agreement fully
        and
        completed sets forth their entire agreement.

       

      
        	
                COMMAND
                  SECURITY CORPORATION

                

                

                By: ___________________________

                 

                 

                Title: __________________________

              	
                STERLING
                  PROTECTIVE GROUP, INC.

                

                

                By: ___________________________

                 

                 

                Title: __________________________

              

      

       

       

      Howard
        Chusid, individually

      

      

      For
        purposes of Section 4.1.2. 

      

      ______________________________

      Cliff
        IngberUnassociated Document

    QUINTESSENCE
      PHOTONICS CORPORATION

    

    INSTRUCTIONS
      FOR COMPLETION OF DOCUMENTS

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    READ
      THE ENTIRE REGISTRATION RIGHTS AGREEMENT BEFORE
      PROCEEDING.

    
      

      
        	
                Page
                  10:

              	 	
                Print
                  the date you are signing the Agreement on the line that says “Date.” Print
                  your address, telephone number, and fax number on the appropriate
                  lines.
                  Sign your name on the first line under “Individual Investors.” Print your
                  name on the second line under “Individual Investors.” If two individuals
                  are investing jointly, such as husband and wife, the joint investor
                  signs
                  their name on the third line and prints their name on the fourth
                  line
                  under “Individual Investors.” If you are signing on behalf of an entity,
                  such as a corporation, partnership, limited liability company,
                  or trust,
                  print the name of the entity on the line that reads “Name of Entity” under
                  “Entity Investors.” Then sign your personal name on the line after “By”
                  and print your personal name on the line after “Name” and print your title
                  with the entity on the line after “Title” (i.e., President, General
                  Partner, Manager, Trustee, Custodian,
                  etc.).

              

      

    

    

    SUBSCRIPTION
      AGREEMENT

    

    
      	
              Item
                I:

            	 	
              Name
                and address information must be provided. Securities will be issued
                in the
                name set forth in this Item and delivered to the address set forth
                in this
                Item. If two people are subscribing jointly, both people must provide
                their names and social security numbers. A telephone number must
                also be
                provided.

            

    

    

    
      	
              Item
                II:

            	 	
              If
                securities are to be held in a different name than the investor and
                sent
                to a different address (i.e., an IRA or other account held at a brokerage
                firm), this Item must be completed. If the securities are to be issued
                and
                delivered directly to the entity listed in Item I, this section need
                not
                be filled in.

            

    

    
      

      
        	
                Item
                  III:

              	 	
                This
                  Item needs to be read by the investor, but nothing needs to be
                  written
                  here.

              

      

      
        

        
          	
                  Item
                    IV:

                	 	
                  This
                    Item must be completed by checking the appropriate
                    line.

                

        

         

      

    

    
      	
              Item
                V:

            	 	
              This
                Item must completed only if you check Item IV(A)(1).
                

            

    

    
       

      
        	
                Item
                  VI:

              	 	
                This
                  Item needs to be read by the investor, but nothing needs to be
                  written
                  here.

              

      

      
         

        
          	
                  Item
                    VII:

                	 	
                  The
                    Patriot Act requires us to collect information on the sources
                    of funds.
                    Please complete section 1, add the documents requested in section
                    2 only
                    if funds did not come from an approved country (U.S. is approved),
                    complete section 3.

                

        

        
          
             

            
              	
                      Item VIII:

                    	 	
                      Add
                        the documents requested in this section only if you are wiring
                        funds.

                    

            

            
              
                 

                
                  	
                          Item
                            IX:

                        	 	
                          The
                            Subscription Agreement must be signed and dated
                            here.

                        

                

                 

              

            

          

        

      

    

    
      	
              Item
                X:

            	 	
              Your
                investment advisor or broker must complete this item and sign to
                verify
                that this is a suitable investment, as well as for record keeping
                purposes.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    PRE-DISPUTE
      ARBITRATION AGREEMENT

    

    Sign
      your
      name under “Client Signature” and print the date you are signing the Agreement
      on the line that says “Date” on the left column. Print your name under “Print
      Client Name.” If two individuals are investing jointly, such as husband and
      wife, the joint investor signs their name on the right column and prints their
      date under “Client Signature” and “Date” on the right column. If you are signing
      on behalf of an entity, such as a corporation, partnership, limited liability
      company, or trust, print the name of the entity on the line that reads “Print
      Client Name.” Then sign your personal name on the line after “Representative
      Signature.”

    

    IF
      YOU ARE A U.S. CITIZEN, RESIDENT ALIEN OR A U.S.-BASED
      ENTITY:

    

    If
      you
      are a U.S. CITIZEN, RESIDENT ALIEN OR AN ENTITY ORGANIZED IN A STATE IN THE
      UNITED STATES. (i.e., Delaware-organized corporation), please complete the
      attached Form W-9 - “Request for Taxpayer Identification Number and
      Certification.” 

