Document:

EXHIBIT
10.16

    

    MASTER RESTRUCTURING
AGREEMENT

    

    This
Master Restructuring Agreement is made as of this 10th day of July, 2008 by and
among ADUROMED INDUSTRIES, INC. (formerly General Devices, Inc., “ADRM”),
ADUROMED CORPORATION (“Aduromed”), SHERLEIGH ASSOCIATES INC. DEFINED BENEFIT
PENSION PLAN (“Sherleigh”), PEQUOT CAPITAL MANAGEMENT, INC. (“Pequot”), on
behalf of PEQUOT SCOUT FUND, L.P., PEQUOT MARINER MASTER FUND, L.P., PEQUOT
NAVIGATOR OFFSHORE FUND, INC., PEQUOT DIVERSIFIED MASTER FUND, LTD., and PREMIUM
SERIES PCC LIMITED CELL 33 (collectively, the “Pequot Funds”), HELLER CAPITAL
INVESTMENTS (“Heller”) and the individuals and entities listed on Schedule A
attached hereto identified as the “Polak/Lazar Secured Parties” (the Polak/Lazar
Secured Parties together with Heller are collectively referred to herein as the
“Bridge Loan Holders”).

    

    WHEREAS,
the Pequot Funds and Sherleigh (together the “Preferred Holders”) are holders of
6,263,702 shares of Series A Preferred Stock, par value $0.0001 per share (the
‘‘Series A Preferred’’) and 15,780,160 shares of Series B Preferred stock, par
value $0.0001 per share both of which Series Preferred are immediately
convertible into shares of Common Stock of ADRM, par value $0.0001 per share
(“Common Stock”) (the “Series B Preferred’’, and together with the Series A
Preferred, the “Preferred Stock”);

    

    WHEREAS,
the terms of the Series A Preferred are set forth in a Certificate Of
Designations Of Series A Preferred Stock filed January 23, 2006 with the
Secretary of State of the State of Delaware (the “Series A Designations”) and
the terms of the Series B Preferred are set forth in a Certificate Of
Designations Of Series B Preferred Stock filed January 23, 2006 with the
Secretary of State of the State of Delaware (the “Series B Designations,” and
together with the Series A Designations, the “Preferred Series
Designations”);

    

    WHEREAS,
the Preferred Holders are holders of Warrants issued in connection with the
issuance of the Series A Preferred entitling the holder(s) to purchase 6,263,699
shares of the Common Stock at a price of $0.37883 per share of Common Stock
through October 4, 2010 (the ‘‘Series A Preferred Warrants’’) and Warrants
issued in connection with the issuance of the Series B Preferred entitling the
holder(s) to purchase 15,780,160 shares of Common Stock at a price of $0.37883
per share of Common Stock through January 23, 2011 (the “Series B Preferred
Warrants,” and together with the Series A Preferred Warrants, the “Preferred
Warrants”);

    

    WHEREAS,
in connection with the issuance of the Preferred Stock and the Preferred
Warrants, Aduromed, ADRM and the Preferred Holders entered into an Amended and
Restated Stockholders Agreement, dated as of January 23, 2006 (the “Stockholders
Agreement”);

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WHEREAS,
in connection with the issuance of the Preferred Stock and the Preferred
Warrants, Aduromed, ADRM and the Preferred Holders entered into an Amended and
Restated Registration Rights Agreement, dated as of January 23, 2006 (the
“Preferred Registration Agreement”);

    

    WHEREAS,
the Bridge Loan Holders are currently holding $1,275,000 deemed principal amount
in secured notes of ADRM (the “Bridge Notes”);

    

    WHEREAS,
in connection with the original issuance of the Bridge Notes, Aduromed, ADRM and
the Bridge Loan Holders entered into Loan and Security Agreement, dated as of
June 27, 2007 (the “Security Agreement”), a Subsidiary Guarantee, dated as of
June 27, 2007 (the “Guarantee”) and Common Stock Purchase Warrants for the
purchase of 2,550,000 shares of Common Stock at an original exercise price of
$0.38 per share (the “Original Bridge Warrants” and together with the Bridge
Notes, the Security Agreement, the Guarantee and the Extension Bridge Warrants
(as defined below), the “Bridge Loan Documents”);

    

    WHEREAS,
pursuant to a Loan Extension Agreement, dated as of December 27, 2007, by and
among the Bridge Loan Holders, Aduromed and ADRM (the “Extension Agreement”),
the Bridge Loan Holders agreed to extend the maturity date of their Bridge Notes
to June 30, 2008;

    

    WHEREAS,
pursuant to the Extension Agreement, the Bridge Loan Holders were given
additional Common Stock Purchase Warrants for the purchase of 2,450,000 shares
of Common Stock (the “Extension Bridge Warrants,” and together with the Original
Bridge Warrants, the “Bridge Warrants”);

    

    WHEREAS,
Joseph Esposito and certain other individuals (collectively, “Esposito”) are
willing to align themselves with the ADRM management team and are willing to
invest at least $500,000 into ADRM and Aduromed and use their best efforts to
cause additional investors to invest an additional $500,000 into ADRM and
Aduromed as part of a new business plan going forward (Esposito and such
additional investors are hereinafter referred to as the “New Management
Investors”);

    

    WHEREAS,
the Pequot Funds are willing to invest $1,300,000 into ADRM and Aduromed as part
of a new business plan going forward (the “New Pequot Investment”);

    

    WHEREAS,
Sherleigh is willing to invest $700,000 into ADRM and Aduromed as part of a new
business plan going forward (the “New Sherleigh Investment”);

    

    WHEREAS,
Heller is willing to invest $250,000 into ADRM and Aduromed as part of a new
business plan going forward (the “New Heller Investment”)

    

    WHEREAS,
certain other parties may be willing to invest up to $1,000,000 into ADRM and
Aduromed as part of a new business plan going forward (such parties are
hereinafter referred to as the “New Investors”); and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WHEREAS,
the Preferred Holders and the Bridge Loan Holders wish to restructure their
respective investments in ADRM in a manner which provides ADRM with the
opportunity to execute its business plan and attract additional investors into
ADRM going forward;

    

    NOW,
THEREFORE, in consideration of the agreements herein contained and for other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:

    

    
      1. Effective Time. The
“Effective Time” as used herein shall mean as of 12:00 noon Eastern Standard
Time on July 30, 2008 or such other time and date as is mutually agreed by the
parties hereto. All transactions contemplated hereby to be consummated as of the
Effective Time shall be deemed to happen contemporaneously.

      

      2. The Sherleigh Preferred
Stock. Sherleigh hereby agrees that as of the Effective Time all
outstanding shares of Preferred Stock held by Sheleigh shall convert
automatically and without further action on its part into 20,000,081 shares of
Common Stock. The Preferred Holders and ADRM further agree that any and all
amendments to the Preferred Series Designations necessary to effectuate the
conversion contemplated in the previous sentence are hereby made. ADRM hereby
agrees to take any and all necessary or appropriate actions to issue and
register pursuant to the Securities Act of 1933 the Common Stock contemplated to
be issued pursuant to such aforementioned conversion   such that such
shares of Common Stock may be offered and resold from time to time, and to take
any and all necessary or appropriate actions to keep in effect any and all
registration statements covering the shares of Common Stock to be issued upon
conversion of the Preferred Stock.

