Document:

EMPLOYMENT
AGREEMENT

    

    This EMPLOYMENT AGREEMENT (the “Agreement”), is dated
as of December 27, 2010 by and between China BAK Battery, Inc., a corporation
incorporated under the laws of the State of Nevada, U.S. (the “Company”)
and Ke Marcus Cui (the “Employee”).

     

    RECITALS

    

    A.           The
Company has appointed the Employee as its Interim Chief Financial
Officer and the Employee has accepted such appointment for the
term of Employment (as defined below).

    

    B.           In
connection with such appointment, the Company and the Employee desire to enter
into this Agreement setting forth the terms and conditions of the
Employment.

     

    AGREEMENT

    

    The parties hereto agree as
follows:

    

    
      	
              1.

            	
              POSITION

            

    

     

    The
Employee hereby accepts a position of Interim Chief Financial Officer (the
“Employment”)
of the Company.

     

    
      	
              2.

            	
              TERM

            

    

     

    Subject
to the terms and conditions of this Agreement, the initial term of the
Employment shall commence on December 10, 2010 (the “Effective Date”),
until a
permanent CFO is named, unless terminated sooner pursuant to the terms of
this Agreement. Upon expiration of the initial term, the Employment shall be
automatically extended for successive one-year terms unless either party gives
the other party hereto a one-month prior written notice to terminate the
Employment prior to the expiration of such term or unless terminated sooner
pursuant to the terms of this Agreement.

     

    
      	
              3.

            	
              PROBATION

            

    

     

    No
probationary period.

     

    
      	
              4.

            	
              DUTIES AND
      RESPONSIBILITIES

            

    

     

    The
Employee’s duties at the Company will include all jobs assigned by the Company’s
Board of Directors (the “Board”) or officers senior to the
Employee.

     

    
      	
               
      

            	
              The
      Employee shall devote all of his or her working time, attention and skills
      to the performance of his or her duties at the Company and shall
      faithfully and diligently serve the Company in accordance with this
      Agreement, the articles of association and by-laws of the Company, and the
      guidelines, policies and procedures of the Company approved from time to
      time by the Board.

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              The
      Employee shall use his or her best endeavor to perform his or her duties
      hereunder.  The Employee shall not, without the prior written
      consent of the Board, become an employee of any entity other than the
      Company and any subsidiary or affiliate of the Company, and shall not be
      concerned or interested in any business or
      entity that competes with that carried on by the Company (any such
      business or entity, a “Competitor”),
      provided that nothing in this clause shall preclude the Employee from
      holding less than 5% of any class of equity securities of any Competitor
      that are listed on any securities exchange or recognized securities market
      anywhere.  The Employee shall notify the Company in writing of
      his or her interest in such shares or securities in a timely manner and
      with such details and particulars as the Company may reasonably
      require.

            

    

     

    
      	
              5.

            	
              LOCATION

            

    

     

    The
Employee will be based in Shenzhen China.  The Company reserves the
right to transfer or send the Employee to any location in China or elsewhere in
accordance with its operational requirements.

     

    
      	
              6.

            	
              COMPENSATION AND
      BENEFITS

            

    

     

    
      	
               
      

            	
              (a)

            	
              Cash
      Compensation.  The Employee’s cash compensation
      (including salary) shall be provided by the Company pursuant to Schedule A
      hereto, subject to annual review and adjustment by the
      Company.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Equity
      Incentives.  To the extent the Company adopts and
      maintains a share incentive plan, the Employee will be eligible for
      participating in such plan pursuant to the terms thereof as determined by
      the Company.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Benefits.  The
      Employee is eligible for participation in any standard employee benefit
      plan of the Company that currently exists or may be adopted by the Company
      in the future, including, but not limited to, any retirement plan, life
      insurance plan, health insurance plan, disability insurance plan and
      travel/holiday plan.  If the Employee elects, the Company shall
      pay the reasonable cost of membership for the Employee, his or her spouse
      and dependent children not greater than twenty-one (21) years of age, for
      a private patient medical plan, with a reputable medical expense insurance
      scheme as the Company shall decide from time to
  time.

            

    

     

    
      	
              7.

            	
              TERMINATION OF THE
      AGREEMENT

            

    

     

    
      	
               
      

            	
              (a)

            	
              By the
      Company.

            

    

     

    
      	
               
      

            	
               

            	
              

                (i)           The
      Company may terminate the Employment for cause, at any time, without
      notice or remuneration, if (1) the Employee is convicted or pleads guilty
      to a felony or to an act of fraud, misappropriation or embezzlement, (2)
      the Employee has been negligent or acted dishonestly to the detriment of
      the Company, or (3) the Employee has engaged in actions amounting to
      misconduct or failed to perform his or her duties hereunder and such
      failure continues after the Employee is afforded a reasonable opportunity
      to cure such failure.

              

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
               

            	
              (ii)          In
      addition, the Company may terminate the Employment without cause, at any
      time, upon one-month written notice.  The Company shall have the
      option, in its sole discretion, to make the Employee’s termination
      effective at any time prior to the end of such notice period as long as
      the Company pays the Employee all compensation to which the Employee is
      entitled up through the last day of the one-month notice
      period.

            

    

     

    (iii)         If
the Employee’s employment is terminated by the Company without cause (other than
by reason of disability or death), the Employee shall receive, within 30 days
following termination, a lump sum payment of (i) any earned but unpaid salary
through the date of termination, and (ii) any earned but unpaid bonus for any
calendar year preceding the year in which the termination occurs.  In
addition, subject to the Employee having completed the probation period, if any,
and the Employee’s compliance with Sections 8, 9 and 10 below, the Employee
shall receive continued payments of his or her salary:  (i) for one
month following a termination effective prior to the first anniversary of the
Effective Date; (ii) for two months following a termination effective prior to
the second anniversary of the Effective Date; (iii) for three months following a
termination effective prior to the third anniversary of the Effective Date; and
(iv) for three months following a termination effective at any time after the
third anniversary of the Effective Date.  The Employee shall have no
further rights to any compensation (including any salary or bonus) or any other
benefits under this Agreement.  If the Employee is terminated for
cause pursuant to this Section 7(a), he or she shall be entitled to receive only
his or her salary through the date of termination and he shall have no further
rights to any compensation (including any salary or bonus) or any other benefits
under this Agreement.

     

    
      	
               
      

            	
               

            	
              (iv)         All
      other benefits, if any, due to the Employee following a termination with
      or without cause shall be determined in accordance with the plans,
      policies and practices of the Company; provided, however, that
      the Employee shall not participate in any severance plan, policy or
      program of the Company.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              By the
      Employee.  The Employee may terminate the Employment at
      any time with a one-month prior written notice to the Company, if (1)
      there is a material reduction in the Employee’s authority, duties and
      responsibilities, or (2) there is a material reduction in the Employee’s
      annual salary before the next annual salary review.  In
      addition, the Employee may resign prior to the expiration of the Agreement
      if such resignation is approved by the Board of Directors of the Company
      (the “Board”) or an alternative arrangement with respect to the Employment
      is agreed to by the Board.  Upon a termination by the Employee
      pursuant to this Section 7(b), the Employee shall be entitled to his or
      her salary through the date of such termination and he shall have no
      further rights to any compensation (including any salary or bonus) or any
      other benefits under this Agreement.  All other benefits, if
      any, due to the Employee following termination pursuant to this Section
      7(b) shall be determined in accordance with the plans, policies and
      practices of the Company; provided, however, that
      the Employee shall not participate in any severance plan, policy or
      program of the Company.

