Document:

Unassociated Document

     

    
      	Exhibit 10.1	
              Conformed
                Copy

            

    

    

    EXCLUSIVE
      LICENSE AND MANUFACTURING AGREEMENT

    

    This
      Agreement is effective as of April 1, 2006 (referred to herein as the
“Agreement”) by and between Ko-Myung Kim, the inventor, a citizen of the country
      of Korea with his principal place of business at 20-7 Chung-Dong, Kwacheon
      City,
      Korea and Ketut Jaya, a citizen of Indonesia with his principal place of
      business at JL Raya Bluru, Kidul No. 58, Sidoarjo-Jawa, Timur, Indonesia 61251,
      collectively cited herein “The Ketut Group” and Innovative Designs, Inc., a
      Delaware Corporation with the main office located at 124 Cherry Street,
      Pittsburgh, Pennsylvania 15223, herein referred to as “IDI”.

    

    RECITALS:

    

    WHEREAS,
      “The Ketut Group” represents that it is the exclusive owner, inventor,
      manufacturer and licensor of a patented and proprietary technology relating
      to a
      low density foamed polyethylene product known as Insultex hereinafter referred
      to as the Insultex Technologies; and

    

    WHEREAS,
      IDI desires to develop, use, sell and market various products and uses of
      Insultex Technologies including but not limited to swimsuits, pillows and
      sleeping bags; and

    

    WHEREAS,
      IDI wishes to exclusively license the Insultex Technologies of “The Ketut
      Group”, and “The Ketut Group” desires to grant to IDI an exclusive license to
      develop, use, sell, and market all applications of the Insultex
      Technologies;

    

    WHEREAS,
      “The Ketut Group” is engaged in the manufacture of Insultex and desires to
      exclusively manufacture and supply Insultex to IDI for use in amounts sufficient
      to meet the needs of IDI; and

    

    WHEREAS,
      IDI desires to purchase Insultex from “The Ketut Group” from time to time as
      needed by IDI as set forth herein.

    

    WITNESSETH,
      in exchange for good and valuable consideration the receipt and sufficiency
      of
      which are hereby acknowledged, and intending to be legally bound hereby, the
      parties hereto agree as follows:

    

    ARTICLE
      I - DEFINITIONS

    

    1.01
      Insultex. “Insultex” means low density foamed polyethylene product manufactured
      by the process referenced by Korean patent # 0426429.

    

    1.02
      Insultex Technologies. “Insultex Technologies” means all of “The Ketut Group’s”
interest in any proprietary information, patents, inventions, developments,
      trade secrets, know-how whether present or future, relating to all applications
      of the Insultex Technologies for all commercial, industrial, governmental and
      other uses without limitation.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    1.03
      Insultex Products. “Insultex Products” means any item containing or made from
      Insultex or made using the Insultex Technologies including but not limited
      to
      swimsuits, cushions, pillows, sleeping bags, caps, hats, gloves, clothing items,
      apparel and various industrial applications.

    1.04
      Effective Date. The agreement is effective when duly signed by the parties
      hereto.

    

    1.05
      Territory. “Territory” means all countries in the world other than Korea and
      Japan.

    

    1.06
      Non-Territory. “Non-Territory” means Korea and Japan.

    

    1.07
      The
      Ketut Group. “The Ketut Group” means The Ketut Group, its affiliates or any
      individuals, corporations or other institutions to which The Ketut Group’s
      ownership and/or rights to, of or in the Insultex Technologies has been
      transferred or assigned.

    

    ARTICLE
      II - GRANT OF LICENSE, EXCLUSIVE RIGHT TO PURCHASE AND EXCLUSIVE AGREEMENT
      TO
      MANUFACTURE

    

    2.01
“The
      Ketut Group” grants to IDI the exclusive, unlimited, irrevocable right and
      license, with the right to grant sublicenses to third parties, to purchase,
      use,
      develop, commercialize, market, have marketed, sell and have sold, manufacture
      and have manufactured products related to or utilizing Insultex or the Insultex
      Technologies whether present or future, in the Territory.

    

    The
      License granted hereunder includes, but is not limited to the following
      Patents:

     

    
      	Country	
              Patent
                Number

            
	Republic of Korea	
              0426429

            

    

     

    2.02
      The
      Ketut Group further grants to IDI the exclusive rights to any current or future
      inventions, improvements, discoveries, patent applications and letters of patent
      which The Ketut Group now controls and owns or hereafter may own or control
      and
      which relate to the Insultex Technologies and to all information and documents
      which The Ketut Group now owns or controls, or hereafter may own or control
      and
      which relate to Insultex Technologies.

    

    2.03
      The
      use of Insultex and the Insultex Technologies in the Non-Territory shall be
      limited to manufacture of the Insultex products in Korea and Japan and not
      for
      the purpose of reselling product in bulk or for use in the manufacture or retail
      of any product outside Korea and Japan.

