Document:

Exhibit 10.1

    

    SECURITIES
      PURCHASE AGREEMENT

     

    THIS
      SECURITIES
      PURCHASE AGREEMENT (this
      “Agreement”)
      is
      made and entered into as of the ____
      day
      of August, 2008, between SMF Energy Corporation, a Delaware corporation
      (“Company”),
      and the
      undersigned (“Purchaser”
and,
      together with Company, the “Parties”).

     

    Subject
      to the terms and conditions set forth in this Agreement, Purchaser desires
      to
      purchase and hereby subscribes for the number and dollar amount of the Company’s
      Preferred Shares (defined below) as set forth on the signature page hereto
      (the
“Transaction”).

     

    1. DESCRIPTION
      OF PREFERRED SHARES.
      “Preferred
      Shares”
refers
      to shares of the Company’s $.01 par value Series C Convertible Preferred Stock
      (“Preferred
      Stock”)
      that
      are convertible into shares of Company’s $.01 par value common stock
      (“Common
      Stock”).
      The
      shares of Common Stock into which the Preferred Shares (and any accrued but
      unpaid dividends thereon) are convertible are referred to herein as the
“Common Shares.”

     

    2. OFFER. Purchaser,
      by signing this Agreement, offers to purchase Preferred
      Shares in
      the
      amounts and for the purchase price set forth on the signature page hereto (the
      “Investment
      Amount”).
      Company
      shall have the right, in its sole and absolute discretion, to reject or accept
      Purchaser’s offer to purchase Preferred Shares pursuant to this Agreement. If
      Company accepts Purchaser’s offer, Company shall execute this Agreement and
      return a copy of the Agreement, and issue the Preferred Shares to Purchaser.
      If
      Company rejects Purchaser’s offer, Company shall return to Purchaser this
      Agreement, together with any payment of the Investment Amount made by Purchaser
      to Company together with the interest earned on such payment, if
      any.

     

    3. CLOSING.
      The
      purchases and sales of the Preferred Shares (the “Closing”)
      shall
      take place on August 15, 2008, or such later date as may be determined by
      Company, and from time to time thereafter (such date or dates referred to
      collectively herein as the “Closing
      Date”).
      

     

    4. RECEIPT
      OF DOCUMENTS. Purchaser
      acknowledges receipt of a copy of: (a) this Agreement; (b) the Certificate
      of
      Designation for the Preferred Stock, attached hereto as Attachment
      A;
      (c) the
      Company’s Annual Report on Form 10-K for the year ended June 30, 2007 (the
“10-K”);
      (d)
      the Company’s Quarterly Reports on Form 10-Q for the quarters ended December 31,
      2007 and March 31, 2008 (together, the “10-Q”);
      (e)
      the Company’s Interim Reports on Form 8-K as filed on February 22, March 6,
      March 14, April 9, 2008, July 2, 2008 and July 8, 2008 (together, the
“8-K”);
      and
      (f) the Company’s proxy statement for its December 7, 2007 shareholders meeting
      and the Company’s preliminary proxy statement for its November 24, 2008
      shareholders meeting (the “Proxy
      Statement”)
      (collectively, the “Documents”).

     

    5. USE
      OF PROCEEDS; NO REFUNDS.
      The
      Investment Amounts shall be used by Company to provide additional working
      capital for general corporate purposes, as well as for evaluation and
      acquisition due diligence related to its current strategic acquisition program,
      and pay the costs of the Transaction. Upon execution of this Agreement by
      Company and delivery of it to Purchaser, the Investment Amount shall not, under
      any circumstances, be refunded to Purchaser.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6. CONDITIONS
      PRECEDENT. Notwithstanding
      anything to the contrary contained in this Agreement, the obligations of Company
      to close the Transaction shall be contingent upon the following:

     

    (a) Company
      and Purchaser executing this Agreement; and

     

    (b) Purchaser
      completing, to Purchaser’s satisfaction, all business, legal, and accounting due
      diligence regarding Company and the Offering.

     

    7. COMPANY’S
      RIGHT TO CANCEL. Company,
      in its sole discretion, may cancel this Agreement with respect to Purchaser
      at
      any
      time prior to the Closing Date by delivery of written notice of cancellation
      to
      Purchaser and return of the Investment Amounts with accrued interest, if any,
      to
      Purchaser.

     

    8. REGISTRATION
      OF COMMON SHARES. Company
      agrees to use reasonable commercial efforts to cause a registration statement
      on
      Form S-3 or other available form (“Registration
      Statement”)
      relating to the resale of the Common Shares into which the Preferred Shares
      are
      or may be convertible to be filed with the Securities and Exchange Commission
      in
      accordance with the Registration Rights Agreement attached hereto as
Attachment
      B,
      the
      terms of which are incorporated by reference and made a part of this Agreement.
      Subject to the terms in Attachment
      B,
      Company
      further agrees to make all reasonable commercial efforts to cause the
      Registration Statement to be filed within ninety (90) days following the Closing
      Date and to cause such Registration Statement to become effective as soon as
      practicable thereafter. 