      

      3. The Pequot Preferred
Stock; Accumulated Dividends and Liquidated Damages. Pequot and the
Pequot Funds hereby agree that as of the Effective Time all 14,171,054
outstanding shares of Preferred Stock held by the Pequot Funds shall be
surrendered to ADRM and from and after the Effective Time such shares of
Preferred Stock shall no longer be deemed to be outstanding. The Preferred
Holders and ADRM further agree that any and all amendments to the Preferred
Series Designations necessary to effectuate the action contemplated in the
previous sentence are hereby made. The parties hereto further agree that as of
the Effective Time (i) accumulated dividends payable on the Preferred Stock held
by the Pequot Funds as of June 30, 2008 in the amount of $690,436 and (ii)
liquidated damages in the amount of $387,000 payable to the Pequot Funds by ADRM
pursuant to Section 1.1 of the Preferred Registration Agreement, shall each be
forfeited and shall no longer be due and payable.

      

      4. The Preferred
Warrants. The parties hereto hereby agree that as of the Effective Time
the Preferred Warrants shall be amended such that (i) they collectively
represent the right to purchase 55,999,998 shares of Common Stock at an exercise
price of $0.025 per share, of which Pequot Funds will hold warrants for the
purchase of 36,000,001 shares of Common Stock and Sherleigh will hold warrants
for the purchase of 19,999,997 shares of Common Stock and (ii) Section 5 of each
of the Preferred Warrants shall be deleted and of no further force and effect.
ADRM hereby agrees to take any and all necessary or appropriate actions to issue
and register pursuant to the Securities Act of 1933 the Common Stock issuable
upon exercise of the Preferred Warrants such that such shares of Common Stock
may be offered and resold from time to time, and to take any and all necessary
or appropriate actions to keep in effect any and all registration statements
covering the shares of Common Stock issuable upon exercise of the Preferred
Warrants.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      5.
Sherleigh Preferred
Stock Accumulated Dividends. The parties hereto hereby agree that as of
the Effective Time accumulated dividends payable on the Preferred Stock held by
Sherleigh as of June 30, 2008 in the amount of $383,576 shall be converted
automatically and without further action on their part into 15,343,040 shares of
Common Stock. From and after June 30, 2008 no further dividends shall accrue or
be payable on the Preferred Stock. As additional consideration for converting
such accrued dividends, Sherleigh will receive new warrants to purchase
15,343,040 shares of Common Stock at an exercise price of $0.025 per share. Such
warrants shall contain equivalent terms to the new warrants contemplated to be
issued in Sections 13 through 16 hereof. ADRM hereby agrees to take any and all
necessary or appropriate actions to issue and register pursuant to the
Securities Act of 1933 the Common Stock contemplated to be issued pursuant to
such aforementioned conversion or issuable upon exercise of the aforementioned
warrants such that such shares of Common Stock may be offered and resold from
time to time, and to take any and all necessary or appropriate actions to keep
in effect any and all registration statements covering the shares of Common
Stock to be issued upon such conversion or issuable upon exercise of such
warrants .

      

      6.
Sherleigh Preferred
Stock Liquidated Damages. The parties hereto hereby agree that as of the
Effective Time the liquidated damages in the amount of $215,000 payable to
Sherleigh by ADRM pursuant to Section 1.1 of the Preferred Registration
Agreement shall be converted automatically and without further action on their
part into 8,600,000 shares of Common Stock. As additional consideration for
converting such liquidated damages, Sherleigh will receive new warrants to
purchase 8,600,000 shares of Common Stock at an exercise price of $0.025 per
share. Such warrants shall contain equivalent terms to the new warrants
contemplated to be issued in Sections 13 through 16 hereof. ADRM hereby agrees
to take any and all necessary or appropriate actions to issue and register
pursuant to the Securities Act of 1933 the Common Stock contemplated to be
issued pursuant to such aforementioned conversion or issuable upon exercise of
the aforementioned warrants such that such shares of Common Stock may be offered
and resold from time to time, and to take any and all necessary or appropriate
actions to keep in effect any and all registration statements covering the
shares of Common Stock to be issued upon such conversion or issuable upon
exercise of such warrants .

      

      7. The Stockholders
Agreement. Aduromed, ADRM and the Preferred Holders hereby agree that as
of the Effective Time the Stockholders Agreement shall be terminated and of no
further force and effect.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      8. Preferred Stand Still
Agreement. The Preferred Holders agree to stand still and not exercise
rights contained in the Preferred Series Designations until the Effective
Time.

      

      9. Bridge Notes. The
Bridge Loan Holders, ADRM and Aduromed hereby agree that as of the Effective
Time the Bridge Notes in the principal amount of $1,275,000 shall convert
automatically and without further action on their part into 93,750,000 shares of
Common Stock. From and after June 30, 2008 no further principal or interest
shall accrue or be payable on such Bridge Notes. ADRM hereby agrees to take any
and all necessary or appropriate actions to issue and register pursuant to the
Securities Act of 1933 the Common Stock contemplated to be issued pursuant to
such aforementioned conversion. The parties hereto further agree that Heller and
the Polak/Lazar Secured Parties may, prior to the Effective Time, transfer
Bridge Notes among themselves on such terms as they shall agree, but that any
such transfers shall not effect the principal amount of Bridge Notes outstanding
or the resulting number of shares of Common Stock resulting from such conversion
as set forth above. Heller and the Polak/Lazar Secured Parties shall advise ADRM
prior to the Effective Time as to the respective principal amounts of Bridge
Notes held by them as of the Effective Time.

      

      10. The Bridge Warrants .
The parties hereto hereby agree that as of the Effective Time the Bridge
Warrants shall be amended such that (i) they collectively represent the right to
purchase 93,750,000 shares of Common Stock at an exercise price of $0.025 per
share, such warrants to be issued to Heller and the Polak/Lazar Secured Parties
pro rata according the respective principal amount of Bridge Notes that each
such party holds as of the Effective Time. As of the Effective Time Section 3(b)
of each of the Bridge Warrants shall be deleted and of no further force and
effect.

      

      11. The Bridge Loan
Documents. Aduromed, ADRM and the Bridge Loan Holders hereby agree that
as of the Effective Time each of the Bridge Loan Documents shall be terminated
and of no further force and effect. The Bridge Loan Holders hereby agree to take
any and all actions necessary or appropriate to terminate the security interest
created by the Bridge Loan Documents.