    

    2.04
      The
      Ketut Group will pay all applicable patent expenses and filing fees in all
      jurisdictions relating to the Insultex Technologies whether present or in the
      future.

    

    2.05
      Patent Rights. The Ketut Group represents and warrants that the patents relating
      to the Insultex Technologies are valid and enforceable in the Territory, that
      the Ketut Group is the sole and exclusive owner thereof in the Territory, that
      they have the full right, power, and authority to enter into this Agreement
      and
      to grant the rights, licenses and privileges hereby granted to IDI, and to
      perform all of their obligations hereunder.

    

    2.06
      The
      Ketut Group shall inform IDI of any and all improvements, changes and
      information relating to the Insultex Technologies as soon as practical after
      that information is made available to the Ketut Group . This includes the status
      of all Insultex related research and development efforts by the Ketut Group
      or
      any of their affiliates. All improvements, changes and information shall be
      promptly incorporated as part of this Agreement.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    2.07
      The
      Ketut Group shall furnish to IDI, or its nominees, all information required
      by
      IDI to commercialize and exploit Insultex and the Insultex Technologies. The
      Ketut Group shall not reveal the Insultex Technologies or any information to
      any
      other person without written approval of IDI.

    

    2.08
      The
      Ketut Group shall promptly notify IDI if they learn of any infringement of
      any
      patent rights respecting or pertaining to the patents or Technology licensed
      hereunder or of any unauthorized use of the Technology by any third
      party.

    

    2.09
      The
      Ketut Group agrees to defend, at its own expense, all infringement suits that
      may be brought against IDI or its sublicenses based on or related to the
      manufacture, use, sale, or marketing of products based on or using the patents,
      information, or trademarks pertaining to Insultex or the Insultex Technologies.
      In the event any information is brought to the attention of the Ketut Group
      that
      others are infringing any rights granted pursuant to this Agreement, the Ketut
      Group shall, at its own expense, diligently prosecute all such infringers.
      In
      any on the foregoing suits, IDI may, at the Ketut Group’s expense, be
      represented by counsel of its own choice.

    

    2.10
      The
      Ketut Group agrees to exclusively manufacture and sell Insultex to IDI in such
      quantities as requested by IDI from time to time and that they will not, other
      than in Non-Territory as provided herein, grant any rights to use, purchase,
      market, license, distribute, sell, give away, or deliver to any other person
      or
      entity, any materials manufactured by him relating to, using, arising or made
      from, containing or competing with Insultex, a product similar to Insultex
      or
      the Insultex Technologies.

    

    2.11
      The
      Ketut Group shall provide IDI amounts of Insultex in sufficient quantities
      to
      fill the orders placed by IDI to meet all size, width and other specifications
      as may be requested by IDI.

    

    2.12
      IDI
      may at its own option trademark and utilize the names or variations of the
      names
      Insultex in those areas in which it conducts its business operations, and the
      Ketut Group shall permit no other individual, entity or organization to make
      use
      of said trademarks. The Ketut Group shall not obtain any trademarks, grant
      or
      use any tradenames that are similar to any names used by IDI or IDI’s
      sublicensees.

    

    ARTICLE
      III - DELIVERY, PAYMENT AND MINIMUM ORDER OF INSULTEX

    

    3.01
      The
      Ketut Group shall promptly deliver to IDI within twenty-eight (28) days of
      receiving an order from IDI, at IDI’s place of business, all Insultex ordered by
      IDI. IDI shall pay for said order within 30 days of delivery to IDI’s
      facilities. All orders placed by IDI shall be placed by telephone or written
      facsimile order. The costs of shipping of all Insultex product by the Ketut
      Group to IDI shall be paid by IDI and the risk of loss from the facilities
      of
      the Ketut Group to the facilities of IDI shall be borne by IDI.

    

    3.02
      IDI
      shall pay [ *CONFIDENTIAL
      MATERIAL OMITTED AND FILED SEPERATLY WITH THE SECURITIES AND EXCHANGE COMMISSION
      PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
      per
      meter for all Insultex ordered from the Ketut Group. This price shall remain
      [*
      CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPERATLY WITH THE SECURITIES AND
      EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
      TREATMENT]
      per
      meter for a period of (10) years from the date of execution of this Agreement.
      Thereafter said price shall be adjusted for subsequent ten (10) year terms
      at a
      price increase of no more than twelve percent (12%) per ten year term. The
      price
      paid by IDI for Insultex shall remain the same for each ten (10) year
      term.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    3.03
      IDI
      shall order Insultex from the Ketut Group from time to time as needed and shall
      not be required to purchase any minimum amount of Insultex during the term
      of
      this Agreement and IDI is not required to make any minimum annual payment to
      the
      Ketut Group. However, should IDI place an order, any quantity ordered must
      be a
      minimum of 35,000 meters of Insultex.