            

    

     

    
      	
              8.

            	
              CONFIDENTIALITY AND
      NONDISCLOSURE

            

    

     

    In the
course of the Employee’s services, the Employee may have access to the Company
and/or the Company’s client’s and/or prospective client’s trade secrets and
confidential information, including but not limited to those embodied in
memoranda, manuals, letters or other documents, computer disks, tapes or other
information storage devices, hardware, or other media or vehicles, pertaining to
the Company and/or the Company’s client’s and/or prospective client’s
business.  All such trade secrets and confidential information are
considered confidential.  All materials containing any such trade
secret and confidential information are the property of the Company and/or the
Company’s client and/or prospective client, and shall be returned to the Company
and/or the Company’s client and/or prospective client upon expiration or earlier
termination of this Agreement.  The Employee shall not directly or
indirectly disclose or use any such trade secret or confidential information,
except as required in the performance of the Employee’s duties in connection
with the Employment, or pursuant to applicable law.  

     

    During
and after the Employment, the Employee shall hold the Trade Secrets in strict
confidence; the Employee shall not disclose these Trade Secrets to anyone except
other employees of the Company who have a need to know the Trade Secrets in
connection with the Company’s business.  The Employee shall not use
the Trade Secrets other than for the benefits of the Company.

     

    
      	
               
      

            	
              “Trade Secrets”
      means information deemed confidential by the Company, treated by the
      Company or which the Employee knows or ought reasonably to have known to
      be confidential, and trade secrets, including without limitation designs,
      processes, pricing policies, methods, inventions, conceptions, technology,
      technical data, financial information, corporate structure and know-how,
      relating to the business and affairs of the Company and its subsidiaries,
      affiliates and business associates, whether  embodied in
      memoranda, manuals, letters or other documents, computer disks, tapes or
      other information storage devices, hardware, or other media or
      vehicles.  Trade Secrets do not include information generally
      known or released to the public domain through no fault of
      yours.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              This
      Section 8 shall survive the termination of this Agreement for any
      reason.  In the event the Employee breaches this Section 8, the
      Company shall have right to seek remedies permissible under applicable
      law.

            

    

     

    
      	
              9.

            	
              INVENTIONS
      ASSIGNMENT

            

    

     

    The
Employee understands that the Company engages in research and development and
other activities in connection with its business and that, as an essential part
of the Employment, The Employee is expected to make new contributions to and
create inventions of value for the Company.

     

    From and
after the Effective Date, the Employee shall disclose in confidence to the
Company all inventions, improvements, designs, original works of authorship,
formulas, processes, compositions of matter, computer software programs,
databases, mask works and trade secrets (collectively, the “Inventions”), which
the Employee may solely or jointly conceive or develop or reduce to practice, or
cause to be conceived or developed or reduced to practice, during the period of
the Employee’s Employment at the Company.  The Employee acknowledges
that copyrightable works prepared by the Employee within the scope of and during
the period of the Employee’s Employment with the Company are “works for hire”
and that the Company will be considered the author thereof.  The
Employee agrees that all the Inventions shall be the sole and exclusive property
of the Company and the Employee hereby assign all his or her right, title and
interest in and to any and all of the Inventions to the Company or its successor
in interest without further consideration.

     

    The
Employee agrees to assist the Company in every proper way to obtain for the
Company and enforce patents, copyrights, mask work rights, trade secret rights,
and other legal protection for the Inventions.  The Employee will
execute any documents that the Company may reasonably request for use in
obtaining or enforcing such patents, copyrights, mask work rights, trade secrets
and other legal protections.  The Employee’s obligations under this
paragraph will continue beyond the termination of the Employment with the
Company, provided that the Company will compensate the Employee at a reasonable
rate after such termination for time or expenses actually spent by the Employee
at the Company’s request on such assistance.  The Employee appoints
the Secretary of the Company as the Employee’s attorney-in-fact to execute
documents on the Employee’s behalf for this purpose.

     

    
      	
               
      

            	
              This
      Section 9 shall survive the termination of this Agreement for any
      reason.  In the event the Employee breaches this Section 9, the
      Company shall have right to seek remedies permissible under applicable
      law.

            

    

     

    
      	
              10.

            	
              NON-COMPETITION

            

    

     

    
      	
               
      

            	
              In
      consideration of the salary paid to the Employee by the Company, the
      Employee agrees that during the term of the Employment and for a period of
      one year following the termination of the Employment for whatever
      reason:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Employee will not approach clients, customers or contacts of the Company
      or other persons or entities introduced to the Employee in the Employee’s
      capacity as a representative of the Company for the purposes of doing
      business with such persons or entities which will harm the business
      relationship between the Company and such persons and/or
      entities;

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              unless
      expressly consented to by the Company, the Employee will not assume
      employment with or provide services as a director or otherwise for any
      Competitor in the People’s Republic of China or such other territories
      where the Company carries on its business or part thereof (the “Territory”), or
      engage, whether as principal, partner, licensor or otherwise, in any
      Competitor that carries on its business or part thereof in the Territory;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              unless
      expressly consented to by the Company, the Employee will not seek directly
      or indirectly, by the offer of alternative employment or other inducement
      whatsoever, to solicit the services of any employee of the Company
      employed as at or after the date of such termination, or in the year
      preceding such termination.

            

    

     

    
      	
               
      

            	
              For
      purposes of this Section 10, a “Competitor” of the Company shall not
      include an entity that generates 10% or less of its revenues from battery
      products and services similar to those provided by the Company, except
      that if the Employee is employed by, or provides services as a director or
      otherwise to, a subsidiary or divisional business of such an entity, such
      subsidiary or divisional business shall be deemed a “Competitor” if it
      generates more than 10% of its revenues from battery products and services
      similar to those provided by the Company.  The provisions
      provided in Section 10 shall be separate and severable, enforceable
      independently of each other, and independent of any other provision of
      this Agreement.

            

    

     

    The
provisions contained in Section 10 are considered reasonable by the Employee and
the Company.  In the event that any such provisions should be found to
be void under applicable laws but would be valid if some part thereof was
deleted or the period or area of application reduced, such provisions shall
apply with such modification as may be necessary to make them valid and
effective.

     

    
      	
               
      

            	
              This
      Section 10 shall survive the termination of this Agreement for any
      reason.  In the event the Employee breaches this Section 10, the
      Company shall have right to seek remedies permissible under applicable
      law.  

            

    

     

    
      	
              11.