    

    IF
      YOU ARE A FOREIGN INVESTOR:

    

    If
      you
      are a FOREIGN INVESTOR, please complete the attached Form W-8BEN “Certificate of
      Foreign Status of Beneficial Owner for United States Tax Withholding.”

    

    INSTRUCTIONS
      FOR PAYMENTS

    

    Please
      deliver a check (bearing subscriber’s name) payable to “City National Bank -
      Quintessence Photonics Corporation” in the amount of your total subscription
      to:

    

    Brookstreet
      Securities Corporation 

    ATTN:
      Compliance

    2361
      Campus Drive, Suite 210

    Irvine,
      CA 92612

    Telephone
      Number: (949) 852-6800

    

    If
      you
      are unable to deliver a check, please wire funds to the escrow agent in the
      amount of your total subscription following these instructions:

    

    CITY
      NATIONAL BANK

    LOS
      ANGELES FED ABA ROUTING # 122 016 066

    C/O
      CITY
      NATIONAL INVESTMENTS #101281469

    FOR
      FURTHER CREDIT TO: 

    ACCOUNT
      NAME: CITY NATIONAL BANK - Quintessence Photonics Corporation

    ACCOUNT
      #
      ESC06536

    

    Complete
      the Registration Rights Agreement and Subscription Agreement and mail or deliver
      with your check or wire information to the address above.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SUBSCRIPTION
      AGREEMENT

    
      	
               

              QUINTESSENCE
                PHOTONICS CORPORATION

            

    

    Please
      read all instructions and the terms and conditions of this agreement carefully
      before filling out this application. If you need assistance, please contact
      George Lintz, CFO of Quintessence Photonics Corporation (the “Company") at (818)
      986-0000 or Neil Dabney at Brookstreet Securities Corporation at (310)
      230-1044.

     

    
      	When the application is
              complete,
              mail the application and your investment to:	 	
              Brookstreet
                Securities
                Corporation

              ATTN:
                Compliance

              ADDRESS:
                2361 Campus Drive, Suite 210

              Irvine,
                CA 92612

            

    

     

    Make
      checks payable to City National Bank - Quintessence Photonics
      Corporation

    
      	 	o	Check
              this box if you are sending your subscription funds by wire
              transfer.
	 	o	Check
              this box if you previously invested this
              Offering.

    

    
       

    

    
      	
               

              I. ACCOUNT
                REGISTRATION - Check
                One

            

    

    

    
      	o	
              Individual
                Account

            	 o	
              Joint
                Registration

               

              If
                no box below is checked, we will issue the securities as
                JTWROS.

            	 o	
              Pension
                or Profit
Sharing

               

            	 o	
              Corporation,
                Partnership, Trust, Association or Other
                Entity

            
	 	
            	 o	
              Joint
                Tenant with Right of Survivorship

            	 o	
              IRA

            	 	 
	 	
            	 o	
              Tenants
                in Common

            	 	 	 	 
	 	
            	 o	
              Tenants
                by Entirety

            	 	 	 	 
	 	
            	 o	
              Community
                Property

            	 	 	 	 

    

     

    
      	 	 	 
	
              Name
                of APPLICANT, CUSTODIAN, CORPORATION, TRUST or BENEFICIARY

            	 	 

    

     

    
      	 	
              M
                or F

            	 	 	 	o
	
            	
               

            	
              Date
                of Birth

            	 	
              Soc.
                Sec./Tax ID #

            	
            

    

    
      
        	 	 	PLEASE
                PUT A CHECK NEXT TO THE SOC. SEC. # OR TAX ID. # RESPONSIBLE FOR
                TAXES. WE
                WILL REPORT THIS NUMBER TO THE IRS.
	
                Name
                  of JOINT TENANT or TRUSTEE (if applicable)

              	 	 

      

    

    
      
        
          	 	
                  M
                    or F

                	 	 	 	o
	
                	
                	
                  Date
                    of Birth

                	 	
                  Soc.
                    Sec./Tax ID #

                	 

        

      

      
         

        
          
            	 	 	 
	
                    
                      Name
                        of ADDITIONAL TRUSTEE (if
                        applicable)

                    

                  	 	
                    Date
                      of Trust

                  

          

           

          Marital
            Status (please check one) o
            Single o
            Married o
            Separated     o
            Divorced

        

      

    

    

    $________________
      Investment Amount_________________Number
      of Shares of Common Stock
      (Number
      of Shares X $1.25 per Share; Minimum 20,000 Shares ($25,000) unless otherwise
      approved by the Company)

    

    HOME
      ADDRESS - THIS ADDRESS WILL BE USED FOR MAILING UNLESS YOU INDICATE
      OTHERWISE

     

    
      	 	 
	Street Address	Unit Number

    

    
      
        	City
                ________________________	
                 
State_______________________

              	 ZIP+4_______________________

      

    

    
      	
            	 
	
              Home
                Phone Number (with Area Code) (_____)
                ________________

            	
              /
                Fax Number (with Area Code) (____)
                _________________