    

    3.04
      On
      all Sublicensee Payments received by IDI from third party Sublicensees, IDI
      shall not pay any fees to the Ketut Group.

    

    ARTICLE
      IV - TERM

    

    4.01
      This
      agreement shall be in full legal force and effect for an initial term of ten
      (10) years from the date of execution hereof. IDI shall have the option to
      renew
      this Agreement for up to three (3) successive terms of ten (10) years each
      by
      giving Notice to the Ketut group of its intention to so renew not less that
      ninety (90) days prior to the expiration of the then-current term.

    

    ARTICLE
      V - REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE KETUT
      GROUP

    

    5.01
      The
      Ketut Group represents that it is the inventor, exclusive manufacturer, sole
      owner, holder, holder in due course of all right, title and interest to and
      in
      Insultex and the Insultex Technologies.

    

    5.02
      The
      Ketut Group represents that any prior licenses granted by him have been lawfully
      rescinded, terminated and/or revoked and have no further force or
      effect.

    

    5.03
      The
      Ketut Group represents that they have the capacity and unlimited ability to
      manufacture said product in quantities sufficient to meet the requirements
      of
      IDI as they currently exist and as they may exist and expand in the
      future.

    

    5.04
      The
      Ketut Group has the sole and exclusive lawful authority to enter into this
      Agreement and to grant the exclusive license and other rights granted hereunder
      and to manufacture products made form or using Insultex or the Insultex
      Technologies. The transactions contemplated hereby will not violate any other
      agreement, any order, judgement, injunction, award or decree of any court,
      arbitrator or governmental or regulatory body against, binding upon or affecting
      Insultex, the Insultex Technologies or any rights granted to IDI
      hereunder.

    

    *CONFIDENTIAL
      MATERIAL OMITTED AND FILED SEPERATLY WITH THE SECURITIES AND EXCHANGE COMMISSION
      PURSUANT TO A REQUEST FOR CONFIDENTIAL TREEATMENT

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    ARTICLE
      VI - COVENANTS, REPRESENTATIONS, AND OBLIGATIONS OF IDI

    

    6.01
      IDI
      agrees to use good faith best efforts to market and distribute new and existing
      markets and applications for Insultex and the Insultex
      Technologies.

    

    6.02
      Authority to Execute and Perform Agreements. IDI has the full legal right and
      power and all authority and approval required to enter into, execute, and
      deliver this Agreement, and the transactions contemplated hereby, and to perform
      fully the obligations thereunder.

    

    ATRICLE
      VII - TERMINATION

    

    7.01
      This
      Agreement may be terminated by either party upon event of default, as specified
      herein, which default remains uncured not less than thirty (30) days after
      Notice thereof by the non-breaching party to the breaching party. This Agreement
      may be terminated by either party upon the dissolution, bankruptcy or
      liquidation of the other party, at the discretion of the party whose operations
      are not being impaired.

    

    ARTICLE
      VIII - ARBITRATION TO RESOLVE DISPUTES

    

    8.01
      The
      parties acknowledge that the logistics of their locations in various continents
      makes the litigation of any dispute a potentially lengthy, time consuming and
      expensive process. In order to minimize the expense and difficulty of resolving
      disputes, the parties agree to utilize their best efforts to resolve said
      disputes amicably. In the event a dispute does not prove amenable to amicable
      resolution, the parties agree to submit the dispute to binding arbitration.
      The
      arbitrators shall operate under the auspices of and in accordance with the
      rules
      of the American Arbitration Association, which shall to the maximum extent
      possible permit the parties to participate in said proceedings without requiring
      their actual physical presence. Each side shall select an arbitrator, with
      the
      two arbitrators to select a third from among a list of arbitrators acceptable
      to
      the parties. The party which prevails in said arbitration shall recover its
      costs from the non-prevailing party in a percentage to be determined by the
      arbitrators. No appeal of a decision of the arbitrators shall be allowed absent
      an allegation of fraud or collusion on the part of the arbitrators. The laws
      of
      the United States shall govern in any dispute, and venue for any said dispute
      shall be Allegheny County, Pennsylvania, USA.

    

    ARTICLE
      IX - INDEMNIFICATION

    

    9.01
      The
      parties agree that in the event one of the parties hereto is subject to
      liability or exposure as a result of an allegation of fault, negligence, breach
      of contract, breach of duty, error, act of commission or act of omission of
      the
      other, the party whose action or lack thereof gave rise to the potential
      liability shall indemnify and hold harmless the other for all costs liable
      for
      the payment of any award entered attendant thereto.

    

    ARTICLE
      X - INTEGRATED AGREEMENT

    

    10.01
      The
      parties agree that this Agreement represents the entire agreement of the parties
      as to its terms, and that no modification hereof shall be given legal force
      or
      effect without prior written consent of the parties hereto.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

    ARTICLE
      XI - FACSIMILE AND COUNTERPART ORIGINALS

    

    11.01
      The
      parties agree that a facsimile copy of this Agreement shall be given the same
      legal force and effect as a hard copy original. The parties further agree that
      they shall execute this Agreement in counterpart originals, which shall contain
      the signature of one of the parties hereto and shall in the aggregate constitute
      the signature page of the instant Agreement.