     

    9. REPRESENTATIONS
      AND WARRANTIES OF PURCHASER.
      Each
      Purchaser represents and warrants to Company as follows:

     

    (a) Purchaser,
      either alone or through Purchaser’s representative, as that term is defined
      under Rule 501(h)
      of
      Regulation D
      (“Regulation
      D”)
      under
      the Securities Act of 1933 (the
      “Purchaser’s
      Representative”),
      if
      any, has had an opportunity to ask questions of, and receive answers from,
      duly
      designated representatives
      of
      Company concerning the terms and conditions of this Agreement and has been
      afforded an opportunity to examine such documents and other information that
      Purchaser (or Purchaser’s Representative, if any) has requested for the purpose
      of answering any question Purchaser or Purchaser’s Representative may have
      concerning the business and affairs of Company. 

     

    (b) Purchaser’s
      principal residence or domicile is located in the State or
      other
      jurisdiction set forth on
      the
      signature page hereto. Purchaser has received and reviewed this Agreement and
      the Documents and acknowledges that Company made available to Purchaser (and
      Purchaser’s Representative, if any) at a reasonable time prior to the execution
      of this Agreement, the opportunity to ask questions and receive answers
      concerning the business and affairs of Company and the terms and conditions
      of
      the sale of the Preferred
      Shares as
      contemplated by this Agreement and to obtain any additional information (which
      Company possesses or can acquire without unreasonable effort or expense) as
      may
      be necessary to verify the accuracy of information furnished to Purchaser (or
      Purchaser’s Representative, if any). Purchaser (i)
      is
      able
      to bear the loss of Purchaser’s entire investment without any material adverse
      effect on Purchaser’s economic condition or stability, and (ii)
      has,
      alone or together with Purchaser’s Representative, such knowledge and experience
      in financial and business matters as to be capable of evaluating the merits
      and
      risks of the investment to be made by Purchaser pursuant to this Agreement.
      

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (c) Purchaser
      (and Purchaser’s Representative, if any) understand that the Preferred Shares
      are being offered and sold only to “accredited investors” (as that term is
      defined under Rule 501(a) of Regulation D), and Purchaser represents that
      Purchaser is an accredited investor. Purchaser and Purchaser’s Representative,
      if any, understand Company is relying on Purchaser with respect to the accuracy
      of this representation. Purchaser has completed and returned a copy of
Attachment
      C,
      and
      Purchaser represents that the statements made therein are complete and
      accurate.

     

    (d) Purchaser
      and Purchaser’s Representative, if any, acknowledge that they were encouraged by
      Company to request all additional information
      that
      might be material or important in order for Purchaser to make an informed
      investment decision with respect to the purchase of the Preferred Shares.

     

    (e) The
      Preferred
      Shares are being purchased for investment purposes only for such Purchaser’s own
      account and not with the view to, or for resale in connection with, any
      distribution or public offering. Purchaser (and Purchaser’s Representative, if
      any) understand that the Preferred Shares have not been registered under the
      Securities Act or any state securities
      laws
      by
      reason of their contemplated issuance in transactions exempt from the
      registration requirements of the Securities
      Act
      and
      applicable state securities laws, and that the reliance of Company and others
      upon these exemptions is predicated in part upon the representations by
      Purchaser in this Agreement. 

     

    (f) Purchaser
      and Purchaser’s Representative, if any, have carefully read this Agreement, the
      Documents and the other information furnished to Purchaser by Company in
      connection with this Agreement. 

     

    (g) Purchaser
      acknowledges that Purchaser was not solicited to purchase the Preferred Shares
      by any means of general solicitation, including, but not limited to, the
      following: (i)
      any
      advertisement, article, notice or other communication published in any
      newspaper, magazine, or similar media, or broadcast over television or radio;
      or
      (ii)
any
      meeting where attendees were invited by any general solicitation or general
      advertising. 

     