            	
              ENTIRE
      AGREEMENT

            

    

     

    This
Agreement constitutes the entire agreement and understanding between the
Employee and the Company regarding the terms of the Employment and supersedes
all prior or contemporaneous oral or written agreements concerning such subject
matter.  The Employee acknowledges that he or she has not entered into
this Agreement in
reliance upon any representation, warranty or undertaking which is not set forth
in this Agreement.  Any amendment to this Agreement must be in writing
and signed by the Employee and the Company.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
              12.

            	
              GOVERNING LAW; CONSENT TO
      JURISDICTION

            

    

     

    This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York. The parties hereto irrevocably submit to the non-exclusive
jurisdiction of the U.S. federal courts or New York state courts, each located
in The City of New York, over any suit, action or proceeding arising out of or
relating to this Agreement.  To the fullest extent they may
effectively do so under applicable law, the parties hereto irrevocably waive and
agree not to assert, by way of motion, as a defense or otherwise, any claim that
they are not subject to the jurisdiction of any such New York court, any
objection that they may now or hereafter have to the laying of the venue of any
such suit, action or proceeding brought in any such New York court and any claim
that any such suit, action or proceeding brought in any such New York court has
been brought in an inconvenient forum.

     

    (SIGNATURE
PAGE FOLLOWS)

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, this Agreement has been executed as of the date first written
above.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  China
      BAK Battery, Inc.

                                	 
      	
                                  Employee

                                
	 
      	 
      	 
      	 
      	 
      
	
                                  Signature: 

                                	
                                  /s/
      Xiangqian Li

                                	 
      	
                                  Signature: 

                                	
                                  /s/
      Ke Marcus Cui

                                
	 	 	 	 	 
	
                                  Name:

                                	
                                  Xiangqian
      Li

                                	 
      	
                                  Name:

                                	
                                  Ke
      Marcus Cui

                                
	 
      	 
      	 
      	 
      	 
      
	
                                  Title:

                                	
                                  Chairman,
      President & CEO

                                	 
      	 
      	 
      

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    Schedule
A

     

    Cash
Compensation

     

    
      
        
          
            	 
      	 	
                    Amount

                  	 	
                    Pay Period

                  
	 
      	 	 
      	 	 
      
	
                    Salary

                  	 	
                    RMB
      192,000 annually

                  	 	
                    monthly

                  
	 
      	 	 
      	 	 
      
	
                    Bonus

                  	 	
                    Discretionary
      based on performance

                  	 	 
      

          

        

      

    

     

    
      
        
        

      

      
        9STOCK
PURCHASE AGREEMENT

    

    THIS STOCK PURCHASE AGREEMENT (this
“Agreement”) dated as of December 30, 2010, among NetFabric Holdings, Inc., a
Delaware corporation (the “Company”), the stockholders of the Company identified
on Schedule A
attached hereto (the “Sellers”), and the purchasers of such shares identified on
Schedule B
attached hereto (the “Purchasers”).

    

    RECITALS

    

    WHEREAS,
the Sellers are the owners of 61,320,658 shares of common stock of the Company
(the “Shares”), representing 63.2% of the issued and outstanding shares of the
Company on a fully-diluted basis; and

    

    WHEREAS,
the Sellers desire to transfer and sell, and the Purchasers desires to purchase,
all of the Sellers’ rights, title, and interest in and to all of the Shares
pursuant to the terms and conditions of this Agreement.

    

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

    

    1.           Agreement to Purchase and
Sell at the Closing.  Subject to the terms and conditions of
this Agreement, at the Closing (as defined below), the Sellers shall sell,
assign, transfer, convey, and deliver to the Purchasers, and the Purchasers
shall accept and purchase, the Shares and any and all rights in the Shares to
which Sellers are entitled, and by doing so Sellers shall be deemed to have
assigned all of their rights, title and interest in and to the Shares to the
Purchasers.  Such sale of the Shares shall be evidenced by stock
certificates, duly endorsed in blank or accompanied by stock powers duly
executed in blank or other instruments of transfer in form and substance
satisfactory to the Purchasers.

    

    2.           Consideration.  In
consideration for the sale of the Shares, the Purchasers shall deliver to the
Agent (as defined below) an aggregate of One hundred and ninety three thousand
five hundred and eighty nine Dollars ($193,589) (the “Purchase Price”) and the
Agent shall be responsible for remitting to Sellers pro rata in accordance with
the number of shares listed on Schedule
A.

    

    3.           Closing;
Delivery.

    

    (a)           The
purchase and sale of the Shares shall be held simultaneously with the execution
of this Agreement at such place as the parties hereto may agree (the
“Closing”).  Such date shall be hereinafter referred to as the
“Closing Date.”

    

    (b)           At
the Closing:

    

    (1)           The
Agent shall deliver, on behalf of the Sellers, to the Purchasers the
following:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (A) stock
certificates evidencing the Shares, duly endorsed in blank or accompanied by
stock powers duly executed in blank, signature medallion guaranteed, with any
other instruments of transfer in form and substance reasonably satisfactory to
the Purchasers;

     

    (B) any
documentary evidence of the due recordation in the Company’s share register of
each Purchaser’s full and unrestricted title to the number of Shares indicated
next to such Purchaser’s name on Schedule
B;

     

    (C) a
shareholders’ list, dated not more then two (2) days before the Closing,
including names and addresses of each shareholder, certificate numbers and issue
dates, certified by the current transfer agent of the Company;

     

    (D)
resignation letters dated the Closing Date from all the current officers and
directors of the Company, other than a resignation letter from Vasan Thatham who
is remaining as the Chief Financial Officer and a resignation letter from [Fahid
Syed] as a director of the Company, which shall be effective ten (10) days after
the mailing of an information statement pursuant to Rule 14f-1 (the “Information
Statement”);

     

    (E)
resolutions duly authorized by the Board of Directors of the Company authorizing
the execution and delivery of this Agreement and the consummation of the
transactions contemplated herein;

     

    (F)
resolutions duly authorized by the Board of Directors of the Company appointing
Cristiano Germinario as President and a director of the Company and appointing
Stephen J. Cole-Hatchard as a director effective ten (10) days after the
Information Statement is filed and mailed to the stockholders of the
Company;

     

    (G) all
the books and records of the Company, including copies of all tax returns, board
and shareholder resolutions, SEC, EDGAR codes and FINRA correspondence and bank
accounts;

     

    (H) a
good standing certificate issued by the Secretary of State of the State of
Delaware and the State of New Jersey dated not more than two (2) days before the
Closing; and

     

    (I) such
other documents as may be required under applicable law or reasonably requested
by the Purchasers or their counsel.