    

    ARTICLE
      XII - PROVISIONS SURVIVING

    

    12.01
      In
      the event that a court of competent jurisdiction shall invalidate any term
      of
      provision of this Agreement; the remaining terms shall survive unaffected and
      in
      full force and effect.

    

    ARTICLE
      XIII - NOTICES

    

    13.01
      Any
      notice required or referenced herein shall be deemed given when affixed with
      a
      postage cancellation reflecting its deposit in the general mails of the country
      of origin or the date of its deposit with a licensed common carrier. All such
      Notices shall be directed to the parties at the addresses set forth
      above.

    

    ARTICLE
      XIV - EFFECT OF WAIVER

    

    14.01
      No
      waiver whether express or implied, of any breach of any term, condition or
      obligation of this Agreement shall be construed as a waiver of any subsequent
      breach of that term, condition or obligation, or any other term, condition
      or
      obligation of this Agreement of the same or different nature.

    

    ARTICLE
      XV - SUCCESSORS AND ASSIGNS

    

    15.01
      This Agreement shall inure to the benefit of the successors or assigns of the
      Parties.

    

    ARTICLE
      XVI - COMPLETE AGREEMENT

    

    16.01
      This document comprises the entire Agreement with respect to the subject matter
      hereof and supercedes all negotiations, representations and warranties,
      commitments, offers, contracts and writings prior to the date of this Agreement.
      Otherwise, the Parties to this Agreement are not to be bound by any
      representations, warranties or agreements other than those set forth herein
      or
      in a written amendment to this Agreement hereinafter entered into by the Parties
      and duly executed by each party. Nothing stated in this Agreement shall be
      construed against the drafting party solely because of the submission of this
      Agreement to the other party.

    

    ARTICLE
      XVII - ASSIGNMENT

    

    17.01
      This agreement may be assigned by IDI. This Agreement may not be assigned by
      the
      Ketut Group without the express written consent of IDI.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

    

    ARTCILE
      XVIII 

    

    This
      agreement consists of eight (7) pages. A photocopy hereof shall have the same
      legal force as the original, and may be signed as counterpart
      originals.

    

    

    In
      witness whereof, the Parties have executed this Agreement on April 1, 2006,
      intending to be legally bound.

    

    

    

    Innovative
      Designs, Inc

    .

    /s/Joseph
      Riccelli

    _________________________   Date:
      April 1, 2006

    by:
      Joseph Riccelli, President/CEO

    

    Ketut
      Group

    

    /s/
      Ko-Myung Kim

    _________________________   Date:
      April 1, 2006

    by:
      Ko-Myung Kim

    

    Ketut
      Group

    

    /s/
      Ketut
      Jaya

    _________________________   Date:
      April 1, 2006

    by:
      Ketut
      Jaya

    

    
      
         

      

      
        7EXHIBIT
      4.4

    

    SUBSCRIPTION
      AGREEMENT

    

    ___________________
      _____, 2008

    

    Gentlemen:

    

    The
      undersigned (the “Investor”) hereby confirms its agreement with you as
      follows:

    

    1. 
      This Subscription Agreement (this “Agreement”) is made as of the date set forth
      below between Refinery Science Corp., a Texas corporation (the “Company”), and
      the Investor.

    

    2. 
      The Company has authorized the sale and issuance to certain investors of up
      to
      an aggregate of 666,667 units (the “Units”), each Unit consisting of
      (i) two (2) shares (each a “Share” and collectively, the “Shares”) of its
      common stock, par value $0.01 per share (the “Common Stock”) and (ii)
      a warrant (“Warrant,” collectively, the “Warrants”) to purchase one (1)
      share of Common Stock, subject to adjustment by the Company’s Board of
      Directors, or a committee thereof, for a purchase price of Fifteen Dollars
      ($15.00) per Unit (the “Purchase Price”). The Shares issuable upon exercise of
      the Warrants are referred to herein as “Warrant Shares” and, together with the
      Units, the Shares and the Warrants, are collectively referred to herein as
      the
“Securities.”

    

    3. 
      The offering and sale of the Units (the “Offering”) is being made pursuant to
      (i) an effective Registration Statement on Form S-1 (Registration
      No. 333-140647)
      (filed
      by the Company with the Securities and Exchange Commission (the “Commission”))
      (the “Registration Statement”), (ii) if applicable, certain “free writing
      prospectuses” (as that term is defined in Rule 405 under the Securities Act
      of 1933, as amended), that have or will be filed with the Commission and
      delivered to the Investor on or prior to the date hereof, (iii) a
      preliminary prospectus dated ____________, 2008 (the “Preliminary Prospectus”),
      and (iv) a final prospectus (together with the Preliminary Prospectus, the
“Prospectus”) containing certain supplemental information regarding the Units
      and terms of the Offering that will be filed with the Commission and delivered
      to the Investor (or made available to the Investor by the filing by the Company
      of an electronic version thereof with the Commission) along with the Company’s
      counterpart to this Agreement.