      

      12. Bridge Loan Extension And
Stand Still Agreement. The Bridge Loan Holders agree to extend the
maturity date of the Bridge Notes until the Effective Time. The Bridge Loan
Holders further agree to stand still and not exercise rights contained in the
Bridge Notes until the Effective Time.

      

      13. New Management Investors
Financing. Esposito agrees to invest at least $250,000 and cause the
other New Management Investors to invest up to an additional $750,000 into ADRM
in two tranches, with the closing of tranche 1 to occur on July 10, 2008 and the
closing of tranche 2 to occur as soon as possible but no later than the
Effective Time. It is understood that said best efforts may not result in an
additional funding being secured and as such Esposito is not responsible for the
additional funding contemplated should this situation arise. The parties hereto
hereby agree that the terms of any financing by New Management Investors shall
(i) be for 80,000,000 shares of Common Stock for $1,000,000 invested, and (ii)
include warrants to purchase Common Stock at an exercise price of $0.025 per
share at a ratio of 1:1 with the shares of Common Stock issued in such
financing. Such warrants shall have anti-dilution protection equivalent to the
Preferred Warrants and the Bridge Warrants as amended after the Effective Time,
and shall otherwise include equivalent terms as the Preferred Warrants and the
Bridge Warrants and such financing shall be evidenced by normal and customary
documents for public company common stock financings. The actual shares will be
calculated based upon the total money raised by New Management Investors.
Esposito shall fund tranche 1 in the amounts as are set forth opposite their
names on Schedule B attached hereto by wire transferring funds into a bank
account provided by ADRM. In connection with the closing of tranche 1 ADRM shall
issue to Esposito Common Stock certificates for the number of shares and shall
issue common stock purchase warrants for the number of shares as are set forth
next to their names on Schedule B. ADRM hereby agrees to take any and all
necessary or appropriate actions to issue and register pursuant to the
Securities Act of 1933 the Common Stock contemplated to be issued pursuant to
the New Management Investment (including, without limitation, shares issuable
upon exercise of the warrants) such that such shares of Common Stock may be
offered and resold from time to time, and to take any and all necessary or
appropriate actions to keep in effect any and all registration statements
covering such shares of Common Stock.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    14. New Pequot
Investment. Pequot agrees to invest at $1,300,000 into ADRM in two
tranches, with the closing of tranche 1 to occur on July 10, 2008 and the
closing of tranche 2 to occur as soon as possible but no later than the
Effective Time. The parties hereto hereby agree that the terms of the New Pequot
Investment shall (i) be for a total of 131,097,456 shares of Common Stock, and
(ii) include warrants to purchase 95,097,455 be in form and substance reasonably
acceptable to Pequot, shall shares of Common Stock at an exercise price of
$0.025 per share. Such warrants shall have anti-dilution protection equivalent
to the Preferred Warrants and the Bridge Warrants as amended after the Effective
Time, and shall otherwise include equivalent terms as the Preferred Warrants and
the Bridge Warrants and such financing shall be evidenced by normal and
customary documents for public company common stock financings. The Pequot Funds
shall fund tranche 1 in the amounts as are set forth opposite their names on
Schedule B attached hereto by wire transferring funds into a bank account
provided by ADRM. In connection with the closing of tranche 1 ADRM shall issue
to the Pequot Funds Common Stock certificates for the number of shares and shall
issue common stock purchase warrants for the number of shares as are set forth
next to their names on Schedule B. ADRM hereby agrees to take any and all
necessary or appropriate actions to issue and register pursuant to the
Securities Act of 1933 the Common Stock contemplated to be issued pursuant to
the New Pequot Investment (including, without limitation, shares issuable upon
exercise of the warrants) such that such shares of Common Stock may be offered
and resold from time to time, and to take any and all necessary or appropriate
actions to keep in effect any and all registration statements covering such
shares of Common Stock.

    

    15. New Sherleigh
Investment. Sherleigh agrees to invest $700,000 into ADRM in two
tranches, with the closing of tranche 1 to occur on July 10, 2008 and the
closing of tranche 2 to occur as soon as possible but no later than the
Effective Time. The parties hereto hereby agree that the terms of such New
Sherleigh Investment shall (i) be for a total of 28,000,000 shares of Common
Stock, and (ii) include warrants to purchase Common Stock at an exercise price
of $0.025 per share at a ratio of 1:1 with the shares of Common Stock issued in
such financing. Such warrants shall be in form and substance reasonably
acceptable to Sherleigh, shall have anti-dilution protection equivalent to the
Preferred Warrants and the Bridge Warrants as amended after the Effective Time,
and shall otherwise include equivalent terms as the Preferred Warrants and the
Bridge Warrants and such financing shall be evidenced by normal and customary
documents for public company common stock financings. Sherleigh shall fund
tranche 1 in the amount as is set forth opposite its name on Schedule B attached
hereto by wire transferring funds into a bank account provided by ADRM. In
connection with the closing of tranche 1 ADRM shall issue to Sherleigh Common
Stock certificates for the number of shares and shall issue common stock
purchase warrants for the number of shares as are set forth next to its name on
Schedule B. ADRM hereby agrees to take any and all necessary or appropriate
actions to issue and register pursuant to the Securities Act of 1933 the Common
Stock contemplated to be issued pursuant to the New Sherleigh Investment
(including, without limitation, shares issuable upon exercise of the warrants)
such that such shares of Common Stock may be offered and resold from time to
time, and to take any and all necessary or appropriate actions to keep in effect
any and all registration statements covering such shares of Common
Stock.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    16. New Heller
Investment. Heller agrees to invest $250,000 into ADRM in two tranches,
with the closing of tranche 1 to occur on July 10, 2008 and the closing of
tranche 2 to occur as soon as possible but no later than the Effective Time. The
parties hereto hereby agree that the terms of such New Sherleigh Investment
shall (i) be for a total of 10,000,000 shares of Common Stock, and (ii) include
warrants to purchase Common Stock at an exercise price of $0.025 per share at a
ratio of 1:1 with the shares of Common Stock issued in such financing. Such
warrants shall be in form and substance reasonably acceptable to Heller, shall
have anti-dilution protection equivalent to the Preferred Warrants and the
Bridge Warrants as amended after the Effective Time, and shall otherwise include
equivalent terms as the Preferred Warrants and the Bridge Warrants and such
financing shall be evidenced by normal and customary documents for public
company common stock financings. Sherleigh shall fund tranche 1 in the amount as
is set forth opposite its name on Schedule B attached hereto by wire
transferring funds into a bank account provided by ADRM. In connection with the
closing of tranche 1 ADRM shall issue to Heller Common Stock certificates for
the number of shares and shall issue common stock purchase warrants for the
number of shares as are set forth next to its name on Schedule B. ADRM hereby
agrees to take any and all necessary or appropriate actions to issue and
register pursuant to the Securities Act of 1933 the Common Stock contemplated to
be issued pursuant to the New Heller Investment (including, without limitation,
shares issuable upon exercise of the warrants) such that such shares of Common
Stock may be offered and resold from time to time, and to take any and all
necessary or appropriate actions to keep in effect any and all registration
statements covering such shares of Common Stock.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      17. New Investor
Investment. New Investors may invest up to $1,000,000 into ADRM with the
closing to occur as soon as possible but no later than the Effective Time. The
parties hereto hereby agree that the terms of such New Investor Investment shall
(i) be for Common Stock at a deemed valuation of $0.025 per share, and (ii)
include warrants to purchase Common Stock at an exercise price of $0.025 per
share at a ratio of 1:1 with the shares of Common Stock issued in such
financing. Such warrants shall be in form and substance reasonably acceptable to
the New Investors, shall have anti-dilution protection equivalent to the
Preferred Warrants and the Bridge Warrants as amended after the Effective Time,
and shall otherwise include equivalent terms as the Preferred Warrants and the
Bridge Warrants and such financing shall be evidenced by normal and customary
documents for public company common stock financings. ADRM hereby agrees to take
any and all necessary or appropriate actions to issue and register pursuant to
the Securities Act of 1933 the Common Stock contemplated to be issued pursuant
to the New Investor Investment (including, without limitation, shares issuable
upon exercise of the warrants) such that such shares of Common Stock may be
offered and resold from time to time, and to take any and all necessary or
appropriate actions to keep in effect any and all registration statements
covering such shares of Common Stock.

