Document:

Exhibit 4.1

 

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH
SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

CRYSTAL INTERNATIONAL TRAVEL
GROUP, INC.

WARRANT TO PURCHASE SHARES OF
COMMON STOCK

	
  No. CW-110601

  	
  November
  27, 2006

  

 

Void After November 27, 2011

THIS CERTIFIES THAT,
for value received, Arnold Income Fund LP, with its principal office at, or
assigns (the “Holder” or “Purchaser”), is entitled to
subscribe for and purchase at the Exercise Price (defined below) from CRYSTAL INTERNATIONAL TRAVEL GROUP, INC., a Delaware
corporation, with its principal office at (the “Company”),
the Exercise Shares (as defined below), at any time or from time to time during
the Exercise Period (as defined below), upon surrender to the Company at its
principal office (or at such other location as the Company may advise the
Holder in writing) of this Warrant properly endorsed, together with the
completed and executed Subscription Form attached hereto and, if applicable,
upon payment in cash or by check of the aggregate Exercise Price for the number
of shares for which this Warrant is being exercised determined in accordance
with the provisions hereof. The Exercise Price and the number of shares
purchasable hereunder are subject to adjustment as provided in Section 4 of
this Warrant.

This Warrant is subject to the following terms and
conditions:

1.             DEFINITIONS.  Capitalized
terms used herein and not otherwise defined herein shall have the respective
meanings given to them in that certain Secured Note and Warrant Purchase
Agreement, dated as of November 27, 2006 (as the same may be amended from time
to time, the “Purchase Agreement”), by and
among the Company and the Purchasers identified on the Schedule of Purchasers
thereto.  As
used herein, the following terms shall have the respective meanings set
forth below:

“Additional
Shares of Common Stock” shall mean all shares of Common Stock issued by the Company whether or
not subsequently reacquired or retired by the Company other than (A) shares of
Common Stock and/or options, warrants or other Common Stock purchase rights, and
the Common Stock issued pursuant to such options, warrants or other rights (as
adjusted for any stock dividends, distributions, combinations, splits,
recapitalizations and the like) after the Initial Closing Date to employees,
officers or directors of, or consultants or advisors to the Company or any
subsidiary pursuant to stock purchase or stock option plans or other
arrangements that are approved by the

 

Board;
(B) shares of Common Stock and/or options, warrants or other Common Stock
purchase rights, and the Common Stock issued pursuant to such options, warrants
or other rights issued for consideration other than cash pursuant to a merger,
consolidation, acquisition or similar business combination approved by the
Board; and (C) shares of Common Stock issued pursuant to any equipment leasing
arrangement, or debt financing from a bank or similar financial institution, or
strategic partnering arrangements or other similar transactions approved by the
Board of Directors.

“Expiration
Date” means five years from the date of this Warrant.

“Exercise
Period” means the date the Notice of Conversion of the Notes is
given to the Company in accordance with the terms of the Notes issued pursuant
to the Purchase Agreement, and ending at 5:00 p.m. (Eastern Time) on the Expiration
Date.

“Exercise
Price” means, subject to adjustment pursuant to Section 4 below,
the price per share shall be $0.10.

“Exercise Shares” means 400,000
shares of the Company’s Common Stock.

2.             EXERCISE OF WARRANT.  This Warrant is exercisable at the option of the
holder of record hereof, at any time or from time to time during the Exercise
Period for all or any part of the Exercise Shares (but not for a fraction of a
share) which may be purchased hereunder. 
Upon the exercise of the rights represented by this Warrant, a
certificate or certificates for the Exercise Shares so purchased, registered in
the name of the Holder or persons affiliated with the Holder, if the Holder so
designates, shall be issued and delivered to the Holder within a reasonable time
after the rights represented by this Warrant shall have been so exercised.  In case of a purchase of less than all the
shares which may be purchased under this Warrant, the Company shall cancel this
Warrant and execute and deliver a new Warrant or Warrants of like tenor for the
balance of the shares purchasable under the Warrant surrendered upon such
purchase to the Holder hereof within a reasonable time.  The person in whose name any certificate or
certificates for Exercise Shares are to be issued upon exercise of this Warrant
shall be deemed to have become the holder of record of such shares on the date
on which this Warrant was surrendered and payment of the Exercise Price was
made, irrespective of the date of delivery of such certificate or certificates,
except that, if the date of such surrender and payment is a date when the stock
transfer books of the Company are closed, such person shall be deemed to have
become the holder of such shares at the close of business on the next
succeeding date on which the stock transfer books are open.

3.             SHARES TO BE FULLY PAID; RESERVATION OF SHARES.  The Company covenants and agrees
that the Exercise Shares which may be issued upon the exercise of the rights
represented by this Warrant will, upon issuance, be duly authorized, validly
issued, fully paid and nonassessable and free from all preemptive rights of any
shareholder and free of all taxes, liens and charges with respect to the
issuance thereof.  The Company further
covenants and agrees that from and after the date of the Initial Closing Date,
during the period within which the rights represented by this Warrant may be
exercised, the Company will at all times have authorized and reserved, for the
purpose of issue or transfer upon exercise of the subscription rights evidenced
by this Warrant, a sufficient number of shares of authorized but unissued
shares of Common

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Stock, as the case may
be, and Common Stock issuable upon conversion of the shares of Common Stock or
other securities and property, when and as required to provide for the exercise
of the rights represented by this Warrant, and the Company will take all such
action as may be necessary to assure that such shares of Common Stock may be
issued as provided herein without violation of any applicable law or
regulation.  The Company will not take
any action which would result in any adjustment of the Exercise Price
(i) if the total number of shares of Common Stock issuable after such
action upon exercise of all outstanding warrants, together with all shares of
Common Stock then outstanding and all shares of Common Stock then issuable upon
exercise of all options and upon the conversion of all convertible securities
then outstanding, would exceed the total number of shares of Common Stock then
authorized by the Company’s Certificate of Incorporation, or (ii) if the
total number of shares of Common Stock issuable after such action upon the
conversion of all such shares of Common Stock, together with all shares of
Common Stock then outstanding and all shares of Common Stock then issuable upon
exercise of all options and upon the conversion of all convertible securities
then outstanding would exceed the total number of shares of Common Stock then
authorized by the Company’s Certificate of Incorporation.