    

    4. 
      The Company and the Investor agree that the Investor will purchase from the
      Company and the Company will issue and sell to the Investor the Units set forth
      below for the aggregate purchase price set forth below. The Units shall be
      purchased pursuant to the Terms and Conditions for Purchase of Units attached
      hereto as Annex
      I
      and
      incorporated herein by this reference as if fully set forth herein. The Investor
      acknowledges that the Offering is not being underwritten by the placement agent
      (the “Placement Agent”) named in the Prospectus Supplement and that there is no
      minimum offering amount.

        

    5. 
      The manner of settlement of the Shares included in the Units purchased by the
      Investor shall be determined by such Investor as follows: Delivery by electronic
      book-entry at The Depository Trust Company (“DTC”), registered in the Investor’s
      name and address as set forth below, and released by OTR Transfer, Inc., the
      Company’s transfer agent (the “Transfer Agent”) (telephone: (503) 225-0375 ), to
      the Investor at the Closing (as defined in Section 3.1 of Annex
      A
      hereto).
      No later than two (2) business days after the execution of this agreement
      by the investor and the company, the investor shall:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (i)
      direct the broker-dealer at which the account or accounts to be credited with
      the shares are maintained to set up a deposit/withdrawal at custodian (“DWAC”)
      instructing the transfer agent to credit such account or accounts with the
      shares, and

    

    (ii)
      remit by wire transfer the amount of funds equal to the aggregate purchase
      price
      for the units being purchased by the investor to the following
      account:

    

    [Refinery
      Science Corp. wire instructions here]

    

    It
      is the
      investor’s responsibility to (a) make the necessary wire transfer or
      confirm the proper account balance in a timely manner and (b) arrange for
      settlement by way of DWAC in a timely manner. If the investor does not deliver
      the aggregate purchase price for the units or does not make proper arrangements
      for settlement in a timely manner, the units may not be delivered at closing
      to
      the investor or the investor may be excluded from the closing
      altogether.

    

    6.
      The
      executed Warrant shall be delivered in accordance with the terms set forth
      in
Annex
      I
      hereto.

       

    7.
      The
      Investor represents that, except as set forth below, (i) it has had no
      position, office or other material relationship within the past three years
      with
      the Company or persons known to it to be affiliates of the Company, (ii) it
      is not a FINRA member or an Associated Person (as such term is defined under
      the
      FINRA Membership and Registration Rules Section 1011) as of the
      Closing, and (iii) neither the Investor nor any group of Investors (as
      identified in a public filing made with the Commission) of which the Investor
      is
      a part in connection with the Offering of the Units, acquired, or obtained
      the
      right to acquire, 20% or more of the Common Stock (or securities convertible
      into or exercisable for Common Stock) or the voting power of the Company on
      a
      post-transaction basis. Exceptions: (If no exceptions, write “none.” If left
      blank, response will be deemed to be “none.”)

     

    8.
      The
      Investor represents that it has received or can obtain on the Commission’s Edgar
      filing system the Prospectus, which is part of the Company’s Registration
      Statement, the Preliminary Prospectus, the documents incorporated by reference
      therein, and any free writing prospectus
      (collectively, the “Disclosure Package”), prior to or in connection with the
      receipt of this Agreement along with the Company’s counterpart to this
      Agreement.

    

    9. No
      offer by the Investor to buy Units will be accepted and no part of the Purchase
      Price will be delivered to the Company until the Company has accepted such
      offer
      by countersigning a copy of this Agreement, and any such offer may be withdrawn
      or revoked, without obligation or commitment of any kind, at any time prior
      to
      the Company (or a Placement Agent on behalf of the Company) sending (in writing,
      facsimile or by electronic mail) notice of its acceptance of such offer. An
      indication of interest will involve no obligation or commitment of any kind
      until this Agreement is accepted and countersigned by or on behalf of the
      Company.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

              

    Number
      of
      Units: __________________

    

    Purchase
      Price Per Unit: $15.00

    

    Aggregate
      Purchase Price: $_______________

     

    Please
      confirm that the foregoing correctly sets forth the agreement between us by
      signing in the space provided below for that purpose.

    

    

    Dated
      as
      of:                           
      ,
      2008

    

    
      	 	
              INVESTOR

              

              

              By:
                _______________________________

               

              Print
                Name: _________________________

                      

              Title:
                ______________________________

              

              Address:
                ___________________________

                          
                ________________________

            

    

    
    

    

    Agreed
      and Accepted this _____ day of _______________, 2008:

    

    REFINERY
      SCIENCE CORP.