      

      18. ADRM Board of
Directors. The parties hereto agree that from and after the Effective
Time (i) Pequot shall have the right to have two (2) designees elected to the
ADRM Board of Directors, (ii) Sherleigh shall have the right to have two (2)
designees elected to the ADRM Board of Directors, (iii) Heller shall have the
right to have one (1) designee elected to the ADRM Board of Directors and to
have one (1) designee attend all ADRM Board of Directors meetings as an
observer, (iv) the Polak/Lazar Secured Parties shall have the right to have one
(1) designee attend all ADRM Board of Directors meetings as an observer and (v)
the ADRM Board of Directors shall consist of nine (9) members. Each of the
parties hereto agree to vote its shares of capital stock of ADRM to give effect
to the provisions of this Section 18.

      

      19. Miscellaneous.

      

      (a)  
Amendments in
Writing. None of the terms or provisions of this Agreement may be waived,
amended, supplemented or otherwise modified except in writing by the parties
hereto.

      

      (b)  
Successor and
Assigns. This Agreement shall be binding upon the successors and assigns
of each party hereto and shall inure to the benefit of each party hereto and
their respective successors and assigns.

      

      (c)  
Counterparts.
This Agreement may be executed by one or more of the parties hereto on any
number of separate counterparts (including by telecopy), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      (d)  
Severability.
Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

      

      (e)  
Governing Law.
All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and construed and enforced
in accordance with the internal laws of the State of New York, without regard to
the principles of conflicts of law thereof.

    

    

    
      	
               
      

            	
              (f)

            	
              Further Assurance. The parties
      hereto agree to execute and deliver such further agreements, documents and
      instruments and take all such other actions as may reasonably be required
      to carry out the transactions contemplated hereby and to evidence the
      fulfillment of the agreements herein
  contained.

            

    

    

    
      	
               
      

            	
              (g)

            	
              Conditions to Consummation of
      Transactions. The consummation of each of the transactions contemplated
      herein by each of Sherleigh, the Pequot Funds and the Bridge Loan Holders
      is subject to the following conditions: (i) delivery by ADRM of the shares
      of Common Stock and/or warrants required to be issued by ADRM; (ii) the
      continued truthfulness of the representations and warranties of ADRM and
      Aduromed contained herein; (iii) each agreement of each of the other
      parties to be performed pursuant to the terms hereof or contemplated
      herein shall have been duly performed; and (iv) none of the other parties
      hereto shall be in breach of any of the agreements or covenants contained
      herein.

            

    

    

    19.
Representations and Additional Covenants of ADRM and Aduromed. Each of ADRM and
Aduromed hereby represents, warrants and covenants with and to the other parties
hereto, as follows:

    

    (a)
  Each of ADRM and Aduromed has the power and authority to enter into and
to consummate the transactions contemplated herein and otherwise to carry out
its obligations hereunder.

    

    (b)  The
execution, delivery and performance of this Master Restructuring Agreement by
each of ADRM and Aduromed (i) has been duly authorized by all necessary
corporate action on the part of ADRM and Aduromed (other than the Authorized
Share Increase (as defined below)); (ii) will not violate any requirement of law
or contractual obligation of ADRM or Aduromed; and (iii) will not result in, or
require, the creation or imposition of any lien on any of its properties or
revenues.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)  This
Master Restructuring Agreement has been duly executed and delivered by each of
ADRM and Aduromed and constitutes the legal, valid and binding obligations of
each of ADRM and Aduromed, enforceable against such party in accordance with its
terms.

    

    (d)  ADRM
hereby agrees to increase the number of its authorized shares of Common Stock
(the “Authorized Share Increase”) by the Effective Date such that there is
sufficient number of authorized and unreserved shares of Common Stock to allow
ADRM to issue all of the share of Common Stock to be issued by it hereunder,
including, without limitation, shares of Common Stock issuable upon exercise of
the warrants issued hereby. Following such Authorized Share Increase, ADRM shall
reserve and keep available out of its authorized and unissued Common Stock such
number of shares of Common Stock as shall from time to time be sufficient to
issue shares of Common Stock hereunder, including, without limitation, shares of
Common Stock issuable upon exercise of the warrants issued
hereby.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Master Restructuring
Agreement to be duly executed on the day and year first above
written.

    

    
      	
              ADUROMED INDUSTRIES,
      INC., a Delaware
      corporation

            
	 
      	 
      
	
              By:  

            	
              /s/ Damien R. Tanaka

            	 
      
	 
      	
              Name:
      Damien R. Tanaka

            	 
      
	 
      	
              Title:
      President & Chief Executive Officer

            	 
      
	 
      	 
      
	
              Address
      for Notice:

            	 
      
	
              3
      Trowbridge Drive

            	 
      
	
              Bethel,
      CT 06801

            	 
      
	 
      	 
      
	
              ADUROMED CORPORATION,
      a Delaware
      corporation

            
	 
      	 
      
	
              By:

            	
              /s/ Damien R. Tanaka

            	 
      
	 
      	
              Name:
      Damien R. Tanaka

            	 
      
	 
      	
              Title:
      President & Chief Executive Officer

            	 
      
	 
      	 
      
	
              Address
      for Notice:

            	 
      
	
              3
      Trowbridge Drive

            	 
      
	
              Bethel,
      CT 06801

            	 
      
	 
      	 
      
	
              PEQUOT
      SCOUT FUND, L.P.

            	 
      
	
              PEQUOT
      MARINER MASTER FUND, L.P.

            	 
      
	
              PEQUOT
      NAVIGATOR OFFSHORE FUND, INC.

            	 
      
	
              PEQUOT
      DIVERSIFIED MASTER FUND, LTD.