4.             ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES.  The Exercise Price and the number of shares
purchasable upon the exercise of this Warrant shall be subject to adjustment
from time to time upon the occurrence of certain events described in this
Section 4.  Upon each adjustment of the
Exercise Price, the Holder of this Warrant shall thereafter be entitled to
purchase, at the Exercise Price resulting from such adjustment, the number of
shares obtained by multiplying the Exercise Price in effect immediately prior to
such adjustment by the number of shares purchasable pursuant hereto immediately
prior to such adjustment, and dividing the product thereof by the Exercise
Price resulting from such adjustment.

4.1          Subdivision
or Combination of Stock.  In case the Company shall at
any time subdivide its outstanding shares of Common Stock into a greater number
of shares, the Exercise Price in effect immediately prior to such subdivision
shall be proportionately reduced, and conversely, in case the outstanding
shares of Common Stock of the Company shall be combined into a smaller number
of shares, the Exercise Price in effect immediately prior to such combination
shall be proportionately increased.

4.2          Dividends
in Common Stock, etc.  If at any time or from time to
time the holders of Common Stock (or any shares of stock or other securities at
the time receivable upon the exercise of this Warrant) shall have received or
become entitled to receive, without payment therefor,

(a)           Common Stock or any shares of stock or
other securities which are at any time directly or indirectly convertible into
or exchangeable for Common Stock, or any rights or options to subscribe for,
purchase or otherwise acquire any of the foregoing by way of dividend or other
distribution,

(b)           any cash paid or payable otherwise than
as a cash dividend, or

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(c)           Common Stock or additional stock or other
securities or property (including cash) by way of spinoff, split-up,
reclassification, combination of shares or similar corporate rearrangement,
(other than shares of Common Stock issued as a stock split or adjustments in
respect of which shall be covered by the terms of Section 4.1 above), then and
in each such case, the Holder hereof shall, upon the exercise of this Warrant,
be entitled to receive, in addition to the number of shares of Common Stock
receivable thereupon, and without payment of any additional consideration
therefor, the amount of stock and other securities and property (including cash
in the cases referred to in clause (b) above and this clause (c)) which such
Holder would hold on the date of such exercise had he been the holder of record
of such Common Stock as of the date on which holders of Common Stock received
or became entitled to receive such shares or all other additional stock and
other securities and property.

4.3          Consolidation,
Merger or Sale.  If any consolidation or merger of the Company
with another corporation, or the sale of all or substantially all of its assets
or other transactions shall be effected in such a way that holders of Common
Stock, as the case may be, shall be entitled to receive stock, securities, or
other assets or property (an “Organic Change”),
then, as a condition of such Organic Change, lawful and adequate provisions
shall be made by the Company whereby the Holder hereof shall thereafter have
the right to purchase and receive (in lieu of the Exercise Shares immediately
theretofore purchasable and receivable upon the exercise of the rights
represented hereby) such shares of stock, securities or other assets or property
as may be issued or payable with respect to or in exchange for a number of
outstanding shares of such Exercise Shares equal to the number of shares of
such stock immediately theretofore purchasable and receivable upon the exercise
of the rights represented hereby; provided, however, that (in case of a
consolidation or merger of the Company with another corporation in which the
stockholders of the Company immediately prior to such consolidation or merger,
own less than 50% of the surviving entity’s voting power immediately after such
consolidation or merger, or the sale of all or substantially all of its assets)
in the event the value of the stock, securities or other assets or property
(determined in good faith by the Board of Directors of the Company) issuable or
payable with respect to one share of the Common Stock of the Company
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby is in excess of the Exercise Price hereof effective
at the time of such consolidation, merger or sale and securities received in
such reorganization, if any, are publicly traded, then this Warrant shall
automatically, and with no further action necessary on the part of Holder or
the Company, be converted into such number of Exercise Shares as would be
received by Holder had Holder made the net issue election pursuant to section
2.1 hereof immediately prior to such Organic Change.  In the event of any Organic Change,
appropriate provision shall be made by the Company with respect to the rights
and interests of the Holder of this Warrant to the end that the provisions
hereof (including, without limitation, provisions for adjustments of the
Exercise Price and of the number of shares purchasable and receivable upon the
exercise of this Warrant) shall thereafter be applicable, in relation to any
shares of stock, securities or assets thereafter deliverable upon the exercise
hereof.  The Company will not effect any
such consolidation, merger or sale (other than a consolidation, merger or sale
resulting in the automatic conversion of this Warrant pursuant to the first
sentence of this paragraph) unless, prior to the consummation thereof, the
successor corporation (if other than the Company) resulting from such
consolidation or the corporation purchasing such assets shall assume by

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written instrument
reasonably satisfactory in form and substance to the Holders of a majority of
the warrants to purchase Common Stock then outstanding, executed and mailed or
delivered to the registered Holder hereof at the last address of such Holder
appearing on the books of the Company, the obligation to deliver to such Holder
such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such Holder may be entitled to purchase.