     

    

    (2)           Purchaser
shall deliver to the Agent the Purchase Price by wire transfer of immediately
available funds to an account designated by the Agent.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    4.           Administrative
Agent.  Each Seller hereby irrevocably constitutes and
appoints, effective as of the date hereof, Vasan Thatham (together with his
permitted successors, the “Agent”), as the true and lawful agent and
attorney-in-fact to: (a) enter into any agreement in connection with any
transactions contemplated by this Agreement, (b) exercise any or all of the
powers, authority and discretion conferred on him under this Agreement or any
such agreement, (c) sign any documents requested by the Purchasers to effectuate
the transactions contemplated by this Agreement; (d) accept delivery of and to
submit for exchange and cancellation any of the Shares, to waive any terms and
conditions of any such agreement, to give and receive notices on such Seller’s
behalf and to be his, her or its exclusive representative with respect to any
matter or proceeding arising with respect to any transaction contemplated by
this Agreement, including, without limitation, the defense, settlement or
compromise of any proceeding for which any Seller may be entitled to
indemnification, and (e) to act as the “purchaser representative” for any Seller
who is not an “accredited investor” as that term is defined in Rule 501 adopted
by the Securities and Exchange Commission (the "SEC") under the Securities Act
of 1933, as amended (the "Securities Act") in connection with evaluating the
merits and risks of selling the Shares as contemplated hereunder, and the Agent
agrees to act as, and to undertake the duties and responsibilities of, such
agent and attorney-in-fact.  The Agent hereby represents and warrants
to the other Sellers that: (1) he has such knowledge and experience in financial
and business matters that he is capable of evaluating the merits and risks of
the transactions contemplated by this Agreement and (2) there is no material
relationship between himself and the Company other than the matters set forth in
this Agreement relating to the Shares that he will receive as a result of the
transactions contemplated by this Agreement, including compensation and other
benefits that he will receive after the Closing.  The Purchasers shall
be entitled to deal exclusively with the Agent on all matters contemplated
herein and shall be entitled to rely exclusively (without further evidence of
any kind whatsoever) on any document executed or purported to be executed on
behalf of any Seller by the Agent, and on any other action taken or purported to
be taken on behalf of any Seller by the Agent, as fully binding upon such
Seller.

    

    The Agent shall not be liable to anyone
for any action taken or not taken by him in good faith or for any mistake of
fact or law for anything that he may do or refrain from doing in connection with
his obligations under this Agreement (A) with the consent of Sellers who, as of
the date of this Agreement, owned a majority of the outstanding shares of the
Shares, or (B) in the absence of his own gross negligence or willful
misconduct.   The Agent may rely and shall be protected in
relying or refraining from acting on any instrument reasonably believed to be
genuine and to have been signed or presented by the proper party or parties. The
Agent shall not be liable for any other parties’ forgeries, fraud or false
representations.

    

    5.      Representations and
Warranties of Sellers.  As an inducement to the Purchasers to
enter into this Agreement and to consummate the transactions contemplated
herein, (a) each Seller, severally and not jointly, hereby makes the
representations and warranties in Sections 5.1 through 5.7, as of the Closing,
to the Purchasers, and (b) Fahad Syed and the Company hereby makes the
representations and warranties in Sections 5.8 through 5.22, as of the Closing,
to the Purchasers as follows:

    

    5.1           Seller
has the right, power, authority and capacity to execute and deliver this
Agreement, to consummate the transactions contemplated hereby and to perform his
obligations under this Agreement.  This Agreement constitutes the
legal, valid and binding obligations of Seller, enforceable against Seller in
accordance with the terms hereof.

    

    5.2           Seller
is the sole record and beneficial owner of the Shares indicated next to such
Seller’s name on Schedule A attached
hereto, has good and marketable title to the Shares, free and clear of all
Encumbrances (as defined below), other than applicable restrictions under
applicable securities laws, and has full legal right and power to sell, transfer
and deliver the Shares to the Purchasers in accordance with this
Agreement.  “Encumbrances” means any liens, pledges, hypothecations,
charges, adverse claims, options, preferential arrangements or restrictions of
any kind, including, without limitation, any restriction of the use, voting,
transfer, receipt of income or other exercise of any attributes of
ownership.  Upon the execution and delivery of this Agreement, the
Purchasers will receive good and marketable title to the Shares, free and clear
of all Encumbrances, other than restrictions imposed pursuant to any applicable
securities laws and regulations.  There are no stockholders’
agreements, voting trust, proxies, options, rights of first refusal or any other
agreements or understandings with respect to the Shares.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    5.3           The
Shares are duly authorized, validly issued, fully paid and non-assessable, and
were not issued in violation of any preemptive or similar rights.

    

    5.4           None
of the execution, delivery, or performance of this Agreement, and the
consummation of the transactions contemplated hereby, conflicts or will conflict
with, or (with or without notice or lapse of time, or both) result in a
termination, breach or violation of (a) any instrument, contract or agreement to
which the Seller is a party or by which he is bound, or to which the Shares are
subject; or (b) any federal, state, local or foreign law, ordinance, judgment,
decree, order, statute, or regulation, or that of any other governmental body or
authority, applicable to the Seller or the Shares.

    

    5.5           No
consent, approval, authorization or order of, or any filing or declaration with
any governmental authority or any other person is required for the consummation
by the Seller of any of the transactions on its part contemplated under this
Agreement.

     

    5.6     
    Neither Seller nor any of his respective affiliates has any
interest, direct or indirect, in any shares of capital stock or other equity in
the Company or has any other direct or indirect interest in any tangible or
intangible property which the Company uses or has used in the business conducted
by the Company, or has any direct or indirect outstanding indebtedness to or
from the Company, or related, directly or indirectly, to its assets, other than
the Shares.

     

    5.7           Neither
any Seller nor any of its affiliates nor any person acting on its or their
behalf (a) has conducted or will conduct any general solicitation (as that term
is used in Rule 502(c) of Regulation D) or general advertising with respect to
any of the Shares, or (b) made any offers or sales of any security or solicited
any offers to buy any security under any circumstances that would require
registration of the Shares under the Securities Act.

     

    5.8           The
only bank account maintained by the Company is account #4354 00170 5 at Capital
One Bank, at their branch at 145 Route 17 South, East Rutherford, NJ
07073.

     

    5.9           The
Company is duly organized, validly existing and in good standing under the laws
of the State of Delaware, with full power and authority to own, lease, use and
operate its properties and to carry on its business as and where now owned,
leased, used, operated and conducted.  The Company does not own,
directly or indirectly, any capital stock of any corporation or any equity,
profit sharing, participation or other interest in any corporation, partnership,
limited liability company, joint venture or other entity, other than NetFabric
Corporation, a New Jersey corporation which is wholly-owned by the
Company.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    5.10       
As of the Closing, the Company’s authorized capital will consist of (a)
200,000,000 shares  of  common  stock authorized
(the “Common Stock”), of which 97,053,044 shares are issued and outstanding,
10,291,528 of
which are freely tradeable without any restrictions or Encumbrances and
86,761,516 of which are restricted under the Securities Act, (i) with each
holder thereof being  entitled to cast one vote
for  each  share  held  on  all  matters  properly   submitted  to  the
shareholders for their vote; and (ii) there being
no  pre-preemptive  rights and no cumulative voting; and (b)
no shares of preferred stock or any other class of security. Except as set forth
on Schedule 5.10, the Company has no shares reserved for issuance pursuant to a
stock option plan or pursuant to securities exercisable for, or convertible into
or exchangeable for shares of Common Stock.  All of the issued and
outstanding shares of capital stock of the Company are duly authorized, validly
issued, fully paid and nonassessable.  No shares of capital stock of
the Company are subject to preemptive rights or any other similar
rights.  Except as set forth on Schedule 5.10, there are (1) no
outstanding options, warrants, scrip, rights to subscribe for, puts, calls,
rights of first refusal, agreements, understandings, claims or other commitments
or rights of any character whatsoever relating to, or securities or rights
convertible into or exchangeable for any shares of capital stock of the Company
or arrangements by which the Company is or may become bound to issue additional
shares of capital stock of the Company, (2) no agreements or arrangements under
which the Company is obligated to register the sale of any of its or their
securities under the Securities Act, and (3) no anti-dilution or price
adjustment provisions contained in any security issued by the Company (or in any
agreement providing any such rights).