            
	Email
              Address: _______________________	 

    

      

    BUSINESS
      ADDRESS

    
       

      
        	 	 
	Name
                of Company	 

      

      
        
          	 	 
	Street Address	
                  Suite
                    Number

                

        

        
          
            	City
                    ________________________	
                     
State_______________________

                  	 ZIP+4_______________________

          

        

        
          	
                	 
	
                  Home
                    Phone Number (with Area Code) (_____)
                    ________________

                	
                  /
                    Fax Number (with Area Code) (____)
                    ____________________

                
	Email
                  Address: _______________________	 

        

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

         

      

    

    
      	
              II. ALTERNATIVE
                DISTRIBUTION INFORMATION

            

    

    

    To
      direct distributions to a party other than the registered owner, complete the
      information below. YOU MUST COMPLETE THIS SECTION IF THIS IS AN IRA
      INVESTMENT.

    

    Name
      of
      Firm (Bank, Brokerage, Custodian):
      _______________________________________________

    

    Account
      Name:
      _____________________________________________________________________

    

    Account
      Number:
      ___________________________________________________________________

    

    Representative
      Name:
      ________________________________________________________________

     

    Representative Phone
      Number: _________________________________________________________

    

    Address:
      __________________________________________________________________________

    

    City,
      State ZIP:
      _____________________________________________________________________

    

    
      	
              III. SUBSCRIPTION
                AGREEMENT

            

    

    

    You
      as an
      individual or you on behalf of the subscribing entity are being asked to
      complete this Subscription Agreement so a determination can be made as to
      whether or not you (it) are qualified to purchase securities under applicable
      federal and state securities laws.

    Your
      answers to the questions contained herein must be true and correct in all
      respects, and a false representation by you may constitute a violation of law
      for which a claim for damages may be made against you.

    Your
      answers will be kept strictly confidential; however, by signing this
      Subscription Agreement, you will be authorizing the Company to present a
      completed copy of this Subscription Agreement to such parties as they may deem
      appropriate in order to make certain that the offer and sale of the Securities
      will not result in a violation of the Securities Act of 1933, as amended, or
      of
      the securities laws of any state.

    This
      Subscription Agreement does not constitute an offer to sell or a solicitation
      of
      an offer to buy securities or any other security.

    All
      questions must be answered.
      If the
      appropriate answer is "None" or "Not Applicable," please state so. Please print
      or type your answers to all questions and attach additional sheets if necessary
      to complete your answers to any item. Please initial any
      correction.

     

    
      
        

      
INDIVIDUAL
      SUBSCRIBERS:

    If
      the
      Securities subscribed for are to be owned by more than one person, you
      and the other co-subscriber must each complete a separate Subscription Agreement
      (except if the co-subscriber is your spouse) and sign the Signature Page annexed
      hereto. If your spouse is a co-subscriber, you must indicate your spouse's
      name
      and social security number.

    CORPORATIONS,
      PARTNERSHIPS, PENSION PLANS AND TRUSTS:

    The
      information requested herein relates to the subscribing entity and not to you
      personally (unless otherwise determined in the ACCREDITED INVESTOR STATUS
      section).

    

    
      	
              IV. ACCREDITED
                INVESTOR STATUS

            

    

     

    TO
      BE AN ACCREDITED INVESTOR, YOU MUST MEET ONE OF THE FOLLOWING TESTS, PLEASE
      CHECK THE APPROPRIATE SPACES BELOW.

     

    A. INDIVIDUAL
      ACCOUNTS

    I
      certify
      that I am an "accredited investor" because:

     

    1  _______
      I
      had an individual income of more than $200,000 in each of the two most recent
      calendar years, and I reasonably expect to have an individual income in excess
      of $200,000 in the current calendar year; or my spouse and I had joint income
      in
      excess of $300,000 in each of the two most recent calendar years, and we
      reasonably expect to have a joint income in excess of $300,000 in the current
      calendar year (Note:
      Item V, Income Statement, must be completed if you check this
      option);

    OR

    2 
       _______
      I
      have an individual net worth, or my spouse and I have a joint net worth, in
      excess of  $1,000,000 including home and personal
      property).

    For
      purposes of this Subscription Agreement, "individual income" means "adjusted
      gross income" as reported for Federal income tax purposes, exclusive of any
      income attributable to a spouse or to property owned by a spouse: (i) the
      amount of any interest income received which is tax-exempt under
      Section 103 of the Internal Revenue Code of 1986, as amended, (the "Code"),
      (ii) the amount of losses claimed as a limited partner in a limited
      partnership (as reported on Schedule E of form 1040), (iii) any
      deduction claimed for depletion under Section 611 et seq. of the Code and
      (iv) any amount by which income from long-term capital gains has been
      reduced in arriving at adjusted gross income pursuant to the provisions of
      Sections 1202 of the Internal Revenue Code as it was in effect prior to
      enactment of the Tax Reform Act of 1986.

