Document:

Exhibit
10.2

    

    GARMENT
MANUFACTURER & SELLER LICENSE AGREEMENT

    

    BETWEEN

    

    E.
I. DUPONT DE NEMOURS AND COMPANY

    1007
MARKET STREET

    WILMINGTON,
DELAWARE 19898

    A
DELAWARE CORPORATION

    ("DUPONT")

    AND

    LAKELAND
INDUSTRIES INCORPORATED

    701-7
KOEHLER AVENUE

    RONKONKOMA,
NEW YORK 11779

    A
DELAWARE CORPORATION

    ("LICENSEE")

    

    WHEREAS,
DUPONT has gained expertise in the manufacture of fabrics and protective
garments for numerous industrial applications and wishes to respond to end user
needs for consistent high quality protective apparel;

    

    WHEREAS,
DUPONT has developed and adopted certain trademarks as shown in Attachment A
(hereinafter " Trademarks") which are reserved exclusively to designate high
quality protective garments meeting certain quality specifications;

    

    WHEREAS,
DUPONT has developed terms and conditions for licensing the use of Trademarks in
conjunction with selling garments and for establishing manufacturing and
distribution channels to promote these garments; and

    

    WHEREAS,
LICENSEE desires to become a manufacturer and seller for these garments, use
Trademarks on such garments having the quality and product specifications set
forth in this License, sell such garments in certain markets, and is willing to
comply with the terms set forth below,

    

    NOW,
THEREFORE, in consideration of the grant and mutual promises contained in this
Agreement, DUPONT and LICENSEE agree as follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              I.

            	
              Purpose

            

    

    

    
      	
              1.

            	
              The
      Parties hereto recognize that DuPont manufactures and sells material in
      the form of nonwoven fabrics listed in Attachment B
      (“Fabric”).  Those nonwoven Fabrics have beneficial properties
      when properly applied in the manufacture of protective clothing used by
      industrial workers.

            

    

    

    
      	
              2.

            	
              The
      Parties hereto recognize that Licensee is an experienced manufacturer of
      industrial protective clothing, including Garments, made of
      Fabric.  DuPont does not manufacture the finished product for
      Licensee.

            

    

    

    
      	
              3.

            	
              The
      consumers of protective clothing have an interest in knowing the principal
      material used in making the protective clothing.  DuPont has an
      interest in protecting the good will associated with its Fabric and its
      Trademarks.  Further, DuPont and Licensee have a mutual interest
      in the fair, accurate and non-infringing use of the DuPont Trademarks
      associated with the Fabric.  Licensee wishes to convey the
      quality and kind of Fabric used to manufacture the Garments it sells by
      referencing the Trademarks.

            

    

    

    
      	
              4.

            	
              Fabric
      is being adapted by the Licensee for use in the manufacture of Garments
      because Licensee believes Fabric is a suitable material for such
      use.

            

    

    

    
      	
              5.

            	
              DuPont
      has received reasonable assurances from Licensee that Licensee will use
      the Fabric and the Garments responsibly and safely.  Further,
      Licensee represents and warrants it will make only accurate statements or
      representations concerning the characteristics and qualities of the Fabric
      and the Garments.

            

    

    

    
      	
              6.

            	
              This
      Agreement sets forth the basis under which Licensee will (i) manufacture
      Garments made of Fabrics and (ii) be permitted to use DuPont’s
      Trademarks.

            

    

    

    
      	
              II.

            	
              Grant

            

    

    

    
      	
              1.

            	
              DuPont
      grants Licensee a nonexclusive, nontransferable, non-assignable, license
      to use, display, promote and advertise Trademarks in the United States,
      Canada and Mexico ("Territory") in connection with making, selling and
      marketing high quality protective apparel for all industrial markets,
      excluding the hospital and cleanroom markets ("Markets"), manufactured
      from certain types of nonwoven Fabric as described in Attachment B
      provided such garments comply with all the technical and quality
      specifications of Attachment B
      ("Garments").  DuPont and Licensee may mutually agree in writing
      to add new markets to Markets as described above.   The
      Parites’ respective rights and obligations in any new
      market  are subject to all the terms and conditions of this
      License.

            

    

    

    DuPont
may license others to make and sell Garments for Markets in the Territory and to
use Trademarks in Territory.  In addition, DuPont may also make and
offer Garments for sale in the Territory.

    

    Attachment B
specifications may be revised or supplemented at any time at DuPont's discretion
upon written notice to Licensee and such revisions or supplements shall become a
part of this License; provided however that Garments made under prior Attachment B
specifications before such change notice shall be deemed to comply with this
Agreement.  Garments which bear Trademarks must meet all of the
Specifications set forth in Attachment
B.

    

    DuPont
may elect to add new Garments and/or Fabrics to the scope of this
license.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
              III.

            	
              Licensee
      Commitments

            

    

    

    
      	
              1.

            	
              Licensee
      accepts the grant of this License and agrees to use its best efforts in
      manufacturing, selling, and promoting Garments bearing Trademarks in
      Markets within the Territory.  Licensee also agrees not to sell
      and/or promote Garments bearing Trademarks outside the Markets or the
      Territory defined herein.

            

    

    

    
      	
              2.

            	
              Licensee
      will maintain a staff or will retain agents and consultants who are
      properly trained, experienced, sophisticated and knowledgeable in the
      properties, processing techniques and hazards of Fabric, its performance
      and suitability for use in the manufacture of
  Garments.

            

    

    

    
      	
              3.

            	
              Licensee
      agrees to bear responsibility for, and will perform or have performed, all
      tests necessary for Garments to provide reasonable assurance of the
      quality and safety of Garments made of
Fabrics.

            

    

    

    
      	
              4.

            	
              Licensee
      will provide its customers with the appropriate warnings necessary for the
      safe use of Garments made of the
Fabrics.

            

    

    

    
      	
              5.

            	
              Licensee
      will comply with all applicable laws and regulations concerning the
      development, design, manufacture, marketing, sales and warranty of
      Garments.  The responsibility to manufacture, promote and
      warrant Garments lies solely with
Licensee.

            

    

    

    
      	
              6.

            	
              Licensee
      agrees not to use Fabrics provided by DuPont hereunder except to make and
      sell Garments in the Markets within the
  Territory.

            

    

    

    
      	
              7.

            	
              Licensee
      understands that failure to use its best efforts to market and promote
      Garments shall be cause for immediate termination of this License under
      Section VII.  Licensee acknowledges that making or publishing
      inaccurate statements or advertisements, or otherwise taking actions that
      reflect adversely on Garments (or DuPont Tyvek® )
      and/or Fabric shall constitute a material breach of this License, giving
      DuPont the right to immediately terminate this
  License.

            

    

    

    
      	
              8.

            	
              Licensee
      agrees that Garments bearing the Trademarks will meet all Attachment B
      specifications.

            

    

    

    
      	
              9.

            	
              Licensee
      agrees to comply with the requirements of DuPont’s Advertising Cooperative
      Program for the Garments as set forth in Attachment
      D.

            

    

    

    
      	
              10.

            	
              Licensee
      agrees to actively promote the Trademarks and the
  Garments.

            

    

    

    
      	
              11.

            	
              Licensee
      agrees to use its best efforts to maintian ISO registration under Standard
      9002.

            

    

    

    
      	
              12.

            	
              Licensee
      agrees to maintain an adequate inventory of a full line (as defined in
      Attachment B)
      of all of the Garments and agrees to deliver under normal circumstances
      all orders promptly upon order
receipt.

            

    

    

    
      	
              13.

            	
              Licensee
      may employ third party contractors provided that Licensee shall assume
      full responsibility for assuring compliance of any third party contractor
      employed in making Garments made of Fabric with all the requirements of
      this License, including the provisions pertaining to the use and resale or
      transfer of the Fabric and the use of the name of DuPont and the DuPont
      Trademarks.

            

    

    

    
      	
              14.

            	
              To
      protect the quality of Garments made of Fabric and the Trademarks,
      Licensee shall submit to DuPont, without charge, samples of Garments as
      requested by DuPont.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
              15.

            	
              Licensee
      acknowledges that it has received, and is familiar with, DuPont's current
      labeling and literature, including warnings, concerning
      Fabrics.  Licensee will forward such information, and such other
      labeling and material as is supplied to Licensee by DuPont from time to
      time, to its employees and to its customers who handle, process or
      otherwise come into contact with Fabrics or
  Garments.

            

    

    

    
      	
              IV.

            	
              DuPont
      Commitments

            

    

    

    
      	
              1.

            	
              DuPont
      will sell Fabrics to Licensee to meet Licensee's supply needs for Fabric
      under this Licensing Program, pursuant to the prices in effect for such
      Fabric styles at times of shipment and subject to DuPont's standard
      Conditions of Sale in effect at the time of shipment.  Current
      pricing and performance incentives pricing program for 2009 are as set
      forth in Attachment
      F.  A sample of DuPont's current Conditions of Sale is set forth
      in Attachment
      E.

            

    

    

    
      	
              2.

            	
              The
      Fabrics will meet DuPont product release specifications for the specific
      Fabric type(s) in effect at the time of shipment.  DUPONT MAKES
      NO OTHER WARRANTY, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE
      WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY
      OTHER EXPRESS OR IMPLIED WARRANTY.  ALL SUCH WARRANTIES ARE
      HEREBY DISCLAIMED.

            

    

    

    
      	
              3.

            	
                   DuPont
      will also:

            

    

    
      	
               
      

            	
              -

            	
              offer
      educational training to Licensee’s sales force regarding
      Fabric;

            

    

    
      	
               
      

            	
              -

            	
              provide
      support programs to Licensee for existing products and to the extent that
      the scope of this License may be amended to cover new products, provide
      support programs for new products;
and,

            

    

    
      	
               
      

            	
              -

            	
              subject
      to the terms of Attachment D,
      partially fund advertising and promotional materials to a maximum amount
      of one percent (1.0%) of Licensee's payments to DuPont for purchases
      from DuPont during the prior calendar
year.

            

    

    

    
      	
              V.

            	
              Use
      of Trademarks

            

    

    

    
      	
              1.

            	
              Licensee
      shall indicate that Garments are made of the Fabric by applying the
      labels, mechanicals of which shall be provided free of charge by
      DuPont.  Sample labels are shown on Attachment C
      ("The Labels").  Inside labels may also include the name or
      trademark of Licensee.  The Trademarks may not be used in any
      garments or other products which do not meet Attachment B
      requirements.    Label production costs are
      reimbursable as indicated in Attachment
      D.  Licensee shall place labels on Garments in locations
      specified in Attachment
      B.  Licensee shall use the labels, both inside and outside, on
      all Garments.  Licensee also agrees to meet the packaging
      specifications for Garments set forth in Attachment
      B.

            

    

    

    
      	
              2.

            	
              Licensee
      acknowledges that Trademarks are the exclusive property of DuPont and
      Licensee shall not use any trademark, mark, name or symbol which may be
      confusingly similar to Trademarks, and shall not use Trademarks in any
      manner which could diminish their value to DuPont, affect the validity of
      their registration or affect DuPont's exclusive ownership
      thereof.  Licensee will use Trademarks in accordance with good
      trademark and business practice and Licensee shall comply with any
      trademark usage guidelines supplied from time to time by DuPont to
      Licensee.

            

    

    

    
      	
              3.

            	
              If,
      as a result of the use of Trademarks, Licensee or any of Licensee's
      customers should be charged with trademark infringement, upon notice to
      DuPont, DuPont will assume the defense and expense of any proceedings
      instituted pursuant to such a charge.  Licensee shall not
      institute proceedings for infringement of Trademarks in its own
      name.  Licensee agrees to assist DuPont at Licensee's cost when
      requested in such defense or other protection of Trademarks.  If
      Licensee sees any misuse of Trademarks, Licensee shall immediately notify
      DuPont and cooperate with DuPont in trying to correct such
      misuse.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Licensee
shall discontinue immediately any use, display, advertising or promotion of
Trademarks or any claim for Garments where Trademarks are used, that directly or
indirectly includes a false, exaggerated, nonrepresentative or misleading claim
or statement relating to or which reflects adversely on DuPont, Trademarks,
Fabric, Garments, Attachments B and C
specifications, or Garment performance.  DuPont, in its sole
discretion, may require Licensee to revise any such objectionable use, display,
advertising or promotion and Licensee shall promptly comply or be in material
breach of this Agreement under Section VII.

    

    
      	
              VI. 

            	
              Inspection
      and Testing of Garments

            

    

    

    
      	
              1.

            	
              Licensee
      shall establish and utilize quality control procedures to maintain
      continuous compliance with Attachments B
      and C.

            

    

    

    
      	
              2.

            	
              Licensee
      shall regularly inspect Garments to ascertain that they shall at all times
      meet Attachments B
      and C and meet or exceed the current ANSI sizing standard for limited-use
      garments

            

    

    

    
      	
              3.

            	
              Licensee
      understands that from time to time DuPont may also be inspecting and
      sampling Garments in the marketplace for compliance with Attachments B
      and C.

            

    

    

    
      	
              VII.

            	
              Term
      and Termination

            

    

    

    
      	
              1.

            	
              This
      Agreement shall be effective on the date Licensee executes this License
      (“Effective Date”) and, except as otherwise provided herein, shall
      continue in full force and effect until January 31, 2009 an may be renewed
      in six (6) month increments only on the written consent of both
      Parties  If Licensee enters bankruptcy proceedings (voluntarily
      or involuntarily), makes an assignment for benefit of its creditors or is
      otherwise insolvent, Licensee shall notify DuPont immediately and DuPont
      reserves the right to terminate this License effective upon written notice
      to Licensee.  This Agreement may be terminated by either Party
      at any time, with cause, upon sixty (60) days advance written notice of
      termination.

            

    

    

    2. DuPont
may terminate this License immediately by giving Licensee written notice in the
event of:

    

    A)  breach
by Licensee, unless Licensee shall cure such breach to DuPont’s satisfaction
within thirty (30) days of such written notice from DuPont, or

    B)  notice
from any source to DuPont of any allegation relating to the materials, the
Fabric, the Garment, that may raise a business risk of third party litigation
relating to the Garments, materials, or Fabric.

    C) if,
without DuPont’s prior, written approval, a majority of the capital stock or
shares or other controlling interest in Licensee should be sold or a contract
made for the sale thereof, or if ownership or control of Licensee’s business
shall otherwise change, or if Licensee shall acquire a majority interest in a
company competing with DuPont.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
              3.

            	
              Upon
      termination or expiration of this Agreement, DuPont, in its sole
      discretion, may purchase any or all inventory, work in process of Garments
      and distributor returns and/or materials to make Garments at Licensee's
      cost of manufacture.  Saleable roll goods of DuPont Fabric will
      also be purchased by DuPont at Licensee’s purchase
      price.  Credit for such inventory is to be issued first against
      accounts receivable, notes, or other indebtedness to
      DuPont.  Any remaining balance will be remitted to
      Licensee.

            

    

    

    4. In the
event of any termination or expiration of this Agreement in accordance with its
terms, the Parties agree that:

    

    A) At its
cost, Licensee shall return  to DuPont within ten (10) days all the
technical manuals, signs and other material or property of DuPont that may have
been furnished to Licensee by DuPont or any of its subsidiaries, together with
all copies or reproductions or parts thereof;

    B)
Licensee shall immediately discontinue use of the Trademarks, including, without
limitation, all advertising and promotional materials within Licensee’s
possession or control; and

    C)
Licensee shall immediately comply with DuPont’s instructions relating to the
return or destruction of all advertising or promotional materials bearing the
Trademarks.

    D)  DuPont
shall have no liability of any kind or nature whatsoever (including without
limitation, indirect, consequential, special, incidental or punitive damages) to
Licensee for DuPont’s communications with past, present, or prospective
purchasers or users of Products when such communications pertain to the
termination or non-renewal of Licensee (including without limitation,
communications identifying any new Licensee).

    

    VIII.
Confidentiality

    

    
      	
              1.

            	
              It
      is anticipated that each Party will obtain information about the other
      Parties business and technology that the other Party considers to be
      confidential.  In order to promote the free exchange of
      information, each Party agrees to maintain the information that it
      receives from the other Party in confidence and not disclose it to any
      third party for a period of five (5) years from the date it is received,
      provided that such information is identified in writing, and declared
      confidential within twenty (20) days of the disclosure (written or
      oral).  This obligation of confidentiality, however, shall not
      apply to information which:

            

    

    

    
      	
               
      

            	
              (a)

            	
              is
      public knowledge at the time of its disclosure, or becomes public
      knowledge after the disclosure through no fault of the receiving
      Party;

            

    

    
      	
               
      

            	
              (b)

            	
              the
      receiving Party can show was in its possession after the time of the
      disclosure from a third party not under an obligation of confidentiality
      to the disclosing Party;

            

    

    
      	
               
      

            	
              (c)

            	
              the
      receiving Party can show was developed by, or for, the receiving Party
      independent of the disclosure by the disclosing
  Party;

            

    

    
      	
               
      

            	
              (d)

            	
              is
      necessarily disclosed to a third party pursuant to the commercial sale of
      Product by either Party; or,

            

    

    
      	
               
      

            	
              (e)

            	
              is
      required to be disclosed by law.

            

    

    

    
      	
              2.

            	
              This
      Agreement and its terms and conditions, including Attachment B, are
      confidential and shall not be disclosed to any third parties, unless
      required by law or authorized in writing by the
  Parties.

            

    

    

    
      	
              3.

            	
              The
      obligations set forth in this Section VIII. shall survive the expiration
      or termination of this Agreement.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
              IX. 

            	
              Indemnity
      and Insurance

            

    

    

    
      	
              1.

            	
              DuPont
      agrees to release, defend, hold harmless and indemnify Licensee from any
      and all claims, liabilities, costs and expenses, including but not limited
      to reasonable attorney fees, that may arise from DuPont's failure to
      supply Fabric that conforms to DuPont’s Specifications for
      Fabric.

            

    

    

    
      	
              2.

            	
              Licensee
      agrees to release, defend, hold harmless and indemnify DuPont from any and
      all claims, liabilities, costs and expenses, including but not limited to
      reasonable attorney fees, that may arise from the Licensee’s acts or
      omissions relating to or arising from design, testing, manufacture, sale,
      use, display, advertising or promotion of Garments made of
      Fabric.

            

    

    

    
      	
              3.

            	
              Licensee
      agrees to obtain and maintain commercial general liability insurance
      (including contractual liability coverage) on an occurrence based policy
      form (Form CG 2010) in the minimum amount of $5,000,000 to cover
      Licensee's obligations under this Agreement including, but not limited to,
      the indemnity.  DuPont shall be named as an additional insured
      on such insurance.  Certificates of insurance in a form
      reasonably acceptable to DuPont evidencing the insurance coverage so
      required shall be sent to DuPont, at the address set forth below, prior to
      the Effective Date of this Agreement.   Failure to maintain
      such coverage,  to provide notice necessary to trigger or
      preserve the right to coverage under the policy or failure to provide
      DuPont with evidence of such coverage shall constitute good cause for the
      immediate termination of this Agreement by DuPont. Such certificates shall
      provide that the insurer will give DuPont not less than thirty (30) days
      advance notice of any change in or cancellation of
    coverage.

            

    

    

    
      	
              4.

            	
              In
      the event either, or both, of the Parties to this Agreement are engaged in
      litigation with a third party over the subject matter of this Agreement,
      the Parties hereto agree to fully cooperate with each other in the defense
      of such action and will seek the cooperation of any insurance company that
      may have an interest in the
litigation.

            

    

    

    
      	
              5.

            	
              The
      obligations set forth in this Section IX. shall survive the expiration or
      termination of this Agreement.

            

    

    

    
      	
              X.

            	
              General

            

    

    

    
      	
              1.

            	
              It
      is understood and agreed that DuPont has no right to provide any marketing
      instructions to Licensee, or to exercise any control over Licensee’s
      pricing or method of operation of its business.  Licensee is
      free to market Licensee’s Garments and to conduct Licensee’s business as
      Licensee sees fit.

            

    

    

    
      	
              2.

            	
              In
      the event of litigation, the Parties agree that the Courts of the State of
      Delaware shall have exclusive jurisdiction over any claim or action to be
      commenced by either Party against the other arising out of the
      performance, or relating to the subject of this
      Agreement.  Licensee hereby consents to personal jurisdiction in
      the Courts of Delaware for purposes of any interpretation, enforcement or
      legal action concerning this Agreement.  This Agreement shall be
      construed in accordance with the laws of the State of Delaware without
      giving effect to choice of law or conflict principles of any other
      jurisdiction.

            

    

    

    
      	
              3.

            	
              The
      Parties’ legal obligations under this Agreement are to be determined from
      the precise and literal language of this Agreement and not from the
      imposition of state laws attempting to impose additional duties that were
      not the express basis of the bargain at the time this Agreement was
      made.

            

    

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
              4.

            	
              The
      Parties are sophisticated businesses with legal counsel to review the
      terms of this Agreement and the Parties represent that they have fully
      read this Agreement, understand its unambiguous terms and intend to be
      legally bound hereby.