     

    5.11         Upon
the consummation of the transactions contemplated herein, the Purchasers will
own 63.2% of the issued and outstanding share capital of the Company on a
fully-diluted basis, free and clear of any Encumbrances, other than those
created by applicable federal and state securities laws.

     

    5.12         Except
as set forth on Schedule 5.12, the Company has timely filed all reports,
schedules, forms, statements and other documents required to be filed by it with
the SEC pursuant to the reporting requirements of the Securities Exchange Act of
1934, as amended (the “1934 Act”) (all of the foregoing filed prior to the date
hereof and all exhibits included therein and financial statements and schedules
thereto and documents (other than exhibits to such documents) incorporated by
reference therein, being hereinafter referred to herein as the “SEC
Documents”).  As of their respective dates, the SEC Documents complied
in all material respects with the requirements of the 1934 Act and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.  None of the statements made in any such SEC Documents is,
or has been, required to be amended or updated under applicable law (except for
such statements as have been amended or updated in subsequent filings prior the
date hereof).  Since May 2010, the Company has not received any
communication from the SEC regarding any SEC Document or any disclosure
contained therein, and all correspondence from the SEC prior to such date have
previously been provided to the Purchasers. The Company has not received any
communication from FINRA or any other regulatory authority regarding any SEC
Document or any disclosure contained therein. As of their respective dates, the
financial statements of the Company included in the SEC Documents complied as to
form in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto.  Such
financial statements have been prepared in accordance with United States
generally accepted accounting principles, consistently applied, during the
periods involved (except (a) as may be otherwise indicated in such financial
statements or the notes thereto, or (b) in the case of unaudited interim
statements, to the extent they may not include footnotes or may be condensed or
summary statements) and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of their
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments).  As of
the Closing, the Company has no debts, liabilities, obligations, direct,
indirect, absolute or contingent, whether accrued, vested or otherwise, whether
known or unknown.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    5.13         Except
as set forth on Schedule 5.13, the Company does not (a) have any employees, (b)
owe any compensation of any kind, deferred or otherwise, to any person,
including without limitation, agents, representatives, consultants, accountants
and attorneys, (c) have any written or oral employment agreement with any
person, nor (d) is it a party to or bound by any collective bargaining
agreement. There are no loans or other obligations payable to or owing by the
Company to any stockholder, officer, director, agent, representative,
consultant, accountant, attorney or otherwise nor are there any loans or debts
payable or owing by any such persons to the Company or any guarantees by the
Company of any loan or obligation of any nature to which any such person is a
party.

     

    5.14         The
Company does not own, use or possesses any licenses or rights to use any
patents, patent applications, patent rights, inventions, know-how, trade
secrets, trademarks, trademark applications, service marks, service names, trade
names and copyrights (“Intellectual Property”). There is no claim or action by
any person pertaining to, or proceeding pending or threatened in writing, which
challenges the right of the Company with respect to any Intellectual
Property.

     

    5.15         The
Company is not a party to any contract, arrangement or agreement, whether oral
or in writing, including without limitation, loan agreements, credit lines,
promissory notes, mortgages, pledges, guarantees, security agreements, factoring
agreements, letters of credit, powers of attorney or other arrangements to loan
or borrow money or extend credit. Except as set forth on Schedule 5.15, as of
Closing, the Company does not owe any monies or obligations to any third
parties.  Schedule 5.15 is a complete and accurate list of the only
monies or obligations owed by the Company or its wholly-owned subsidiary as of
the Closing.

     

    5.16         The
Company has made or filed all federal, state and foreign income and all other
tax returns, reports and declarations required by any jurisdiction to which it
is subject and has paid all taxes and other governmental assessments and charges
that are material in amount, shown or determined to be due on such returns,
reports and declarations.  There are no unpaid taxes in excess of two
thousand dollars ($2,000) claimed to be due by the taxing authority of any
jurisdiction, and Seller knows of no basis for any such claim.  The
Company has not executed a waiver with respect to the statute of limitations
relating to the assessment or collection of any foreign, federal, state or local
tax.  None of the Company’s tax returns is presently being audited by
any taxing authority. The Sellers expressly assume and shall pay any taxes due
by the Company up to the date of the Closing.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    5.17         The
Company is in possession of all franchises, grants, authorizations, licenses,
permits, easements, variances, exemptions, consents, certificates, approvals and
orders necessary to own, lease and operate its properties and to carry on its
business as it is now being conducted (collectively, the “Permits”), and there
is no action pending or threatened in writing regarding suspension or
cancellation of any of the Permits.  The Company is not in conflict
with, or in default or violation of, any of the Permits to an extent that would
have a material adverse effect on the Company.  The Company has not
received in writing any notification with respect to possible conflicts,
defaults or violations of applicable laws.

     

    5.18         There
are, with respect to the Company or any predecessors thereof, no past or present
violations of Environmental Laws (as defined below), releases of any material
into the environment, actions, activities, circumstances, conditions, events,
incidents, or contractual obligations which may give rise to any common law
environmental liability or any liability under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 or similar federal, state,
local or foreign laws and the Company has not received any notice with respect
to any of the foregoing, nor is any action pending or threatened in writing in
connection with any of the foregoing.  The term “Environmental Laws”
means all federal, state, local or foreign laws relating to pollution or
protection of human health or the environment (including, without limitation,
ambient air, surface water, groundwater, land surface or subsurface strata),
including, without limitation, laws relating to emissions, discharges, releases
or threatened releases of chemicals, pollutants contaminants, or toxic or
hazardous substances or wastes (collectively, “Hazardous Materials”) into the
environment, or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of Hazardous Materials,
as well as all authorizations, codes, decrees, demands or demand letters,
injunctions, judgments, licenses, notices or notice letters, orders, permits,
plans or regulations issued, entered, promulgated or approved thereunder. Other
than those that are or were stored, used or disposed of in compliance with
applicable law, no Hazardous Materials are contained on or about any real
property currently owned, leased or used by the Company, and no Hazardous
Materials were released on or about any real property previously owned, leased
or used by the Company. There are no underground storage tanks on or under any
real property owned, leased or used by the Company.