    For
      purposes of this Subscription Agreement, "joint income" means, "adjusted gross
      income," as reported for Federal income tax purposes, including any income
      attributable to a spouse or to property owned by a spouse, and increased by
      the
      following amounts: (i) the amount of any interest income received which is
      tax-exempt under Section 103 of the Internal Revenue Code of 1986, as
      amended (the "Code"), (ii) the amount of losses claimed as a limited partner
      in
      a limited partnership (as reported on Schedule E of Form 1040),
      (iii) any deduction claimed for depletion under Section 611
      et seq. of the Code and (iv) any amount by which income from long-term
      capital gains has been reduced in arriving at adjusted gross income pursuant
      to
      the provisions of Section 1202 of the Internal Revenue Code as it was in
      effect prior to enactment of the Tax Reform Act of 1986.

    For
      the
      purposes of the Subscription Agreement, "net worth" means (except as otherwise
      specifically defined) the excess of total assets at fair market value, including
      home and personal property, over total liabilities, including mortgages and
      income taxes on unrealized appreciation of assets.

    

    B. CORPORATIONS,
      PARTNERSHIPS, EMPLOYEE BENEFIT PLANS OR IRAS

    (Please
      provide a copy of the Corporate Resolution authorizing this investment,
      Partnership Agreement, Limited Liability Company Operating Agreement, or Benefit
      Plan, as applicable)

    1  Has
      the
      subscribing entity been formed for the specific purpose of investing in the
      Securities? o
      YES  o
NO

    If
      your
      answer to question 1 is "No," CHECK whichever of the following statements (a-e)
      is applicable to the subscribing entity. If your answer to question 1 is
      "Yes," the subscribing entity must be able to certify to statement (2)
      below in
      order to qualify as an "accredited investor."

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               

              ACCREDITED
                INVESTOR STATUS -
                (Continued)

            

    

    

    The
      undersigned entity certifies that it is an "accredited investor" because it
      is:

    (a) _______
      an employee benefit plan within the meaning of Title I of the Employee
      Retirement Income Security Act of 1974, provided that the investment decision
      is
      made by a plan fiduciary, as defined in section 3(21) of such Act, and the
      plan fiduciary is a bank, savings and loan association, insurance company or
      registered investment adviser; OR

    (b) _______
      an employee benefit plan within the meaning of Title I of the Employee
      Retirement Income Security Act of 1974 that has total assets in excess of
      $5,000,000; OR

    (c) _______
      each of its shareholders, partners, or beneficiaries meets at least one of
      the
      following conditions described above under Individual
      Accredited Investor Status in
      Section
      A of Item IV above. Please also CHECK the appropriate space in Section A of
      Item
      IV above. (Note:
      Item V, Income Statement, must be completed for each shareholder, partner or
      beneficiary if you are relying upon an income standard by checking option 1
      in
      Section A of Item IV above.) OR

    (d) _______
      the plan is a self directed employee benefit plan and the investment decision
      is
      made solely by a person that meets at least one of the conditions described
      above under Individual
      Accredited Investor Status in
      Section
      A of Item IV above. Please also CHECK the appropriate space in Section A of
      Item
      IV above. (Note:
      Item V, Income Statement, must be completed if you are relying upon an income
      standard by checking option 1 in Section A of Item IV
      above.) OR

    (e) _______
      a
      corporation, a partnership or a Massachusetts or similar business trust with
      total assets in excess of $5,000,000.

    2.  If
      the
      answer to Question 1 above is "Yes," please certify the statement below is
      true and correct:

    _______
      The undersigned entity certifies that it is an accredited investor because
      each
      of its shareholder or beneficiaries meets at least one of the conditions
      described above under Individual
      Accredited Investor Status in
      Section
      A of Item IV above. Please also CHECK the appropriate space in Section A of
      Item
      IV above. (Note:
      Item V, Income Statement, must be completed if you are relying upon an income
      standard by checking option 1 in Section A of Item IV
      above.)

    

    C. TRUST
      ACCOUNTS

    (Please
      provide complete copy of the Trust)

    1. 
Has
      the
      subscribing entity been formed for the specific purpose of investing in the
      Securities? YES
      o NO
      o

     

    If
      your
      answer to question 1 is "No," CHECK whichever of the following statements
      (a-c) is applicable to the subscribing entity. If your answer to question 1
      is "Yes," the subscribing entity must be able to certify to the statement (c)
      below in order to qualify as an "accredited investor."

    The
      undersigned trustee certifies that the trust is an "accredited investor"
      because:

    (a)_______
      The trust has total assets in excess of $5,000,000 and the investment decision
      has been made by a "sophisticated person" as described in Rule 506(b)(2)(ii)
      promulgated under the Act; OR

    (b)_______
      The trustee making the investment decision on its behalf is a bank (as defined
      in Section 3(a)(2) of the Act), a saving and loan association or other
      institution as defined in Section 3(a)(5)(A) of the Securities Act, acting
      in its fiduciary capacity; OR

    (c)_______
      the grantor(s) of the trust may revoke the trust at any time and regain title
      to
      the trust assets and has (have) retained sole investment control over the assets
      of the trust and the (each) grantor(s) meets at least one of the conditions
      described above under Individual
      Accredited Investor Status.
      Please
      also CHECK the appropriate space in that Section.