4.4          Adjustment
of Conversion Price Upon Issuance of Additional Shares of Common Stock.  In the event the Company, at any time after the
Initial Closing Date shall issue Additional Shares of Common Stock without
consideration or for a consideration per share less than the Exercise Price in
effect on the date of and immediately prior to such issue, then and in such
event, the Exercise Price shall be reduced, concurrently with such issue, to
the price at which the Additional Shares of Common Stock were issued.

4.5          Certain
Events.  If any change in the outstanding Common Stock
of the Company or any other event occurs as to which the other provisions of
this Section 4 are not strictly applicable or if strictly applicable would
not fairly protect the purchase rights of the Holder of the Warrant in
accordance with such provisions, then the Board of Directors of the Company
shall make an adjustment in the number and class of shares available under the
Warrant, the Exercise Price or the application of such provisions, so as to
protect such purchase rights as aforesaid. 
The adjustment shall be such as will give the Holder of the Warrant upon
exercise for the same aggregate Exercise Price the total number, class and kind
of shares as he would have owned had the Warrant been exercised prior to the
event and had he continued to hold such shares until after the event requiring
adjustment.

4.6          Notices
of Change.

(a)           Immediately upon any adjustment in the
number or class of shares subject to this Warrant and of the Exercise Price,
the Company shall give written notice thereof to the Holder, setting forth in
reasonable detail and certifying the calculation of such adjustment.

(b)           The Company shall give written notice to
the Holder at least ten (10) business days prior to the date on which the
Company closes its books or takes a record for determining rights to receive
any dividends or distributions.

(c)           The Company shall also give written
notice to the Holder at least twenty (20) business days prior to the date on
which an Organic Change shall take place.

5.             ISSUE TAX.  The issuance of
certificates for the Exercise Shares upon the exercise of the Warrant shall be
made without charge to the Holder of the Warrant for any issue tax (other than
any applicable income taxes) in respect thereof; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of
any transfer involved in the issuance and delivery of any certificate in a name
other than that of the then Holder of the Warrant being exercised.

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6.             CLOSING OF BOOKS.  The Company
will at no time close its transfer books against the transfer of any warrant or
of any shares of Common Stock issued or issuable upon the exercise of any
warrant in any manner which interferes with the timely exercise of this
Warrant.

7.             NO VOTING OR DIVIDEND RIGHTS; LIMITATION OF
LIABILITY. 
Nothing contained in this Warrant shall be construed as conferring upon
the Holder hereof the right to vote or to consent or to receive notice as a
stockholder of the Company or any other matters or any rights whatsoever as a
stockholder of the Company.  No dividends
or interest shall be payable or accrued in respect of this Warrant or the
interest represented hereby or the shares purchasable hereunder until, and only
to the extent that, this Warrant shall have been exercised.  No provisions hereof, in the absence of
affirmative action by the holder to purchase shares of  Common Stock, and no mere enumeration herein
of the rights or privileges of the holder hereof, shall give rise to any
liability of such Holder for the Exercise Price or as a stockholder of the
Company, whether such liability is asserted by the Company or by its creditors.

8.             WARRANTS TRANSFERABLE. 
Subject to compliance with applicable federal and state securities laws,
this Warrant and all rights hereunder are transferable, in whole or in part,
without charge to the holder hereof (except for transfer taxes), upon surrender
of this Warrant properly endorsed.  Each
taker and holder of this Warrant, by taking or holding the same, consents and
agrees that this Warrant, when endorsed in blank, shall be deemed negotiable,
and that the holder hereof, when this Warrant shall have been so endorsed, may
be treated by the Company, at the Company’s option, and all other persons dealing
with this Warrant as the absolute owner hereof for any purpose and as the
person entitled to exercise the rights represented by this Warrant, or to the
transfer hereof on the books of the Company any notice to the contrary
notwithstanding; but until such transfer on such books, the Company may treat
the registered owner hereof as the owner for all purposes.

9.             REGISTRATION RIGHTS. 
Upon exercise of this Warrant, the Company covenants and agrees that it
will use commercially reasonable efforts to cause the shares held by Holders to
be included in any registration statement filed with the Securities and
Exchange Commission relating to an offering for the Company’s own account or
the account of others under the Securities Act of 1933 of any of its equity
securities, other than on Form S-4 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.

10.          RIGHTS
AND OBLIGATIONS SURVIVE EXERCISE OF WARRANT.  The rights and
obligations of the Company, of the Holder of this Warrant and of the holder of
shares of Common Stock issued upon exercise of this Warrant, shall survive the
exercise of this Warrant.

11.          MODIFICATION
AND WAIVER.  This Warrant and any provision hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the same is sought.

12.          NOTICES. 
Any notice, request or other document required or permitted to be given
or delivered to the holder hereof or the Company shall be in writing and shall
be deemed

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effectively given (i)
upon personal delivery to the party to be notified, (ii) five (5) days after
having been sent by registered or certified mail, return receipt requested,
postage prepaid, or (iii) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written
verification of receipt.  All
communications shall be sent to each such holder at its address as shown on the
books of the Company or to the Company at the address indicated therefor in the
first paragraph of this Warrant or such other address as either may from time
to time provide to the other.

13.          BINDING
EFFECT ON SUCCESSORS.  This Warrant shall be binding
upon any corporation succeeding the Company by merger, consolidation or
acquisition of all or substantially all of the Company’s assets.  All of the obligations of the Company
relating to the Exercise Shares issuable upon the exercise of this Warrant
shall survive the exercise and termination of this Warrant.  All of the covenants and agreements of the
Company shall inure to the benefit of the successors and assigns of the holder
hereof.