            

    

    

    
      	
              5.

            	
              Licensee
      acknowledges that Attachments B,
      D, and F are confidential DuPont information.  In the course of
      performing this Agreement, DuPont may disclose other confidential DuPont
      information, either in writing or orally, and so indicate to
      Licensee.  All such confidential information shall remain the
      property of DuPont.

            

    

    

    
      	
              6.

            	
              Nothing
      in this License Agreement shall be construed to grant Licensee any rights
      or license to any DuPont trademark, trade name, certification mark, or
      product other than as specified herein.  No rights are granted
      to Licensee with respect to any patents or patent
  rights.

            

    

    

    
      	
              7.

            	
              A
      telegram or letter (first class, overnight registered U.S. mail or faxed)
      sent to the other Party at the address stated below shall constitute
      written notice under this License.

            

    

    

    
      	
              8.

            	
              The
      failure of the Parties to insist upon the performance of any provision of
      this Agreement or to exercise any right or privilege thereunder shall not
      be construed as a waiver of any right arising under this Agreement and all
      provisions shall remain in full force and
  effect.

            

    

    

    
      	
              9.

            	
              No
      liability shall result from delay in performance or non performance
      directly or indirectly caused by circumstances beyond the control of the
      Party affected, including, but not limited to, acts of God, fire,
      explosion, flood, war, act of or authorized by any Government, accident,
      equipment failure, labor dispute or shortage, or inability to obtain
      material, equipment and transportation.  Quantities so affected
      shall be eliminated by DuPont from the Agreement without liability, but
      the Agreement shall remain otherwise unaffected.  DuPont shall
      have no obligation to purchase supplies of fabric it would otherwise make
      to enable it to perform this
Agreement.

            

    

    

    
      	
              10.

            	
              All
      understandings, representations, warranties, and agreements, if any,
      heretofore existing between DuPont and Licensee regarding the subject
      matter hereof are merged into this License, including the Attachments
      hereto, which fully and completely express the entire understanding of the
      parties with respect to their relationship.  The Parties have
      entered into this License freely, intelligently, and voluntarily after
      adequate investigation, with neither Party relying upon any statement or
      representation not contained in this License or the Attachments
      hereto.  This Agreement may be amended only by a written
      document signed by authorized representatives of both
    Parties.

            

    

    

    
      	
              11.

            	
              If
      any provision of this Agreement is held to be invalid or unenforceable,
      all other provisions will continue in full force and effect, and the
      Parties will substitute for the invalid or unenforceable provision a valid
      and enforceable provision which conforms as nearly as possible with the
      original intent of the Parties.

            

    

    

    
      	
              12.

            	
              DuPont
      shall have no liability of any kind or nature whatsoever (including
      without limitation, indirect, consequential, special, incidental or
      punitive damages) to Licensee for:

            

    

    

    a.           Termination
or expiration of this Agreement according to its terms.

    

    b.           Communications
from DuPont with past, present, or prospective customers of Licensee when such
communications pertain to the termination or non-renewal of this Agreement
(including without limitation, communications identifying any new Licensee or
supplier).

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    In
witness whereof, the Parties have signed this License in duplicate by their duly
authorized representatives on the dates set forth below.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      LICENSOR

                                    	 
      	
                                      LICENSEE

                                    
	 
      	 
      	 
      
	
                                      E.
      I. du Pont de Nemours and Company

                                    	 
      	
                                      Lakeland
      Industries Inc.

                                    
	
                                      Wilmington,
      Delaware, U.S.A.

                                    	 
      	
                                      Ronkonkoma,
      New York, U.S.A.

                                    
	 
      	 
      	 
      
	
                                      By:

                                    	
                                      Gisella
      Rutz Arthur

                                    	
                                      By:

                                    	
                                      Christopher
      J. Ryan

                                    
	 
      	
                                      Printed
      Name

                                    	 
      	
                                      Printed
      Name

                                    
	 
      	 
      	 
      	 
      
	 
      	
                                      Corporate
      Trademark Counsel

                                    	 
      	
                                      President

                                    
	 
      	
                                      Printed
      Title

                                    	 
      	
                                      PrintedTitle

                                    
	 
      	 
      	 
      
	Date:  June
      6, 2009	
                                        

                                    	
                                      Effective Date:
      June
      6, 2009

                                    
	 
      	 
      	 
      
	 
      	 
      	
                                      Acknowledged
      by:

                                    
	 
      	 
      	
                                      DuPont
      Personal Protection

                                    
	 
      	 
      	 
      
	 
      	 
      	
                                      Name:

                                    	 
      
	 
      	 
      	
                                      Title:

                                    	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    ATTACHMENTS

    

    A

    The
Trademarks

    

    B

    The
Products – technical and quality specifications

    

    C

    Sample
Garment Labels

    

    D

    Advertising
Cooperative Program

    

    E

    DuPont
Standard Terms & Conditions of Sale

    

    F

    Pricing
Schedule & Performance Incentive Programs

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    ATTACHMENT
"A"

    

    THE
TRADEMARKS

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    ATTACHMENT
"B"

    

    PRODUCTS

    TECHNICAL
AND QUALITY SPECIFICATIONS

    

    -             Technical
& Quality Specifictions

    -             Fabric
Styles

    -             Garment
Styles

    -             Measurement
& Dimension Requirements

    -             Labeling

    -             Garment
Fabrication

    -             Dynamic
Test

    -             Garment
Quality

    -             Packaging

    -             Garment
Auditing

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    DUPONT CONFIDENTIAL
INFORMATION

    

    ATTACHMENT B
1

    

    TRADEMARK LICENSING REQUIREMENTS FOR
TYVEK®

    

    I.     TECHNICAL
SPECIFICATIONS

    

    The
objective of these specifications is to optimize the quality and performance of
protective apparel manufactured out of DuPont Tyvek®

    

    ALL
PRODUCTS ON WHICH AND/OR IN CONNECTION WITH WHICH THE TRADEMARK IS USED SHALL
STRICTLY COMPLY WITH ALL OF THE FOLLOWING TECHNICAL SPECIFICATIONS:

    

    1.0  FABRIC
STYLES

    

    The
Products on, or in connection with which the Trademark(s) is or will be used
shall be made only from Tyvek® styles listed below

    

    
      1422A,
1422R 1400T (tape)

    

    
      Tyvek®
FC

    

    
      An other,
as identified byDuPont to Licensee in writing

    

    

    2.0  GARMENT
SYTLES

    

    DuPont
and Licensee have agreed upon the following list of garments:

    

    
      
        	
                Style Description

              	 
      	
                Style Number

              	 
      	
                Style Description

              	 
      	
                Style Number

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Coverall

              	 
      	
                1412,
      1414, 1417, 1427, 1428

              	 
      	
                Apron

              	 
      	
                601

              
	
                Lab
      Coats

              	 
      	
                1101

              	 
      	
                Sleeves

              	 
      	
                850

              
	
                Shirts

              	 
      	
                1201

              	 
      	
                Shoe
      Covers

              	 
      	
                901,
      904

              
	
                Pants

              	 
      	
                301

              	 
      	
                Boot
      Covers

              	 
      	
                903,
      905

              
	
                Frock

              	
                  

              	
                1190

              	
                  

              	
                Hoods

              	
                  

              	
                701,
      713, 802

              

      

    

    

    
      3.0 
MEASUREMENT
AND DIMENSION REQUIREMENTS

    

    

    The
Products on, or in connection with which the Trademark is or will be used shall
at all times comply with the current North American standardized sizes: ANSI
101-1996. (Attached)

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      4.0 
LABELING

    

    

    All
Products falling under this Agreement shall be identified by inside and outside
label mechanicals supplied by DuPont.  From time to time, at its sole
discretion and on a case to case basis, DuPont may waive in writing the
obligation to put on outside Label.  This shall be possible only when
the actual end user of the Products, as well as the number of garments involved
are known to DuPont

    

    The
nonwoven substrate must be identified by tradename (as indicated below) and
fabric weight on the inside suit label.  Other information on the suit
label should include manufacturer, manufacturing data and warnings against
improper use, including the flammability warnings outlined in Attachment
C.

    

    The
location for inside Label at the center back point as defined in section
5.5.  The location for outside Label is at left breast pocket,
centered between the zipper and armhole

    

    5.0 
GARMENT
FABRICATION

    

    
      	
               
      

            	
              5.1

            	
              SEAMS:  Sewn
      seams shall have 6-8 stitches per inch.  The sewing techniques
      used shall be either three thread overlock serge or straight/chain
      stitch.  Welded seams shall be performed either by heat or
      ultrasonic welding.

            

    

    

    
      	
               
      

            	
              5.2

            	
              THREAD:  Zipper
      thread:  70/2 ultra polyester minimum 

                                 
      Body Thread:  150 white polyester
body

            

    

    

    
      	
               
      

            	
              5.3

            	
              ZIPPER:  Minimum
      length of 26 inch long from top stop to bottom
  stop

            

    

    

    
      	
               
      

            	
              5.4

            	
              CUFFS:  Per
      Licensee Styles listed in Section
2.0

            

    

    

    
      	
               
      

            	
              5.5

            	
              LABEL:  Sewn
      on the inside, center back seam, 1 inch, plus or minus 1 inch, below neck
      or on  inside of zipper within 6 in. from
  collar.

            

    

    

    
      	
               
      

            	
              5.6

            	
              ANKLE:  Per
      Licensee Styles listed in Section
2.0

            

    

    

    
      	
               
      

            	
              5.7

            	
              HOOD:  Minimum
      1/8 inch strip elastic on the facial
opening

            

    

    

    
      	
               
      

            	
              5.8

            	
              BODY:  Per
      Licensee Styles listed in Section
2.0

            

    

    

    
      	
               
      

            	
              5.9

            	
              SHOE
      COVERS:  To be produced from Tyvek® FC
      fabric.

            

    

    

    6.0  DYNAMIC
TEST

    

    Products
shall be manufactured in a way to always pass the Dynamic Test described in the
ANSI/ISEA Standard 101-1996.  Licensee shall regularly monitor
Products with said Dynamic Test, carried out by 5 persons of different sizes,
whose physical measurements shall correspond to the maximum as shown in the
sizing chart in the ANSI/ISEA 1996 Standard.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    7.0
 GARMENT
QUALITY

    

    Product
designs and assembly shall be such as to afford maximum protection to end
users.  Licensee will use its best efforts to secure ISO 9002
registration.

    

    Products
shall be manufactured in a way, that their general appearance indicates good
quality.  In particular, the following shall be given special
consideration:

    

     -
no holes in garments

     -
all seams adequately sewn or welded

     -
no hanging threads or elastic (>0.5 inch.)

     -
zippers adequately sewn or welded

     -
others as determined by customer contract and

        specified
in Quality Manual

    

    8.0 
DUPONT
PACKAGING SPECIFICATIONS

    

    The
sidewall of the carton will be labeled with a manufacturer's
label.  This label will be between 4 to 6 inches
square.  The product description on this label must include the
Trademark.

    

    9.0
 GARMENT
AUDITING

    

    At any
time during the life of this Agreement, DuPont shall obtain new garments from
Licensee without charges to DuPont, as well as procure garment directly in the
trade.  Such garments will be audited in respect to all the technical
specifications described in Attachment B above.

    

    In the
event a garment does not comply with all said technical specifications, the
Testing Facility will notify the Licensee and DuPont.  DuPont will in
such case procure additional garments of same sizes and styles from the trade
for retesting.

    

    In the
event garments obtained from the trade should fail three times in a row, DuPont
may terminate this Agreement under Section VII.

    

    Note:  Licensee will
receive all test results in the case of garment failure, and will be shown any
failed garments.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    DUPONT CONFIDENTIAL
INFORMATION

    

    ATTACHMENT
B2

    

    TRADEMARK
LICENSING REQUIREMENTS FOR DUPONT TYCHEM®

    

    1.0  TECHNICAL
SPECIFICATIONS

    

    The
objective of these specifications is to optimize the quality and performance of
protective apparel manufactured out of DuPont
Tychem®  fabrics.

    

    ALL
PRODUCTS ON WHICH AND/OR IN CONNECTION WITH WHICH THE TRADEMARK IS USED SHALL
STRICTLY COMPLY WITH ALL OF THE FOLLOWING TECHNICAL SPECIFICATIONS:

    

    FABRIC
STYLES

    

    The
Products on, or in connection with which the Trademark is or will be used shall
be made only from Tychem® styles listed below:

    

    -     Tychem®
TK

    -     Tychem®
BR

    -     Tychem®
LV

    -     Tychem®
F

    -     Tychem®
SL

    -     Tychem®
QC

    -     Tychem®
Sealing Tape

    

     2.0 GARMENT
STYLES

    

    The
garment styles could vary with the offerings; i.e., front entrance, back
entrance, and overcovers for NFPA 1991.

    

    
      3.0 GARMENT
COMPLIANCE

    

    

    The
Products in, or in connection with which the Trademark is or will be used shall
at all times comply with OSHA 29 CFR 1910.120 for protection against hazardous
contaminants and total encapsulation chemical protective suit,  NFPA
1991/Level A requirements are optional.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    4.0 GARMENT
SIZING/DIMENSION REQUIREMENTS

    

    For
encapsulated suit designs, the suit will be designed to accommodate use of the
following inside the suits:

    

    - self
contained breathing apparatus

    - hard
hat or firemen’s helmet

    - two-way
radio communications

    

    Spacious
sleeve-design must allow wearer to have access to SCBA control by pulling arm
from sleeve while still in suit.

    

    The
garment must meet ASTM F1154-88:  Qualitatively Evaluating the
Comfort, Fit, Function, and Integrity of Chemical Protective Suit
Ensembles.

    

    5.0 GARMENT
CONSTRUCTION/FABRICATION

    

    
      	
               
      

            	
              5.1

            	
              Seams

            

    

    All seams
shall be stitched and sealed with a compatible barrier tape film.

    

    
      	
               
      

            	
              5.2

            	
              Zipper

            

    

    
      	
               
      

            	
              The
      zipper shall be gas tight.

            

    

    

    
      	
               
      

            	
              5.3

            	
              Faceshield

            

    

    The
face-shield will be large enough to provide maximum visibility. The suit shall
contain an anti-fog wipe for use on the inside of the shield.

    

    
      	
               
      

            	
              5.4

            	
              Gloves

            

    

    The glove
attachment shall consist of an arrangement to form a gas tight
seal.  Multilayers (silver shield and Butyl, Viton) gloves to provide
maximum chemical protection, must be accommodated in the garment
design.

    

    
      	
               
      

            	
              5.5

            	
              Boot
      Covers

            

    

    The suit
will have attached boot covers with splash-guard to fit over industrial or fire
boots.

    

    
      	
               
      

            	
              5.6

            	
              Intake
      Valve

            

    

    The suit
design will provide a sealed air tube inlet to accommodate use of an external
air-line when requested by customers.

    

    
      	
               
      

            	
              5.7

            	
              Exhaust
      Valve

            

    

    The suit
design will provide an air pressure release valve.  Exhaust valves
will be located on opposite sides of the garment to minimize risk of
blockage.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    6.0
LABELING

    

    All
Products falling under this Agreement shall be identified by an outside label
supplied by DuPont

    

    *Locations
for inside Label:  Size and information label shall be attached inside
the garment in a visually prominent area.  Inside label to include
Tychem® Trademark.

    

    *Location
for outside Label:  At left breast pocket 6 inches from the center of
the zipper and 8 inches from the shoulder seam.

    

    From time
to time, at its sole discretion and on a case to case basis, DuPont may waive in
writing the obligation to put on outside Label.  This shall be
possible only when the actual end user of the Products, as well as the number of
garments involved are known to DuPont.

    

    7.0
GARMENT
AUDITING

    

    At any
time during the life of this Agreement, DuPont shall obtain new garments from
Licensee, as well as procure garment directly in the trade.  Such
garments will be audited in respect to all the technical applications described
in Attachment B.

    

    8.0
DUPONT PACKAGING
SPECIFICATIONS

    

    The
basic packaging is to consist of a single wall craft carton with a 175 lb. burst
strength rating.  Basic dimensions are approximately 15” length, 10.5
width, and 8” height depending on the garment style.  The Licensee may
modify the carton dimensions to accommodate the various garments.

    

    The
sidewall of the carton will be labeled with a manufacturer’s
label.  This label will be between 4 to 6 inches
square.  The product description on this label must include the
Tychem® trade name.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

    ATTACHMENT
C

    

    SAMPLE
GARMENT LABELS

    OUTSIDE
LABEL MECHANICALS SUPPLIED BY DUPONT

    

    INSIDE
LABEL FORMAT FOR TYVEK®

    

    
      The fabric in this garment is made
of  DuPont Tyvekâ
spunbonded olefin.

      

      WARNING!
It is the user's
responsibility to read and understand all provided warning,
proper  usage, and care information.

      

      Tyvek® fabrics are not flame resistant or
flame retardant, will melt, can create static electricity and should not be used
around heat, open flame, sparks or in a potentially flammable or explosive
environments.  This garment and/or fabric is NOT
SUITABLE for use with
some chemical and hazardous agents.  Contact your employer or the
Manufacturer (1-800-645-9291) on specific chemicals or
agents.

      

      It
is the user's responsibility to determine the level of risk and the proper
personal protection equipment needed because conditions of use are outside of
our control.   DUPONT AND THE LICENSED GARMENT
MANUFACTURER make no warranties, expressed or implied, and assume no
liability as to the performance of this product for a particular
use.

    

    

    INSIDE
LABEL FORMAT FOR TYCHEM®

    

    
      The fabric in this garment is made
of  DuPont
Tychem® fabric.

      

      WARNING ! It is the user’s
responsibility to read and understand all provided warning, proper usage,
and care information.

      

      Tychem®  fabrics
are not flame resistant or flame retardant, will melt, can create static
electricity and should not be used around heat, open flame, sparks or in a
potentially flammable or explosive environments.  This garment and/or
fabric is NOT SUITABLE
for use with some chemical and hazardous agents.  Contact your
employer or the Manufacturer (1-800-645-9291) on specific chemicals or
agents.

      

      It
is the user's responsibility to determine the level of risk and the proper
personal protection equipment needed because conditions of use are outside of
our control.   DUPONT AND THE LICENSED GARMENT
MANUFACTURER make no warranties, expressed or implied, and assume no
liability as to the performance of this product for a particular
use.

    

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    ATTACHMENT
D

    

    
      COOPERATIVE
ADVERTISING PROGRAM

    

     

    Cooperative
Advertising Program

    

    All
Claims must be received no later than 2/15/2009 for year 2008 co-op
reimbursements. The maximum annual co-op amount is based on:

    1% of the
Licensee’s previous calendar year purchases ofDuPont’s Non-Woven
products.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              CATEGORIES

                                            	 	
                                              Date of Activity

                                            	 	
                                              Total Invoices

                                            	 	
                                              Co-op Allotment

                                            	 	 	
                                              Amount of Reimbursement

                                            	 
	 
      	 	 
      	 	 
      	 	 	 	 	 
      	 
	
                                              I.
      Advertising

                                            	 	 
      	 	 
      	 	 	 	 	 
      	 
	 
      	 	 
      	 	 
      	 	 	 	 	 
      	 
	
                                              Catalogs

                                            	 	 
      	 	 
      	 	 	50	%	 	 
      	 
	
                                              Direct
      Mail, Newsletter

                                            	 	 
      	 	 
      	 	 	50	%	 	 
      	 
	
                                              Newspaper
      and Flyers

                                            	 	 
      	 	 
      	 	 	50	%	 	 
      	 
	
                                              Magazines
      and Trade

                                            	 	 
      	 	 
      	 	 	50	%	 	 
      	 
	
                                              Publications

                                            	 	 
      	 	 
      	 	 	50	%	 	 
      	 
	 
      	 	 
      	 	 
      	 	 	 	 	 	 
      	 
	
                                              II.
      Promotions

                                            	 	 
      	 	 
      	 	 	 	 	 	 
      	 
	 
      	 	 
      	 	 
      	 	 	 	 	 	 
      	 
	
                                              Trade
      Show Exhibits

                                            	 	 
      	 	 
      	 	 	50	%	 	 
      	 
	
                                              Open
      House Programs

                                            	 	 
      	 	 
      	 	 	50	%	 	 
      	 
	 
      	 	 
      	 	 
      	 	 	 	 	 	 
      	 
	
                                              III.
      Educational Meetings

                                            	 	 
      	 	 
      	 	 	 	 	 	 
      	 
	 
      	 	 
      	 	 
      	 	 	 	 	 	 
      	 
	
                                              National,
      Regional or Local

                                            	 	 
      	 	 
      	 	 	50	%	 	 
      	 
	
                                              Distributor
      Sales Meetings

                                            	 	 
      	 	 
      	 	 	50	%	 	 
      	 
	 
      	 	 
      	 	 
      	 	 	 	 	 	 
      	 
	
                                              IV.
      Manufacturing

                                            	 	 
      	 	 
      	 	 	 	 	 	 
      	 
	 
      	 	 
      	 	 
      	 	 	 	 	 	 
      	 
	
                                              Printing
      Costs (inside labels)

                                            	 	 
      	 	 
      	 	 	50	%	 	 
      	 
	
                                              Printing
      Costs (outside labels)

                                            	 	 
      	 	 
      	 	 	100	%	 	 
      	 

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    ATTACHMENT
E

    

    CONDITIONS OF
SALE

     

    STANDARD
CONDITIONS OF SALE

     

    
      
        	
                1.