     

    5.19         The
Company does not own any real or personal property.

     

    5.20         Intentionally
Omitted.

     

    5.21         All
information relating to or concerning the Company set forth in this Agreement
and otherwise in connection with the transactions contemplated hereby is true
and correct in all respects and neither the Company nor any Seller has omitted
to state any fact necessary in order to make the statements made herein or
therein, in light of the circumstances under which they were made, not
misleading.  No event or circumstance has occurred or exists with
respect to the Company or its or their business, properties, prospects,
operations or financial conditions, which, under applicable law, rule or
regulation, requires public disclosure or announcement by the Company but which
has not been so publicly announced or disclosed.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    5.22         The
purchase of the Shares by Purchaser from Seller will not give rise to any
dissenting shareholders' rights under Delaware law, the Certificate of
Incorporation or By-Laws of the Company, or otherwise. All issuances by the
Company of shares of Common Stock in past transactions have been legally and
validly effected, and all of such shares of Common Stock are fully paid and
non-assessable.  All of the offerings were conducted in strict
accordance with the requirements of Regulation D, Rules 504, 505 and 506, as
applicable, in full compliance with the requirements of the Securities Act and
the 1934 Act, as applicable, and in full compliance with and according to the
requirements of Delaware law and the Certificate of Incorporation and By-laws of
the Company. The Company does not have in effect any plan, scheme, device or
arrangement, commonly or colloquially known as a “poison pill” or
“anti-takeover” plan or similar plan, scheme, device or
arrangement.  No other state takeover statute or similar statute or
regulation applies or purports to apply to this agreement or the transactions
contemplated hereby.

    

    6.      Representations and
Warranties of the Purchasers.  As an inducement to Sellers to
enter into this Agreement and to consummate the transactions contemplated
herein, each Purchaser, severally and not jointly, represent and warrant, as of
the Closing, to the Sellers as follows:

    

    6.1           Authority.  Purchaser
has the right, power, authority and capacity to execute and deliver this
Agreement, to consummate the transactions contemplated hereby and to perform its
obligations under this Agreement.  This Agreement constitutes the
legal, valid and binding obligations of Purchaser, enforceable against Purchaser
in accordance with the terms hereof.

    

    6.2           No Consent.  No consent,
approval, authorization or order of, or any filing or declaration with any
governmental authority or any other person is required for the consummation by
the Purchaser of any of the transactions on its part contemplated under this
Agreement.

    

    6.3           No
Conflict.  None of the execution, delivery, or performance of
this Agreement, and the consummation of the transactions contemplated hereby,
conflicts or will conflict with, or (with or without notice or lapse of time, or
both) result in a termination, breach or violation of (a) any instrument,
contract or agreement to which Purchaser is a party or by which he is bound; or
(b) any federal, state, local or foreign law, ordinance, judgment, decree,
order, statute, or regulation, or that of any other governmental body or
authority, applicable to Purchaser.

    

    6.4           Potential Loss of
Investment.  Purchaser understands that an investment in the
Shares is a speculative investment which involves a high degree of risk and the
potential loss of its entire investment.

    

    6.5           Receipt of
Information.  Purchaser has received all documents, records,
books and other information pertaining to his investment that has been requested
by the Purchaser, including without limitation, the SEC filings made by the
Company.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    6.6           No
Advertising.  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.

    

    6.7           Investment
Experience.  The Purchaser is (a) experienced in making
investments of the kind described in this Agreement, (b) able, by reason of his
business and financial experience to protect its own interests in connection
with the transactions described in this Agreement, and (c) able to afford the
entire loss of its investment in the Shares.

    

    6.8           Restricted
Securities.  Purchaser understands that the restricted Shares
have not been registered under the Securities Act or registered or qualified
under any the securities laws of any state or other jurisdiction, are
“restricted securities,” and cannot be resold or otherwise transferred unless
they are registered under the Securities Act, and registered or qualified under
any other applicable securities laws, or an exemption from such registration and
qualification is available.  Each certificate for any of the
restricted Shares shall bear a legend to the foregoing effect.

    

    6.9           Investment
Purposes.  The Purchaser is acquiring the restricted Shares for
its own account as principal, not as a nominee or agent, for investment purposes
only, and not with a view to, or for, resale, distribution or fractionalization
thereof in whole or in part and no other person has a direct or indirect
beneficial interest in the amount of restricted Shares the Purchaser is
acquiring herein.  Further, the Purchaser does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to the
restricted Shares the Purchaser is acquiring.

    

    6.10         No Obligation to Register
Shares.  The Purchaser understands that the Company is under no
obligation to register the restricted Shares under the Securities Act, or to
assist the Purchasers in complying with the Securities Act or the securities
laws of any state of the United States or of any foreign
jurisdiction.

    

    7.      Indemnification;
Survival.

    

    7.1           Indemnification.  Each
party hereto shall jointly and severally indemnify and hold harmless the other
party and such other party’s agents, beneficiaries, affiliates, representatives
and their respective successors and assigns (collectively, the “Indemnified
Persons”) from and against any and all damages, losses, liabilities, taxes and
costs and expenses (including, without limitation, attorneys’ fees and costs)
(collectively, “Losses”) resulting directly or indirectly from (a) any
inaccuracy, misrepresentation, breach of warranty or non-fulfillment of any of
the representations and warranties of such party in this Agreement, or any
actions, omissions or statements of fact inconsistent with in any material
respect any such representation or warranty, (b) any failure by such party to
perform or comply with any agreement, covenant or obligation in this Agreement.
Notwithstanding the foregoing, the amount of indemnity owed by each Seller for
Losses shall be limited to the amount of the Purchase Price received by such
Seller, provided, however, that the liability of Fahad Syed shall be limited to
$35,000.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    7.2           Limitations of
Liability.  NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN,
THE AGGREGATE LIABILITY OF EACH SELLER (INCLUDING, WITHOUT LIMITATION, THEIR
RESPECTIVE AFFILIATES, AGENTS AND ESTATES) ARISING UNDER THIS AGREEMENT,
REGARDLESS OF THE FORM OF ACTION GIVING RISE TO SUCH LIABILITY (WHETHER IN
CONTRACT, TORT OR OTHERWISE), SHALL NOT EXCEED THE AMOUNT OF CONSIDERATION PAID
TO SUCH SELLER IN RESPECT OF THE SHARES SOLD BY SUCH SELLER PURSUANT TO THIS
AGREEMENT; PROVIDED, HOWEVER, THAT THE AGGREGATE LIABILITY OF FAHAD SYED UNDER
THIS AGREEMENT SHALL NOT EXCEED THIRTY FIVE THOUSAND DOLLARS
($35,000).

    

    7.3           Survival.  All
representations, warranties, covenants and agreements of the parties contained
herein or in any other certificate or document delivered pursuant hereto shall
survive the Closing Date for twelve (12) months thereafter, provided that
Sections 5.2 and 5.16 shall survive until the expiration of the applicable
statute of limitations.

    

    8.      Miscellaneous.

    

    8.1           Further
Assurances.  From time to time, whether at or following the
Closing, each party shall make reasonable commercial efforts to take, or cause
to be taken, all actions, and to do, or cause to be done, all things reasonably
necessary, proper or advisable, including as required by applicable laws, to
consummate and make effective as promptly as practicable the transactions
contemplated by this Agreement.