    

    

    By: 
      _______________________________________

    Print
      Name: _________________________

    Title:
      ______________________________

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    ANNEX
      I

    TERMS
      AND CONDITIONS FOR PURCHASE OF UNITS

    

    1.    
      Authorization
      and Sale of the Units; Defined Terms.

    

    1.1
      Subject to the terms and conditions of this Agreement, the Company has
      authorized the sale of the Units.

    

    1.2
      Capitalized terms used herein but not otherwise defined have the meanings
      ascribed to them in the Agreement.

    

    
      	 	
              2.

            	
              Agreement
                to Sell and Purchase the Units; Placement Agent.

            

    

    

    2.1
      At
      the Closing (as defined in Section 3.1), the Company will sell to the
      Investor, and the Investor will purchase from the Company, upon the terms and
      conditions set forth herein, the number of Units set forth on the last page
      of
      the Agreement to which these Terms and Conditions for Purchase of Units are
      attached as Annex
      I
      (the
“Signature Page”) for the aggregate purchase price therefor set forth on the
      Signature Page.

    

    2.2
      The
      Company proposes to enter into substantially this same form of Subscription
      Agreement with certain other investors (the “Other Investors”) and expects to
      complete sales of Units to them. The Investor and the Other Investors are
      hereinafter sometimes collectively referred to as the “Investors,” and this
      Agreement and the Subscription Agreements executed by the Other Investors are
      hereinafter sometimes collectively referred to as the “Agreements.”

    

    2.3
      Investor acknowledges that the Company intends to pay Macquarie Capital Markets
      Canada Ltd. or, if the Company retains one, another placement agent (either,
      the
“Placement Agent”) a fee (the “Placement Fee”) in respect of the sale of Units
      to the Investor.

    

    2.4
      The
      Company has entered into a placement agency agreement, entitled, Financing
      Engagement Agreement, dated August 22, 2007, as amended, (the “Placement
      Agreement”), with the Placement Agent that contains certain representations,
      warranties, covenants, and agreements of the Company that may be relied upon
      by
      the Investor, which shall be a third party beneficiary thereof. A copy of the
      Placement Agreement is available upon request.

    

    
      	 	
              3.

            	
              Closings
                and Delivery of the Units and
                Funds.

            

    

    

    3.1
      Closing.
      The
      completion of the purchase and sale of the Units (the “Closing”) shall occur at
      a place and time (the “Closing Date”) to be specified by the Placement Agent,
      and of which the Investors will be notified in advance by the Placement Agent,
      in accordance with Rule 15c6-1 promulgated under the Securities Exchange
      Act of 1934, as amended (the “Exchange Act”). At the Closing, (i) the
      Company shall cause the Transfer Agent to deliver to the Investor the number
      of
      Shares set forth on the Signature Page registered in the name of the Investor
      or, if so indicated on the Investor Questionnaire attached hereto as
Schedule A,
      in the
      name of a nominee designated by the Investor and as contemplated
      by
      procedures set forth in the Agreement and the Placement Agreement, (ii) the
      Company shall cause to be delivered to the Investor a Warrant to purchase a
      number of whole Warrant Shares determined by dividing the number of Shares
      set
      forth on the signature page by two (2) and (iii) the aggregate purchase
      price for the Units being purchased by the Investor will be delivered by or
      on
      behalf of the Investor to the Company.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

              

    3.2
      (a)
Conditions
      to the Company’s Obligations.
      The
      Company’s obligation to issue and sell the Units to the Investor shall be
      subject to: (i) the receipt by the Company of the purchase price for the
      Units being purchased hereunder as set forth on the Signature Page and
      (ii) the accuracy of the representations and warranties made by the
      Investor and the fulfillment of those undertakings of the Investor to be
      fulfilled prior to the Closing Date.

             

          (b)
      Conditions
      to the Investor’s Obligations.
      The
      Investor’s obligation to purchase the Units will be subject to the accuracy of
      the representations and warranties made by the Company contained in the
      Placement Agreement and the fulfillment of those undertakings of the Company
      to
      be fulfilled prior to the Closing Date those contained in the Placement
      Agreement and the Subscription Agreement, and to the condition that the
      Placement Agent shall not have determined that the conditions to the closing
      in
      the Placement Agreement have not been satisfied. The Investor’s obligations are
      expressly not conditioned on the purchase by any or all of the Other Investors
      of the Units that they have agreed to purchase from the Company or the issuance
      of any minimum amount of Units by the Company.