              	
                Seller
      warrants only that (a) any products or services provided hereunder meet
      Seller's standard specifications for the same or such other specifications
      as may have been expressly agreed to herein; (b) the sale of any products
      or services provided hereunder will not infringe the claims of any validly
      issued United States patent covering such product or service itself, but
      does not warrant against infringement by reason of (i) the use of any
      information provided, (ii) the use of any product or service in
      combination with other products, services, or information or in the
      operation of any process, or (iii) the compliance by Seller with any
      specifications provided to Seller by Buyer; and (c) all products provided
      hereunder were
      produced in compliance with the requirements of the Fair Labor
      standards Act of 1938, as amended. WITH RESPECT TO ANY PRODUCTS, SERVICES,
      OR INFORMATION PROVIDED TO BUYER, SELLER MAKES NO WARRANTIES OF
      MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER EXPRESS OR
      IMPLIED WARRANTY. Buyer assumes all risk and liability resulting from use
      of the products, services, or information delivered hereunder, whether
      used singly or in combination with other products, services, or
      information.

              

      

    

     

    
      
        	
                2.

              	
                IN
      NO EVENT WILL SELLER'S AGGREGATE LIABILITY TO BUYER FOR ALL DAMAGES
      ARISING FROM ANY AND ALL CLAIMS RELATED TO THE BREACH OF THIS AGREEMENT,
      NONDELIVERY, OR THE PROVISION OF ANY PRODUCT, SERVICE, OR INFORMATION
      COVERED BY THIS AGREEMENT, REGARDLESS OF WHETHER THE FORM OF ACTION IS
      BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, STATUTE,
      OR OTHERWISE, EXCEED THE TOTAL PRICE
      PAID BY BUYER TO SELLER FOR THE PRODUCTS, SERVICES, OR INFORMATION IN
      RESPECT OF WHICH DAMAGES ARE CLAIMED. NO CLAIM SHALL BE ALLOWED FOR
      PRODUCT THAT HAS BEEN PROCESSED IN ANY MANNER. FAILURE TO
      GIVE NOTICE OF A CLAIM WITHIN NINETY (90) DAYS FROM DATE OF
      DELIVERY, OR THE DATE FIXED FOR DELIVERY (IN CASE OF NONDELIVERY) SHALL
      CONSTITUTE A WAIVER BY BUYER OF ALL CLAIMS IN RESPECT OF SUCH PRODUCTS,
      SERVICES, OR INFORMATION. PRODUCTS SHALL NOT BE RETURNED TO SELLER WITHOUT
      SELLER'S PRIOR WRITTEN PERMISSION. NO CHARGE OR EXPENSE INCIDENT TO ANY
      CLAIMS WILL BE ALLOWED UNLESS APPROVED BY AN AUTHORIZED REPRESENTATIVE OF
      SELLER. IN ADDITION, AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE
      LAW, EACH PARTY HERETO WAIVES ANY CLAIM TO INDIRECT, CONSEQUENTIAL,
      PUNITIVE, EXEMPLARY OR MULTIPLIED DAMAGES ARISING OUT OF OR RELATING TO
      THIS AGREEMENT OR THE PROVISION OF ANY PRODUCT, SERVICE,
      OR INFORMATION. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES
      WAIVE AND AGREE NOT TO ASSERT NON-CONTRACTUAL CLAIMS ARISING UNDER STATE
      LAW RELATING TO THIS AGREEMENT OR THE PROVISION OF ANY PRODUCT, SERVICE,
      OR INFORMATION COVERED BY THIS AGREEMENT, AND THIS AGREEMENT SHALL BE DEEMED TO INCLUDE
      SUCH LANGUAGE AS MAY BE REQUIRED TO EFFECT SUCH WAIVER. WAIVER BY EITHER PARTY OF
      ANY DEFAULT BY THE OTHER HEREUNDER SHALL NOT BE DEEMED A WAIVER BY SUCH
      PARTY OF ANY DEFAULT BY THE OTHER WHICH
      MAY THEREAFTER OCCUR.

              

      

    

    

    
      	
              3.

            	
              No
      liability shall result from delay in performance or nonperformance,
      directly or indirectly caused by circumstances beyond the control of the
      party affected, including, but not limited to, act of God, fire,
      explosion, flood, war, act of or authorized by any Government,
      accident, labor trouble or shortage, pandemic, inability to obtain
      material, equipment or transportation, failure to obtain or hardship in
      obtaining reasonably priced supplies of materials, or failure of usual
      transportation mode. Quantities so affected may be eliminated from the
      agreement without liability, but the agreement shall remain otherwise
      unaffected. Seller shall have no obligation to purchase supplies of the
      product specified herein to enable it to perform this
      Agreement.

            

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    
      	
              4.

            	
              If
      for any reason including but not limited to Force Majeure Seller is unable
      to supply the total demand for products specified herein, Seller may
      distribute its available supply among any or all purchasers, as well as
      departments and divisions of Seller, on such basis as it may deem fair
      and practical,
      without liability for any failure of performance which may result
      therefrom.

            

    

     

    
      	
              5.

            	
              Seller
      may furnish such technical assistance and information as it has available
      with respect to the use of the products or services covered by this Agreement.
      Unless otherwise agreed in writing, all such information will be provided
      gratis. Buyer agrees to evaluate such information, to make an independent
      decision regarding the suitability of such information, products and
      services for Buyer's application, and only use such products, services and
      information pursuant to then current good product stewardship principles
      and all regulatory requirements applicable to Buyer's
      business.

            

    

     

    
      	
              6.

            	
              Buyer
      acknowledges that it has received and is familiar with Seller's labeling
      and literature concerning the products and its properties. Buyer will
      forward such information to its employees, contractors and customers who
      may distribute, handle, process, sell or use such products, and advise
      such parties to familiarize themselves with such information. Buyer agrees
      that products sold hereunder will not knowingly be resold or given in
      sample form to persons using or proposing to use the products for purposes
      contrary to recommendations given by Seller or prohibited by law, but will
      be sold or given as samples only to persons who can handle, use and
      dispose of the products safely. Unless agreed to by Seller in a written
      agreement covering such use, in no event shall Buyer use products or
      resell products for use in the manufacture of any implanted medical
      device. Buyer agrees that export of any product, service or information
      provided hereunder shall be in accordance with applicable Export
      Administration Regulations.

            

    

     

    
      
        	
                7.

              	
                Except
      as may be contained in a separate trademark license, the sale of product
      (even if accompanied by documents using a trademark or trade name of
      Seller) does not convey a license, express or implied, to use any
      trademark or trade name of Seller, and Buyer shall not use any trademark
      or trade name of Seller in the conduct of its business without Seller's
      prior written consent.

              

      

    

     

    
      	
              8.

            	
              The
      Buyer shall reimburse the Seller for all taxes (excluding income taxes)
      excises or other charges which the Seller may be required to pay to any
      Government (National, State or Local) upon the sale, production or
      transportation of the products, services, or information sold
      hereunder.

            

    

     

    
      	
              9.

            	
              In
      the event Buyer fails to fulfill Seller's terms of payment, or in case
      Seller shall have any doubt any time as to Buyer's financial
      responsibility, Seller may decline to make further deliveries except upon
      receipt of cash or satisfactory
security.

            

    

     

    
      	
              10.

            	
              This
      agreement is not assignable or transferable by Buyer, in whole or in part,
      except with the prior written consent of Seller. Seller reserves the right
      to sell, assign, or otherwise transfer its right to receive payment under
      this agreement.

            

    

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    
      
        	
                11. 

              	
                Dispute
      Resolution and Arbitration - Buyer and Seller agree to arbitrate all
      disputes, claims or controversies whether based on contract, tort,
      statute, or any other legal or equitable theory, arising out of or
      relating to (a) this Agreement or the relationship which results from this
      Agreement, (b) the breach, termination or validity of this Agreement, (c)
      the purchase or supply of any product, service, or information provided by
      Seller, (d) events leading up to the formation of Buyer's and Seller's
      relationship, and (e) any issue related to the creation of this Agreement
      or its scope, including the scope and validity of this
      paragraph. The
      parties shall before and as a condition
      to proceeding to arbitration attempt in good faith to resolve any such
      claim or controversy by mediation under the International Institute for
      Conflict Prevention & Resolution ("CPR") Mediation Procedure then
      currently in effect. Unless the parties agree otherwise, the mediator will
      be selected from the CPR Panels of Distinguished Neutrals. Any such claim
      or controversy which remains unresolved 60 days after the appointment of a
      mediator or 60 days after good faith efforts by either party to proceed to
      mediation shall be finally resolved by binding arbitration in accordance
      with the CPR Rules for Non-Administered Arbitration then currently in
      effect by three independent and impartial arbitrators, none of whom shall
      be appointed by either party. This Agreement shall be governed by the
      Federal Arbitration Act, 9 U.S.C. §§ 1-16, to the exclusion of any
      state laws inconsistent therewith. Such arbitration shall be conducted in
      a city to be chosen by the arbitrators which is not the principal place of
      business of either party, and the arbitrators and the parties shall
      conduct such arbitration in accordance with such procedures as may be
      necessary to permit use of the then current CPR Arbitration Appeal
      Procedure. Any judgment upon the award rendered by the arbitrator(s) may
      be entered by any court having jurisdiction thereof. In the event that
      either
      party wishes to appeal an award, the parties shall follow the then current
      CPR Arbitration Appeal Procedure. Buyer and Seller agree not to file or
      join any class action or class arbitration, seek or consent to
      class relief, or seek or consent to the consolidation or joinder of its
      claims with those of any third party. If any clause within this
      Arbitration Provision (other than the agreement regarding the conduct of
      the arbitration in the preceding sentence) is found to be illegal or
      unenforceable, that clause will be severed from this Arbitration
      Provision, and the remainder of the Arbitration Provision will be given
      full force and effect. If such agreement regarding the conduct of the
      arbitration is found to be illegal or unenforceable and if the arbitrators
      permit a class arbitration or consolidated or joined matter to proceed,
      this entire Arbitration Provision will be unenforceable, and the dispute
      may be decided by a court. The obligations set forth in this paragraph
      shall survive the termination or expiration of this
    Agreement.

              

      

    

    

    
      	
              12.

            	
              In
      addition to these Standard Conditions of Sale, any Special Conditions of
      Sale set forth on this invoice or in the current price list for the
      products or services sold hereunder shall apply and are incorporated by
      reference. Unless otherwise specified therein, title, liability for and
      risk of loss to Product sold hereunder passes to Buyer upon loading for
      shipment at Seller's producing
location.

            

    

     

    
      	
              13.

            	
              This
      Agreement shall be construed and governed by Delaware law, without regard
      to any applicable conflicts of law provisions, and the terms of the UCC,
      rather than the United Nations Convention on Contracts for the
      International Sale of Goods, shall
apply.

            

    

     

    
      	
              14.

            	
              Except
      as expressly provided in any other term or condition of this Agreement,
      any provision hereof which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective only to the
      extent of such prohibition or unenforceability without invalidating the
      remaining provisions hereof or affecting the validity or enforceability of
      such provision in any other
jurisdiction.

            

    

    

    
      	
              15.

            	
              This
      Agreement supersedes all prior agreements, representations and
      understandings between the parties (whether written or oral) with respect
      to its subject matter and constitutes (along with the exhibits and
      schedules attached hereto) a complete and exclusive statement of the terms
      of the agreement between the parties with respect to the provision of
      products or services hereunder. Not by way of limitation of the
      unqualified nature of the foregoing, Buyer acknowledges, agrees and
      represents that it is not relying upon, and it has not been induced by,
      any representation, warranty, statement made by, or other
      information provided by Seller in connection with its decision to purchase
      or use any product, service, information or technology, other than the
      representations and warranties Seller as and only to the extent expressly
      provided in this Agreement. No modification of this Agreement shall be
      binding upon Seller unless separately contracted in writing and executed
      by a duly authorized representative of Seller. No modification shall be
      effected by the acknowledgment or acceptance of purchase order forms
      stipulating different conditions. Unless Buyer shall notify Seller in
      writing to the contrary as soon as practicable after receipt of this
      invoice by Buyer, Buyer shall be deemed to have accepted the terms and
      conditions hereof and, in the absence of such notification, Buyer's
      acceptance or use of the products, services, information or technology
      shall be equivalent to Buyer's assent to the terms and conditions
      hereof.

            

    

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

    ATTACHMENT
F

    

    PRICING & PERFORMANCE
INCENTIVE PROGRAMS

    

    PRICE
LIST – TYVEK®  AND TYCHEM®

    PROTECTIVE
APPAREL FABRICS FROM DUPONT

    

    Account:     Lakeland
Industries, Inc.

     

    Effective
February 15, 2009

    

    
      
        
          
            
              
                
                  	
                          Roll goods prices per the effective date above and subject to

                          change upon prior written notice

                        	 	 	 	 	
                          DOMESTIC (N.A.)

                          CONSUMPTION

                        
	
                          STYLE

                        	 	
                          PRICE

                          $/YD2

                        	 	 	
                          PRICE

                          $/Lin yd

                        	 	
                          PRICE

                          $/Roll

                        
	 
      	 	 	 	 	 	 	 
      
	
                          Tyvek®

                        	 	 	 	 	 	 	 
      
	 
      	 	 	 	 	 	 	 
      
	
                          1422A&R
      (28” & 39” O.D.)

                        	 	$	0.49035	 	 	$	0.81725	 	 
      
	
                          1422A
      (21.5” O.D.) 17.25 inch wide

                        	 	$	0.58170	 	 	$	0.27671	 	 
      
	
                          1422A
      (21.5” O.D.)

                        	 	$	0.58170	 	 	$	0.96950	 	 
      
	
                          1422R
      (21.5” O.D.)

                        	 	$	0.58170	 	 	$	0.96950	 	 
      
	
                          1622E

                        	 	$	0.57225	 	 	$	0.95375	 	 
      
	
                          TYVEK
      FC (Width 59.75”)

                        	 	$	0.59955	 	 	$	0.99509	 	 
      
	 
      	 	 	 	 	 	 	 	 	 
      
	
                          Tychem®

                        	 	 	 	 	 	 	 	 	 
      
	 
      	 	 	 	 	 	 	 	 	 
      
	
                          QCY
      (Yellow)

                        	 	$	0.65575	 	 	$	1.08381	 	 
      
	
                          QCG
      (Gray)

                        	 	$	0.65575	 	 	$	1.08381	 	 
      
	
                          QCWH
      (White)

                        	 	$	0.65575	 	 	$	1.08381	 	 
      
	
                          SL*
      White (Width 59.5”)

                        	 	$	1.37710	 	 	$	2.27604	 	 
      
	
                          SL*
      Gray (Width 59.5”)

                        	 	$	1.78340	 	 	$	2.94756	 	 
      
	
                          F*
      Gray (Width 60”)

                        	 	$	2.77560	 	 	$	4.62600	 	 
      
	
                          BR*
      (Width 60”)

                        	 	$	3.32400	 	 	$	5.54000	 	 
      
	
                          LV*
      (Width 60”)

                        	 	$	2.96380	 	 	$	4.93967	 	 
      
	
                          TK*
      (Width 60”)

                        	 	$	8.04200	 	 	$	13.40333	 	 
      
	 
      	 	 	 	 	 	 	 	 	 
      
	
                          Tape

                        	 	 	 	 	 	 	 	 	 
      
	
                          Tyvek®

                        	 	$	0.57645	 	 	 	 	 	 
      
	
                          Tychem® Tape
09

                        	 	 	 	 	 	 	 	 	
                          $41.41000

                        

                

              

            

          

        

      

    

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

    2009
Tyvek® Fabric Sales Incentive Program

    

    By this
agreement, E. I. duPont de Nemours and Company, DuPont Personal Protection
(DuPont) is offering Lakeland Industries Inc. (Lakeland) a 2009 Sales Incentive
Program.  The purpose of the program is to encourage additional sales
of DuPont Tyvek® products by further penetration into the worker protection
market.  DuPont Products covered by this program include all styles of
Tyvek® fabric – 1422A, 1422R, 1400T and Tyvek® FC.

    

    The
program includes the following elements:

    

    • The
table below outlines the Tyvek® fabric growth incentive target volumes by DuPont
fiscal quarter for 2009.  DuPont fiscal quarters end March 30, June
29, September 29 and December 30.

    

    • DuPont
will pay Lakeland a 2% rebate on all Tyvek® fabric purchases in any calendar
quarter where Lakeland purchases meet or exceed the quarterly growth incentive
target volumes.  This rebate is in addition to the co-op advertising
rebate program contained in the DuPont Garment Manufacturer & Seller License
Agreement and any discounts from payment terms negotiated between DuPont and
Lakeland.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Tyvek® Targets

                                  	 	 	
                                    Q1

                                  	 	 	 	
                                    Q2

                                  	 	 	 	
                                    Q3

                                  	 	 	 	
                                    Q4

                                  	 	 	
                                    2009

                                  	 
	
                                    Ln Yds $ (Millions)

                                  	 	$	97	 	 	$	8,034	 	 	$	6,308	 	 	$	7,713	 	 	$	22,055	 
	
                                    Ln Yds (Millins)

                                  	 	 	120	 	 	 	9930	 	 	 	7796	 	 	 	9533	 	 	 	27259	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                    Rebate

                                  	 	 	
                                    Q1

                                  	 	 	 	
                                    Q2

                                  	 	 	 	
                                    Q3

                                  	 	 	 	
                                    Q4

                                  	 	 	
                                    2008

                                  	 
	
                                    2%
      Per Qtr

                                  	 	$	1.94	 	 	$	160.68	 	 	$	126.15	 	 	$	154.26	 	 	$	443.042	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	443.04	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                    CO-OP

                                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                                    2008

                                  	 
	
                                    1%
      of 2008 Purchases

                                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	273.98	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    Terms
applicable to this Program include the following:

    

    1. The
program covers the calendar year 2009 only.  All rebates earned by
Lakeland during 2009 will be processed by DuPont no later than sixty (60) days
after December 31, 2009.  The rebates will be received in the form of
a credit memo.

    

    2.
Lakeland agrees to comply with all terms of this agreement and all DuPont terms
and conditions of sale regarding sales of products including payment within
agreed upon terms of payment.

    

    3. DuPont
will provide written notice of any modification of the Program and if a
modification is unacceptable, Lakeland may withdraw from the
program.  Lakeland may withdraw from participation in the program at
any time upon notice to DuPont.  Lakeland remains eligible to receive
any rebates earned through the date of withdrawal by Lakeland subject to other
terms of this Agreement.

    

    4.
Lakeland agrees to comply with DuPont rules for trademark usage.

    

    5. This
agreement contains the entire understanding between the parties and supersedes
any and all prior agreements, representations, warranties, and agreements
between the parties relating to the subject matter.  The parties agree
there are no representations, oral or written, that are not merged in this
agreement and the parties acknowledge they have entered into this Agreement
freely, intelligently, and voluntarily after adequate investigation and have not
executed or authorized the execution of this instrument in reliance upon any
agreement, understanding, condition, warranty or representation not contained in
this agreement.  This agreement shall not be amended or modified
orally, or by usage of trade or course of dealing and no amendment or
modification shall be of any force or effect unless contained in writing signed
by both parties which expressly refers to modification or amendment of this
Agreement.

    

    6. This Agreement may be
executed in any number of counterparts, each of which shall be original, but all
of which together shall constitute one and the same instrument.

    
      
         

      

      
        25Exhibit
4.1

    EXECUTION
COPY

    

    NOTE
AND WARRANT PURCHASE AGREEMENT

    

    Dated
as of March 31, 2010

    

    among

    

    JUMA
TECHNOLOGY CORP.