     

    8.2           Notices.  All
notices or other communications required or permitted hereunder shall be in
writing shall be deemed duly given (a) if by personal delivery, when so
delivered, (b) if mailed, three (3) business days after having been sent by
registered or certified mail, return receipt requested, postage prepaid and
addressed to the intended recipient as set forth below, or (c) if sent through
an overnight delivery service in circumstances to which such service guarantees
next day delivery, the day following being so sent to the addresses of the
parties as indicated on the signature page hereto. Any party may change the
address to which notices and other communications hereunder are to be delivered
by giving the other parties notice in the manner herein set forth.

    

    If to any Seller, to the addresses set
forth on Schedule
A attached hereto.

    

    If to the Company, to:

    

    NetFabric Holdings, Inc

    299 Cherry Hill Road

    Parsippany, NJ 07054

    Attn:

    Phone:

    Fax:

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
 

    with a copy to:

    

    K&L Gates LLP

    599 Lexington Avenue

    New York, NY 10022

    Attn: Robert S. Matlin,
Esq.

    Phone: 212-536-4066

    Fax:    212-596-3901

    

    If to any Purchaser, to the addresses
set forth on Schedule
B attached hereto.

    

    with a copy to:

    

    David Lubin & Associates,
PLLC

    5 North Village Avenue

    Rockville Centre, NY 11570

    Phone:  516-887-8200

    Fax: 516-887-8250

    

    8.3           Choice of
Law.  This Agreement shall be governed, construed and enforced
in accordance with the laws of the State of New York, without giving effect to
principles of conflicts of law that would result in the application of the laws
of a jurisdiction other than the State of New York.

    

    8.4           Jurisdiction.  The
parties hereby irrevocably consent to the in personam jurisdiction of the state
or federal courts located in the County of New York, State of New York, in
connection with any action or proceeding arising out of or relating to this
Agreement or the transactions and the relationships established thereunder. The
parties hereby agree that such courts shall be the venue and exclusive and
proper forum in which to adjudicate such matters and that they will not contest
or challenge the jurisdiction or venue of these courts. The prevailing party in
any action or threatened action relating to this Agreement or the transactions
contemplated hereby shall be entitled to recover from the other party or parties
its reasonable attorney’s fees and costs. EACH PARTY HERETO WAIVES TRIAL BY
JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR ANY
BREACH OR ALLEGED BREACH HEREOF.

    

    8.5           Entire
Agreement.  This Agreement sets forth the entire agreement and
understanding of the parties in respect of the transactions contemplated hereby
and supersedes all prior and contemporaneous agreements, arrangements and
understandings of the parties relating to the subject matter
hereof.  No representation, promise, inducement, waiver of rights,
agreement or statement of intention has been made by any of the parties which is
not expressly embodied in this Agreement.

    

    8.6           Assignment. Each
party's rights and obligations under this Agreement shall not be assigned or
delegated, by operation of law or otherwise, without the other party's prior
written consent, and any such assignment or attempted assignment shall be void,
of no force or effect, and shall constitute a material default by such
party.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
 

    8.7           Amendments.  This
Agreement may be amended, modified, superseded or cancelled, and any of the
terms, covenants, representations, warranties or conditions hereof may be
waived, only by a written instrument executed by the Company, the Purchasers and
the Agent.

    

    8.8           Waivers.  The
failure of any party at any time or times to require performance of any
provision hereof shall in no manner affect the right at a later time to enforce
the same.  No waiver by any party of any condition, or the breach of
any term, covenant, representation or warranty contained in this Agreement,
whether by conduct or otherwise, in any one or more instances shall be deemed to
be or construed as a further or continuing waiver of any such condition or
breach or a waiver of any other term, covenant, representation or warranty of
this Agreement.

    

    8.9           Counterparts.  This
Agreement may be executed simultaneously in two or more counterparts and by
facsimile or other electronic transmission, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

    

    8.10         Severability.  If
any term, provisions, covenant or restriction of this Agreement is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such determination, the parties shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner in order
that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible.

    

    8.11         Interpretation.  The
parties agree that this Agreement shall be deemed to have been jointly and
equally drafted by them, and that the provisions of this Agreement therefore
shall not be construed against a party or parties on the ground that such party
or parties drafted or was more responsible for the drafting of any such
provision(s). The parties further agree that they have each carefully read the
terms and conditions of this Agreement, that they know and understand the
contents and effect of this Agreement and that the legal effect of this
Agreement has been fully explained to its satisfaction by counsel of its own
choosing or that such party has waived its right to independent
counsel.

     

    8.11         No Seller
Group.  The parties acknowledge and agree that the Sellers are
not acting as a group and that each Seller had independently based on its own
evaluation decided to enter into this Agreement and the transactions
contemplated herein.

     

    

    

    [Remainder of Page Intentionally
Omitted; Signature Page to Follow]

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
 

    IN WITNESS WHEREOF, the parties have
duly executed this Stock Purchase Agreement as of the date first above
written.

    

    NETFABRIC
HOLDINGS, INC.

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      	
                                                                                              By:

                                                                                            	
                                                                                              /s/
      Fahad Syed

                                                                                            	 
	
                                                                                              Name:
      Fahad Syed

                                                                                            
	
                                                                                              Title:
      CEO

                                                                                            
	 
      	 
      	 
	
                                                                                              SELLERS:

                                                                                            
	 
      	 
      	 
	
                                                                                              FRED
      NAZEM

                                                                                            
	 	 
	
                                                                                              /s/
      Fred Nazem

                                                                                            	 
	
                                                                                              Name:
      Fred Nazem

                                                                                            	 
	 
      	 
      	 
	
                                                                                              FRED
      F. NAZEM CHILDREN'S TRUST

                                                                                            	 
	 	 	 
	
                                                                                              By:

                                                                                            	
                                                                                              /s/
      Fred Nazem

                                                                                            	 
	
                                                                                              Name:
      Fred Nazem

                                                                                            	 
	
                                                                                              Title:
      Trustee

                                                                                            	 
	 
      	 
      	 
	 
      	 
      	 
	
                                                                                              FAISAL
      SYED

                                                                                            	 
	 	 
	
                                                                                              /s/
      Faisal Syed

                                                                                            	 
	
                                                                                              Name:
      Faisal Syed

                                                                                            	 
	 
      	 
      	 
	 
      	 
      	 
	
                                                                                              MOHAMED
      ASIF

                                                                                            	 
	 	 
	
                                                                                              /s/
      Mohamed Asif

                                                                                            	 
	
                                                                                              Name:
      Mohamed Asif

                                                                                            	 
	 
      	 
      	 
	 
      	 
      	 
	
                                                                                              FAHAD
      SYED

                                                                                            	 
	 	 
	
                                                                                              /s/
      Fahad Syed

                                                                                            	 
	
                                                                                              Name:
      Fahad Syed

                                                                                            	 
	 
      	 
      	 
	 
      	 
      	 
	
                                                                                              JEFF
      ROBINSON

                                                                                            	 
	 	 
	
                                                                                              /s/
      Jeff Robinson

                                                                                            	 
	
                                                                                              Name:
      Jeff Robinson

                                                                                            	 

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
 

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	 
      	
                                                  PURCHASERS:

                                                	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                                                  SCARBOROUGH
      LTD.