    

    D. ANY
      ENTITY (but not an individual person)

    ______
      All
      of
      the equity owners of this entity are accredited investors.
      (If you are checking this option EACH
      owner of the entity must complete Item IV, A, by checking option 1 or 2 or
      both,
      as applicable, and
      complete Item V if you checked option 1 of Item IV, A. Make copies of pages
      2
      and 3 to do this and note each owner’s name on each copy.)

    

    
      	
               

              V. INCOME
                STATEMENT - (Round off to the nearest
                $5,000)

            

    

    ALL
      ACCREDITED INVESTORS RELYING ON AN INCOME STANDARD (YOU ARE RELYING ON AN INCOME
      STANDARD IF YOU CHECKED ITEM IV(A)(1)) MUST COMPLETE THIS SECTION.

     

    Please
      specify the amount of your:  ̈ Individual
       ̈Joint
       ̈Trust
       ̈Beneficiary
       ̈Shareholder
       ̈
      Partner

    income
      (defined in page 2: Accredited Investor Status) in calendar years 2004 and
      2005
      and your projected income for 2006.

    

    
      	
               

              2004

            	
               

              $___________________

            	 
	
               

              2005

            	
               

              $___________________

            	 
	
               

              2006

            	
               

              $___________________
                (projected)

            	
               

            

    

     

    Current
      occupation:

    Name
      of
      Employer:____________________________  

    Position
      or Title:_____________________________    Telephone
      number (___) ______ - ____________

    Former
      employment (if
      current employment is less than five years):

    Name
      of
      Employer:____________________________   Position
      or Title:___________________________ 

    Position
      or Title:______________________________   Period
      Employed:  ____________
      to____________ 

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	
               

              VI. CERTIFICATIONS

            

    

    

    I
      understand that investment in the Securities is an illiquid
      investment.
      In
      particular, I recognize that: (i) I must bear the economic risk of investment
      in
      the Securities for an indefinite period of time, since the Securities have
      not
      been registered under the Securities Act of 1933 (the "Securities Act") and
      therefore cannot be sold unless either they are subsequently registered under
      the Securities Act or an exemption from such registration is available and
      a
      favorable opinion of counsel for the Company to that effect is obtained (if
      requested by the Company); and (ii) no established market will exist and it
      is
      possible that no public market for the Securities will develop. I consent to
      the
      affixing by the Company of such legends on certificates representing the
      Securities as any applicable federal or state securities law may require from
      time to time.

    I
      represent and warrant to the Company that: (i) The financial information
      provided in the Subscription Agreement is complete, true and correct; (ii) I and
      my Investment Managers, if any, have carefully reviewed and understand the
      risks
      of, and other considerations relating to, a purchase of Securities, including,
      but not limited to, the risks set forth under "Risk
      Factors"
      in the
      Private Placement Memorandum (the “Memorandum”); (iii) I and my Investment
      Managers, if any, have been afforded the opportunity to obtain any information
      necessary to verify the accuracy of any representations or information set
      forth
      in the Memorandum and have had all inquiries to the Company answered, and have
      been furnished all requested materials, relating to the Company and the offering
      and sale of the Securities and anything set forth in the Memorandum; (iv)
      neither I nor my Investment Managers, if any, have been furnished any offering
      literature by the Company or any of its affiliates, associates or agents other
      than the Memorandum, and the documents referenced therein; and (v) I am
      acquiring the Securities for which I am subscribing for my own account, as
      principal, for investment and not with a view to the resale or distribution
      of
      all or any part of the Securities.

    The
      undersigned, if a corporation, partnership, trust or other form of business
      entity, (i) is authorized and otherwise duly qualified to purchase and hold
      the
      Securities, (ii) has obtained such additional tax and other advice that it
      has
      deemed necessary, (iii) has its principal place of business at its residence
      address set forth in this Subscription Agreement, and (iv) has not been formed
      for the specific purpose of acquiring the Securities (although this may not
      necessarily disqualify the subscriber as a purchaser). The persons executing
      the
      Subscription Agreement, as well as all other documents related to the Offering,
      represent that they are duly authorized to execute all such documents on behalf
      of the entity. (If the undersigned is one of the aforementioned entities, it
      agrees to supply any additional written information that may be
      required.)