    

    and

    

    THE
PURCHASERS LISTED ON EXHIBIT A

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    TABLE OF
CONTENTS

    

    
      
        
          	 
      	
                  Page

                
	 
      	 
      
	
                  ARTICLE
      I   Purchase and Sale of the Notes and
    Warrants

                	 
      
	
                  Section
      1.1

                	
                  Purchase
      and Sale of Notes

                	
                  1

                
	
                  Section
      1.2

                	
                  Warrants

                	
                  1

                
	
                  Section
      1.3

                	
                  Conversion
      Shares

                	
                  1

                
	
                  Section
      1.4

                	
                  Purchase
      Price and Closing

                	
                  2

                
	 
      	 
      	 
      
	
                  ARTICLE
      II  Representations and Warranties

                	 
      
	
                  Section
      2.1

                	
                  Representations
      and Warranties of the Company

                	
                  2

                
	
                  Section
      2.2

                	
                  Representations
      and Warranties of the Purchasers

                	
                  12

                
	 
      	 
      
	
                  ARTICLE
      III  Covenants

                	 
      
	
                  Section
      3.1

                	
                  Securities
      Compliance

                	
                  14

                
	
                  Section
      3.2

                	
                  Registration
      and Listing

                	
                  15

                
	
                  Section
      3.3

                	
                  Inspection
      Rights

                	
                  15

                
	
                  Section
      3.4

                	
                  Compliance
      with Laws

                	
                  15

                
	
                  Section
      3.5

                	
                  Keeping
      of Records and Books of Account

                	
                  15

                
	
                  Section
      3.6

                	
                  Furnishing
      of Information

                	
                  16

                
	
                  Section
      3.7

                	
                  Reporting
      Requirements

                	
                  16

                
	
                  Section
      3.8

                	
                  Amendments

                	
                  16

                
	
                  Section
      3.9

                	
                  Other
      Agreements

                	
                  16

                
	
                  Section
      3.10

                	
                  Distributions

                	
                  16

                
	
                  Section
      3.11

                	
                  Use
      of Proceeds

                	
                  16

                
	
                  Section
      3.12

                	
                  Reservation
      of Shares

                	
                  17

                
	
                  Section
      3.13

                	
                  Transfer
      Agent Instructions

                	
                  17

                
	
                  Section
      3.14

                	
                  Disposition
      of Assets

                	
                  17

                
	
                  Section
      3.15

                	
                  Reporting
      Status

                	
                  17

                
	
                  Section
      3.16

                	
                  Disclosure
      of Transaction

                	
                  18

                
	
                  Section
      3.17

                	
                  Disclosure
      of Material Information

                	
                  18

                
	
                  Section
      3.18

                	
                  Pledge
      of Securities

                	
                  18

                
	
                  Section
      3.19

                	
                  Form
      S-1 Eligibility

                	
                  18

                
	
                  Section
      3.20

                	
                  DTC

                	
                  18

                
	
                  Section
      3.21

                	
                  Issuance
      of Variable Securities

                	
                  18

                
	
                  Section
      3.22

                	
                  Approval
      of Acquisitions.

                	
                  18

                
	
                  Section
      3.23

                	
                  Most
      Favored Nations

                	
                  19

                

        

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    	
                            ARTICLE
      IV  Conditions

                          	 
      
	
                            Section
      4.1

                          	
                            Conditions
      Precedent to the Obligation of the Company to Sell the
    Shares

                          	19
	
                            Section
      4.2

                          	
                            Conditions
      Precedent to the Obligation of the Purchasers to Purchase the
      Shares

                          	19
	 
      	 
      
	
                            ARTICLE
      V  Stock Certificate Legend

                          	 
      
	
                            Section
      5.1

                          	
                            Legend

                          	
                            21

                          
	 
      	 
      
	
                            ARTICLE
      VI  Indemnification

                          	 
      
	
                            Section
      6.1

                          	
                            General
      Indemnity

                          	
                            22

                          
	
                            Section
      6.2

                          	
                            Indemnification
      Procedure

                          	
                            23

                          
	 
      	 
      
	
                            ARTICLE
      VII  Registration Rights

                          	 
      
	
                            Section
      7.1

                          	
                            Piggyback
      Registration Rights

                          	
                            24

                          
	
                            Section
      7.2

                          	
                            Assignment
      of Registration Rights

                          	
                            24

                          
	
                            Section
      7.3

                          	
                            Underwriter
      Status

                          	
                            25

                          
	 
      
	
                            ARTICLE
      VIII  Miscellaneous

                          
	
                            Section
      8.1

                          	
                            Specific
      Enforcement

                          	
                            25

                          
	
                            Section
      8.2

                          	
                            Entire
      Agreement; Amendment

                          	
                            25

                          
	
                            Section
      8.3

                          	
                            Rescission
      and Withdrawal Right

                          	
                            25

                          
	
                            Section
      8.4

                          	
                            Notices

                          	
                            26

                          
	
                            Section
      8.5

                          	
                            Waivers

                          	
                            26

                          
	
                            Section
      8.6

                          	
                            Headings

                          	
                            26

                          
	
                            Section
      8.7

                          	
                            Successors
      and Assigns

                          	
                            27

                          
	
                            Section
      8.8

                          	
                            No
      Third Party Beneficiaries

                          	
                            27

                          
	
                            Section
      8.9

                          	
                            Governing
      Law; Consent to Jurisdiction

                          	
                            27

                          
	
                            Section
      8.10

                          	
                            Survival

                          	
                            27

                          
	
                            Section
      8.11

                          	
                            Counterparts

                          	
                            27

                          
	
                            Section
      8.12

                          	
                            Publicity

                          	
                            27

                          
	
                            Section
      8.13

                          	
                            Severability

                          	
                            27

                          
	
                            Section
      8.14

                          	
                            Further
      Assurances

                          	
                            27

                          

                  

                

              

            

          

        

      

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    

    EXHIBITS

    

    
      
        	
                Exhibit
      A

              	
                List
      of Purchasers

              
	
                Exhibit
      B

              	
                Form
      of 10% Convertible Bridge Note

              
	
                Exhibit
      C

              	
                Series
      A Warrant

              
	
                Exhibit
      D

              	
                Irrevocable
      Transfer Agent Instructions

              
	
                Exhibit
      E

              	
                Opinion
      of Counsel

              

      

    

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    NOTE
AND WARRANT PURCHASE AGREEMENT

    

    This NOTE
AND WARRANT PURCHASE AGREEMENT (this “Agreement”)
is dated as of March 31, 2010 by and among Juma Technology Corp., a Delaware
corporation (the “Company”),
and each of the Purchasers whose names are set forth on Exhibit
A hereto (individually, a “Purchaser”
and collectively, the “Purchasers”).

    

    NOW, THEREFORE, in
consideration of the covenants, promises and representations set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

    

    ARTICLE
I

    Purchase
and Sale of Note and Warrants

    

    Section
1.1       Purchase and Sale of
Note.
Upon the following terms and conditions, (a) the Company and one of its
subsidiaries, Nectar Services Corp., a Delaware Corporation (“Nectar”
and together with the Company, the “Issuers”)
shall jointly issue and sell to the Purchasers and each of the Purchasers shall
purchase from the Company, 10% convertible bridge notes in the aggregate
principal amount of two million ($2,000,000.00) dollars (the “Note”).  The
Notes provide for (i) optional conversion into shares of the Company’s common
stock, par value $0.0001 per share (the “Common
Stock”) and (ii) mandatory conversion upon the occurrence of a Qualified
Financing (as defined in the Note). The Note shall be substantially in the form
attached hereto as Exhibit
B.  The
Company and the Purchasers are executing and delivering this Agreement in
accordance with and in reliance upon the exemption from securities registration
afforded by Rule 506 of Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange
Commission (the “Commission”)
under the Securities Act of 1933, as amended (the “Securities
Act”) or Section 4(2) of the Securities Act.

    

    Section
1.2        Warrants. Upon the
following terms and conditions and for no additional consideration, each of the
Purchasers shall be issued Series A Warrants, in substantially the form attached
hereto as Exhibit
C (the “Series A
Warrants”
and/or the “Warrants”)
to purchase up to fifty percent (50%) of that number of shares of the Company’s
Common Stock into which the Note issued to the applicable Purchaser originally
converts.  Any shares of Common Stock issuable upon exercise of the
Warrants (and such shares when issued) are herein referred to as the “Warrant
Shares.” The Warrants shall expire on March 31, 2015 and shall have an
initial exercise price equal to fifteen cents ($0.15) per share.

    

    Section 1.3        Conversion Shares. The Company
has authorized and will reserve and covenants to continue to reserve, free of
preemptive rights and other similar contractual rights of stockholders, (i) such
number of shares of Common Stock equal to one hundred twenty percent (120%)
of the number of shares of Common Stock as shall from time to time be sufficient
to effect an Optional Conversion (as defined in the Notes) of all of the
Notes, and (ii) as of the date hereof, such number of shares of Common Stock
equal to one hundred twenty percent (120%) of the number of shares of Common
Stock as shall from time to time be sufficient to effect the exercise of the
Warrants then outstanding. Any shares of Common Stock issuable upon a conversion
of the Note (and such shares when issued) are herein referred to as the “Conversion
Shares.” The Notes, the Warrants, the Conversion Shares and the Warrant
Shares are sometimes collectively referred to as the “Securities.”

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Section 1.4        Purchase Price and
Closing. Subject to the terms and conditions hereof, the Issuers agree to
issue and sell to the Purchasers and, in consideration of and in express
reliance upon the representations, warranties, covenants, terms and conditions
of this Agreement, the Purchasers, severally but not jointly, agree to purchase
the Notes and the Warrants for an aggregate purchase price of two million
($2,000,000.00) dollars (the “Purchase
Price”). The closing under this Agreement (the “Closing”)
shall take place on or about March 31, 2010 (the “Closing
Date”).  The Closing under this Agreement shall take place at
the offices of Vision Opportunity Master Fund, Ltd., 20 West 55th Street,
5th
Floor, New York, New York 10019 at 10:00 a.m., New York time; provided, that all of the
conditions set forth in Article
IV hereof and applicable to the Closing shall have been fulfilled or
waived in accordance herewith.  Subject to the terms and conditions of
this Agreement, at the Closing the Company shall deliver or cause to be
delivered to each Purchaser (x) its Notes for the principal amount set forth
opposite the name of such Purchaser on Exhibit
A hereto, (y) its Warrants to purchase such number of shares of Common
Stock as is set forth opposite the name of such Purchaser on Exhibit
A attached hereto and (z) any other documents required to be
delivered pursuant to Article
IV hereof. At the Closing, each Purchaser shall deliver the applicable
Purchase Price by wire transfer to the Company.

    

    ARTICLE
II

    Representations
and Warranties

    

    Section
2.1        Representations and
Warranties of the Company. Each of the Issuers hereby represents and
warrants to the Purchasers, as of the date hereof and as of the Closing Date
(except as set forth on the Schedule of Exceptions attached hereto with each
numbered Schedule corresponding to the section number herein), as follows
(unless otherwise specifically stated herein this Section
2.1 to the contrary, all references to the Company shall be deemed to
refer collectively to the Issuers):

    

      (a)        Organization, Good Standing
and Power. The Company is a corporation duly incorporated, validly
existing and, upon the payment of its Delaware franchise taxes, will be in
good standing under the laws of the State of Delaware and has the requisite
corporate power to own, lease and operate its properties and assets and to
conduct its business as it is now being conducted. Nectar is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware and has the requisite corporate power to own, lease and operate its
properties and assets and to conduct its business as it is now being conducted.
Except as set forth in Schedule
2.1(g) hereto, the Company does not have any Subsidiaries. Except as set
forth on Schedule
2.1(a), each of the Company and each such Subsidiary is duly qualified as
a foreign corporation to do business and is in good standing in every
jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary except for any jurisdiction(s) (alone or
in the aggregate) in which the failure to be so qualified will not have a
Material Adverse Effect (as defined in Section
2.1(c) hereof) on the Company’s financial condition.

    

    (b)      Authorization;
Enforcement. The Company has the requisite corporate power and authority
to enter into and perform this Agreement, the Notes, the Warrants and the
Irrevocable Transfer Agent Instructions (as defined in Section
3.13) substantially
in the form of Exhibit
D attached hereto (collectively, the “Transaction
Documents”) and to issue and sell the Securities in accordance with the
terms hereof. The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by it of the transactions
contemplated hereby and thereby have been duly and validly authorized by all
necessary corporate action, and except as set forth on Schedule
2.1(b), no further consent or authorization of the Company or its board
of directors or stockholders is required. This Agreement has been duly executed
and delivered by the Company. The other Transaction Documents will have been
duly executed and delivered by the Company at the Closing. Each of the
Transaction Documents constitutes, or shall constitute when executed and
delivered, a valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditor’s rights and remedies or by
other equitable principles of general application.

    
      
         

      

      
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    (c)      Capitalization. The
authorized capital stock of the Company and the shares thereof currently issued
and outstanding as of the date hereof are set forth on Schedule
2.1(c) hereto. All of the outstanding shares of capital stock have been
duly and validly authorized and issued in compliance with all securities
laws.  Except as set forth on Schedule
2.1(c) hereto, no shares of Common Stock are entitled to preemptive
rights or registration rights and there are no outstanding options, warrants,
scrip, rights to subscribe to, call or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital
stock of the Company. There are no contracts, commitments, understandings, or
arrangements by which the Company is or may become bound to issue additional
shares of the capital stock of the Company or options, securities or rights
convertible into shares of capital stock of the Company. Except as set forth on
Schedule
2.1(c) hereto, the Company is not a party to any agreement granting
registration or anti-dilution rights to any person with respect to any of its
equity or debt securities. The Company is not a party to, and it has no
knowledge of, any agreement restricting the voting or transfer of any shares of
the capital stock of the Company. The offer and sale of all capital stock,
convertible securities, rights, warrants, or options of the Company issued prior
to the Closing complied with all applicable Federal and state securities laws,
and no stockholder has a right of rescission or claim for damages with respect
thereto. The Company has furnished or made available to the Purchasers true and
correct copies of the Company’s Certificate of Incorporation as in effect on the
date hereof (the “Certificate”) and
the Company’s Bylaws as in effect on the date hereof (the “Bylaws”).
For the purposes of this Agreement, “Material
Adverse Effect” means any material adverse effect on the business,
operations, properties, prospects, or financial condition of the Company and its
Subsidiaries, taken as a whole, and/or any condition, circumstance, or situation
that would prohibit or otherwise materially interfere with the ability of the
Company to perform any of its obligations under this Agreement.

    

    (d)      Issuance of Securities. The Notes
and the Warrants to be issued at the Closing have been duly authorized by all
necessary corporate action and when paid for or issued in accordance with the
terms hereof, the Notes and Warrants shall be validly issued and outstanding,
free and clear of all liens, encumbrances and rights of refusal of any
kind.  When the Conversion Shares and the Warrant Shares are issued in
accordance with the terms of this Agreement, the Notes and the Warrants, such
shares will be duly authorized by all necessary corporate action and validly
issued and outstanding, fully paid and nonassessable, free and clear of all
liens, encumbrances and rights of refusal of any kind and the holders shall be
entitled to all rights accorded to a holder of Common Stock.

    

    (e)      No Conflicts. The
execution, delivery and performance of the Transaction Documents by the Company,
the performance by the Company of its obligations under the Notes and/or the
Warrants and the consummation by the Company of the transactions contemplated
herein and therein do not and will not (i) violate any provision of the
Company’s Certificate or Bylaws, (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the Company is a
party or by which it or its properties or assets are bound, except for conflicts
or defaults, which singularly or in the aggregate do not and will not have a
Material Adverse Effect, (iii) create or impose a lien, mortgage, security
interest, charge or encumbrance of any nature on any property of the Company
under any agreement or any commitment to which the Company is a party or by
which the Company is bound or by which any of its respective properties or
assets are bound, except for liens, mortgages, security interests, charges or
encumbrances which singularly or in the aggregate do not and will not have a
Material Adverse Effect, or (iv) result in a violation of any federal, state,
local or foreign statute, rule, regulation, order, judgment or decree (including
Federal and state securities laws and regulations) applicable to the Company or
any of its Subsidiaries or by which any property or asset of the Company or any
of its Subsidiaries are bound or affected, except for violations, which
singularly or in the aggregate, do not and will not have a Material Adverse
Effect. The business of the Company and its Subsidiaries is not being conducted
in violation of any laws, ordinances or regulations of any governmental entity,
except for possible violations which singularly or in the aggregate do not and
will not have a Material Adverse Effect. The Company is not required under
Federal, state or local law, rule or regulation to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform any of its
obligations under the Transaction Documents, or issue and sell the Notes, the
Warrants, the Conversion Shares and the Warrant Shares in accordance with the
terms hereof or thereof (other than (x) any consent, authorization or order that
has been obtained as of the date hereof, (y) any filing or registration that has
been made as of the date hereof or (z) any filings which may be required to be
made by the Company with the Commission or state securities administrators
subsequent to the Closing, any registration statement which may be filed
pursuant hereto or any other Transaction Document); provided, that for purposes
of the representation made in this sentence, the Company is assuming and relying
upon the accuracy of the relevant representations and agreements of the
Purchasers herein.

    
      
         

      

      
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    (f)       Commission Documents,
Financial Statements. The Company has timely filed all reports,
schedules, forms, statements and other documents required to be filed by it with
the Commission pursuant to the reporting requirements of the Securities Exchange
Act of 1934, as amended the (“Exchange
Act”), including material filed pursuant to Section 13(a) or 15(d) of the
Exchange Act (all of the foregoing including filings incorporated by reference
therein being referred to herein as the “Commission
Documents”). The Company has delivered or made available via EDGAR or
another Internet web-site to each of the Purchasers true and complete copies of
the Commission Documents. Except for any information provided to Robert Thomson,
the Company has not provided to the Purchasers any material non-public
information or other information which, according to applicable law, rule or
regulation, was required to have been disclosed publicly by the Company but
which has not been so disclosed, other than with respect to the transactions
contemplated by this Agreement. At the times of their respective filings, the
Commission Documents complied in all material respects with the requirements of
the Exchange Act and the rules and regulations of the Commission promulgated
thereunder and other federal, state and local laws, rules and regulations
applicable to such documents, and, as of their respective dates, none of the
Commission Documents contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The financial statements of the Company included
in the Commission Documents comply as to form in all material respects with
applicable accounting requirements and the published rules and regulations of
the Commission or other applicable rules and regulations with respect thereto.
Such financial statements have been prepared in accordance with U.S. generally
accepted accounting principles (“GAAP”)
applied on a consistent basis during the periods involved (except (i) as may be
otherwise indicated in such financial statements or the notes thereto or (ii) in
the case of unaudited interim statements, to the extent they may not include
footnotes or may be condensed or summary statements), and fairly present in all
material respects the financial position of the Company and its Subsidiaries as
of the dates thereof and the results of operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments).

    
      
         

      

      
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    (g)   
  Subsidiaries. Schedule
2.1(g) hereto sets forth each Subsidiary of the Company, showing the
jurisdiction of its incorporation or organization and showing the percentage of
each person’s ownership. Each Subsidiary is a corporation duly incorporated,
validly existing and in good standing under the laws of its state of
incorporation and has the requisite corporate power to own, lease and operate
its properties and assets and to conduct its business as it is now being
conducted. For the purposes of this Agreement, “Subsidiary”
shall mean any corporation or other entity of which at least a majority of the
securities or other ownership interest having ordinary voting power (absolutely
or contingently) for the election of directors or other persons performing
similar functions are at the time owned directly or indirectly by the Company
and/or any of its other Subsidiaries. All of the outstanding shares of capital
stock of each Subsidiary have been duly authorized and validly issued, and are
fully paid and nonassessable. There are no outstanding preemptive, conversion or
other rights, options, warrants or agreements granted or issued by or binding
upon any Subsidiary for the purchase or acquisition of any shares of capital
stock of any Subsidiary or any other securities convertible into, exchangeable
for or evidencing the rights to subscribe for any shares of such capital stock.
Neither the Company nor any Subsidiary is subject to any obligation (contingent
or otherwise) to repurchase or otherwise acquire or retire any shares of the
capital stock of any Subsidiary or any convertible securities, rights, warrants
or options of the type described in the preceding sentence. Neither the Company
nor any Subsidiary is party to, nor has any knowledge of, any agreement
restricting the voting or transfer of any shares of the capital stock of any
Subsidiary.

    

    (h)      No Material Adverse
Change. Other than as disclosed in the Company’s Commission Documents,
since December 31, 2008 the Company has not experienced or suffered any Material
Adverse Effect.

    

    (i)       No Undisclosed
Liabilities. Except as set forth on Schedule
2.1(i), since December 31, 2008 neither the Company nor any of its
Subsidiaries has any liabilities, obligations, claims or losses (whether
liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent
or otherwise) other than those incurred in the ordinary course of the Company’s
or its Subsidiaries’ respective businesses and which, individually or in the
aggregate, do not or would not have a Material Adverse Effect on the Company or
its Subsidiaries, as the case may be.

    

    (j)       Off Balance Sheet
Arrangements.  There is no transaction, arrangement, or other
relationship between the Company and an unconsolidated or other off balance
sheet entity that is required to be disclosed by the Company in its Commission
Documents and is not so disclosed or that otherwise would be reasonably likely
to have a Material Adverse Effect.

    

    (k)      No Undisclosed Events or
Circumstances. No event or circumstance has occurred or exists with
respect to the Company or its Subsidiaries or their respective businesses,
properties, prospects, operations or financial condition, which, under
applicable law, rule or regulation, requires public disclosure or announcement
by the Company but which has not been so publicly announced or
disclosed.