            	 
      
	
              PREMIUM SERIES PCC LIMITED CELL
      33 , each by and through

            
	 
      	 
      
	
              PEQUOT CAPITAL MANAGEMENT,
      INC. , as Investment Advisor

            
	 
      	 
      
	
              BY:

            	
              /s/ Carlos Rodrigues

            	 
      
	
              Name:
      Carlos Rodrigues

            	 
      
	
              Title:
      Chief Financial Officer

            	 
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              SHERLEIGH
      ASSOCIATES INC. DEFINED BENEFIT PENSION PLAN

            
	 
      	 
      
	
              BY:  

            	
              /s/ Jack Silver

            	 
      
	
              Name:
      Jack Silver

            	 
      
	
              Title:
      Trustee

            	 
      
	 
      	 
      
	
              /s/ Joseph Esposito

            	 
      
	
              Joseph
      Esposito

            	 
      
	 
      	 
      
	
              HELLER
      CAPITAL INVESTMENTS

            	 
      
	 
      	 
      
	
              BY:

            	
              /s/ Ronald I. Heller

            	 
      
	
              Name:
      Ronald I. Heller

            	 
      
	
              Title:
      CIO

            	 
      
	 
      	 
      
	
              RL
      CAPITAL PARTNERS L.P.

            	 
      
	 
      	 
      
	
              BY:

            	
              /s/ Ronald M. Lazar

            	 
      
	
              Name:
      Ronald M. Lazar

            	 
      
	
              Title:
      Managing Partner

            	 
      
	 
      	 
      
	
              DOMACO
      VENTURE CAPITAL FUND

            	 
      
	 
      	 
      
	
              BY:

            	
              /s/ Jack Polak

            	 
      
	
              Name:
      Jack Polak

            	 
      
	
              Title:
      General Partner

            	 
      
	 
      	 
      
	
              EQUITY
      INTEREST INC.

            	 
      
	 
      	 
      
	
              BY:

            	
              /s/ Jack Polak

            	 
      
	
              Name:
      Jack Polak

            	 
      
	
              Title:

            	 
      
	 
      	 
      
	
              /s/ Ronald M. Lazar

            	 
      
	
              IRA
      FBO Ronald M. Lazar, Pershing LLC as Custodian

            	 
      
	 
      	 
      
	
              /s/ Anthony G. Polak

            	 
      
	
              Anthony
      G. Polak

            	 
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              /s/ Frederick B. Polak

            	 
      
	
              Frederick
      B. Polak "S"

            
	 
      
	
              Jack Polak

            	 
      
	
              Jack
      Polak Trustee, Catharina Polak Trustee,  Catharina Polak 1
      Trustee

            
	 
      
	
              /s/ Maura Kelly

            	 
      
	
              Maura
      Kelly

            
	 
      
	
              /s/ Sandra Shapiro

            	 
      
	
              Robert
      Shapiro and Sandra Shapiro jt ten

            
	 
      
	
              /s/ John Gross

            	 
      
	
              John
      Gross

            
	 
      
	
              /s/ Suellyn Tornay

            	 
      
	
              Suellyn
      Tornay

            
	 
      
	
              /s/ Marc Engelbert

            	 
      
	
              Marc
      Engelbert

            
	 
      
	
              /s/ Barbara Scharf

            	 
      
	
              Barbara
      Scharf

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
A

    

    Polak/Lazar Secured
Parties

    

    RL
Capital Partners L.P.

    IRA FBO
Ronald M. Lazar, Pershing LLC as Custodian

    Anthony
G. Polak

    Domaco
Venture Capital Fund

    Equity
Interest Inc.

    Frederick
B. Polak “S”

    Jack
Polak Trustee, Catharina Polak Trustee, Catharina Polak 1
Trustee

    Maura
Kelly

    Robert
Shapiro and Sandra Shapiro jt ten

    John
Gross

    Suellyn
Tornay

    Marc
Engelbert

    Barbara
Scharf

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
B

    

    
      
        
          	
                  New Management Investor

                	 	
                  Amount of Tranche 1

                  Investment

                	 	 	
                  Number of Shares of

                  Common Stock to be

                  Issued in Tranche 1

                	 	 	
                  Number of Shares of

                  Common Stock

                  Subject to Common

                  Stock Purchase

                  Warrants to be

                  Issued in Tranche 1

                	 
	
                  E4
      LLC/Joseph Esposito

                	 	$	35,000	 	 	 	2,800,000	 	 	 	2,800,000	 

        

      

    

    

    
      
        
          	
                  New Investor

                	 	
                  Amount of Tranche

                  1 Investment

                	 	 	
                  Number of Shares of

                  Common Stock to be

                  Issued in Tranche 1

                	 	 	
                  Number of Shares of

                  Common Stock

                  Subject to Common

                  Stock Purchase

                  Warrants to be

                  Issued in Tranche 1

                	 
	
                  Sherleigh
      Defined Benefit Plan

                	 	$	98,000	 	 	 	3,920,000	 	 	 	3,920,000	 
	
                  Ronald
      I. Heller IRA

                	 	$	35,000	 	 	 	1,400,000	 	 	 	1,400,000	 
	
                  Pequot
      Scout Fund L.P.

                	 	$	121,440.71	 	 	 	12,246,591	 	 	 	8,883,617	 
	
                  Pequot
      Navigator Offshore Fund, Inc.

                	 	$	28,985.36	 	 	 	2,923,005	 	 	 	2,120,334	 
	
                  Pequot
      Mariner Master Fund, L.P.

                	 	$	31,573.93	 	 	 	3,184,048	 	 	 	2,309,693SUBSCRIPTION
AGREEMENT

    

    EDUtoons,
Inc.

    

    Shares of
Common Stock, par value $0.001 per share

    

    Instructions:

    

    I.                      
Items to be delivered by all
Investors:

    

    
      	
               
      

            	
              a.

            	
              Two
      (2) completed and executed Subscription
  Agreements.

            

    

    

    
      	
               
      

            	
              b.

            	
              Payment
      in the amount of subscription, by check. All checks should be made payable
      to “EDUtoons, Inc.”

            

    

    

    All Documents Should Be
Returned To:

    

    EDUtoons,
Inc.

    101 East
52nd
Street,

    New York,
NY 10022

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    SUBSCRIPTION
AGREEMENT

    

    The
undersigned (the “Investor”) hereby subscribes to purchase from EDUtoons, Inc.,
a Delaware corporation (the “Company”), such amount of shares of the Company’s
common stock, par value $0.001 per share (the “Shares”), set forth on the
signature page hereto.  The Shares are being offered at a purchase
price of $0.001 per Share.

    

    The Company is offering the Shares (the
“Offering”) to certain “accredited investors,” as such term in defined in Rule
501 of Regulation D promulgated under the Securities Act of 1933, as amended
(the “Act”).

     

    Each
investor shall purchase at least 50,000 Shares for an aggregate purchase price
of Five Hundred Dollars ($500.00).