14.          DESCRIPTIVE
HEADINGS AND GOVERNING LAW.  The description headings of the several
sections and paragraphs of this Warrant are inserted for convenience only and
do not constitute a part of this Warrant. 
This Warrant shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the laws of the State of New York.

15.          LOST
WARRANTS.  The Company represents and warrants to the
Holder hereof that upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction, or mutilation of this Warrant and, in
the case of any such loss, theft or destruction, upon receipt of an indemnity
reasonably satisfactory to the Company, or in the case of any such mutilation
upon surrender and cancellation of such Warrant, the Company, at its expense,
will make and deliver a new Warrant, of like tenor, in lieu of the lost,
stolen, destroyed or mutilated Warrant.

16.          FRACTIONAL
SHARES. 
No fractional shares shall be issued upon exercise of this Warrant.  The Company shall, in lieu of issuing any
fractional share, pay the holder entitled to such fraction a sum in cash equal
to such fraction multiplied by the then effective Exercise Price.

[THIS SPACE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the
Company has caused this Warrant to be duly executed by its officers, thereunto
duly authorized this              
day of November, 2006.

	
   

  	
  CRYSTAL INTERNATIONAL TRAVEL

  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:  Fabrizzio Busso-Campana

  
	
   

  	
  Title:  Chief
  Executive Officer

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Secretary

  	
   

  
				

 

 

EXHIBIT A

SUBSCRIPTION FORM

Date:                                    ,
20   

 

Crystal
International Travel Group, Inc.

 

Attn:  President

Ladies
and Gentlemen:

o            The undersigned hereby elects to
exercise the warrant issued to it by Crystal International Travel Group, Inc.
(the “Company”) and dated                
, 2006 Warrant No. CW-    (the “Warrant”)
and to purchase thereunder                                                                   
shares of the Common Stock of the Company (the “Shares”)
at a purchase price of                                             
($           ) per Share
or an aggregate purchase price of                                                     
($           ) (the “Purchase Price”).

o            The undersigned hereby elects to
purchase                
shares of the Common Stock of the Company pursuant to the terms of the net
exercise provisions set forth in Section 2.1 of the attached Warrant, and shall
tender payment of all applicable transfer taxes, if any, pursuant to the terms
of the Warrant the undersigned has delivered the Purchase Price herewith in
full in cash or by certified check or wire transfer.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 2Exhibit 10.1

 

CRYSTAL INTERNATIONAL TRAVEL GROUP, INC.

SECURED NOTE AND WARRANT PURCHASE AGREEMENT

THIS SECURED NOTE AND WARRANT PURCHASE AGREEMENT
is made as of the     day of November, 2006 (the “Effective Date”) by and among CRYSTAL INTERNATIONAL TRAVEL GROUP, INC., a Delaware
corporation (the “Company”), and the persons
and entities named on the Schedule of Purchasers attached hereto (individually,
a “Purchaser” and collectively, the “Purchasers”).

The parties hereby agree
as follows:

1.                                      AMOUNT
AND TERMS OF THE SECURED LOAN; ISSUANCE OF WARRANTS.

1.1          The Loan.  Subject to the terms of this Agreement, at
the Closing, each Purchaser agrees to purchase and the Company agrees to sell
and issue to each Purchaser a Secured Promissory Note, in substantially the
form attached hereto as Exhibit A
(each a “Note” and collectively, the “Notes”), in a principal amount equal
to such Purchaser’s Pro Rata Share of the total amount to be funded at each
such closing.  For purposes of this
Agreement, the term “Pro Rata Share”
means, as to each Purchaser, the percentage equivalent of such Purchaser’s
commitment to purchase Notes from the Company (the “Commitment
Amount”), divided by the combined Commitment Amounts of all
Purchasers to purchase Notes from the Company, which combined aggregate amount
is set forth on the Schedule of Purchasers attached hereto, as the same may be
amended from time to time (the “Total Commitment”).

1.2          Issuance of Warrants.   Subject to the terms of this Agreement, and
in consideration for the purchase by the Purchasers of the Notes and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the Company agrees to issue to each Purchaser, at the Closing, a warrants in
substantially the form attached hereto as Exhibit B
(each, a “Warrant” and collectively the
“Warrants”), for shares of Common
Stock of the Company (the “Common Stock”).

2.                                      THE
CLOSING.

2.1          Closing.  The closing of the purchase and sale of Notes
in the aggregate principal amount of $400,000 (the “Loan
Amount”), the issuance of the Restricted Shares (as defined
below) and the issuance of Warrants shall be held on the Effective Date at the
offices of the Company (the “Closing”),
or at such other place and time as the Company and the Purchasers shall
mutually agree upon (the “Closing Date”).

2.2          Delivery.  At the Closing:

 (i) Purchaser will deliver to the Company
a certified check or wire transfer funds equal to the Loan Amount;

(ii) the Company shall issue and deliver to
Purchaser a Note payable to such Purchaser in the principal amount of $400,000;

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(iii) the Company shall issue and deliver to Purchaser
a Warrant for an aggregate of 400,000 shares of the Company’s Common Stock at an exercise price of $0.10 per
share and in return the Purchaser shall return to the Company for cancellation
any and all warrants issued to it on or about May 2, 2006;

(iv) the Company
shall instruct its transfer agent to issue and deliver to each Purchaser within
5 business days of the date hereof 1,000,000 “restricted shares” (as such term
is defined in the Securities Act of 1933) of the Company’s Common Stock with
the registration rights set forth in Section 5(d) of this Agreement (the “Restricted Shares”);

(vi) the Company shall execute and deliver a
security agreement substantially in the form attached hereto as Exhibit C (the “Security Agreement”), pursuant to
which the Company shall grant the Agent (as defined in Section 7 below) a
security interest in the “Collateral”
described therein, for the ratable benefit of the Purchasers; and

(vi) the Company shall authorize the filing of a UCC-1
financing statement and shall provide such other documents as may be necessary
or desirable to perfect the Agent’s security interest in the Collateral, in
form reasonably satisfactory to Purchasers, including a Grant of Security
Interest for filing with the United States Patent and Trademark Office.