    

    (l)       Indebtedness. Schedule
2.1(l) hereto sets forth as of the date hereof all outstanding secured
and unsecured Indebtedness of the Company or any Subsidiary, or for which the
Company or any Subsidiary has commitments. For the purposes of this Agreement,
“Indebtedness”
shall mean (a) any liabilities for borrowed money or amounts owed, whether
individually or in aggregate, in excess of $100,000 (other than trade accounts
payable incurred in the ordinary course of business), (b) all guaranties,
endorsements and other contingent obligations in respect of Indebtedness of
others, whether or not the same are or should be reflected in the Company’s
balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business; and (c) the present value of any lease payments in
excess of $25,000 due under leases required to be capitalized in accordance with
GAAP. Except as set forth on Schedule
2.1(l), neither the Company nor any Subsidiary is in default with respect
to any Indebtedness.

    

    (m)     Title to Assets.
Except as set forth on Schedule
2.1(m), each of the Company and the Subsidiaries has good and marketable
title to all of its real and personal property, free and clear of any mortgages,
pledges, charges, liens, security interests or other encumbrances. Except as set
forth on Schedule
2.1(m), all leases of the Company and each of its Subsidiaries are valid
and subsisting and in full force and effect.

    
      
         

      

      
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    (n)     
Insurance. The
Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses and location in which the Company and the
Subsidiaries are engaged. Neither the Company nor any Subsidiary has any
knowledge that it will be unable to renew its existing insurance coverage for
the Company and the Subsidiaries as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business without a significant increase in cost.

    

    (o)      Actions Pending.
There is no action, suit, claim, investigation, arbitration, alternate dispute
resolution proceeding or any other proceeding pending or, to the knowledge of
the Company, threatened against the Company or any Subsidiary which questions
the validity of this Agreement or any of the other Transaction Documents or the
transactions contemplated hereby or thereby or any action taken or to be taken
pursuant hereto or thereto. There is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or any other proceeding
pending or, to the knowledge of the Company, threatened, against or involving
the Company, any Subsidiary or any of their respective properties or assets.
There are no outstanding orders, judgments, injunctions, awards or decrees of
any court, arbitrator or governmental or regulatory body against the Company or
any Subsidiary or any officers or directors of the Company or Subsidiary in
their capacities as such.

    

    (p)      Compliance with Law.
The business of the Company and the Subsidiaries has been and is presently being
conducted in accordance with all applicable federal, state and local
governmental laws, rules, regulations and ordinances, except for such
noncompliance that, individually or in the aggregate, would not cause a Material
Adverse Effect. The Company and each of its Subsidiaries have all franchises,
permits, licenses, consents and other governmental or regulatory authorizations
and approvals necessary for the conduct of its business as now being conducted
by it unless the failure to possess such franchises, permits, licenses, consents
and other governmental or regulatory authorizations and approvals, individually
or in the aggregate, would not have a Material Adverse Effect.

    

    (q)      Taxes. The Company
and each of the Subsidiaries has accurately prepared and filed all federal,
state and other tax returns required by law to be filed by it, has paid or made
provisions for the payment of all taxes shown to be due and all additional
assessments, and adequate provisions have been and are reflected in the
financial statements of the Company and the Subsidiaries for all current taxes
and other charges to which the Company or any Subsidiary is subject and which
are not currently due and payable. None of the federal income tax returns of the
Company or any Subsidiary have been audited by the Internal Revenue Service. The
Company has no knowledge of any additional assessments, adjustments or
contingent tax liability (whether federal or state) of any nature whatsoever,
whether pending or threatened against the Company or any Subsidiary for any
period, nor of any basis for any such assessment, adjustment or
contingency.

    

    (r)       Certain Fees. No
brokers, finders or financial advisory fees or commissions will be payable by
the Company or any Subsidiary or any Purchaser with respect to the transactions
contemplated by this Agreement.

    

    (s)  
    Disclosure. Neither
this Agreement or the Schedules hereto nor any other documents, certificates or
instruments furnished to the Purchasers by or on behalf of the Company or any
Subsidiary in connection with the transactions contemplated by this Agreement
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made herein or therein, in the light
of the circumstances under which they were made herein or therein, not
misleading.

    
      
         

      

      
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    (t)  
    Operation of
Business. Except as set forth in Schedule
2.1(t),
the Company and each of the Subsidiaries owns or possesses all patents,
trademarks, domain names (whether or not registered) and any patentable
improvements or copyrightable derivative works thereof, websites and
intellectual property rights relating thereto, service marks, trade names,
copyrights, licenses and authorizations, and all rights with respect to the
foregoing, which are necessary for the conduct of its business as now conducted
without any conflict with the rights of others.

    

    (u)      Environmental
Compliance. The Company and each of its Subsidiaries have obtained all
material approvals, authorization, certificates, consents, licenses, orders and
permits or other similar authorizations of all governmental authorities, or from
any other person, that are required under any Environmental Laws. Except as set
forth on Schedule
2.1(u),
the Commission Documents describe all material permits, licenses and other
authorizations issued under any Environmental Laws to the Company or its
Subsidiaries. “Environmental
Laws” shall mean all applicable laws relating to the protection of the
environment including, without limitation, all requirements pertaining to
reporting, licensing, permitting, controlling, investigating or remediating
emissions, discharges, releases or threatened releases of hazardous substances,
chemical substances, pollutants, contaminants or toxic substances, materials or
wastes, whether solid, liquid or gaseous in nature, into the air, surface water,
groundwater or land, or relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of hazardous
substances, chemical substances, pollutants, contaminants or toxic substances,
material or wastes, whether solid, liquid or gaseous in nature. The Company has
all necessary governmental approvals required under all Environmental Laws and
used in its business or in the business of any of its Subsidiaries. The Company
and each of its Subsidiaries are also in compliance with all other limitations,
restrictions, conditions, standards, requirements, schedules and timetables
required or imposed under all Environmental Laws. Except for such instances as
would not individually or in the aggregate have a Material Adverse Effect, there
are no past or present events, conditions, circumstances, incidents, actions or
omissions relating to or in any way affecting the Company or its Subsidiaries
that violate or may violate any Environmental Law after the Closing Date or that
may give rise to any environmental liability, or otherwise form the basis of any
claim, action, demand, suit, proceeding, hearing, study or investigation (i)
under any Environmental Law, or (ii) based on or related to the manufacture,
processing, distribution, use, treatment, storage (including without limitation
underground storage tanks), disposal, transport or handling, or the emission,
discharge, release or threatened release of any hazardous
substance.

    

    (v)      Books and Record Internal
Accounting Controls. The books and records of the Company and its
Subsidiaries accurately reflect in all material respects the information
relating to the business of the Company and the Subsidiaries, the location and
collection of their assets, and the nature of all transactions giving rise to
the obligations or accounts receivable of the Company or any Subsidiary. The
Company and each of its Subsidiaries maintain a system of internal accounting
controls sufficient, in the judgment of the Company, to provide reasonable
assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to
maintain asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

    

    (w)     Material Agreements.
Except for the Transaction Documents (with respect to clause (i) only), as
disclosed in the Commission Documents or as set forth on Schedule
2.1(w) hereto, or as would not be reasonably likely to have a Material
Adverse Effect, (i) the Company and each of its Subsidiaries have performed all
obligations required to be performed by them to date under any written or oral
contract, instrument, agreement, commitment, obligation, plan or arrangement,
filed or required to be filed with the Commission (the “Material
Agreements”), (ii) neither the Company nor any of its Subsidiaries has
received any notice of default under any Material Agreement and, (iii) to the
best of the Company’s knowledge, neither the Company nor any of its Subsidiaries
is in default under any Material Agreement now in effect.

    
      
         

      

      
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    (x)       Intellectual
Property.  The Company and its Subsidiaries own, or have rights
to use, all inventions, know-how, patents, patent applications, trademarks,
trademark applications, service marks, trade names, copyrights, licenses, trade
secrets and other similar rights that are necessary or material for use in
connection with their respective businesses now operated by them and presently
contemplated to be operated by them which the failure to so have would have or
reasonably be expected to result in a Material Adverse Effect (collectively, the
“Intellectual
Property Rights”).  None of the Company’s or any Subsidiary’s
Intellectual Property Rights have expired or terminated, or are expected to
expire or terminate, within three years from the date of this
Agreement.  None of the Company’s nor any Subsidiary has received
written notice that the Intellectual Property Rights used by the Company or any
Subsidiary violates or infringes upon the rights of any Person (as defined
below).  To the knowledge of the Company, the Company and its
Subsidiaries’ patents and other Intellectual Property Rights and the present
activities of the Company and its Subsidiaries do not infringe any patent,
copyright, trademark, trade name or other proprietary rights of any third party,
and there is no claim, action or proceeding being made or brought against, or to
the Company’s knowledge, being threatened against, the Company or any Subsidiary
regarding any of the Intellectual Property Rights.  The Company does
not have any knowledge of an infringement by another Person of any of the
Intellectual Property Rights by third parties and has no reason to believe that
any of its Intellectual Property Rights is unenforceable.  The Company
has taken commercially reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties. “Person”
means an individual or a corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or political subdivision thereof) or
other entity of any kind.

    

    (y)      Transactions with
Affiliates. Except as set forth in the Commission Documents, there are no
loans, leases, agreements, contracts, royalty agreements, management contracts
or arrangements or other continuing transactions between (a) the Company or any
Subsidiary on the one hand, and (b) on the other hand, any officer, employee,
consultant or director of the Company or any of its Subsidiaries, or any person
owning any capital stock of the Company or any Subsidiary or any member of the
immediate family of such officer, employee, consultant, director or stockholder,
or any corporation or other entity controlled by such officer, employee,
consultant, director or stockholder, or a member of the immediate family of such
officer, employee, consultant, director or stockholder.

    

    (z)       Sarbanes-Oxley; Disclosure
Controls. The Company is in compliance in all material respects with all
of the provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it
as of the Closing Date. The Company has established disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
Company and designed such disclosure controls and procedures to ensure that
material information relating to the Company is made known to the certifying
officers by others within those entities, particularly during the period in
which the Company’s most recently filed periodic report under the Exchange Act
is being prepared. The Company’s certifying officers have evaluated the
effectiveness of the Company’s disclosure controls and procedures as of the end
of the most recent periodic reporting period under the Exchange Act (such date,
the “Evaluation
Date”). The Company presented in its most recently filed periodic report
under the Exchange Act the conclusions of the certifying officers about the
effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have
been no significant changes in the Company’s internal controls over financial
reporting (as such term is defined in Exchange Act Rules 13a-15(f) and
15d-15(f)) or, to the Company’s knowledge, in other factors that could
reasonably be expected to materially affect the Company’s internal controls over
financial reporting

    
      
         

      

      
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    (aa)  Securities Act of
1933. Based in material part upon the representations herein of the
Purchasers, the Company has complied and will comply with all applicable federal
and state securities laws in connection with the offer, issuance and sale of the
Securities hereunder. Neither the Company nor anyone acting on its behalf,
directly or indirectly, has or will sell, offer to sell or solicit offers to buy
any of the Securities or similar securities to, or solicit offers with respect
thereto from, or enter into any preliminary conversations or negotiations
relating thereto with, any person, or has taken or will take any action so as to
bring the issuance and sale of any of the Securities under the registration
provisions of the Securities Act and applicable state securities laws, and
neither the Company nor any of its affiliates, nor any person acting on its or
their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D under the Securities Act) in
connection with the offer or sale of any of the Securities.

    

    (bb)  Governmental
Approvals. Except for the filing of any notice prior or subsequent to the
Closing Date that may be required under applicable state and/or Federal
securities laws (which if required, shall be filed on a timely basis), including
the filing of a Form D and a registration statement or statements pursuant to
Section
7.1 herein, no authorization, consent, approval, license, exemption of,
filing or registration with any court or governmental department, commission,
board, bureau, agency or instrumentality, domestic or foreign, is or will be
necessary for, or in connection with, the execution or delivery of the Notes and
the Warrants, or for the performance by the Company of its obligations under the
Transaction Documents.

    

    (cc)  Employees. Neither
the Company nor any Subsidiary has any collective bargaining arrangements or
agreements covering any of its employees. Except as set forth on Schedule
2.1(cc),
neither the Company nor any Subsidiary has any employment contract, agreement,
regarding proprietary information, non-competition agreement, non-solicitation
agreement, confidentiality agreement, or any other similar contract or
restrictive covenant, relating to the right of any officer, employee or
consultant to be employed or engaged by the Company or such Subsidiary. No
officer, consultant or key employee of the Company or any Subsidiary whose
termination, either individually or in the aggregate, could have a Material
Adverse Effect, has terminated or, to the knowledge of the Company, has any
present intention of terminating his or her employment or engagement with the
Company or any Subsidiary.

    

    (dd)  Absence of Certain
Developments. Except as set forth on Schedule
2.1(dd), since December 31, 2008, neither the Company nor any Subsidiary
has:

    

    (i)         issued
any stock, bonds or other corporate securities or any rights, options or
warrants with respect thereto;

    

    (ii)        borrowed
any amount or incurred or become subject to any liabilities (absolute or
contingent) except current liabilities incurred in the ordinary course of
business which are comparable in nature and amount to the current liabilities
incurred in the ordinary course of business during the comparable portion of its
prior fiscal year;

    

    (iii)      discharged
or satisfied any lien or encumbrance or paid any obligation or liability
(absolute or contingent), other than current liabilities paid in the ordinary
course of business;

    

    (iv)      declared
or made any payment or distribution of cash or other property to stockholders
with respect to its stock, or purchased or redeemed, or made any agreements so
to purchase or redeem, any shares of its capital stock;

    
      
         

      

      
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    (v)       sold,
assigned or transferred any other tangible assets, or canceled any debts or
claims, except in the ordinary course of business;

    

    (vi)      sold,
assigned or transferred any patent rights, trademarks, trade names, copyrights,
trade secrets or other intangible assets or intellectual property rights, or
disclosed any proprietary confidential information to any person except to
customers in the ordinary course of business;

    

    (vii)     suffered any
substantial losses or waived any rights of material value, whether or not in the
ordinary course of business, or suffered the loss of any material amount of
prospective business;

    

    (viii)    made any
changes in employee compensation except in the ordinary course of business and
consistent with past practices;

    

    (ix)      made
capital expenditures or commitments therefor that aggregate in excess of
$100,000;

    

    (x)       entered
into any other transaction other than in the ordinary course of business, or
entered into any other material transaction, whether or not in the ordinary
course of business;

    

    (xi)      made
charitable contributions or pledges in excess of $25,000;

    

    (xii)     suffered any
material damage, destruction or casualty loss, whether or not covered by
insurance;

    

    (xiii)    experienced any
material problems with labor or management in connection with the terms and
conditions of their employment;

    

    (xiv)    effected
any two or more events of the foregoing kind which in the aggregate would be
material to the Company or its Subsidiaries; or

    

    (xv)     entered into
an agreement, written or otherwise, to take any of the foregoing
actions.

    

    (ee)   Public Utility Holding
Company Act and Investment Company Act Status. The Company is not a
“holding company” or a “public utility company” as such terms are defined in the
Public Utility Holding Company Act of 1935, as amended. The Company is not, and
as a result of and immediately upon the Closing will not be, an “investment
company” or a company “controlled” by an “investment company,” within the
meaning of the Investment Company Act of 1940, as amended.

    

    (ff)     ERISA. No liability
to the Pension Benefit Guaranty Corporation has been incurred with respect to
any Plan (as defined below) by the Company or any of its Subsidiaries which is
or would be materially adverse to the Company and its Subsidiaries. The
execution and delivery of this Agreement and the issuance and sale of the
Securities will not involve any transaction which is subject to the prohibitions
of Section 406 of ERISA or in connection with which a tax could be imposed
pursuant to Section 4975 of the Internal Revenue Code of 1986, as amended (the
“Code”);
provided that if any of
the Purchasers, or any person or entity that owns a beneficial interest in any
of the Purchasers, is an “employee pension benefit plan” (within the meaning of
Section 3(2) of ERISA) with respect to which the Company is a “party in
interest” (within the meaning of Section 3(14) of ERISA), the requirements of
Sections 407(d)(5) and 408(e) of ERISA, if applicable, are met. As used in this
Section
2.1(ff),
the term “Plan”
shall mean an “employee pension benefit plan” (as defined in Section 3 of ERISA)
which is or has been established or maintained, or to which contributions are or
have been made, by the Company or any Subsidiary or by any trade or business,
whether or not incorporated, which, together with the Company or any Subsidiary,
is under common control, as described in Section 414(b) or (c) of the
Code.

    
      
         

      

      
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    (gg)    Dilutive Effect. The
Company understands and acknowledges that its obligation to (i) issue Conversion
Shares upon an Optional Conversion of the Notes in accordance with this
Agreement and the Note, and (ii) its obligations to issue the Warrant Shares
upon the exercise of the Warrants in accordance with this Agreement and the
Warrants, is, in each case, absolute and unconditional regardless of the
dilutive effect that such issuance may have on the ownership interest of other
stockholders of the Company.

    

    (hh)    No Integrated
Offering. Neither the Company, nor any of its affiliates, nor any person
acting on its or their behalf, has directly or indirectly made any offers or
sales of any security or solicited any offers to buy any security under
circumstances that would cause the offering of the Securities pursuant to this
Agreement to be integrated with prior offerings by the Company for purposes of
the Securities Act which would prevent the Company from selling the Securities
pursuant to Rule 506 under the Securities Act, or any applicable
exchange-related stockholder approval provisions, nor will the Company or any of
its affiliates or Subsidiaries take any action or steps that would cause the
offering of the Securities to be integrated with other offerings.

    

    (ii)      Listing and Maintenance
Requirements.  Except as set forth in the Commission Documents,
the Company has not, in the two (2) years preceding the date hereof, received
notice (written or oral) from any Trading Market on which the Common Stock is or
has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading
Market.  Except as set forth in the Commission Documents, the Company
is, and has no reason to believe that it will not in the foreseeable future
continue to be, in compliance with all such listing and maintenance
requirements. “Trading
Market” means the OTC Bulletin Board or any other Eligible Market, or any
other national securities exchange, market or trading or quotation facility on
which the Common Stock is then listed or quoted. “Eligible
Market” means any of the New York Stock Exchange, the American Stock
Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ
Capital Market or the Over-the-Counter Bulletin Board.

    

    (jj)      Independent Nature of
Purchasers. The Company acknowledges that the obligations of each
Purchaser under the Transaction Documents are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any
way for the performance of the obligations of any other Purchaser under the
Transaction Documents. The Company acknowledges that the decision of each
Purchaser to purchase securities pursuant to this Agreement has been made by
such Purchaser independently of any other purchase and independently of any
information, materials, statements or opinions as to the business, affairs,
operations, assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company or of its Subsidiaries
which may have made or given by any other Purchaser or by any agent or employee
of any other Purchaser, and no Purchaser or any of its agents or employees shall
have any liability to any Purchaser (or any other person) relating to or arising
from any such information, materials, statements or opinions. The Company
acknowledges that nothing contained herein, or in any Transaction Document, and
no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to
constitute the Purchasers as a partnership, an association, a joint venture or
any other kind of entity, or create a presumption that the Purchasers are in any
way acting in concert or as a group with respect to such obligations or the
transactions contemplated by the Transaction Documents. The Company acknowledges
that each Purchaser shall be entitled to independently protect and enforce its
rights, including without limitation, the rights arising out of this Agreement
or out of the other Transaction Documents, and it shall not be necessary for any
other Purchaser to be joined as an additional party in any proceeding for such
purpose. The Company acknowledges that for reasons of administrative convenience
only, the Transaction Documents have been prepared by counsel for one of the
Purchasers and such counsel does not represent all of the Purchasers but only
such Purchaser and the other Purchasers have retained their own individual
counsel with respect to the transactions contemplated hereby. The Company
acknowledges that it has elected to provide all Purchasers with the same terms
and Transaction Documents for the convenience of the Company and not because it
was required or requested to do so by the Purchasers.

    
      
         

      

      
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    (kk)    Questionable
Payments. Neither the Company nor any of its Subsidiaries, nor, to the
Company’s knowledge, any directors, officers, employees, agents or other Persons
acting on behalf of the Company or any of its Subsidiaries has, in the course of
its actions for, or on behalf of, the Company: (a) directly or indirectly, used
any corporate funds for unlawful contributions, gifts, entertainment or other
unlawful expenses relating to foreign or domestic political activity; (b) made
any direct or indirect unlawful payments to any foreign or domestic governmental
officials or employees or to any foreign or domestic political parties or
campaigns from corporate funds; (c) violated in any material respect any
provision of the Foreign Corrupt Practices Act of 1977, as amended; or (d) made
any other unlawful bribe, rebate, payoff, influence payment, kickback or other
unlawful payment to any foreign or domestic government official or
employee.

    

    (ll)     
Application of
Takeover Protections. The Company and its board of directors have taken
all necessary action, if any, in order to render inapplicable any control share
acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company’s
charter documents or the laws of its state of incorporation that is or could
reasonably be expected to become applicable to any of the Purchasers as a result
of the Purchasers and the Company fulfilling their obligations or exercising
their rights under the Transaction Documents, including, without limitation, the
Company’s issuance of the Securities and the Purchasers’ ownership of the
Securities.

    

    (mm)  Transfer Agent. The
name, address, telephone number, fax number, contact person and email address of
the Company’s current transfer agent is set forth on Schedule
2.1(mm)
hereto.