    All
      of
      the information which I have furnished to the Company and which is set forth
      in
      the Subscription Agreement is correct and complete as of the date of the
      Subscription Agreement. If any material change in this information should occur
      prior to my subscription being accepted, I will immediately furnish the revised
      or corrected information. I further agree to be bound by all of the terms and
      conditions of the Offering described in the Memorandum. I am the only person
      with a direct or indirect interest in the Securities subscribed for by this
      Subscription Agreement. I agree to indemnify and hold harmless the Company
      and
      its officers, directors and affiliates as well as the Company’s placement agents
      and all their officers, directors and affiliates from and against all damages,
      losses, costs and expenses (including reasonable attorneys' fees) that they
      may
      incur by reason of the failure of the undersigned to fulfill any of the terms
      or
      conditions of this Subscription Agreement or by reason of any breach of the
      representations and warranties made by the undersigned herein or in any document
      provided by the undersigned to the Company. This subscription is not
      transferable or assignable by me without the written consent of the Company.
      If
      more than one person is executing this agreement, the obligations of each shall
      be joint and several and the representations and warranties contained in this
      Subscription Agreement shall be deemed to be made by, and be binding upon,
      each
      of these persons and his or her heirs, executors, administrators, successors
      and
      assigns. This subscription, upon acceptance by the Company, shall be binding
      upon my heirs, executors, administrators, successors and assigns. This
      Subscription Agreement shall be construed in accordance with and governed in
      all
      respects by the laws of the State of California.

    I
      certify
      that I, either alone or with my purchaser representative, have such knowledge
      and experience in financial and business matters that I am capable of evaluating
      the merits and risks of this investment.

    I
      understand that the Company plans to enter into a reverse merger transaction
      with publicly-trade company (“Pubco”) after the Offering as described in the
      Memorandum (“Reverse Merger”). The Reverse Merger, if consummated, will result
      in the exchange of the Securities that are owned by the Stockholder for shares
      of the common stock of the Public Co. (the “Exchange Offer”). Substantially all
      Company stockholders have already provided irrevocable proxies and power of
      attorneys to the Company’s Chief
      Executive Officer and Chief Financial Officer (each an “Agent”) and each of
      them, to take all actions necessary to consummate the Reverse Merger, including
      exchange their equity securities for equity securities of Pubco. I further
      understand that the Company has conditioned its acceptance of my subscription
      to
      purchase the Securities upon my willingness to agree to the Reverse Merger
      and
      Exchange Offer. Therefore, I hereby authorized
      and empowered the
      Agents, and each of them,
      to act
      as my attorneys
      and
      proxies
      for the
      purpose of: (i) exchanging the Securities for shares of the Pubco’s common stock
      at the same ratio that all other Company stockholders exchange their equity
      securities for shares of Pubco’s common stock, (ii) executing and delivering
      such documentation and taking such other actions as may be required to effect
      the Reverse Merger taking
      any actions as may be necessary to effectuate the Exchange Offer, including
      but
      not limited to, instructing the transfer agent to cancel the Securities and
      executing, on behalf of me, such documents as may be necessary to effectuate
      the
      exchange if I fail to deliver the stock certificate for cancellation, or fail
      to
      execute any other documentation required to effectuate the exchange, within
      15
      days after the expiration of the Exchange Offer; and (iii)
      voting
      in favor of the adoption, approval, execution and delivery by the Company of
      such agreements, contracts, and documents (including, but not limited to, any
      amendment to the Company’s Certificate of Incorporation, if required) and the
      taking of any other actions requiring stockholder approval as may be required
      or
      deemed appropriate by the Company’s Chief Executive Officer to consummate the
      Reverse Merger and related Exchange Offer. 

    Under
      penalties of perjury, I certify that (1) my taxpayer identification number
      shown in this Subscription Agreement is correct and (2) I am not subject to
      backup withholding because (a) I have not been notified that I am subject
      to backup withholding as a result of a failure to report all interest and
      dividends or (b) the Internal Revenue Service has notified me that I am no
      longer subject to backup withholding. (If you have been notified that you are
      subject to backup withholding and the Internal Revenue Service has not advised
      you that backup withholding has been terminated, strike out item
      (2).)

    I
      hereby
      give power of attorney to the President or Secretary of the Company to execute
      the Registration Rights Agreement on my behalf and further agree to be bound
      by
      the terms of the Registration Rights Agreement in the form contained in the
      Memorandum by executing this Subscription Agreement only.

    The
      undersigned acknowledge that City National Bank is acting solely as Escrow
      Holder in connection with the offering of the Securities and makes no
      recommendation with respect thereto.  City National Bank has made no
      investigation regarding the offering, the Company or any other person or entity
      involved in the offering.

    BY
      SIGNING, I ACKNOWLEDGE THAT I HAVE CAREFULLY REVIEWED THE MEMORANDUM RELATED
      TO
      THIS INVESTMENT AND AM BOUND BY THE TERMS OF THE SUBSCRIPTION AGREEMENT AND
      MEMORANDUM.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    
      	
               

              VII. PATRIOT
                ACT REQUIREMENTS

            

    

    

    The
      Patriot Act requires us to obtain the following information from you to detect
      and prevent the misuse of the world financial system.