3.            PURCHASER’S
REPRESENTATIONS AND WARRANTIES.  Each Purchaser hereby
represents and warrants to and agrees with the Company only as to such
Purchaser that:

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

3.2          Authorization and
Power.  Each 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, partners, members, 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.

3.3          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

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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.

3.4          Information on
Company.   The Purchaser has been furnished with or has
had access at the EDGAR Website of the Commission to the Company’s Form 10-KSB
for the year ended July 31, 2006 and all periodic reports filed with the
Commission thereafter not later than five days before the Closing Date
(hereinafter referred to as the “Reports”).  In addition, the Purchaser has received in
writing from the Company such other information concerning its operations,
financial condition and other matters as the Purchaser has requested in writing
(such other information is collectively, the “Other
Written Information”), and considered all factors the Purchaser
deems material in deciding on the advisability of investing in the Securities.

3.5          Information on Purchaser.  The Purchaser is, and will be at the time of
the exercise of the Warrants, an “accredited investor”, as such term is defined
in Rule 501 of Regulation D and is experienced in investments and business
matters, has made investments of a speculative nature and has purchased
securities of United States publicly-owned companies in private placements in
the past and, with its representatives, has such knowledge and experience in
financial, tax and other business matters as to enable the Purchaser to utilize
the information made available by the Company to evaluate the merits and risks
of and to make an informed investment decision with respect to the proposed
purchase, which represents a speculative investment.  The Purchaser has the authority and is duly
and legally qualified to purchase and own the Securities.  The Purchaser is able to bear the risk of
such investment for an indefinite period and to afford a complete loss
thereof.  The information set forth on
the signature page hereto regarding the Purchaser is accurate.

3.6          Purchase of Notes and Warrants.  On the Closing Date, the Purchaser will
purchase the Notes and Warrants as principal for its own account for investment
only and not with a view toward, or for resale in connection with, the public
sale or any distribution thereof, but Purchaser does not agree to hold the
Notes and Warrants for any minimum amount of time.

3.7          Compliance with
Securities Act.  The Purchaser understands and agrees that the
Securities have not been registered under the 1933 Act or any applicable state
securities laws, by reason of their issuance in a transaction that does not
require registration under the 1933 Act (based in part on the accuracy of the
representations and warranties of Purchaser contained herein), and that such
Securities must be held indefinitely unless a subsequent disposition is
registered under the 1933 Act or any applicable state securities laws or is
exempt from such registration. 
Notwithstanding anything to the contrary contained in this Agreement,
such Purchaser may transfer (without restriction and without the need for an
opinion of counsel) the Securities to its Affiliates (as defined below)
provided that each such Affiliate is an “accredited investor” under Regulation
D and such Affiliate agrees to be bound by the terms and conditions of this
Agreement. For the purposes of this Agreement, an “Affiliate” of any person or entity means any other person or
entity directly or indirectly controlling, controlled by or under direct or
indirect common control with such person or entity.  Affiliate when employed in connection

 3
 

 

with the Company includes
each Subsidiary [as defined in Section 5(a)] of the Company.  For purposes of this definition, “control” means the power to direct the
management and policies of such person or firm, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise.

3.8          Shares Legend.  The
shares underlying the Warrants shall bear the following or similar legend:

“THE SHARES REPRESENTED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED.  THESE SHARES MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT OR ANY APPLICABLE STATE
SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO CRYSTAL
INTERNATIONAL TRAVEL GROUP, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.”

3.9          Warrants
Legend.  The Warrants shall
bear the following or similar legend:

“THIS WARRANT AND THE COMMON
SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED. 
THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS
WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID
ACT OR ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO CRYSTAL INTERNATIONAL TRAVEL GROUP, INC. THAT SUCH REGISTRATION
IS NOT REQUIRED.”

3.10        Communication of Offer.  The
offer to sell the Securities was directly communicated to the Purchaser by the
Company.  At no time was the Purchaser
presented with or solicited by any leaflet, newspaper or magazine article,
radio or television advertisement, or any other form of general advertising or
solicited or invited to attend a promotional meeting otherwise than in
connection and concurrently with such communicated offer.

3.11        Authority;
Enforceability.  This Agreement and other agreements delivered
together with this Agreement or in connection herewith have been duly
authorized, executed and delivered by the Purchaser and are valid and binding
agreements enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights generally and
to general principles of equity; and Purchaser has full corporate power and
authority necessary to enter into this Agreement and such other agreements and
to perform its obligations hereunder and under all other agreements entered
into by the Purchaser relating hereto.

 4
 

 

3.12        No Governmental Review. 
Purchaser understands that no United States federal or state agency or
any other governmental or state agency has passed on or made recommendations or
endorsement of the Securities or the suitability of the investment in the
Securities nor have such authorities passed upon or endorsed the merits of the
offering of the Securities.

3.13        Correctness of
Representations.  Each Purchaser represents as to such
Purchaser that the foregoing representations and warranties are true and
correct as of the date hereof and, unless a Purchaser otherwise notifies the
Company prior to the Closing Date shall be true and correct as of the Closing
Date.