    

    Section
2.2        Representations and
Warranties of the Purchasers. Each Purchaser hereby makes the following
representations and warranties to the Company (with respect solely to itself and
not with respect to any other Purchaser), as of the date hereof, and as of the
Closing Date:

    

    (a)      Organization and Standing of
the Purchasers. If such Purchaser is an entity, such Purchaser is a
corporation, partnership or limited liability company duly incorporated or
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization.

    

    (b)      Authorization and
Power. Such Purchaser has the requisite power and authority to enter into
and perform this Agreement and to purchase the Notes and Warrants being sold to
it hereunder. The execution, delivery and performance of this Agreement by such
Purchaser and the consummation by it of the transactions contemplated hereby and
thereby have been duly authorized by all necessary corporate or partnership
action, and no further consent or authorization of such Purchaser or its board
of directors, stockholders or partners, as the case may be, is required. This
Agreement has been duly authorized, executed and delivered by such Purchaser and
constitutes, or shall constitute when executed and delivered, a valid and
binding obligation of the Purchaser enforceable against the Purchaser in
accordance with the terms thereof, except as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditor’s rights and remedies or by other
equitable principles of general application.

    
      
         

      

      
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    (c)      No Conflicts. The
execution, delivery and performance of this Agreement and the consummation by
such Purchaser of the transactions contemplated hereby or relating hereto do not
and will not (i) result in a violation of such Purchaser’s charter documents or
bylaws or other organizational documents or (ii) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of any agreement, indenture or instrument or
obligation to which such Purchaser is a party or by which its properties or
assets are bound, or result in a violation of any law, rule, or regulation, or
any order, judgment or decree of any court or governmental agency applicable to
such Purchaser or its properties (except for such conflicts, defaults and
violations as would not, individually or in the aggregate, have a material
adverse effect on such Purchaser). Such Purchaser is not required to obtain any
consent, authorization or order of, or make any filing or registration with, any
court or governmental agency in order for it to execute, deliver or perform any
of its obligations under this Agreement or to purchase the Notes or acquire the
Warrants in accordance with the terms hereof; provided that for purposes of
the representation made in this sentence, such Purchaser is assuming and relying
upon the accuracy of the relevant representations and agreements of the Company
herein.

    

    (d)      Acquisition for
Investment. Such Purchaser is acquiring the Securities solely for its own
account for the purpose of investment and not with a view to or for sale in
connection with distribution. Each Purchaser does not have a present intention
to sell the Securities, nor a present arrangement (whether or not legally
binding) or intention to effect any distribution of the Securities to or through
any person or entity; provided, however, that by
making the representations herein and subject to Section
2.2(h)
below, such Purchaser does not agree to hold the Securities for any minimum or
other specific term and reserves the right to dispose of the Securities at any
time in accordance with Federal and state securities laws applicable to such
disposition. Such Purchaser acknowledges that it is able to bear the financial
risks associated with an investment in the Securities and that it has been given
full access to such records of the Company and the Subsidiaries and to the
officers of the Company and the Subsidiaries and received such information as it
has deemed necessary or appropriate to conduct its due diligence investigation
and has sufficient knowledge and experience in investing in companies similar to
the Company in terms of the Company’s stage of development so as to be able to
evaluate the risks and merits of its investment in the Company.

    

    (e)      Status of Purchasers.
Such Purchaser is an “accredited investor” as defined in Regulation D
promulgated under the Securities Act. Such Purchaser is not required to be
registered as a broker-dealer under Section 15 of the Exchange Act and such
Purchaser is not a broker-dealer.

    

    (f)       Opportunities for Additional
Information. Such Purchaser acknowledges that such Purchaser has had the
opportunity to ask questions of and receive answers from, or obtain additional
information from, the executive officers of the Company concerning the financial
and other affairs of the Company, and to the extent deemed necessary in light of
such Purchaser’s personal knowledge of the Company’s affairs, such Purchaser has
asked such questions and received answers to the full satisfaction of such
Purchaser, and such Purchaser desires to invest in the Company.

    

    (g)      No General
Solicitation. Such Purchaser acknowledges that the Securities were not
offered to such Purchaser by means of any form of general or public solicitation
or general advertising, or publicly disseminated advertisements or sales
literature, including (i) any advertisement, article, notice or other
communication published in any newspaper, magazine, or similar media, or
broadcast over television or radio, or (ii) any seminar or meeting to which such
Purchaser was invited by any of the foregoing means of
communications.

    
      
         

      

      
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    (h)      Rule 144. Such
Purchaser understands that the Securities must be held indefinitely unless such
Securities are registered under the Securities Act or an exemption from
registration is available. Such Purchaser acknowledges that such Purchaser is
familiar with Rule 144 of the rules and regulations of the Commission, as
amended, promulgated pursuant to the Securities Act (“Rule
144”), and that such Purchaser has been advised that Rule 144 permits
resales only under certain circumstances. Such Purchaser understands that to the
extent that Rule 144 is not available, such Purchaser will be unable to sell
any Securities without either registration under the Securities Act or the
existence of another exemption from such registration requirement.

    

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

    

    (j)       Independent
Investment. Except as may be disclosed in any filings with the Commission
by it under Section 13 and/or Section 16 of the Exchange Act, such Purchaser has
not agreed to act with any other Purchaser for the purpose of acquiring,
holding, voting or disposing of the Securities purchased hereunder for purposes
of Section 13(d) under the Exchange Act, and such Purchaser is acting
independently with respect to its investment in the Securities.

    

    (k)      Short Sales.
Purchaser has not, during the last thirty (30) days prior to the date hereof,
directly or indirectly, nor has any party acting on behalf of or pursuant to any
understanding with such Purchaser, effected or agreed to effect any short sale,
whether or not against the box, established any “put equivalent position” (as
defined in Rule 16(a)-1(h) under the Exchange Act) with respect to any security
of the Company, granted any other right (including, without limitation, any put
or call option) with respect to any security of the Company or with respect to
any security that includes, relates to, or derives any significant part of its
value from any security of the Company or otherwise sought to hedge its
positioning of the Company’s securities.  Such Purchaser shall not,
and shall cause any affiliates not to, engage, directly or indirectly, in any
short sale transactions in the securities of the Company during the period from
the date hereof until such time as one (1) year from the date of effectiveness
of the Registration Statement (as defined in Section
7.1). Such Purchaser understands and acknowledges, severally and not
jointly with any other Purchaser, that the Commission currently takes the
position that covering a short position established prior to effectiveness of a
resale registration statement with shares included in such registration
statement would be a violation of Section 5 of the Securities Act, as set forth
in Item 65, Section 5 under Section A, of the Manual of Publicly Available
Telephone Interpretations, dated July 1997, compiled by the Office of Chief
Counsel, Division of Corporation Finance

    

    ARTICLE
III

    Covenants

    

    The
Company covenants with each of the Purchasers as follows, which covenants are
for the benefit of each Purchaser and its permitted assignees (as defined
herein):

    

    Section
3.1        Securities
Compliance. The Company shall notify the Commission in accordance with
their rules and regulations, of the transactions contemplated by any of the
Transaction Documents, including filing a Form D with respect to the Notes,
Warrants, the Conversion Shares and the Warrant Shares as required under
Regulation D and applicable “blue sky” laws, and shall take all other necessary
action and proceedings as may be required and permitted by applicable law, rule
and regulation, for the legal and valid issuance of the Notes, the Warrants, the
Conversion Shares and the Warrant Shares to the Purchasers or subsequent
holders.

    
      
         

      

      
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    Section
3.2        Registration and
Listing. The Company shall (a) comply in all respects with its reporting
and filing obligations under the Exchange Act, (b) comply with all requirements
related to any registration statement filed pursuant to this Agreement, and (c)
not take any action or file any document (whether or not permitted by the
Securities Act or the rules promulgated thereunder) to terminate or suspend such
registration or to terminate or suspend its reporting and filing obligations
under the Exchange Act or Securities Act, except as permitted herein. The
Company will take all action necessary to continue the listing or trading of its
Common Stock on the OTC Bulletin Board or other exchange or market on which the
Common Stock is trading or may be traded in the future. Subject to the terms of
the Transaction Documents, the Company further covenants that it will take such
further action as the Purchasers may reasonably request, all to the extent
required from time to time to enable the Purchasers to sell the Securities
without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 promulgated under the Securities Act. Upon the
request of the Purchasers, the Company shall deliver to the Purchasers a written
certification of a duly authorized officer as to whether it has complied with
such requirements.

     

    Section
3.3        Inspection
Rights. In
the event that the Purchaser no longer has a representative on the Company’s
board of directors, the Company shall permit, during normal business hours and
upon reasonable request and reasonable notice, each Purchaser or any employees,
agents or representatives thereof, so long as any Notes remain outstanding, for
purposes reasonably related to such Purchaser’s interests as a convertible
debtholder, to examine and make reasonable copies of and extracts from the
records and books of account of, and visit and inspect the properties, assets,
operations and business of the Company and any Subsidiary, and to discuss the
affairs, finances and accounts of the Company and any Subsidiary with any of its
officers, consultants, directors, and key employees.  As a condition
to such inspection, Purchasers shall keep such information confidential; provided that such
information may be disclosed (i) to the extent required by applicable law,
regulation or legal process, subpoena, civil investigative demand or other
similar process, (ii) to the extent reasonably necessary in connection with the
enforcement of rights under this Agreement, (iii) to any governmental, judicial
or regulatory authority requiring or requesting such information, and (iv) to
its directors, officers, employees, agents, managers and general partners,
consultants, accountants, financial advisers, legal counsel and other
professional advisers.

     

    Section
3.4        Compliance with Laws.
The Company shall comply, and cause each Subsidiary, whether such Subsidiary is
in existence as of the date of this agreement or formed or acquired subsequent
to the date of this agreement, to comply, with all applicable laws, rules,
regulations and orders, noncompliance with which could have a Material Adverse
Effect.

    

    Section
3.5        Keeping of Records and Books
of Account. The Company shall keep and cause each Subsidiary to keep
adequate records and books of account, in which complete entries will be made in
accordance with GAAP consistently applied, reflecting all financial transactions
of the Company and its Subsidiaries, and in which, for each fiscal year, all
proper reserves for depreciation, depletion, obsolescence, amortization, taxes,
bad debts and other purposes in connection with its business shall be
made.

    
      
         

      

      
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    Section
3.6        Furnishing of
Information. Until all of the Securities are eligible for sale
without limitations concerning the availability of current public information
under Rule 144 promulgated under the Securities Act, the Company covenants to
timely file (or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed by the Company after
the date hereof pursuant to the Exchange Act. Until all of the Securities are
eligible for sale without limitations concerning the availability of current
public information under Rule 144 promulgated under the Securities Act, if the
Company is not required to file reports pursuant to such laws, it will prepare
and furnish to the Purchasers and make publicly available in accordance with
Rule 144(c) such information as is required for the Purchasers to sell the
Securities under Rule 144. The Company further covenants that it will take such
further action as any holder of Securities may reasonably request, all to the
extent required from time to time to enable such Person to sell the Securities
without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144.

    

    Section 3.7       Reporting
Requirements. If the Commission ceases making periodic reports filed
under the Exchange Act available via the Internet, then at a Purchaser’s request
the Company shall furnish the following to such Purchaser so long as such
Purchaser shall be obligated hereunder to purchase the Notes or shall
beneficially own any Securities:

    

    (a)      quarterly
reports filed with the Commission on Form 10-Q as soon as practical after the
document is filed with the Commission, and in any event within five (5) days
after the document is filed with the Commission;

    

    (b)      annual
reports filed with the Commission on Form 10-K as soon as practical after the
document is filed with the Commission, and in any event within five (5) days
after the document is filed with the Commission; and

    

    (c)      copies
of all notices and information, including without limitation notices and proxy
statements in connection with any meetings, that are provided to holders of
shares of Common Stock, contemporaneously with the delivery of such notices or
information to such holders of Common Stock.

    

    Section
3.8       Amendments. The
Company shall not amend or waive any provision of the Certificate or Bylaws of
the Company in any way that would materially and adversely affect the rights of
the holders of the Notes and/or Warrants. No consideration shall be offered or
paid to any holders of the Notes or the Warrants to amend or consent to a waiver
or modification of any provision of any of the Transaction Documents unless the
same consideration also is offered to all of the parties to the Transaction
Documents, holders of Notes or Warrants, as the case may be.  The
Company has not, directly or indirectly, made any agreements with any Purchasers
relating to the terms or conditions of the transactions contemplated by the
Transaction Documents except as set forth in the Transaction
Documents.  Without limiting the foregoing, the Company confirms that,
except as set forth in this Agreement, no Purchaser has made any commitment or
promise or has any other obligation to provide any financing to the Company or
otherwise.

    

    Section 3.9       Other Agreements. The
Company shall not enter into any agreement in which the terms of such agreement
would materially restrict or impair the right or ability to perform of the
Company or any Subsidiary under any Transaction Document.

    

    Section 3.10     Distributions. So
long as any Notes remain outstanding, the Company agrees that it shall not
(i) declare or pay any dividends or make any distributions to any holder(s) of
Common Stock or (ii) purchase or otherwise acquire for value, directly or
indirectly, any Common Stock or other equity security of the
Company.

    

    Section 3.11     Use of Proceeds. The
net proceeds from the sale of the Notes and Warrants hereunder shall be used by
the Company for general corporate purposes, and not to redeem any Common
Stock or securities convertible, exercisable or exchangeable into Common
Stock, to settle any outstanding litigation or to cause any increase in
management’s compensation, direct or otherwise, in a manner other than in the
ordinary course of business.  An estimated allocation of the net
proceeds from the sale of the Securities hereunder is set forth on Schedule
3.11
hereto.

    
      
         

      

      
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    Section 3.12         Reservation of
Shares. So long as any of the Notes or Warrants remain outstanding, the
Company shall take all action necessary to at all times have authorized, and
reserved for the purpose of issuance, no less than one hundred twenty percent
(120%) of the aggregate number of shares of Common Stock needed to provide for
the issuance of the Conversion Shares and the Warrant Shares.

    

    Section 3.13         Transfer Agent
Instructions. The Company shall issue irrevocable instructions to its
transfer agent, and any subsequent transfer agent, to issue certificates,
registered in the name of each Purchaser or its respective nominee(s), for the
Conversion Shares and the Warrant Shares in such amounts as specified from time
to time by each Purchaser to the Company upon an Optional Conversion of the
Notes or exercise of the Warrants in the form of Exhibit
D
attached hereto (the “Irrevocable
Transfer Agent Instructions”). Prior to registration of the Conversion
Shares and the Warrant Shares under the Securities Act, all such certificates
shall bear the restrictive legend specified in Section
5.1 of this Agreement. The Company warrants that no instruction other
than the Irrevocable Transfer Agent Instructions referred to in this Section
3.13
will be given by the Company to its transfer agent and that the Conversion
Shares and Warrant Shares shall otherwise be freely transferable on the books
and records of the Company as and to the extent provided in this Agreement. If a
Purchaser provides the Company with an opinion of counsel, in a generally
acceptable form, to the effect that a public sale, assignment or transfer of the
Conversion Shares and Warrant Shares may be made without registration under the
Securities Act or the Purchaser provides the Company with reasonable assurances
that such Conversion Shares and Warrant Shares can be sold pursuant to Rule 144
without any restriction as to the number of securities acquired as of a
particular date that can then be immediately sold, the Company shall permit the
transfer, and, in the case of the Conversion Shares and the Warrant Shares,
promptly instruct its transfer agent to issue one or more certificates in such
name and in such denominations as specified by such Purchaser and without any
restrictive legend. The Company acknowledges that a breach by it of its
obligations under this Section
3.13
will cause irreparable harm to the Purchasers by vitiating the intent and
purpose of the transaction contemplated hereby. Accordingly, the Company
acknowledges that the remedy at law for a breach of its obligations under this
Section
3.13
will be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Section
3.13,
that the Purchasers shall be entitled, in addition to all other available
remedies, to an order and/or injunction restraining any breach and requiring
immediate issuance and transfer, without the necessity of showing economic loss
and without any bond or other security being required.

    

    Section 3.14         Disposition of
Assets. So long as any Notes remain outstanding, neither the Company nor
any Subsidiary shall sell, transfer or otherwise dispose of any of its
properties, assets and rights including, without limitation, its software and
intellectual property, to any person except for (A) sales to customers in the
ordinary course of business; (B) sales of assets not in excess of 25% of the
Company’s total assets as shown on its balance sheet; or (C) with the prior
written consent of the holders of a majority of the holders of the Notes and
Warrants then outstanding.

    

    Section 3.15         Reporting
Status. So
long as a Purchaser beneficially owns any of the Securities, the Company shall
timely file all reports required to be filed with the Commission pursuant to the
Exchange Act, and the Company shall not cease filing reports under the Exchange
Act even if the Exchange Act or the rules and regulations thereunder would
permit such termination.

    

    
      
        
        

      

      
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    Section 3.16         Disclosure of
Transaction. The Company shall issue a press release describing the
material terms of the transactions contemplated hereby (the “Press
Release”) as soon as practicable after the Closing but in no event later
than four (4) business days after the Closing has been consummated. The Company
shall also file with the Commission a Current Report on Form 8-K (the “Form
8-K”) describing the material terms of the transactions contemplated
hereby (and attaching as exhibits thereto this Agreement, the form of Note, the
form of Warrant and the Press Release) as soon as practicable following the
Closing Date but in no event more than four (4) Trading Days following the
Closing Date, which Press Release and Form 8-K shall be subject to prior review
and comment by counsel for the Purchasers. “Trading
Day” means any day during which the OTC Bulletin Board (or other
quotation venue or principal exchange on which the Common Stock is traded) shall
be open for trading.

    

    Section 3.17         Disclosure of Material
Information. Except for any information disclosed to Robert Thomson, the
Company represents, covenants and agrees that neither it nor any other person
acting on its behalf has provided or will provide any Purchaser or its agents or
counsel with any information that the Company believes constitutes material
non-public information (other than with respect to the transactions contemplated
by this Agreement), unless prior thereto such Purchaser shall have executed a
written agreement regarding the confidentiality and use of such information. The
Company understands and confirms that each Purchaser shall be relying on the
foregoing representations in effecting transactions in securities of the
Company.

    

    Section 3.18         Pledge of Securities.
The Company acknowledges and agrees that the Securities may be pledged by a
Purchaser in connection with a bona fide margin agreement or
other loan or financing arrangement that is secured by the Securities. The
pledge of Securities shall not be deemed to be a transfer, sale or assignment of
the Securities hereunder, and no Purchaser effecting a pledge of Securities
shall be required to provide the Company with any notice thereof or otherwise
make any delivery to the Company pursuant to this Agreement or any other
Transaction Document; provided that a Purchaser and
its pledgee shall be required to comply with the provisions of Article
V hereof in order to effect a sale, transfer or assignment of Securities
to such pledgee. At the Purchasers’ expense, the Company hereby agrees to
execute and deliver such documentation as a pledgee of the Securities may
reasonably request in connection with a pledge of the Securities to such pledgee
by a Purchaser.

    

    Section 3.19        Form S-1 Eligibility. The
Company currently meets the “registrant eligibility” and transaction
requirements set forth in the general instructions to Form S-1 applicable to
“resale” registrations on Form S-1 and the Company shall file all reports
required to be filed by the Company with the Commission in a timely
manner.

    

    Section 3.20         DTC. Not later than
the effective date of the Registration Statement, the Company shall cause its
Common Stock to be eligible for transfer with its transfer agent pursuant to the
Depository Trust Company Automated Securities Transfer Program.

    

    Section
3.21         Issuance of Variable
Securities. The Company shall not
issue any Options or Convertible Securities (each as defined in the Note) with
an exercise price or a conversion price or a number of underlying shares that
floats or resets or otherwise varies or is subject to adjustment based (directly
or indirectly) on market prices of the Common Stock.

    

    Section
3.22         Approval of
Acquisitions.  So long as any Notes remain outstanding, the
Company shall not effect, or agree to effect, an acquisition or buy out of or
with any entity (including without limitation the acquisition of a substantial
portion of the outstanding securities or assets of another entity other than in
the ordinary course of business), or a consolidation or merger of the Company
with or into any other corporation or corporations (or other entity or
entities), or a sale of all or substantially all of the assets of the Company,
or the effectuation by the Company of a transaction or series of related
transactions in which more than 50% of the voting shares of the Company is
disposed of or conveyed, without providing the holders of the Notes with ten
(10) days’ notice of such transaction.

     

    
      
        
        

      

      
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    Section
3.23         Most Favored Nations.
If the Company has, on or prior to the date of this Agreement, entered into, or
shall in the future enter into, any agreement with any purchaser or holder of
capital stock of the Company, by providing such purchaser or holder with any
terms that are more favorable than the rights made available to the Purchasers
pursuant any terms set out in the Transaction Documents in issue as of the date
hereof, the Company shall promptly notify the Purchasers of such terms in
writing and Purchasers shall have the right to elect in writing within thirty
(30) days of the receipt of such notice to elect to have such terms apply to
such Transaction Documents.  This provision shall only apply to an
equity or convertible debt investment by one or more investors in excess of $3.0
million and shall terminate upon the earlier to occur of (A) one (1) year from
the date of this Agreement or (B) at any time Purchasers own in the aggregate
less than four (4%) percent of the Company’s outstanding common stock on a fully
diluted basis.