    

    Section
1.              Sale of
Shares

    

    Subject
to the terms and conditions hereof and on the basis of the representations and
warranties hereinafter set forth, the Company hereby agrees to issue and sell to
the Investor and the Investor agrees to purchase from the Company, Shares in the
amount of $_________.  The Company may accept or reject any
subscription in whole or in part, in its sole discretion.

    

    Section
2.              Investor's Representations
and Warranties

    

    As an
inducement to the Company to accept the subscription, the Investor represents
and warrants (which representations and warranties shall be deemed continuing
and shall survive the execution, delivery and performance of this Agreement) as
follows:

    

    (A)         The
Investor acknowledges and agrees that the Offering and sale of the Shares is
intended to be exempt from registration under the Act by virtue of Section 4(2)
of the Act, and/or Regulation D, Rule 506 promulgated thereunder (“Regulation
D”) and, accordingly, is being made solely to “accredited investors” as that
term is defined in Regulation D (each an “Accredited Investor”).

    

    (B)          The
Investor is a qualified investor, understands the risks involved with acquiring
the Shares, understands the business of the Company, has thoroughly read and
understands all of the provisions of this Subscription Agreement and can
withstand a total loss of its investment.

    

    (C)          The
Investor is an Accredited Investor because the Investor is (check appropriate
item):

     

    
      
        	
                 
      

              	
                i.

              	
                 ̈         I
      am a natural person whose individual net worth (or joint net worth with my
      spouse) will exceed $1,000,000 at the time of
  purchase.

              

      

      

      
        
          	
                   
      

                	
                  ii.

                	
                   ̈         I
      am a natural person who has had individual income (exclusive of any income
      attributable to a spouse) of more than $200,000 for the past two years or
      joint income with a spouse of more than $300,000 in each of those years
      and have a reasonable expectation of reaching the same income level in the
      current year.

                
	 	 	 
	 	iii. 	
                  

                     ̈         Investor
      is an entity in which each equity owner is an accredited investor as
      defined in i. or ii.
above. 

                  

                

        

      

            

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    
      
        	
                 
      

              	
                iv.

              	
                 ̈         Investor
      is either an organization described in Section 501(c)(3) of the Internal
      Revenue Code of 1986, as amended (“Code”); a corporation, a Massachusetts
      or similar business trust, or a partnership, in each case not formed for
      the specific purpose of acquiring the securities being offered, and with
      total assets in excess of
$5,000,000.

              

      

      

      
        	
                 
      

              	
                v.

              	
                 ̈         Investor
      is a trust, with total assets in excess of $5,000,000, not formed for the
      specific purpose of acquiring an Interest being offered, whose purchase of
      the Interest being offered is directed by a person who, either alone or
      with a purchaser representative, has such knowledge and experience in
      business and financial matters that Investor is capable, as defined by the
      Act, of evaluating the merits and risks of the prospective
      investment.

              

      

      

      
        	
                 
      

              	
                vi.

              	
                 ̈         Investor
      is a bank as defined in Section 3(a)(2) of the Act, as amended, (a.)
      acting in its fiduciary capacity as trustee, or (b.) subscribing for the
      purchase of securities being offered on its own
  behalf.

              

      

      

      
        	
                 
      

              	
                vii.

              	
                 ̈         Investor
      is an individual retirement account (“IRA”) established in the name of a
      person or persons who is or are accredited
  investors.

              

      

      

      
        	
                 
      

              	
                viii.

              	
                 ̈         Investor
      is an employee benefit plan within the meaning of ERISA where investment
      decisions are made by a plan fiduciary, as defined in Section 3(21) of
      ERISA, which is either a bank, savings and loan association, insurance
      company or registered investment advisor, has total assets in excess of
      $5,000,000 or is a self-directed plan, with investment decisions made
      solely by persons that are accredited investors as defined under the
      Act.  If you check this statement, you must complete Section
      8B.

              

      

      

      
        	
                 
      

              	
                ix.

              	
                 ̈         Investor
      is a private investment entity exempted from registration as an investment
      company by Section 3(c)(1) of the Investment Company Act of 1940 (the
      “1940 Act”) or an investment company registered under the 1940 Act or a
      “business development company” as defined in Section 202(a)(22) of the
      Investment Advisers Act of 1940 (the “Advisers Act”), and the beneficial
      owners are accredited investors under any one of (A) through (G)
      above.

              

      

    

     

    (D)         The
Investor is acquiring the Shares for its own account for investment purposes and
not with a view to distribution, and with no present intention of distributing
the Shares or selling the Shares for distribution. The Investor understands that
the Shares are being sold to the Investor in a transaction which is exempt from
the registration requirements of the Act.  The Investor’s acquisition
of the Shares shall constitute a confirmation of the foregoing representation
and warranty and understanding thereof.

    

    (E)          The
Investor (or its Purchaser Representative (as defined herein), if any) has such
knowledge and experience in financial and business matters as is required for
evaluating the merits and risks of making this investment, and the Investor or
its Purchaser Representatives has received such information requested by the
Investor concerning the business, management and financial affairs of the
Company in order to evaluate the merits and risks of making this investment.
Further, the Investor acknowledges that the Investor has had the opportunity to
ask questions of, and receive answers from, the officers of the Company
concerning the terms and conditions of this investment and to obtain information
relating to the organization, operation and business of the Company and of the
Company's contracts, agreements and obligations. No representation or warranty
is made by the Company to induce the Investor to make this investment, and any
representation or warranty not made herein is specifically
disclaimed.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (F)          
The Investor is making the foregoing representations and warranties with the
intent that they may be relied upon by the Company in determining the
suitability of the sale of the Shares to the Investor for purposes of federal
and state securities laws.

    

    (G)          The
Investor further acknowledges that the Investor has been advised that the Shares
being purchased by the Investor hereunder have not been registered under the
provisions of the Act (in reliance of the representations of the Investor made
herein) and that the Shares have been offered and sold by the Company in
reliance upon an exemption from registration provided in Section 4(2) of the Act
and/or Regulation D.

    

    (H)           In
entering into this Agreement and in purchasing the Shares, the Investor further
acknowledges that:

    

    (i)  The
Company has informed the Investor that the Shares have not been offered for sale
by means of general advertising or solicitation.

    

    (ii)  The
Shares or any interest therein may not be resold by the Investor in the absence
of a registration under the Act and applicable securities laws or exemption from
registration.  In particular, the Investor is aware that the Shares
will be “restricted securities,” as such term is defined in Rule 144 promulgated
under the Act (“Rule 144”).  The Company has no obligation to register
any of the Shares purchased by Investor.

    

    (iii) The
following legend (or a legend substantially similar in substance) shall be
placed on the certificate(s) evidencing the Shares purchased
hereunder.