    

    3.3
      Delivery
      of Funds.
      No
      later than two (2) business days after the execution of this Agreement by
      the Investor and the Company,
      the
      Investor shall remit by wire transfer the amount of funds equal to the aggregate
      purchase price for the Units being purchased by the Investor to the following
      account designated by the Company:

         

    [insert
      Refinery Science Corp. wire instructions here]

               

    3.4
      Delivery
      of Shares by Electronic Book-Entry at The Depository Trust
      Company.
      No
      later than two (2) business days after the execution of this Agreement by
      the Investor and the Company,
      the
      Investor shall direct the broker-dealer at which the account or accounts to
      be
      credited with the Shares being purchased by such Investor are maintained, which
      broker/dealer shall be a DTC participant, to set up a Deposit/Withdrawal at
      Custodian (“DWAC”)
      instructing OTR Transfer, Inc., the Company’s transfer agent, to credit such
      account or accounts with the Shares by means of an electronic book-entry
      delivery. Such DWAC shall indicate the settlement date for the deposit of the
      Shares, which date shall be provided to the Investor by the Placement Agent.
      Simultaneously with the delivery to the Company by the Investor of the funds
      pursuant to Section 3.3 above, the Company shall direct its transfer agent
      to credit the Investor’s account or accounts with the Shares pursuant to the
      information contained in the DWAC.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

         

    4. 
      Representations,
      Warranties and Covenants of the Investor.

    

    4.1
      The
      Investor represents and warrants to, and covenants with, the Company that
      (i) the Investor has answered all questions on the Signature Page and the
      Investor Questionnaire
      for use in preparation of the Prospectus Supplement and the answers thereto
      are
      true and correct as of the date hereof and will be true and correct as of the
      Closing Date and (ii) the Investor, in connection with its decision to purchase
      the number of Units set forth on the Signature Page, is relying only upon the
      Disclosure Package and the representations and warranties of the Company
      contained herein and the Placement Agency Agreement.

    

    4.2
      The
      Investor acknowledges, represents and agrees that no action has been or will
      be
      taken in any jurisdiction outside the United States by the Company or the
      Placement Agent that would permit an offering of the Units, or possession or
      distribution of offering materials in connection with the issue of the Units
      in
      any jurisdiction outside the United States where action for that purpose is
      required. Each Investor outside the United States will comply with all
      applicable laws and regulations in each foreign jurisdiction in which it
      purchases, offers, sells or delivers Units or has in its possession or
      distributes any offering material, in all cases at its own expense. The
      Placement Agent is not authorized to make and have not made any representation
      or use of any information in connection with the issue, placement, purchase
      and
      sale of the Units, except as set forth or incorporated by reference in the
      Disclosure Package.

    

    4.3
      The
      Investor further represents and warrants to, and covenants with, the Company
      that (i) the Investor has full right, power, authority and capacity to enter
      into this Agreement and to consummate the transactions contemplated hereby
      and
      has taken all necessary action to authorize the execution, delivery and
      performance of this Agreement, and (ii) this Agreement constitutes a valid
      and binding obligation of the Investor enforceable against the Investor in
      accordance with its terms, except as enforceability may be limited by applicable
      bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
      creditors’ and contracting parties’ rights generally and except as
      enforceability may be subject to general principles of equity (regardless of
      whether such enforceability is considered in a proceeding in equity or at law)
      and except as the indemnification agreements of the Investors herein may be
      legally unenforceable.

    

    4.4
      The
      Investor understands that nothing in this Agreement, the Prospectus or any
      other
      materials presented to the Investor in connection with the purchase and sale
      of
      the Units constitutes legal, tax or investment advice. The Investor has
      consulted such legal, tax and investment advisors as it, in its sole discretion,
      has deemed necessary or appropriate in connection with its purchase of
      Units.

    

    4.5
      Each
      Investor represents, warrants and agrees that, since the earlier to occur of
      (i) the date on which the Placement Agent first contacted such Investor
      about the Offering and (ii) the date of this Agreement, it has not engaged
      in any transactions in the securities of the Company (including, without
      limitation, any Short Sales involving the Company’s securities). Each Investor
      covenants that it will not engage in any transactions in the securities of
      the
      Company (including Short Sales) prior to the time that the transactions
      contemplated by this Agreement have been consummated and are publicly disclosed.
      Each Investor agrees that it will not use any of the Units acquired pursuant
      to
      this Agreement to cover any short position in the Common Stock if doing so
      would
      be in violation of applicable securities laws. For purposes hereof, “Short
      Sales” include, without limitation, all “short sales” as defined in
      Rule 200 promulgated under Regulation SHO under the Exchange Act,
      whether or not against the box, and all types of direct and indirect stock
      pledges, forward sales contracts, options, puts, calls,
      short sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h)
      under the Exchange Act) and similar arrangements (including on a total return
      basis), and sales and other transactions through non-US broker dealers or
      foreign regulated brokers.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    5. 
      Survival
      of Representations, Warranties and Agreements; Third Party
      Beneficiary.
      Notwithstanding any investigation made by any party to this Agreement or by
      the
      Placement Agent, all covenants, agreements, representations and warranties
      made
      by the Company and the Investor herein will survive the execution of this
      Agreement, the delivery to the Investor of the Units being purchased and the
      payment therefor. The Placement Agent shall be a third party beneficiaries
      with
      respect to representations, warranties and agreements of the Investor in
      Section 4 hereof.