     

    ARTICLE
IV

    Conditions

    

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

    

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

    

    (b)       Performance by the
Purchasers. Each Purchaser shall have performed, satisfied and complied
in all respects with all covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by such Purchaser at or
prior to the Closing.

    

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

    

    (d)       Delivery of Purchase
Price. The Purchase Price for the Securities to be issued at the
Closing has been delivered to the Company.

    

    (e)       Surrender of Existing
Notes. The Exiting Notes have been surrendered to the Company for
cancellation.

    

    (f)        Delivery of Transaction
Documents. The Transaction Documents have been duly executed and
delivered by the Purchasers to the Company (as of the Closing).

    

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

    

    
      
        
        

      

      
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(a)       Accuracy of the
Company’s and Nectar’s Representations and
Warranties. Each of the representations and warranties of the Company and
Nectar in this Agreement shall be true and correct in all respects as of the
date when made and as of the Closing Date, except for representations and
warranties that are expressly made as of a particular date, which shall be true
and correct in all respects as of such date.

    

    (b)       Performance by the
Company and
Nectar. The Company and Nectar shall have performed, satisfied and
complied in all respects with all covenants, agreements and conditions required
by this Agreement to be performed, satisfied or complied with by the Company and
Nectar at or prior to the Closing.

    

    (c)       No Suspension, Etc.
Trading in the Company’s Common Stock shall not have been suspended by the
Commission or the OTC Bulletin Board (except for any suspension of trading of
limited duration agreed to by the Company, which suspension shall be terminated
prior to the Closing), and, at any time prior to the Closing Date, trading in
securities generally as reported by Bloomberg Financial Markets (“Bloomberg”)
shall not have been suspended or limited, or minimum prices shall not have been
established on securities whose trades are reported by Bloomberg, or on the New
York Stock Exchange, nor shall a banking moratorium have been declared either by
the United States or New York State authorities, nor shall there have occurred
any material outbreak or escalation of hostilities or other national or
international calamity or crisis of such magnitude in its effect on, or any
material adverse change in any financial market which, in each case, in the
judgment of such Purchaser, makes it impracticable or inadvisable to purchase
the Securities to be issued as of the Closing.

    

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

    

    (e)       No Proceedings or
Litigation. No action, suit or proceeding before any arbitrator or any
governmental authority shall have been commenced, and no investigation by any
governmental authority shall have been threatened, against the Company or any
Subsidiary, or any of the officers, directors or affiliates of the Company or
any Subsidiary seeking to restrain, prevent or change the transactions
contemplated by this Agreement, or seeking damages in connection with such
transactions.

    

    (f)       Opinion of Counsel,
Etc. At the Closing, the Purchasers shall have received an opinion of
counsel to the Company, dated the date of the Closing, in substantially the form
of Exhibit
E
hereto, and such other certificates and documents as the Purchasers or its
counsel shall reasonably require incident to the Closing.

    

    (g)       Intentionally
omitted.

    

    (h)       Notes and Warrants.
The Company and Nectar, as applicable, shall have executed and delivered to the
Purchasers the certificates (in such denominations as such Purchaser shall
request) for the Notes and Warrants being acquired by such Purchaser at the
Closing (in such denominations as such Purchaser shall request).

    

    (i)        Resolutions. The
board of directors of the Company and Nectar shall have adopted resolutions
consistent with Section
2.1(b) hereof in a form reasonably acceptable to such Purchaser (the
“Resolutions”).

    

    
      
        
        

      

      
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     (j)      
  Reservation of
Shares. So long as any of the Notes or Warrants remain outstanding, the
Company shall take all action necessary to at all times have authorized, and
reserved for the purpose of issuance, no less than (i) such number of shares of
Common Stock equal to one hundred twenty percent (120%) of the number of shares
of Common Stock as shall from time to time be sufficient to effect an Optional
Conversion of all of the Notes and (ii) as of the date hereof, such number of
shares of Common Stock equal to one hundred twenty percent (120%) of the number
of shares of Common Stock as shall from time to time be sufficient to effect the
exercise of the Warrants then outstanding.

    

    (k)     
 Transfer Agent
Instructions. As of the Closing Date, the Irrevocable Transfer Agent
Instructions, in the form of Exhibit
D attached
hereto, shall have been delivered to and acknowledged in writing by the
Company’s transfer agent.

    

    (l)       
Intentionally
omitted.

    

    (m)      Good Standing
Certificates.  Nectar shall have delivered to the Purchasers a
good standing certificate showing it is validly existing and in good standing
under the laws of the state of its corporation and as a foreign corporation in
each jurisdiction in which the nature of the business conducted or property
owned by such entity makes such qualification necessary, except where the
failure to be so qualified or in good standing, as the case may be, would not
result in a direct and/or indirect Material Adverse Effect.

    

    (n)       Secretary’s Certificate. The
Company and Nectar shall have delivered to such Purchaser a secretary’s
certificate, dated as of the Closing Date, as to (i) the Resolutions, (ii) the
Certificate, (iii) the Bylaws, and (iv) the authority and incumbency of the
officers of the Company executing the Transaction Documents, the Securities and
any other documents required to be executed or delivered in connection
therewith.

    

    (o)       Officer’s Certificate. The
Company and Nectar shall have delivered to the Purchasers a certificate of an
executive officer of the Company, dated as of the Closing Date, confirming the
accuracy of the Company’s representations, warranties and covenants as of the
Closing Date and confirming the compliance by the Company with the conditions
precedent set forth in this Section
4.2 as of the Closing Date.

    

    (p)       Material Adverse
Effect. No Material Adverse Effect shall have occurred at or before the
Closing Date.

    

    ARTICLE
V

    Stock
Certificate Legend

    

    Section
5.1            Legend. Each
certificate representing the Notes and the Warrants, and, if appropriate,
securities issued upon conversion or exercise thereof, shall be stamped or
otherwise imprinted with a legend substantially in the following form (in
addition to any legend required by applicable state securities or “blue sky”
laws):

    

    
      
        
        

      

      
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    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF A
WRITTEN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY
TO THE COMPANY THAT SUCH SECURITIES MAY BE SOLD, TRANSFERRED,  OR
OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT AND SUCH STATE SECURITIES LAWS.

    

    The
Company agrees to reissue certificates representing any of the Conversion Shares
and the Warrant Shares, without the legend set forth above if at such time,
prior to making any transfer of any such securities, such holder thereof shall
give written notice to the Company describing the manner and terms of such
transfer and removal as the Company may reasonably request. Such proposed
transfer and removal will not be effected until: (a) either (i) the Company has
received an opinion of counsel reasonably satisfactory to the Company, to the
effect that the registration of the Conversion Shares or the Warrant Shares
under the Securities Act is not required in connection with such proposed
transfer, (ii) a registration statement under the Securities Act covering such
proposed disposition has been filed by the Company with the Commission and has
become effective under the Securities Act, (iii) the Company has received other
evidence reasonably satisfactory to the Company that such registration and
qualification under the Securities Act and state securities laws are not
required, or (iv) the holder provides the Company with reasonable assurances
that such security can be sold pursuant to Rule 144 under the Securities Act;
and (b) either (i) the Company has received an opinion of counsel reasonably
satisfactory to the Company, to the effect that registration or qualification
under the securities or “blue sky” laws of any state is not required in
connection with such proposed disposition, or (ii) compliance with applicable
state securities or “blue sky” laws has been effected or a valid exemption
exists with respect thereto. The Company will respond to any such notice from a
holder within five (5) business days. In the case of any proposed transfer under
this Section
5.1, the Company will use reasonable efforts to comply with any such
applicable state securities or “blue sky” laws, but shall in no event be
required, (x) to qualify to do business in any state where it is not then
qualified, (y) to take any action that would subject it to tax or to the general
service of process in any state where it is not then subject, or (z) to comply
with state securities or “blue sky” laws of any state for which registration by
coordination is unavailable to the Company. The restrictions on transfer
contained in this Section
5.1 shall be in addition to, and not by way of limitation of, any other
restrictions on transfer contained in any other section of this Agreement.
Whenever a certificate representing the Conversion Shares or the Warrant Shares
is required to be issued to a Purchaser without a legend, in lieu of delivering
physical certificates representing the Conversion Shares or the Warrant Shares
(provided that a registration statement under the Securities Act providing for
the resale of the Warrant Shares and the Conversion Shares is then in effect),
the Company shall cause its transfer agent to electronically transmit the
Conversion Shares or the Warrant Shares to a Purchaser by crediting the account
of such Purchaser or such Purchaser’s Prime Broker with the Depository Trust
Company (“DTC”)
through its Deposit Withdrawal Agent Commission (“DWAC”)
system (to the extent not inconsistent with any provisions of this
Agreement).

    

    ARTICLE VI

    Indemnification

    

    Section
6.1           General Indemnity.
The Company agrees to indemnify and hold harmless the Purchasers (and their
respective directors, officers, managers, partners, members, shareholders,
affiliates, agents, attorneys, successors and assigns) from and against any and
all losses, liabilities, deficiencies, costs, damages and expenses (including,
without limitation, reasonable attorneys’ fees, charges and disbursements)
incurred by the Purchasers as a result of any inaccuracy in or breach of the
representations, warranties or covenants made by the Company
herein.

    

    
      
        
        

      

      
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    Section
6.2            Indemnification
Procedure. Any party entitled to indemnification under this Article
VI (an “indemnified
party”) will give written notice to the indemnifying party of any matters
giving rise to a claim for indemnification; provided that the failure of
any party entitled to indemnification hereunder to give notice as provided
herein shall not relieve the indemnifying party of its obligations under this
Article
VI except to the extent that the indemnifying party is actually
prejudiced by such failure to give notice. In case any action, proceeding or
claim is brought against an indemnified party in respect of which
indemnification is sought hereunder, the indemnifying party shall be entitled to
participate in and, unless in the reasonable judgment of the indemnified party a
conflict of interest between it and the indemnifying party may exist with
respect of such action, proceeding or claim, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. In the event that the
indemnifying party advises an indemnified party that it will contest such a
claim for indemnification hereunder, or fails, within thirty (30) days of
receipt of any indemnification notice to notify, in writing, such person of its
election to defend, settle or compromise, at its sole cost and expense, any
action, proceeding or claim (or discontinues its defense at any time after it
commences such defense), then the indemnified party may, at its option, defend,
settle or otherwise compromise or pay such action or claim. In any event, unless
and until the indemnifying party elects in writing to assume and does so assume
the defense of any such claim, proceeding or action, the indemnified party’s
costs and expenses arising out of the defense, settlement or compromise of any
such action, claim or proceeding shall be losses subject to indemnification
hereunder. The indemnified party shall cooperate fully with the indemnifying
party in connection with any negotiation or defense of any such action or claim
by the indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the indemnified party which relates to such
action or claim. The indemnifying party shall keep the indemnified party fully
apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. If the indemnifying party elects to defend
any such action or claim, then the indemnified party shall be entitled to
participate in such defense with counsel of its choice at its sole cost and
expense. The indemnifying party shall not be liable for any settlement of any
action, claim or proceeding effected without its prior written consent.
Notwithstanding anything in this Article
VI to the contrary, the indemnifying party shall not, without the
indemnified party’s prior written consent, settle or compromise any claim or
consent to entry of any judgment in respect thereof which imposes any future
obligation on the indemnified party or which does not include, as an
unconditional term thereof, the giving by the claimant or the plaintiff to the
indemnified party of a release from all liability in respect of such claim. The
indemnification required by this Article
VI shall be made by periodic payments of the amount thereof during the
course of investigation or defense, as and when bills are received or expense,
loss, damage or liability is incurred, so long as the indemnified party
irrevocably agrees to refund such moneys if it is ultimately determined by a
court of competent jurisdiction that such party was not entitled to
indemnification. The indemnity agreements contained herein shall be in addition
to (a) any cause of action or similar rights of the indemnified party against
the indemnifying party or others, and (b) any liabilities the indemnifying party
may be subject to pursuant to the law.

    

    
      
        
        

      

      
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    ARTICLE VII

    Registration
Rights

    

    Section
7.1            Piggyback Registration
Rights.  If at any time the Company shall determine to prepare
and file with the Commission a registration statement (a “Registration
Statement”) relating to an offering for its own account or the account of
others under the Securities Act of any of its equity securities, other than on
Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their
then equivalents relating to equity securities to be issued solely in connection
with any acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans, the Company shall
send to each holder of the Notes and Warrants written notice of such
determination and, if within thirty (30) days after receipt of such notice, or
within such shorter period of time as may be specified by the Company in such
written notice as may be necessary for the Company to comply with its
obligations with respect to the timing of the filing of such Registration
Statement, any such holder shall so request in writing (which request shall
specify the Conversion Shares and the Warrant Shares intended to be disposed of
by the Purchasers, if any), the Company will cause the registration under the
Securities Act of all Conversion Shares and the Warrant Shares which the Company
has been so requested to register by the holder, to the extent required to
permit the disposition of the Conversion Shares and the Warrant Shares so to be
registered; provided
that if at any time after giving written notice of its intention to register any
securities and prior to the effective date of the Registration Statement filed
in connection with such registration, the Company shall determine for any reason
not to register or to delay registration of such securities, the Company may, at
its election, give written notice of such determination to such holder and,
thereupon, (i) in the case of a determination not to register, shall be relieved
of its obligation to register any Conversion Shares and Warrant Shares in
connection with such registration (but not from its obligation to pay fees and
expenses in accordance with Section
8.1 hereof), and (ii) in the case of a determination to delay
registering, shall be permitted to delay registering any Conversion Shares and
Warrant Shares being registered pursuant to this Section
7.1 for the same period as the delay in registering such other
securities. The Company shall include in such Registration Statement all or any
part of such Conversion Shares and Warrant Shares such holder requests to be
registered; provided,
however, that the Company shall not be required to register any
Conversion Shares and Warrant Shares pursuant to this Section
7.1 that are eligible for resale without limitations concerning the
availability of current public information pursuant to Rule 144 of the
Securities Act. In the case of an underwritten public offering, if the managing
underwriter(s) or underwriter(s) should reasonably object to the inclusion of
the Conversion Shares and Warrant Shares in such Registration Statement, then if
the Company after consultation with the managing underwriter should reasonably
determine that the inclusion of such Conversion Shares and Warrant Shares would
materially adversely affect the offering contemplated in such Registration
Statement, and based on such determination recommends inclusion in such
Registration Statement of fewer or none of the Conversion Shares and Warrant
Shares of the holders, then (x) the number of Conversion Shares and Warrant
Shares of the holders included in such Registration Statement shall be reduced
pro-rata among such holders (based upon the number
of Conversion Shares and Warrant Shares requested to be included in the
registration), if the Company after consultation with the underwriter(s)
recommends the inclusion of fewer Conversion Shares and Warrant Shares, or (y)
none of the Conversion Shares and Warrant Shares of the Holders shall be
included in such Registration Statement, if the Company after consultation with
the underwriter(s) recommends the inclusion of none of such Conversion Shares
and Warrant Shares; provided,
however, that if securities are being offered for the account of other
persons or entities as well as the Company, such reduction shall not represent a
greater fraction of the number of Conversion Shares and Warrant Shares intended
to be offered by the holders than the fraction of similar reductions imposed on
such other persons or entities (other than the Company).

    

    Section
7.2            Assignment of Registration
Rights. The rights of each Purchaser hereunder, including the right to
have the Company register for resale Conversion Shares and Warrant Shares in
accordance with the terms of this Agreement, shall be automatically assignable
by each Purchaser to any Person who acquires all or a portion of the Conversion Shares
and the Warrant Shares if: (i) the Purchaser agrees in writing with the
transferee or assignee to assign such rights, and a copy of such agreement is
furnished to the Company within a reasonable time after such assignment, (ii)
the Company is, within a reasonable time after such transfer or assignment,
furnished with written notice of (A) the name and address of such transferee or
assignee, and (B) the securities with respect to which such registration rights
are being transferred or assigned, (iii) following such transfer or assignment
the further disposition of such securities by the transferee or assignees is
restricted under the Securities Act and applicable state securities laws unless
such securities are registered in a Registration Statement pursuant to Section
7.1 (in
which case the Company shall be obligated to amend such Registration Statement
to reflect such transfer or assignment) or are otherwise exempt from
registration, (iv) at or before the time the Company receives the written notice
contemplated by clause (ii) of this Section
7.2, the transferee or assignee agrees in writing with the Company to be
bound by all of the provisions of this Agreement, and (v) such transfer shall
have been made in accordance with the applicable requirements of this Agreement.
In addition, each Purchaser shall have the right to assign its rights hereunder
to any other person with the prior written consent of the Company, which consent
shall not unreasonably be withheld.  The rights to assignment shall
apply to the Purchasers (and to subsequent) successors and assigns.

    

    
      
        
        

      

      
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    Section
7.3           Underwriter Status.
Subject to compliance with applicable law, the Company may not deem any
Purchaser to be an “underwriter” within the meaning of the Securities Act within
any Registration Statement nor file any such Registration Statement without the
prior written consent of such Purchaser.

     

    ARTICLE VIII

    Miscellaneous

     

    Section 8.1           Specific Enforcement.
The Company and the Purchasers acknowledge and agree that irreparable damage
would occur in the event that any of the provisions of this Agreement or the
other Transaction Documents were not performed in accordance with their specific
terms or were otherwise breached. It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent or cure breaches of
the provisions of this Agreement and to enforce specifically the terms and
provisions hereof or thereof, this being in addition to any other remedy to
which any of them may be entitled by law or equity.

       

    Section 8.2           Entire Agreement;
Amendment. This Agreement and the Transaction Documents contains the
entire understanding and agreement of the parties with respect to the matters
covered hereby and, except as specifically set forth herein or in the
Transaction Documents, neither the Company nor any of the Purchasers makes any
representations, warranty, covenant or undertaking with respect to such matters
and they supersede all prior understandings and agreements with respect to said
subject matter, all of which are merged herein. No provision of this Agreement
may be waived or amended other than by a written instrument signed by the
Company and the holders of at least a majority of the Notes then outstanding,
and no provision hereof may be waived other than by an a written instrument
signed by the party against whom enforcement of any such amendment or waiver is
sought. No such amendment shall be effective to the extent that it applies to
less than all of the holders of the Notes then outstanding. No consideration
shall be offered or paid to any person to amend or consent to a waiver or
modification of any provision of any of the Transaction Documents unless the
same consideration is also offered to all of the parties to the Transaction
Documents or holders of the Notes, as the case may be.

    

    Section
8.3           Rescission and Withdrawal
Right.  Notwithstanding anything to the contrary contained in
(and without limiting any similar provisions of) the Transaction Documents,
whenever any Purchaser exercises a material right, election, demand or option
under a Transaction Document and the Company does not timely perform its related
obligations within the periods therein provided, then such Purchaser may rescind
or withdraw, in its sole discretion from time to time upon written notice to the
Company, any relevant notice, demand or election in whole or in part without
prejudice to its future actions and rights.

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    Section 8.4            Notices. Any notice,
demand, request, waiver or other communication required or permitted to be given
hereunder shall be in writing and shall be effective (a) upon hand delivery or
facsimile at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the
first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be received)
or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be:

     

    
      
        	
                If
      to the Company:

                 

              	
                Juma
      Technology Corp.

                154
      Toledo Street

                Farmingdale,
      New York 11735

                Attention:
      Chief Executive Officer

                Tel.
      No.: (631) 300-1000

                Fax
      No.: (631) 270-1105

              
	 
      	 
      
	
                with
      copies to:

                 

              	
                Gersten
      Savage LLP

                600
      Lexington Avenue, 9th
      Floor

                New
      York, New York 10022

                Attention:
      Jay Kaplowitz, Esq.

                Tel.
      No.: (212) 752-9700

                Fax
      No.: (212) 980-5192

              
	 
      	 
      
	
                If
      to any Purchaser:

                 

              	
                At
      the address of such Purchaser set forth on Exhibit
      A to this Agreement, with copies to Purchaser’s counsel (which
      copies shall not constitute notice to such purchaser) as set forth on
      Exhibit
      A or as specified in writing by such Purchaser.

              
	 
      	 
      
	
                 with
      copies to:

                 

              	
                Sadis
      & Goldberg LLP

                551
      Fifth Avenue, 21st
      Floor

                New
      York, New York 10176

                Attention:
      Paul Fasciano, Esq.

                Tel.
      No.: (212) 573-8025

                Fax
      No.: (212) 573-8026

              

      

    

     

    Any party
hereto may from time to time change its address for notices by giving at least
ten (10) days written notice of such changed address to the other parties
hereto.