    

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES LAWS AND MAY NOT BE
SOLD, OFFERED FOR SALE OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT OR AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

    

    (iv) The
Company may at any time place a stop transfer order on its transfer books
against the Shares.  Such stop order will be removed, and further
transfer of the Shares will be permitted upon an effective registration of such
Shares, or the receipt by the Company of an opinion of counsel reasonably
satisfactory to the Company that such further transfer may be effected pursuant
to an applicable exemption from registration.

    

    (I)            The
Investor has completed the Subscription Agreement and has delivered it herewith
and represents and warrants that it is accurate and true in all respects and
that it accurately and completely represents the financial condition of the
Investor on the date hereof. The Investor has no reason to expect there will be
any material adverse change in its financial condition and will advise the
Company of any such changes occurring prior to the closing or termination of the
Offering.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (J)            The
Investor is not subscribing for any Shares as a result of or subsequent to any
advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, any
seminar or meeting, or any solicitation of a subscription by a person not
previously known to the Investor in connection with investments in securities
generally.

    

    (K)           The
Investor has reached the age of majority in the state in which the Investor
resides, has adequate means of providing for the Investor's current needs and
personal contingencies, is able to bear the substantial economic risks of an
investment in the Shares for an indefinite period of time, and has no need for
liquidity in such investment.

    

    (L)           The
Investor’s overall commitment to investments that are not readily marketable is
not, and its acquisition of the Shares will not, cause such overall commitment
to become disproportionate to its net worth.

    

    (M)          The
Investor understands that the Company shall have the right to accept or reject
this subscription in whole or in part in its sole and exclusive discretion.
Unless this subscription is accepted in whole or in part by the Company prior to
the expiration of the Offering, this subscription shall be deemed rejected in
whole.

    

    (N)           It
never has been represented, guaranteed or warranted by any broker, the Company,
any of the directors, shareholders, employees, officers or agents of the
Company, or any other persons, whether expressly or by implication,
that:

    

    (i)  the
Company or the Investor will realize any given percentage of profits and/or
amount or type of consideration, profit or loss as a result of the Company's
activities or the Investor's investment in the Company; or

    

    (ii) the
past performance or experience of the management of the Company, or of any other
person, will in any way indicate the predictable results of the ownership of the
Shares or of the Company’s activities.

    

    (O)          Investor
understands and acknowledges that the use of the proceeds of the Offering by the
Company will be in the sole discretion of the Company’s management.

    

    (P)           No
representations have been made, and no information furnished to the Investor or
the Investor's advisor(s) in connection with the Offering were in any way
inconsistent with the information stated herein.

    

    (Q)           __________________________
(insert name of Purchaser Representative: if none leave blank) has acted as the
Investor's Purchaser Representative for purposes of the private placement
exemption under the Act. If the Investor has appointed a “Purchaser
Representative” (which term is used herein with the same meaning as given in
Rule 501(h) of Regulation D), the Investor has been advised by his Purchaser
Representative as to the merits and risks of an investment in the Company in
general and the suitability of an investment in the Shares for the Investor in
particular.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    Section
3.              Indemnification

    

    The
Investor agrees to indemnify, defend and hold harmless each of the Company and
its directors, officers, shareholders, agents, counsel and affiliates of the
Company, and each other person, if any, who controls the Company, as the case
may be, within the meaning of Section 15 of the Act or Section 20 of the
Securities Exchange Act of 1934, as amended, against any and all losses,
liabilities, claims, damages and all expenses reasonably incurred in
investigating, preparing or defending against any litigation commenced or
threatened or any claim whatsoever arising out of or based upon any false
representation or warranty or breach or failure by the Investor to comply with
any covenant or agreement made by the Investor herein or in any other document
furnished by the Investor to any of the foregoing in connection with this
transaction.

    

    Section
4.              Binding Effect of
Subscription

    

    The
Investor hereby acknowledges and agrees, subject to any applicable state
securities laws, that the subscription and application hereunder are irrevocable
by Investor, that the Investor is not entitled to cancel, terminate or revoke
this Subscription Agreement and that this Subscription Agreement shall survive
the death or disability of the Investor and shall be binding upon and inure to
the benefit of the Investor and his heirs, executors, administrators,
successors, legal representatives, and assigns. If the Investor is more than one
person, the obligations of the Investor hereunder shall be joint and several,
and the agreements, representations, warranties, and acknowledgments herein
contained shall be deemed to be made by and be binding upon each such person and
his or her heirs, executors, administrators, successors, legal representatives,
and assigns.

    

    Section
5.              Representations and
Warranties of the Company

    

    The
Company represents and warrants to, and agrees with, each Investor as
follows:

    

    (A)            The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware, with all requisite power and authority
to own, lease, license, and use its properties and assets and to carry out the
business in which it is engaged, except where the failure to have or be any of
the foregoing may not be expected to have a material adverse effect on the
Company's presently conducted businesses.

    

    (C)            The
Company has all requisite power and authority to execute, deliver and perform
its obligations under this Agreement, and to issue, sell and deliver the
Shares.  This Agreement has been duly authorized by the Company, and
when executed and delivered by the Company, will constitute the legal, valid and
binding obligation of the Company, enforceable as to the Company in accordance
with its terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, arrangement, fraudulent conveyance or transfer, moratorium or
other laws or court decisions, now or hereinafter in effect, relating to or
affecting the rights of creditors generally and as may be limited by general
principles of equity and the discretion of the court having jurisdiction in an
enforcement action (regardless of whether such enforceability is considered in a
proceeding in equity or at law).

    

    (D)            No
consent, authorization, approval, order, license, certificate or permit of or
from, or declaration or filing with, any federal, state, local or other
governmental authority or any court or any other tribunal is required by the
Company for the execution, delivery or performance by the Company of this
Agreement or the execution, issuance, sale or delivery of the Shares, except for
the filing of a Form D with the Securities and Exchange Commission and filings
under applicable "Blue Sky" laws.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    (E)            No
consent of any party to any contract, agreement, instrument, lease, license,
arrangement or understanding to which the Company is a party or to which any of
its properties or assets are subject is required for the execution, delivery or
performance by the Company of this Agreement, or the execution, issuance, sale
or delivery of the Shares, unless the failure to obtain such consent will not
have a material adverse effect on the Company and/or the Offering.

    

    (F)            The
execution, delivery and performance of this Agreement will not violate, result
in a breach of, conflict with (with or without the giving of notice or the
passage of time or both) or entitle any party to terminate or call a default
under any material contract, agreement, instrument, lease, license, arrangement
or understanding or violate or result in a breach of any term of the certificate
of organization or operating agreement of, or conflict with any law, rule,
regulation, order, judgment or decree binding upon, the Company or to which any
of its operations, businesses, properties or assets are subject which
individually or in the aggregate will not have a material adverse effect upon
the operations, business, properties or assets of the Company.

    

    (G)            The
Shares, upon delivery to the Investor, will be validly issued, fully paid and
non assessable and will not be issued in violation of any preemptive or other
rights of any members.