3.14        Survival.  The
foregoing representations and warranties shall survive the Closing Date until
three years after the Closing Date.

4.            Company
Representations and Warranties.  The Company represents and
warrants to and agrees with each Purchaser that except as set forth in the
Reports and as otherwise qualified in the Transaction Documents:

4.1          Due
Incorporation.  The Company is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation and has the requisite corporate power to own its properties and
to carry on its business is disclosed in the Reports.  The Company is duly qualified as a foreign
corporation to do business and is in good standing in each jurisdiction where
the nature of the business conducted or property owned by it makes such
qualification necessary, other than those jurisdictions in which the failure to
so qualify would not have a Material Adverse Effect.  For purpose of this Agreement, a “Material Adverse Effect” shall mean a
material adverse effect on the financial condition, results of operations,
properties or business of the Company taken individually, or in the aggregate,
as a whole.  For
purposes of this Agreement, “Subsidiary”
means, with respect to any entity at any date, any corporation, limited or general
partnership, limited liability company, trust, estate, association, joint
venture or other business entity) of which more than 50% of (i) the
outstanding capital stock having (in the absence of contingencies) ordinary
voting power to elect a majority of the board of directors or other managing
body of such entity, (ii) in the case of a partnership or limited
liability company, the interest in the capital or profits of such partnership
or limited liability company or (iii) in the case of a trust, estate,
association, joint venture or other entity, the beneficial interest in such
trust, estate, association or other entity business is, at the time of
determination, owned or controlled directly or indirectly through one or more
intermediaries, by such entity.

4.2          Outstanding Stock.  All
issued and outstanding shares of capital stock of the Company have been duly
authorized and validly issued and are fully paid and nonassessable.

4.3          Authority; Enforceability.  This Agreement, the Note, the Warrants, and
any other agreements delivered together with this Agreement or in connection
herewith (collectively “Transaction Documents”)
have been duly authorized, executed and delivered by the Company and are valid
and binding agreements enforceable in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’
rights generally and to general principles

 5
 

 

of equity.  The
Company has full corporate power and authority necessary to enter into and
deliver the Transaction Documents and to perform its obligations thereunder.

4.4          No Violation or
Conflict.  Assuming the representations and warranties
of the Purchasers in Section 4 are true and correct, neither the issuance and
sale of the Securities nor the performance of the Company’s obligations under
this Agreement and all other agreements entered into by the Company relating
thereto by the Company will:

(i)            violate, conflict
with, result in a breach of, or constitute a default (or an event which with
the giving of notice or the lapse of time or both would be reasonably likely to
constitute a default in any  material
respect) under (A) the articles or certificate of incorporation, charter or
bylaws of the Company, (B) to the Company’s knowledge, any decree, judgment,
order, law, treaty, rule, regulation or determination applicable to the Company
of any court, governmental agency or body, or arbitrator having jurisdiction
over the Company or over the properties or assets of the Company or any of its
Affiliates, (C) the terms of any bond, debenture, note or any other evidence of
indebtedness, or any agreement, stock option or other similar plan, indenture,
lease, mortgage, deed of trust or other instrument to which the Company or any
of its Affiliates is a party, by which the Company or any of its Affiliates is
bound, or to which any of the properties of the Company or any of its
Affiliates is subject, or (D) the terms of any “lock-up” or similar provision
of any underwriting or similar agreement to which the Company, or any of its
Affiliates is a party except the violation, conflict, breach, or default of
which would not have a Material Adverse Effect; or

(ii)          result in the creation or imposition
of any lien, charge or encumbrance upon the Securities or any of the assets of
the Company or any of its Affiliates; or

(iii)         result in the
activation of any anti-dilution rights or a reset or repricing of any debt or
security instrument of any other creditor or equity holder of the Company, nor
result in the acceleration of the due date of any obligation of the Company; or

(iv)         result in the activation of any
piggy-back registration rights of any person or entity holding securities or
debt of the Company or having the right to receive securities of the Company.

4.5          Reporting Company.  The
Company is a publicly-held company subject to reporting obligations pursuant to
Section 13 of the Securities Exchange Act of 1934 (the “1934 Act”)
and has a class of common shares registered pursuant to Section 12(g) of the
1934 Act.  Pursuant to the provisions of
the 1934 Act, the Company has timely filed all reports and other materials
required to be filed thereunder with the Commission during the preceding twelve
months.

4.6          Information
Concerning Company.  The Reports contain all material information
relating to the Company and its operations and financial condition as of their
respective dates and all the information required to be disclosed therein.   Since the last day of the fiscal year of the
most recent audited financial statements included in the Reports (“Latest Financial Date”), and except as modified in the Other
Written Information or in the Schedules hereto, there has been no Material
Adverse Event relating to the Company’s business, financial

 6
 

 

condition or affairs not
disclosed in the Reports. The Reports do not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances when made.  The Company has
not provided to the Purchasers any material non-public information.

4.7          Stop Transfer.  The
Company will not issue any stop transfer order or other order impeding the
sale, resale or delivery of any of the Securities, except as may be required by
any applicable federal or state securities laws and unless contemporaneous
notice of such instruction is given to the Purchaser.

4.8           Not an Integrated
Offering.  Provided the
representations and warranties of the Purchasers are true and accurate, 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 offer of the Securities pursuant to this Agreement to be integrated with
prior offerings by the Company for purposes of the 1933 Act or any applicable
stockholder approval provisions, including, without limitation, under the rules
and regulations of the OTC Bulletin Board (“Bulletin Board”)
which would impair the exemptions relied upon in this Offering or the Company’s
ability to timely comply with its obligations hereunder.  Nor will the Company or any of its Affiliates
take any action or steps that would cause the offer or issuance of the
Securities to be integrated with other offerings which would impair the
exemptions relied upon in this Offering or the Company’s ability to timely
comply with its obligations hereunder. 
The Company will not conduct any offering other than the transactions
contemplated hereby that will be integrated with the offer or issuance of the
Securities which would impair the exemptions relied upon in this Offering or
the Company’s ability to timely comply with its obligations hereunder.