    

    
      	
              1.

            	
              In
                the space provided below, please provide details of where
                monies were transferred from
                to
                the Company in relation to your subscription for Securities.
                

            

    

    

    
      	
               

              COUNTRY

            	
               

              NAME
                OF BANK/FINANCIAL INSTITUTION

            	
              CONTACT
                NAME/PHONE NUMBER AT BANK/FINANCIAL INSTITUTION

            	
               

              NAME
                OF ACCOUNTHOLDER

            	
               

              ACCOUNT
                NUMBER

            
	
               

               

            	 	 	 	 
	
               

               

            	 	 	 	 

    

    

    If
      the
      country from which the monies were transferred appears in the Approved Country
      List below, please go to number 3. If the country does not appear, please go
      to
      number 2.

    

    Approved
      Country List

     

    
      	Argentina	Germany	Liechtenstein	Spain
	Australia	Gibraltar	Luxembourg	Switzerland
	Bermuda	Guernsey	Mexico	Turkey
	Belgium	Hong Kong	Netherlands	United Kingdom
	Brazil	Iceland	New Zealand	United States
	British Virgin Islands	Ireland	Norway	 
	Canada	Isle of Man	Panama	 
	Denmark	Italy	Portugal	 
	Finland	Japan	Singapore	 
	France	Jersey	 	 

    

     

    
      	
              2.

            	
              If
                subscription monies were transferred to the Company from any country
                other
                than on the "Approved Country List" (see above), please provide the
                following documentation to the Company (all copies should be in English
                and certified as being "true and correct copies of the original"
                by a
                notary public of the jurisdiction of which you are
                resident).

            

    

    

    
      	(a)  	
              For
                Individuals:

            

    

    

    
      	(i)  	
              evidence
                of name, signature, date of birth and photographic
                identification

            

    

    

    
      	(ii)  	
              evidence
                of permanent address

            

    

    

    
      	(iii)  	
              where
                possible, a reference from a bank with whom the individual maintains
                a
                current relationship and has maintained such relationship for at
                least two
                years

            

    

    

    
      	(b)  	
              For
                Companies:

            

    

    

    
      	(i)  	
              a
                copy of its certificate of incorporation and any change of name
                certificate

            

    

    

    
      	(ii)  	
              a
                certificate of good standing

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
               

              VII. PATRIOT
                ACT REQUIREMENTS -
                (Continued)

            

    

    

    
      	(iii)  	
              a
                register or other acceptable list of directors and
                officers

            

    

    

    
      	(iv)  	
              a
                properly authorized mandate of the company to subscribe in the form,
                for
                example, of a certified resolution which includes naming authorized
                signatories

            

    

    

    
      	(v)  	
              a
                description of the nature of the business of the
                company

            

    

    

    
      	(vi)  	
              identification,
                as described above for individuals, for at least two directors and
                authorized signatories

            

    

    

    
      	(vii)  	
              a
                register of members or list of shareholders holding a controlling
                interest

            

    

    

    
      	(viii)  	
              identification,
                as described above, for individuals who are beneficial owners of
                corporate
                shareholders which hold 10% or more of the capital share of the
                company

            

    

    

    
      	(c)  	
              For
                Partnerships and Unincorporated
                Businesses:

            

    

    

    
      	(i)  	
              a
                copy of any certificate of registration and a certificate of good
                standing, if registered

            

    

    

    
      	(ii)  	
              identification,
                as described above, for individuals and, where relevant, companies
                constituting a majority of the partners, owners or managers and authorized
                signatories

            

    

    

    
      	(iii)  	
              a
                copy of the mandate from the partnership or business authorizing
                the
                subscription in the form, for example, of a certified resolution
                which
                includes naming authorized
                signatories

            

    

    

    
      	(iv)  	
              a
                copy of constitutional documents (formation and partnership
                agreements)

            

    

    

    
      	(d)  	
              For
                Trustees:

            

    

    

    
      	(i)  	
              identification,
                as described above, for individuals or companies (as the case may
                be) in
                respect of the trustees

            

    

    

    
      	(ii)  	
              identification,
                as described above for individuals, of beneficiaries, any person
                on whose
                instructions or in accordance with whose wishes the trustee/nominee
                is
                prepared or accustomed to act and the settlor of the
                trust

            

    

    

    
      	(iii)  	
              evidence
                of the nature of the duties or capacity of the
                trustee

            

    

    

    
      	
              3.

            	
              The
                Company is also required to verify the source of funds. To this end,
                summarize the underlying source of the funds remitted to us (for
                example,
                where subscription monies were the profits of business (and if so
                please
                specify type of business), investment income, savings,
                etc.).