                                                	 
	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  /s/
      Clive R. Dakin

                                                	 
	 
      	
                                                  Name: Clive
      R. Dakin

                                                	 
	 
      	
                                                  Title:
      Director

                                                	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                                                  BEAUFORT
      VENTURES PLC

                                                	 
	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  /s/
      Tanvier Malik

                                                	 
	 
      	
                                                  Name:
      Tanvier Malik

                                                	 
	 
      	
                                                  Title:
      CEO

                                                	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                                                  Agua
      Alta Ltd.

                                                	 
	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  /s/
      Alberto
      Ardissone

                                                	 
	 
      	
                                                  Name:
      Alberto Ardissone

                                                	 
	 
      	
                                                  Title:
      Director

                                                	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                                                  Il
      Brolo Ltd.

                                                	 
	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  /s/
      Clive R. Dakin

                                                	 
	 
      	
                                                  Name:
      Clive R. Dakin

                                                	 
	 
      	
                                                  Title:
      Director

                                                	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    

    

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Schedule
A

    

    List of
Sellers

    

     

    
      
        
          
            
              
                
                  
                    
                      	Sellers	 	Number
      of Shares	
                              Applicable
      Purchase Price

                            
	 	 	 	 	 	 	 	 	 
	
                              Fred
      Nazem

                              44
      East 73rd Street

                              New
      York, NY 10021

                            	 
      	 
      	
                              16,687,315

                            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                              Fred
      F. Nazem Children's Trust

                              44
      East 73rd Street

                              New
      York, NY 10021

                            	 
      	 
      	
                              6,592,212

                            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                              Faisal
      Syed

                              12
      Kings Brook Court

                              Mendham,
      NJ 07945

                            	 
      	 
      	
                              13,238,462

                            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                              Mohamed
      Asif

                              53
      Burnet Hill Road

                              Livingston,
      NJ 07039

                            	 
      	 
      	
                              13,238,462

                            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                              Fahad
      Syed

                              c/o
      NetFabric Holdings, Inc

                              299
      Cherry Hill Road

                              Parsippany,
      NJ 07054

                            	 
      	 
      	
                              6,731,731

                            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                              Jeff
      Robinson

                              Five
      Tomaselli Court

                              Ballston
      Spa, NY 12020

                            	 
      	 
      	
                              4,832,476

                            	 
      	 
      	 
      	 
      	 
      

                    

                  

                

              

            

          

        

      

    

    

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Schedule
B

    

    List of
Purchasers

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	Purchasers	 	Number
      of Shares	
                                 

                              
	 	 	 	 	 	 	 	 	 
	
                                
                                  Scarborough
      Ltd.

                                  c/o
      Euroba Management Limited

                                  P.O.
      Box HM 370

                                  Hamilton,
      Bermuda HM BX

                                

                              	 
      	 
      	
                                
                                  29,011,258

                                

                              	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                
                                  Beaufort
      Ventures PLC

                                  c/o Beaufort International Associates
      Limited

                                  49 Whitehall London SW1A 2BX United
      Kingdom

                                

                              	 
      	 
      	
                                26,476,924

                              	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                
                                  Agua
      Alta Ltd.

                                  c/o
      TMF (B.V.I.) Ltd.

                                  Mill
      Mall P.O. Box 964,

                                  Road
      Town, Tortola, British Virgin Islands

                                

                              	 
      	 
      	
                                4,832,476

                              	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                
                                  Il
      Brolo Ltd.

                                  c/o
      Euroba Management Limited

                                  P.O.
      Box HM 370

                                  Hamilton,
      Bermuda HM BX

                                

                              	 
      	 
      	
                                1,000,000

                              	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                      

                    

                  

                

              

            

          

        

      

      

    

    

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Schedule
5.10

    

    Outstanding Warrants and
Options

    

    
      
        	
                Warrants

              	
                Number of Underlying Shares

              	
                Strike Price

              	
                Expiration

              
	
                Laurus
      Warrants*

              	
                554,282

              	
                $0.001

              	 
      
	
                Dominick
      Warrants

              	
                312,500

              	
                $0.82

              	
                June
      2011

              

      

    

    

    

    
      
        	
                Options

              	
                Number of Underlying Shares

              	
                Average Strike Price

              	
                Expiration

              
	
                Employee
      Options

              	
                5,200,085

              	
                $0.42

              	
                Various

              

      

    

    

    

    *  The
Company and Laurus Master Fund, Ltd. entered into a Registration Rights
Agreement dated February 10, 2006.

    

    

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Schedule
5.12

    

    SEC
Filings

    

    

    
      
        	
                Report

              	
                Filed

              
	 
      	 
      
	
                10K
      for the year ended 12/31/2007

              	
                2/18/2010

              
	
                10K
      for the year ended 12/31/2008

              	
                2/18/2010

              
	
                10K
      for the year ended 12/31/2009

              	
                08/10/2010

              
	 
      	 
      
	
                10Q
      for the quarter ended 03/31/2008

              	
                02/19/2010

              
	
                10Q
      for the quarter ended 06/30/2008

              	
                02/19/2010

              
	
                10Q
      for the quarter ended 09/30/2008

              	
                02/19/2010

              
	
                10Q
      for the quarter ended 03/31/2009

              	
                08/13/2010

              
	
                10Q
      for the quarter ended 06/30/2009

              	
                08/13/2010

              
	
                10Q
      for the quarter ended 09/30/2009

              	
                08/13/2010

              
	
                10Q
      for the quarter ended 03/31/2010

              	
                08/18/2010

              
	
                10Q
      for the quarter ended 06/30/2010

              	
                08/18/2010

              

      

    

    

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Schedule
5.13

    

    Liabilities and
Obligations

    

    Accruals
of $10,500 for the 2010 audit for financial reporting.

    

    Various
items in an aggregate approximate amount of $140,000 for financial reporting
purposes.

    

    The
Company is party to the Option and Purchase Agreement, dated March 12, 2009,
with Fortify Infrastructure Services, Inc. ("Fortify”) and the Amendment No. 1,
dated August 24, 2009, pursuant to which the Company sold its ownership in its
wholly-owned subsidiary NetFabric Technologies, Inc. d/b/a UCA Services to
Fortify. As a seller, the Company provided customary indemnification to Fortify
as detailed in the Option and Purchase Agreement and the Amendment No.1
including matters referred to in Schedule 4.7 and 4.9 of the disclosure
schedules to the Amendment No.1.

    

     

     

     

     

    
 

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    Schedule
5.15

    

    Indebtedness

    

    See
Schedule 5.13.

    
 

     

     

     

     

    
      
        
        

      

      
        20

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