4.9          Dilution.   The
Company’s executive officers and directors understand the nature of the
Securities being sold hereby and recognize that the issuance of the Securities
will have a potential dilutive effect on the equity holdings of other holders
of the Company’s equity or rights to receive equity of the Company.  The board of directors of the Company has
concluded, in its good faith business judgment that the issuance of the
Securities is in the best interests of the Company.  The Company specifically acknowledges that
its obligation to issue the Shares upon conversion of the Notes, and the
Warrant upon exercise of the Warrants is binding upon the Company and enforceable
regardless of the dilution such issuance may have on the ownership interests of
other shareholders of the Company or parties entitled to receive equity of the
Company.

4.10        Correctness of Representations.  The foregoing
representations and warranties shall survive until three years after the
Closing Date.

5.                                      COVENANTS.

Until the termination of this Agreement and the
payment and satisfaction of all Secured Obligations (as defined in the Security
Agreement):

(a)           Corporate Existence.  The Company shall maintain its corporate
existence and good standing in its jurisdiction of incorporation and maintain
qualification in each jurisdiction in which the failure to so qualify could
have a material and adverse effect on the business, properties, financial
condition or operations of the Company.

 7
 

 

(b)           Compliance with Law.  The Company shall comply with all laws,  ordinances and regulations to which the
Company and its property is subject, the noncompliance with which could have a
material adverse effect on the business, properties, financial condition or operations
of the Company.

(c)           Notification.  The Company shall give written notice to the
Purchasers of (i) any event which, with notice or passage of time or both would
constitute an Event of Default (as defined below), or the occurrence of an
Event of Default within five business days of becoming aware of the same, or
(ii) any event which has had or would reasonably be expected to have a material
or adverse effect on the business, properties, financial condition or
operations of the Company.

(d)           Registration Rights.  The Company shall notify each Purchaser in
writing at least fifteen days
prior to the filing of any registration statement under the Securities Act for
purposes of a public offering of securities of the Company (including, but not
limited to, registration statements relating to secondary offerings of
securities of the Company) and will afford each such Purchaser an opportunity
to include in such registration statement all or part of such Restricted
Securities held by such Purchaser.  Each
Purchaser desiring to include in any such registration statement all or any
part of the Restricted Securities held by it shall, within five days after the
above-described notice from the Company, so notify the Company in writing.  Such notice shall state the intended method
of disposition of the Restricted Securities by such Purchaser.  If a Purchaser decides not to include all of
its Restricted Securities in any registration statement thereafter filed by the
Company, such Purchaser shall nevertheless continue to have the right to
include any Restricted Securities in any subsequent registration statement or
registration statements as may be filed by the Company with respect to
offerings of its securities, all upon the terms and conditions set forth
herein.  The Company shall have the right
in its good faith and sole discretion to remove any Restricted Securities from
any registration statement when it deems it necessary in order to meet
contractual commitments existing as of the date hereof to other selling stockholders.

6.                                      EVENTS
OF DEFAULT; REMEDIES.

6.1          Events of Default.  Each of the following shall
constitute an event of default (each, an “Event of Default”)
under this Agreement and the other Loan Documents:

(a)           the Company fails
to pay any and all unpaid principal, accrued interest and all other amounts
owing under any Note within five (5) days of the date such payment is due;

(b)           the Company engages
in any liquidation, dissolution or winding up of the Company (as contemplated
by the Restated Certificate);

(c)           the Company files
any petition or action for relief under any bankruptcy, reorganization,
insolvency or moratorium law or any other law for the relief of, or relating
to, debtors, now or hereafter in effect, or makes any assignment for the
benefit of creditors or takes any corporate action in furtherance of any of the
foregoing;

(d)           an involuntary
petition is filed against the Company under any bankruptcy statute now or
hereafter in effect, unless such petition is dismissed or discharged within
(60) days

 8
 

 

of the date such petition is filed, or a custodian,
receiver, trustee, assignee for the benefit of creditors (or other similar
official) is appointed to take possession, custody or control of any property
of the Company;

(e)           the Company
executes an assignment with respect to a majority of its assets;

(f)            the Company
breaches any warranty or covenant in any material respect made by Company in
the Notes (except as set forth in (a) above), or any other Loan Document, and,
as to any breach that is capable of cure, the Company fails to cure such breach
within fifteen (15) days of the date on which notice thereof has been given to
the Company by the Required Purchasers, unless within that time period the
Company has commenced and continues diligent efforts to remedy the default, in
which event the Company shall have such additional time as is necessary, but
not more than thirty (30) days after the date on which notice thereof has been
given to the Company by the Required Purchasers to remedy the default before an
Event of Default occurs;

(g)           the occurrence of
an “Event of Default” under the Security Agreement;

(h)           the occurrence of a
“Liquidation” event as defined in the Company’s Restated Certificate.