            

    

    

    

    
      	
               Source
                of Funds

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
               

              VIII. ANTI-MONEY
                LAUNDERING ACT

            

    

     

    
      	
               

            	
              WIRING
                FUNDS:
                Due to the Anti-Money Laundering Act, Brookstreet Compliance
                must
                grant approval prior to funds being wired from any account other
                than
                National Financial Services (NFS) or an IRA Custodial
                Account.
                Thus, please adhere to the following procedure:

            

    

     

    
      	A.  	
              Complete
                Sections 1 through 3 above, as applicable, utilizing the information
                for
                the bank from which the wire will
                originate.

            

    

     

    
      	B.  	
              Attach
                a copy of your “Letter of Instruction” or other wire instructions showing
                your name, financial institution name (where wire will originate),
                account
                number, wire amount, and wire instructions (escrow agent information
                such
                as ABA routing number, escrow account number etc) - this must be
                signed
                and dated.

            

    

     

    
      	C.  	
              If
                monies will be wired from an account not matching the name on this
                Subscription Agreement, additional documentation is necessary (please
                contact Brookstreet Compliance @ (800) 297-2578 extension 141 for
                assistance).

            

    

     

    
      	D.  	
              Submit
                Subscription Agreement to Compliance for processing and compliance
                approval.

            

    

     

    
      	E.  	
              Upon
                notification of approval from Compliance, wire
                funds.

            

    

     

    
      	F.  	
              Compliance
                will obtain wire confirmation from escrow agent. If wire confirmation
                does
                NOT show account number of wire origination, additional documentation
                will
                be required.

            

    

     

    WIRING
      FUNDS IN ADVANCE OF COMPLIANCE APPROVAL IS PROHIBITED

    

    
      	
               

              IX. SIGNATURES

            

    

    The
      Subscription Agreement contains various statements and representations by
      subscribers and should be carefully reviewed in its entirety before executing
      this signature page.

    

    I
      hereby
      certify that I have reviewed and am familiar with the terms of the Subscription
      Agreement. This
      Subscription Agreement incorporates by reference all forms of securities to
      be
      purchased. I agree to be bound by all of the terms and conditions of this
      Subscription Agreement and all forms of securities presented to me.

    

    Dated
      ___________________

     

    
      	Print name of individual subscriber,
              custodian, corporation, trustee 	Signature of individual subscriber,
              authorized person, trustee
	____________________________________	_____________________________________

    

    
       

      
        	Print name of co-subscriber, authorized
                person, co-trustee if required by trust instrument	Signature of co-subscriber, authorized
                person, co-trustee if required by trust instrument
	____________________________________	_____________________________________

      

       

      Investment
        Authorization.
        The
        undersigned corporation, partnership, benefit plan or IRA has all requisite
        authority to acquire the Securities hereby subscribed for and to enter into
        the
        Subscription Agreement, and further, the undersigned officer, partner or
        fiduciary of the subscribing entity has been duly authorized by all requisite
        action on the part of such entity to execute these documents on its behalf.
        Such
        authorization has not been revoked and is still in full force and
        effect.

    

    Check
      Box:   ̈ Yes  ̈ No  ̈ Not
      Applicable

    

    CAPACITY
      CLAIMED BY SIGNER:

     

     

    
      	 ̈ Individual(s)	 ̈ Attorney-In-Fact
	 ̈ Partner(s)	 ̈ Subscribing
              Witness
	 ̈ Trustee(s)	 ̈ Guardian/Conservator
	 ̈ Corporate
              _____________________________	 ̈ Other:
              _______________________________
	
               
Officer(s)
                ____________________________

            	__________________________________
	
              Title(s)

            	__________________________________

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    
      	
               

              X. VERIFICATION
                OF INVESTMENT
                ADVISOR/BROKER

            

    

     

    I
      state
      that I am familiar with the financial affairs and investment objectives of
      the
      investor named above and reasonably believe that a purchase of the Securities
      is
      a suitable investment for this investor and that the investor, either
      individually or together with his or her purchaser representative, understands
      the terms of and is able to evaluate the merits of this offering. I
      acknowledge:

    

    (a) that
      I
      have reviewed the Memorandum,  Subscription
      Agreement and forms of securities presented to me, and attachments (if any)
      thereto;

    (b) that
      the
      Subscription Agreement and attachments thereto have been fully completed and
      executed by the appropriate party; and

    (c) that
      the
      subscription will be deemed received by the Company upon acceptance of the
      Subscription Agreement.

     

    
      	Broker/Dealer 	Account Executive
	____________________________________	___________________________________
	(Name of Broker/Dealer)	(Signature)
	____________________________________	____________________________________ 
	(Street Address of Broker/Dealer
              Office)	Print Name)
	____________________________________	____________________________________
	(City of Broker/Dealer Office) (State)
              (Zip)	(Representative I.D. Number)
	 	 

    

    
      	(____) ______-_______________________	____________________________________
	(Telephone Number of Broker/Dealer
              Office)	Date
	 	 

    

    
      	(____) ______-_______________________	____________________________________
	(Fax Number of Broker/Dealer
              Office)	(E-mail Address of Account
              Executive)

    

     

    
      
        
        

      

      
        8

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