         

    6. 
      Notices.
      All
      notices, requests, consents and other communications hereunder will be in
      writing, will be mailed (i) if within the domestic United States by
      first-class registered or certified airmail, or nationally recognized overnight
      express courier, postage prepaid, or by facsimile or (ii) if delivered from
      outside the United States, by International Federal Express or facsimile, and
      will be deemed given (a) if delivered by first-class registered or
      certified mail domestic, three business days after so mailed, (b) if
      delivered by nationally recognized overnight carrier, one business day after
      so
      mailed, (c) if delivered by International Federal Express, two business
      days after so mailed and (d) if delivered by facsimile, upon electric
      confirmation of receipt and will be delivered and addressed as
      follows:

    

    (1)  if
      to the Company, to:

    

    Refinery
      Science Corp.

    13500
      Doniphan Drive

    El
      Paso,
      Texas

    Facsimile:
      (915) 842-8099

    Attention:
      David Rendina, President and Chief Executive Officer

    

    with
      copies to:

    

    Law
      Offices of Thomas E. Puzzo, PLLC.

    4216
      NE
      70th Street

    Seattle,
      Washington 98115

    Facsimile:
      (206) 260-0111

    Attention:
      Thomas E. Puzzo

    

    (2) if
      to the Investor, at its address on the Signature Page hereto, or at such other
      address or addresses as may have been furnished to the Company in
      writing.

         

    7. 
      Changes.
      This
      Agreement may not be modified or amended except pursuant to an instrument in
      writing signed by the Company and the Investor. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    8. 
      Headings.
      The
      headings of the various sections of this Agreement have been inserted for
      convenience of reference only and will not be deemed to be part of this
      Agreement.

    

    9. 
      Severability.
      In case
      any provision contained in this Agreement should be invalid, illegal or
      unenforceable in any respect, the validity, legality and enforceability of
      the
      remaining provisions contained herein will not in any way be affected or
      impaired thereby.

    

    10. 
      Governing
      Law.
      This
      Agreement will be governed by, and construed in accordance with, the internal
      laws of the State of New York, without giving effect to the principles of
      conflicts of law that would require the application of the laws of any other
      jurisdiction.

    

    11. 
      Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which will
      constitute an original, but all of which, when taken together, will constitute
      but one instrument, and will become effective when one or more counterparts
      have
      been signed by each party hereto and delivered to the other parties. The Company
      and the Investor acknowledge and agree that the Company shall deliver its
      counterpart to the Investor along with the Prospectus and the Prospectus
      Supplement (or the filing by the Company of an electronic version thereof with
      the Commission).

    

    12. 
      Confirmation
      of Sale.
      The
      Investor acknowledges and agrees that such Investor’s receipt of the Company’s
      counterpart to this Agreement, together with the Prospectus and the Prospectus
      Supplement (or the filing by the Company of an electronic version thereof with
      the Commission), shall constitute written confirmation of the Company’s sale of
      Units to such Investor.

    

    13. 
      Termination.
      In the
      event that the Company decides to terminate Offering prior to Closing, this
      Agreement shall terminate without any further action on the part of the parties
      hereto and any monies remitted to the Company will be promptly refunded by
      the
      Company, without interest, to the Investor. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A TO ANNEX I

    

    REFINERY
      SCIENCE CORP.

    INVESTOR
      QUESTIONNAIRE

    

    Pursuant
      to Section 3 of Annex
      I
      to the
      Agreement, please provide us with the following information:

    

    1.
      The
      exact name that your Shares and Warrants are to be registered in. You may use
      a
      nominee name if appropriate:

    

    _________________________________

     

    _________________________________

    

    2.
      The
      relationship between the Investor and the registered holder listed in response
      to item 1 above:

    _________________________________________________________________

    

    3.
      The
      mailing address of the registered holder listed in response to item 1
      above:

    

    ___________________________________

    

    ___________________________________

    

    ___________________________________

    

    4.
      The
      Social Security Number or Tax Identification Number of the registered holder
      listed in the response to item 1 above:

    _________________________

    

    5.
      Name
      of DTC Participant (broker-dealer at which the account or accounts to be
      credited with the Shares are maintained); please include the name and telephone
      number of the contract person at the broker-dealer:

    

    ________________________________________

    

    ________________________________________

     

    ________________________________________

    

    ________________________________________

    

    6.
      DTC
      Participant Number: _______________________________

     

    7.
      Name
      of Account at DTC Participant being credited with the Shares:

    __________________________________

    

    __________________________________

    

    Account
      Number at DTC Participant being credited with the Shares: 

    ___________________________

     

    
      
        
        

      

      
        9

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