    

    Section
6.             Income Tax
Risks

    

    Each prospective Investor is urged to
consult with its own representatives, including its own tax and legal advisors,
with respect to the federal (as well as state and local) income tax consequences
of this investment before purchasing any of the Shares.

    

    Section
7.             Waiver

    

    The
Investor has made full and complete inquiry with respect to any matters of
interest in connection with this investment and is fully satisfied in all
respects with its investment decision, fully understanding and comprehending the
significant risks associated, acknowledges that it has not relied on any
specific information concerning the Company not contained herein, and
understands that the Company has not made any representations regarding the
Company or the future performance of the Company.

    

    Section
8.             Additional
Provisions

    

    (A)           No
Waiver.  Neither this Subscription Agreement nor any provisions
hereof shall be waived, modified, discharged, or terminated except by an
instrument in writing signed by the party against whom any such waiver,
modification, discharge, or termination is sought.

    

    (B)           Notices.  Any
notice, demand or other communication which any party hereto may be required, or
may elect, to give to anyone interested hereunder shall be sufficiently given if
(a) deposited, postage prepaid, in a United States mail box, stamped, registered
or certified mail, return receipt requested, addressed to such address as may be
listed on the books of the Company.

    

    (C)           Execution.  This
Subscription Agreement may be executed through the use of separate signature
pages or in any number of counterparts, and each of such counterparts shall, for
all purposes, constitute one agreement, binding on all parties, notwithstanding
that all parties are not signatories to the same counterpart.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    (D)         Entire
Agreement.  This Subscription Agreement contains the entire
agreement of the parties with respect to the subject matter hereof and there are
no representations, covenants or other agreements except as stated or referred
to herein, and any representations or warranties not contained herein are
disclaimed.

    

    (E)         Severability.  Each
provision of this Subscription Agreement is intended to be severable from every
other provisions, and the invalidity or illegality of any portion hereof, shall
not affect the validity or legality of the remainder hereof.

    

    (F)         Non-Assignability.
This Subscription Agreement is not transferable or assignable by the Investor
except as may be provided herein.

    

    (G)         Successors and
Assigns. This Subscription Agreement shall be binding upon and inure to
the benefit of the Company and the Investor and their respective successors,
heirs, personal representatives and permitted assigns.

    

    (H)         Law
Governing.  This Subscription Agreement shall be governed by
and construed in accordance with the laws of the State of New York applicable to
contracts made and to be wholly performed in such state.

    

    
      	
               
      

            	
              (I)

            	
              Venue

            

    

    

    (i)           The
Company and Investor irrevocably submit to the exclusive jurisdiction of any New
York State or United States federal court sitting in Nassau or Suffolk Counties,
New York, U.S.A., and any appellate court from any thereof (the “Specified
Courts”), and any suit, action or proceeding brought by the Company or any
Investor, arising out of or based upon this Subscription Agreement or the
Offering (a “Related Proceeding”) shall be maintained in such courts. The
Company and Investor waive any objection to maintaining any Related Proceedings
in such courts whether on the grounds of venue, residence or domicile or on the
ground that the Related Proceedings have been brought to an inconvenient
forum.

    

    (ii)           The
Company agrees that service of all writs, process and summonses in any Related
Proceedings brought by any Investor against it in any New York State or United
States Federal Court sitting in Nassau or Suffolk Counties, State of New York,
may be made upon Gersten Savage LLP, 600 Lexington Ave., 9th Floor,
New York, NY 10022 (the Company’s “Process Agent”). The Company represents and
warrants that the Company's Process Agent has agreed to act as its agent for
service of process, and the Company agrees to take any and all action, including
the filing of any and all documents and instruments, that may be necessary to
continue such appointment in full force and effect as aforesaid.  If
the Company shall appoint without delay another such agent and notify the
Investors of such appointment. With respect to any such action in any New York
State or United States Federal Court in Nassau or Suffolk County, State of New
York, service of process upon the Company’s Process Agent and written notice of
such service to the Company shall be deemed, in every respect, effective service
of process upon the Company.

    

    (J)           Commissions/Finder’s
Fees.  The Company reserves the right to pay commissions and/or
finder’s fees in cash, securities of the Company, a combination thereof, or
other combination to individuals and/or entities in connection with the sale of
the Shares in this Offering, in amounts the Company deems appropriate in the
Company’s sole and exclusive discretion.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    Please
countersign and return two copies of this Subscription Agreement to the Company.
A countersigned copy of this Subscription Agreement will be returned to the
Investor, together with certificates representing the Shares.  For the
purpose of having the certificates prepared, please indicate the exact manner in
which the certificates are to be made out in the space provided for
below.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  Subscription
      Amount:

                                	 	$	 	 
	 
      	 	 	 	 
	
                                  Number
      of Shares Subscribed for:

                                	 	 	 	 

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	
                              FOR
      INDIVIDUALS:

                            
	 
      	 
      
	 
      	
                               

                            
	 
      	
                              (Print
      Name)

                            
	 
      	 
      
	 
      	
                               

                            
	 
      	
                              (Signature)

                            
	 	 
	
                              Dated:
      __________________, 2010

                            	
                               

                            
	 
      	
                              (Social
      Security Number)

                            
	 
      	 
      
	 
      	
                              FOR
      CORPORATIONS:

                            
	 
      	 
      
	 
      	
                              Name
      of Company

                            
	 
      	 
      
	 
      	
                               

                            
	 
      	
                              Executive
      Officer of Company

                            
	 
      	 
      
	
                              Dated:
      __________________, 2010

                            	
                               

                            
	 
      	
                              Signature
      of Authorized
Individual

                            

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    Please
countersign and return two copies of this Subscription Agreement to the Company.
A countersigned copy of this Subscription Agreement will be returned to the
Investor, together with certificates representing the Shares.  For the
purpose of having the certificates prepared, please indicate the exact manner in
which the certificates are to be made out in the space provided for
below.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  Subscription
      Amount:

                                	 	$	 	 
	 
      	 	 	 	 
	
                                  Number
      of Shares Subscribed for:

                                	 	 	 	 

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        	 
      	
                FOR
      PARTNERSHIPS:

              
	 
      	 
      
	 
      	
                  

              
	 
      	
                Name
      of Partnership

              
	 
      	 
      
	 
      	
                     

              
	 
      	
                Name
      of Authorized Partner

              
	 
      	 
      
	
                Dated:
      __________________, 2010

              	
                     

              
	 
      	
                Signature
      of Authorized Partner

              
	 
      	 
      
	 
      	
                FOR
    TRUSTS:

              
	 
      	 
      
	 
      	
                     

              
	 
      	
                Name
      of Trust

              
	 
      	 
      
	 
      	
                          

              
	 
      	
                Name
      of Authorized Trustee

              
	 
      	 
      
	
                Dated:
      __________________, 2010

              	
                             

              
	 
      	
                Signature
      of Authorized Trustee

              

      

    

     

    
      
         

      

      
        10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]