    

    Section 8.5           Waivers. No waiver by
either party of any default with respect to any provision, condition or
requirement of this Agreement shall be deemed to be a continuing waiver in the
future or a waiver of any other provisions, condition or requirement hereof, nor
shall any delay or omission of any party to exercise any right hereunder in any
manner impair the exercise of any such right accruing to it
thereafter.

    

    Section 8.6           Headings. The
article, section and subsection headings in this Agreement are for convenience
only and shall not constitute a part of this Agreement for any other purpose and
shall not be deemed to limit or affect any of the provisions
hereof.

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    Section 8.7            Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and assigns. 

    

    Section 8.8           No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns and is not for the
benefit of, nor may any provision hereof be enforced by, any other person
(except as otherwise provided in Article
VI).

    

    Section 8.9           Governing Law; Consent to
Jurisdiction. The parties acknowledge and agree that any claim,
controversy, dispute or action relating in any way to this agreement or the
subject matter of this agreement shall be governed solely by the laws of the
State of New York, without regard to any conflict of laws
doctrines.  The parties irrevocably consent to being served with legal
process issued from the state and federal courts located in New York and
irrevocably consent to the exclusive personal jurisdiction of the federal and
state courts situated in the State of New York.  The parties
irrevocably waive any objections to the personal jurisdiction of these
courts.  Said courts shall have sole and exclusive jurisdiction over
any and all claims, controversies, disputes and actions which in any way relate
to this agreement or the subject matter of this agreement.  The
parties also irrevocably waive any objections that these courts constitute an
oppressive, unfair, or inconvenient forum and agree not to seek to change venue
on these grounds or any other grounds. The parties hereby agree that the
prevailing party in any suit, action or proceeding arising out of or relating to
this Agreement, shall be entitled to reimbursement for reasonable legal fees
from the non-prevailing party. The parties hereby waive all rights to a trial by
jury. Nothing in this Section
8.9 shall affect or limit
any right to serve process in any other manner permitted by law.

    

    Section 8.10         Survival. The
representations and warranties of the Company and the Purchasers shall survive
the execution and delivery hereof and the Closing hereunder.

    

    Section 8.11         Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same Agreement, and shall become effective when
counterparts have been signed by each party and delivered to the other parties
hereto, it being understood that all parties need not sign the same counterpart.
In the event that any signature is delivered by facsimile or electronic mail
transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof.

    

    Section 8.12         Publicity. The
Company agrees that it will not disclose, and will not include in any public
announcement, the name of the Purchasers without the consent of the Purchasers
unless and until such disclosure is required by law or applicable regulation,
and then only to the extent of such requirement.

    

    Section 8.13         Severability. The
provisions of this Agreement and the Transaction Documents are severable and, in
the event that any court of competent jurisdiction shall determine that any one
or more of the provisions or part of the provisions contained in this Agreement
or the Transaction Documents shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of
this Agreement or the Transaction Documents and such provision shall be reformed
and construed as if such invalid or illegal or unenforceable provision, or part
of such provision, had never been contained herein, so that such provisions
would be valid, legal and enforceable to the maximum extent
possible.

     

    Section 8.14         Further Assurances.
From and after the date of this Agreement, upon the request of any Purchaser or
the Company, each of the Company and the Purchasers shall execute and deliver
such instrument, documents and other writings as may be reasonably necessary or
desirable to confirm and carry out and to effectuate fully the intent and
purposes of this Agreement, the Notes, the Conversion Shares, the Warrants, the
Warrant Shares and any other Transaction Documents.

     

    [remainder of page intentionally left
blank]

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed by their respective
authorized officer as of the date first above written.

    

    
      
        
          	
                  JUMA
      TECHNOLOGY CORP.

                
	 
      	 
      
	
                  By:

                	  
      
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

    

    
      
        
          
            	
                    NECTAR
      SERVICES CORP.

                  
	 
      	 
      
	
                    By:

                  	  
      
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  

          

        

      

    

    

    
      
        
          	
                  VISION OPPORTUNITY MASTER FUND,
      LTD.

                
	 
      	 
      
	
                  By:

                	  
      
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

    to
the

    NOTE
AND WARRANT STOCK PURCHASE AGREEMENT FOR

    JUMA
TECHNOLOGY CORP.

     

    
      
        
          
            
              
                	
                        Names and Addresses of the
      Purchasers

                      	 	
                        Purchase Price

                      	 	
                        Notes & Warrants
    Purchased

                      
	 	 	 	 	 	 
	
                        Vision
      Opportunity Master Fund, Ltd.

                        c/o
      Vision Capital Advisors, LLC

                        20
      West 55th
      Street

                        New
      York, NY 10019

                        Attn:
      Robert Thomson

                      	 	$	2,000,000.00	 	
                        $2,000,000.00
      principal amount of Note

                         

                        Series
      A Warrants:
6,666,666

                      

              

            

          

        

      

    

     

    
       Exhibit A to Note and
Warrant Purchase Agreement

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

    

    EXHIBIT
B

    to
the

    NOTE
AND WARRANT STOCK PURCHASE AGREEMENT FOR

    JUMA
TECHNOLOGY CORP.

    

    FORM
OF NOTE

    
        

      Exhibit B to Note and
Warrant Purchase Agreement

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

    to
the

    NOTE
AND WARRANT STOCK PURCHASE AGREEMENT FOR

    JUMA
TECHNOLOGY CORP.

    

    FORM
OF SERIES A WARRANT

     

    
       Exhibit C to Note and
Warrant Purchase Agreement

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
D

    to
the

    NOTE
AND WARRANT PURCHASE AGREEMENT FOR

    JUMA
TECHNOLOGY CORP.

     

    FORM OF IRREVOCABLE TRANSFER
AGENT INSTRUCTIONS

    

    [NAME AND ADDRESS OF TRANSFER
AGENT]

    Attn:
____________________________

    

    Re:  Juma
Technology Corp.

    

    Ladies
and Gentlemen:

    

    Reference
is made to that certain Note and Warrant Purchase Agreement (the “Purchase
Agreement”), dated as of March __, 2010, by and among Juma Technology
Corp., a Delaware corporation (the “Company”),
and the purchasers named therein (collectively, the “Purchasers”)
pursuant to which the Company is issuing to the Purchasers 10% Convertible
Bridge Notes (the “Notes”)
and warrants (the “Warrants”)
to purchase shares of the Company’s common stock, par value $0.0001 per share
(the “Common
Stock”). This letter shall serve as our irrevocable authorization and
direction to you provided that you are the transfer agent of the Company at such
time) to issue shares of Common Stock upon a conversion of the Notes (the “Conversion
Shares”) and exercise of the Warrants (the “Warrant
Shares”) to or upon the order of a Purchaser from time to time upon (i)
surrender to you of a properly completed and duly executed Conversion Notice or
Exercise Notice, as the case may be, in the form attached hereto as Exhibit I
and Exhibit II, respectively, (ii) in the case of the conversion of Notes, a
copy of the Note or, in the case of Warrants being exercised, a copy of the
Warrants (with the original Warrants delivered to the Company) being exercised
(or, in each case, an indemnification undertaking with respect to such share
certificates or the warrants in the case of their loss, theft or destruction),
and (iii) delivery of a treasury order or other appropriate order duly executed
by a duly authorized officer of the Company. So long as you have previously
received (x) written confirmation from counsel to the Company that a
registration statement covering resales of the Conversion Shares or Warrant
Shares, as applicable, has been declared effective by the Securities and
Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933
Act”), and no subsequent notice by the Company or its counsel of the
suspension or termination of its effectiveness and (y) a copy of such
registration statement, and if the Purchaser represents in writing that the
Conversion Shares or the Warrant Shares, as the case may be, were sold pursuant
to the Registration Statement, then certificates representing the Conversion
Shares and the Warrant Shares, as the case may be, shall not bear any legend
restricting transfer of the Conversion Shares and the Warrant Shares, as the
case may be, thereby and should not be subject to any stop-transfer restriction.
Provided, however, that if you have not previously received those items and
representations listed above, then the certificates for the Conversion Shares
and the Warrant Shares shall bear the following legend:

    

    “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF A
WRITTEN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY
TO THE COMPANY THAT SUCH SECURITIES MAY BE SOLD, TRANSFERRED,  OR
OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT AND SUCH STATE SECURITIES LAWS.”

     

    
      Exhibit D to Note and
Warrant Purchase Agreement

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    and,
provided further, that the Company may from time to time notify you to place
stop-transfer restrictions on the certificates for the Conversion Shares and the
Warrant Shares in the event a registration statement covering the Conversion
Shares and the Warrant Shares is subject to amendment for events then
current.

    

    A form of
written confirmation from counsel to the Company that a registration statement
covering resales of the Conversion Shares and the Warrant Shares has been
declared effective by the SEC under the 1933 Act is attached hereto as Exhibit
III.

    

    Please be
advised that the Purchasers are relying upon this letter as an inducement to
enter into the Purchase Agreement and, accordingly, each Purchaser is a third
party beneficiary to these instructions.

    

    Please
execute this letter in the space indicated to acknowledge your agreement to act
in accordance with these instructions. Should you have any questions concerning
this matter, please contact me at ___________.

    

    
      
        
          	
                  Very
      truly yours,

                
	 
      	 
      
	
                  JUMA
      TECHNOLOGY CORP.

                
	 
      	 
      
	
                  By:

                	
                   

                
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

    

    
      
        
          	
                  ACKNOWLEDGED
      AND AGREED:

                
	 
      
	
                  [TRANSFER
      AGENT]

                
	 
      	 
      
	
                  By:

                	
                   

                
	 
      	
                  Name:

                
	 
      	
                  Title:

                
	 
      	
                  Date:

                

        

         

        Exhibit D to Note and Warrant Purchase
Agreement

         

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
I

    CONVERSION
NOTICE

    JUMA
TECHNOLOGY CORP.

    

    (To be
Executed by the Registered Holder in order to Convert the Note)

    

    In
accordance with and pursuant to the Note, the undersigned hereby elects to
convert the Note into such number of shares of Common stock, of Juma Technology
Corp., a Delaware corporation (the “Company”),
indicated below:

    

    
      
        
          	
                  Date
      of Conversion:

                	  
      

        

      

    

     

    
      
        
          	
                  Applicable
      Conversion Price:

                	  
      

        

      

    

     

    Number of
shares of Common Stock beneficially owned or deemed beneficially owned by the
Holder on the date of Conversion                                                                                                                                                               

     

    
      
        
          
            
              
                	
                        Dated:                                         
      

                      	
                        Signature:

                      	
                         

                      
	 
      	 
      	 
      
	 
      	
                        Address:

                      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

              

            

          

        

      

    

     

    
      Exhibit D to
Note and Warrant Purchase Agreement

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
II

    

    FORM
OF EXERCISE NOTICE

    JUMA
TECHNOLOGY CORP.

    

    The
undersigned_______________, pursuant to the provisions of the within Warrant,
hereby elects to purchase ______ shares of Common Stock of Juma Technology Corp.
covered by the within Warrant.

    

    
      
        
          
            
              
                	
                        Dated:                                      
      

                      	
                        Signature:

                      	
                         

                      
	 
      	 
      	 
      
	 
      	
                        Address:

                      	  
      
	 
      	 
      	 
      
	 
      	 
      	 
      

              

            

          

        

      

    

    

    Number of
shares of Common Stock beneficially owned or deemed beneficially owned by the
Holder on the date of Exercise:                                                                          

    

    ASSIGNMENT

    

    FOR VALUE
RECEIVED, ______________________ hereby sells, assigns and transfers unto
_____________________ the within Warrant and all rights evidenced thereby and
does irrevocably constitute and appoint __________________________, attorney, to
transfer the said Warrant on the books of the within named
corporation.

    

    
      
        
          
            
              
                	
                        Dated:                                       
      

                      	
                        Signature:

                      	
                         

                      
	 
      	 
      	 
      
	 
      	
                        Address:

                      	 
        
	 
      	 
      	  
      
	 
      	 
      	  
      

              

            

          

        

      

    

    

    PARTIAL
ASSIGNMENT

    

    FOR VALUE
RECEIVED, ______________________ hereby sells, assigns and transfers unto
_____________________ the right to purchase ___________________ shares of
Warrant Stock evidenced by the within Warrant together with all rights therein,
and does irrevocably constitute and appoint __________________________,
attorney, to transfer that part of the said Warrant on the books of the within
named corporation.

    

    
      
        
          
            
              
                
                  	
                          Dated:                                      
      

                        	
                          Signature:

                        	
                           

                        
	 
      	 
      	 
      
	 
      	
                          Address:

                        	  
      
	 
      	 
      	 
      
	 
      	 
      	 
      

                

              

            

          

        

      

    

     

    
      Exhibit D to Note and
Warrant Purchase Agreement

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FOR
USE BY THE ISSUER ONLY:

    

    This
Warrant No. W-__________ canceled (or transferred or exchanged) this _______ day
of ______________, _______, shares of Common Stock issued therefor in the name
of __________________________, Warrant No. W-_________ issued for ______________
shares of Common Stock in the name of ______________________.

    

    Exhibit D to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
III

    

    FORM
OF NOTICE OF EFFECTIVENESS

    OF
REGISTRATION STATEMENT

    

    [NAME AND ADDRESS OF TRANSFER
AGENT]

    Attn:
____________________________

    

    Re:  Juma
Technology Corp.

    

    Ladies
and Gentlemen:

    

    We are
special counsel to Juma Technology Corp., a Delaware corporation (the “Company”),
and have represented the Company in connection with that certain Note and
Warrant Purchase Agreement (the “Purchase
Agreement”), dated as of March __, 2010, by and among the Company, Nectar
Services Corp. and the purchasers named therein (collectively, the “Purchasers”)
pursuant to which the Company issued to the Purchasers 10% convertible bridge
notes (the “Notes”)
and warrants (the “Warrants”)
to purchase shares of the Company’s common stock, par value $0.0001 per share
(the “Common
Stock”). Pursuant to the Purchase Agreement, the Company agreed, among
other things, in certain circumstances, to register the shares of Common Stock
issuable upon conversion of the Notes, and the shares of Common Stock issuable
upon exercise of the Warrants (the “Registrable
Securities”), under the Securities Act of 1933, as amended (the “1933
Act”). In connection with the Company’s obligations under the Purchase
Agreement, on ________________, 200_, the Company filed a Registration Statement
on Form S-1 (File No. 333-________) (the “Registration
Statement”) with the Securities and Exchange Commission (the “SEC”)
relating to the resale of the Registrable Securities which names each of the
present Purchasers as a selling stockholder thereunder.

    

    In
connection with the foregoing, we advise you that a member of the SEC’s staff
has advised us by telephone that the SEC has entered an order declaring the
Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS]
on [ENTER DATE OF
EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a
member of the SEC’s staff, that any stop order suspending its effectiveness has
been issued or that any proceedings for that purpose are pending before, or
threatened by, the SEC and accordingly, the Registrable Securities are available
for resale under the 1933 Act pursuant to the Registration
Statement.

     

    
      
        
          
            	
                    Very
      truly yours,

                  	 
	 
      	 
	
                    [COMPANY
      COUNSEL]

                  	 
	 
      	 
      	 
	
                    By: 

                  	 
      	 

          

        

      

    

    

    cc: [LIST
NAMES OF PURCHASERS]

    

    Exhibit D to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
E

    to
the

    NOTE
AND WARRANT PURCHASE AGREEMENT FOR

    JUMA
TECHNOLOGY CORP.

    

    FORM OF OPINION OF
COUNSEL

    

    1. The
Company is a corporation duly incorporated, validly existing and, upon the
payment of its Delaware franchise taxes, will be in good standing under the laws
of the State of Delaware and has the requisite corporate power to own, lease and
operate its properties and assets, and to carry on its business as presently
conducted. The Company is duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification necessary,
which the failure to so qualify could have a Material Adverse Effect on the
Company.

    

    2.  Each
of the Subsidiaries of the Company (the “Subsidiaries”)
set forth on Schedule
2.1(g) of the Note Purchase Agreement is a corporation or limited
liability company, as applicable, duly incorporated or organized and in good
standing under the laws of its state of incorporation or
organization.

    

    3.  The
Issuers have the requisite corporate power and authority to enter into and
perform its obligations under the Transaction Documents and, as applicable, to
issue the Notes, the Common Stock issuable upon conversion of the Notes, the
Warrants, and the Common Stock issuable upon exercise of the Warrants. The
execution, delivery and performance of each of the Transaction Documents by the
Issuers, as applicable, and the consummation by it of the transactions
contemplated thereby have been duly and validly authorized by all necessary
corporate action and no further consent or authorization of any Issuer or its
board of directors or stockholders is required. Each of the Transaction
Documents have been duly executed and delivered, and the Notes and the Warrants
have been duly executed, issued and delivered by the Issuers party thereto and
each of the Transaction Documents constitutes a legal, valid and binding
obligation of the Issuers enforceable against it in accordance with its
respective terms. The Common Stock issuable upon conversion of the Notes and
exercise of the Warrants are not subject to any preemptive rights under the
Certificate of Incorporation or the Bylaws.  Nevertheless, we do not
opine as to whether Nectar Services has the authority to issue the common stock
under the Note or cause the conversion of the Note into common
stock.

    

    4. The
Notes and the Warrants have been duly authorized and, when delivered against
payment in full as provided in the Note Purchase Agreement, will be validly
issued, fully paid and nonassessable. The shares of Common Stock issuable upon
conversion of the Notes and the exercise of the Warrants, have been duly
authorized and reserved for issuance, and, based on the facts and circumstance
as they exist on the date of this opinion and the qualifications contained
herein, when delivered upon conversion, exercise or payment in full as provided
in the Notes and the Warrants, will be validly issued, fully paid and
nonassessable.

     

    Exhibit E to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    5. The
execution, delivery and performance of and compliance with the terms of the
Transaction Documents and the issuance of Notes, the Common Stock issuable upon
conversion of the Notes, the Warrants, and the Common Stock issuable upon the
exercise of the Warrants, do not (i) violate any provision of the Certificate of
Incorporation or By-Laws of such Issuer, as applicable, (ii) conflict with, or
constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any material agreement, mortgage,
deed of trust, indenture, note, bond, license, lease agreement, instrument or
obligation to which such Issuer is a party, and which agreement, mortgage, deed
of trust, indenture, note, bond, license, lease agreement, instrument or
obligation has been disclosed in the Commission Documents, (iii) to our
knowledge, create or impose a lien, charge or encumbrance on any property of
such Issuer under any agreement or any commitment to which such Issuer is a
party or by which such Issuer is bound or by which any of its respective
properties or assets are bound and, in each case, which agreement or commitment
has been disclosed in the Commission Documents, or (iv) result in a violation of
any federal, state, or local statute, rule, regulation (including federal and
state securities laws and regulations) or any order, judgment, injunction or
decree known to us applicable to such Issuer or by which any property or asset
of such Issuer is bound or affected, except, in all of the foregoing cases
(other than (i)) for such conflicts, default, terminations, amendments,
acceleration, cancellations and violations as would not, individually or in the
aggregate, have a Material Adverse Effect.

    

    6. Based
on the representations of Purchaser contained in the Note Purchase Agreement and
subject to compliance with the filing requirements under the applicable “blue
sky” laws and Regulation D promulgated under the Securities Act of 1933, as
amended, no consent, approval or authorization of or designation, declaration or
filing with any governmental authority on the part of the Company is required
under federal, state or local law, rule or regulation in connection with the
valid execution and delivery of the Transaction Documents, or the offer, sale or
issuance of the Notes, the Warrants or the Common Stock issuable upon conversion
of the Notes and exercise of the Warrants or the consummation of the
transactions contemplated by the Note Purchase Agreement other than as may be
required under the Registration Statement.

    

    7. To our
knowledge, there is no action, suit, claim, or proceeding pending or threatened
against any Issuer which questions the validity of the Transaction Documents or
the transactions contemplated thereby or any action taken or to be taken
pursuant thereto. To our knowledge, there is no action, suit, claim, or
proceeding pending or threatened against such Issuer or any of its properties or
assets and which, if adversely determined, is reasonably likely to result in a
Material Adverse Effect. To our knowledge, there are no outstanding orders,
judgments, injunctions, awards or decrees of any court, arbitrator or
governmental or regulatory body against such Issuer or any officers or directors
of any Issuer in their capacities as such.

     

    8. Based
upon the representations of the Purchaser, the offer, issuance and sale of the
Notes and the Warrants and, based on the facts and circumstances as they exist
on the date of this opinion, the offer, issuance and sale of the shares of
Common Stock issuable upon conversion of the Notes and the Common Stock issuable
upon exercise of the Warrants pursuant to the Note Purchase Agreement, the
Notes, and the Warrants, as applicable, are exempt from the registration
requirements of the Securities Act.

    

    9. No
Issuer is, and as a result of and immediately upon the Closing no Issuer will
be, an “investment company” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as
amended.

     

    
      
        
          
            
              	
                      Very
      truly yours,

                    	 
	 
      	 
	
                      [COMPANY
      COUNSEL]

                    	 
	 
      	 
      	 
	
                      By: 

                    	 
      	 

            

          

        

      

    

    

    Exhibit E to Note and
Warrant Purchase Agreement

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