6.2          Remedies.  Upon the occurrence of any Event of Default,
all unpaid principal on the Notes, accrued and unpaid interest thereon and all
other amounts owing under any of the Loan Documents shall, at the option of the
Required Purchasers, and, upon the occurrence of any Event of a Default
pursuant to Section 6.1(c) or (d) above, automatically, be immediately due,
payable and collectible by the holder of a Note, with the consent of the
Required Purchasers, pursuant to applicable law.   In the event of any Event of Default, the Company
shall pay all reasonable attorneys’ fees and costs incurred by the holders of
the Notes in enforcing and collecting the Notes and the other Loan
Documents.  Notwithstanding the
foregoing, upon the occurrence of an Event of Default pursuant to Section 6.1,
the Required Purchasers may elect, on behalf of all Purchasers, to convert, in
whole, the outstanding principal amount of the Notes, plus accrued and unpaid
interest thereon, into shares of Common Stock (as defined in the Notes),
pursuant to the provisions of the Notes.

7.                                      MISCELLANEOUS.

7.1          Binding Agreement.  The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors and
assigns of the parties.  The Company may
not assign this Agreement without the written consent of the Required
Purchasers.  Each of the Purchasers may
assign this Agreement and its respective rights hereunder at any time without
the consent of the Company. Nothing in this Agreement, express or implied, is
intended to confer upon any third party any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

7.2          Indemnity; Costs, Expenses and
Attorneys’ Fees.  The
Company shall indemnify and hold each Purchaser, and each of its respective
general partners, managers, officers or directors, harmless from any loss,
cost, liability and legal or other expense, including, without limitation,
reasonable attorneys’ fees, which a Purchaser may directly or indirectly suffer

 9
 

 

or incur by reason of any exercise of any remedies
with respect to any Collateral at any time securing the Secured Obligations, or
the failure of the Company to perform any of its obligations under this
Agreement or any Loan Document, except for liabilities which a Purchaser
suffers or incurs by reason of such Purchaser’s own gross negligence or willful
misconduct.

7.3          Severability.  If one or more provisions of this Agreement
or of any other Loan Document are held to be unenforceable under applicable
law, such provision shall be excluded from this Agreement or from such other
Loan Document and the balance of the Agreement or of such other Loan Document
shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

7.4          Governing Law.  This Agreement shall be governed by and
construed under the laws of the State of New York as applied to agreements
among New York residents, made and to be performed entirely within the State of
New York.

7.5          Consent to Jurisdiction and
Venue.   Any legal action or other legal proceeding
relating to this Agreement and the other Loan Documents and the enforcement of
any provision thereof, may be brought or otherwise commenced in any state or
federal court located in the State of New York. 
Each party to this Agreement expressly and irrevocably consents and
submits to the jurisdiction of each state and federal court located in the
State of New York in connection with any such legal proceeding.

7.6          Waiver of Jury Trial.  TO THE EXTENT EACH MAY LEGALLY DO SO, EACH PARTY
HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION, CAUSE OF ACTION, OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS, OR IN ANY WAY CONNECTED WITH, OR
RELATED TO, OR INCIDENTAL TO, THE DEALING OF THE PARTIES HERETO WITH RESPECT TO
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS RELATED
THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
IRRESPECTIVE OF WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE. TO THE EXTENT
EACH MAY LEGALLY DO SO, EACH PARTY HERETO HEREBY AGREES THAT ANY SUCH CLAIM,
DEMAND, ACTION, OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY
AND THAT EITHER PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF ANY OTHER PARTY
HERETO TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

7.7          Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

7.8          Titles and Subtitles.  The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

7.9          Notices.  Any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given upon
personal delivery or upon deposit with the United States Post Office or Federal
Express, postage prepaid, addressed to the Company at 2140 Headquarters Plaza,
10th Floor, Morristown, New Jersey 07960, or to a
Purchaser at its address

 10
 

 

shown on the Schedule of Purchasers, or at such other
address as such party may designate by ten (10) days advance written notice to
the other party.

7.10        Modification; Waiver.  No modification or waiver of any provision of
this Agreement or consent to departure therefrom shall be effective unless in
writing and approved by the Company and the Required Purchasers, and then it
shall be effective only in the specific instance and for the specific purpose
for which it was given.

7.11        Cumulative Remedies.  Each of the Purchasers’ rights and remedies
under this Agreement and the other Loan Documents shall be cumulative.  Each of the Purchasers shall have all other
rights and remedies not inconsistent herewith as provided under by law or in
equity.  No exercise by a Purchaser of
one right or remedy shall be deemed an election, and no waiver of any Event of
Default shall be deemed a continuing waiver.

7.12        Expenses.  Each party shall pay its
own costs and expenses incurred with respect to the negotiation, execution
delivery and performance of this Agreement.

7.13        Entire Agreement.  This Agreement, the Exhibits hereto, and the
Loan Documents constitute the full and entire understanding and agreement
between the parties with regard to the subjects hereof and no party shall be
liable or bound to any other party in any manner by any representations,
warranties, covenants and agreements except as specifically set forth herein or
in the other Loan Documents.

[Remainder of
this Page is Intentionally Omitted]

 11

IN WITNESS WHEREOF, the parties
have executed this SECURED NOTE AND WARRANT
PURCHASE AGREEMENT as of the date first written above.

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  CRYSTAL INTERNATIONAL TRAVEL

  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:  Fabrizzio
  Busso-Campana

  
	
   

  	
   

  	
  Chief Executive Officer

  

 

SECURED NOTE AND WARRANT
PURCHASE AGREEMENT

SIGNATURE PAGE

 

 

	
  

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

SECURED NOTE AND WARRANT
PURCHASE AGREEMENT

SIGNATURE PAGE

 

SCHEDULES AND
EXHIBITS

Schedule of Purchasers

Exhibit A:  Form
of Secured Promissory Note

Exhibit B:  Form
of Warrant

Exhibit C:  Form
of Security Agreement

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