    (h) Purchaser
      (and Purchaser’s Representative, if any) hereby acknowledge that the Preferred
      Shares, are and will be, when issued, “restricted securities”
      (as that
      term is defined in Rule 144 of the rules and regulations promulgated under
      the
      Securities Act), unless and until Company is successful in causing the
      Registration Statement to become effective. Purchaser and Purchaser’s
      Representative,
      if any, are aware of the applicable limitations on the resale of the Common
      Shares in the absence of a successful registration of those securities,
      including but not limited to Rule 144. Rule 144 only permits sales of
“restricted securities” held for at least six months and in transactions which
      otherwise comply with the requirements of such Rule. Purchaser (and Purchaser’s
      Representative, if any) also acknowledge that (1) the trading market for the
      Common Stock on the Nasdaq Stock Market is volatile, so that the trading volume
      and price of Shares are subject to substantial and unpredictable variations
      and
      (2) while Company currently meets the public information requirements of Rule
      144, there is no guarantee that it will do so at any time in the future.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (i) Purchaser
      (and Purchaser’s Representative, if any) acknowledge and warrant that, in making
      this investment decision, they have made their own independent assessment of
      the
      merits and risks of an investment in the Preferred Shares based on their
      examination and evaluation of Company, its business, operations, financial
      condition, future prospects and the skills and qualifications of its officers,
      directors and employees. Purchaser (and Purchaser’s Representative, if any) have
      consulted with Purchaser’s own legal, business or tax advisors for legal,
      business or tax advice concerning an investment in the Preferred Shares and
      have
      not relied on Company or its respective agents or representatives. 

     

    (j) Purchaser
      (and Purchaser’s Representative, if any) represent and warrant that, except as
      set forth in this Agreement and in the Documents, no representations or
      warranties have been made to Purchaser or Purchaser’s Representative, if any, by
      Company or any agent, employee, representative or affiliate of Company and
      that,
      in entering into this transaction and subscribing for Preferred Shares, neither
      Purchaser nor Purchaser’s Representative, if any, is relying on any information
      other than that contained in this Agreement, the Documents, and other written
      information obtained from Company in the course of the independent investigation
      by Purchaser or Purchaser’s Representative, if any.

     

    (k) Purchaser
      and Purchaser’s Representative, if any, acknowledge that an investment in
      Company involves substantial risks, including, without limitation, those
      described in the Documents, including but not limited to the 10-K, the 10-Q
      and
      the 8-K. 

     

    10. INDEMNIFICATION
      BY PURCHASER.
      Purchaser agrees to indemnify and hold harmless Company and its officers,
      directors, employees, agents and professional advisors from and against any
      and
      all loss, damage, liability, or expense, including costs and reasonable
      attorneys’ fees, that any one or more of the foregoing may incur by reason of,
      or in connection with, any (i) misrepresentation, inaccurate statement or
      material omission or (ii) breach of any warranties or failure to fulfill any
      covenants, agreements or obligations, by Purchaser (or Purchaser’s
      Representative, if any) in this Agreement.

     

    11. AUTHORIZATION.
      To the
      extent reasonably required by Company to satisfy any applicable law or
      regulation, including without limitation the PATRIOT Act, Purchaser hereby
      authorizes (i) Company and its officers, employees and agents to investigate
      Purchaser’s personal and business background including, without limitation,
      communication with any employer, former employer, business associate, government
      agency, bank or other credit reference, provided that Company agrees to use
      any
      such information only to the extent required to comply with applicable law
      or
      regulation, and otherwise maintains the confidentiality of any such information
      not generally available to the public with at least the same care as Company's
      own proprietary and confidential information, and causes each of its officers,
      employees and agents to do the same, and (ii) authorizes any person,
      organization or entity that may have any knowledge or information concerning
      Purchaser’s personal or business background to provide such information to
      Company as Company may reasonably request in connection with the
      foregoing.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    12. NO
      BROKERS OR FINDERS.
      No
      person, firm or corporation has or will have, as a result of any act or omission
      by such Purchaser, any right, interest or valid claim against Purchaser or
      Company for any commission, fee or other compensation as a finder
      or
      broker, or in any similar capacity, in connection with the transactions
      contemplated by this Agreement provided, however, that Purchaser acknowledges
      that Company has entered into an advisory agreement with Philadelphia Brokerage
      Corporation (“PBC”),
      a
      registered broker-dealer, for investment banking and advisory services (the
      “Advisory
      Agreement”)
      which
      services may relate to, among other things, the sale or exchange of shares
      of
      the Company’s Preferred Stock, such as the Preferred Shares, except that no
      commissions or other transaction dependent compensation will be paid to PBC
      on
      account of the Preferred Shares.
      A copy
      of the Advisory Agreement will be provided to Purchaser upon request.

     

    13. MISCELLANEOUS.

     

    (a) This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of Delaware.
      The
      Parties submit to the exclusive jurisdiction of the courts located in Broward
      County, Florida, with respect to any dispute arising under this Agreement and
      the transactions contemplated hereby.

     

    (b) This
      Agreement contains the entire agreement between Company and Purchaser with
      regard to the subject matter hereof and may not be modified or waived except
      in
      a writing signed by both Company and all parties to each such agreement.

     

    (c) The
      headings of this Agreement are for convenience and reference only, and shall
      not
      limit or otherwise affect the interpretation of any term or provision hereof.
      

     

    (d) This
      Agreement and the rights, powers, and duties set forth herein shall, except
      as
      otherwise expressly provided, be binding upon and inure to the benefit of,
      the
      heirs, executors, administrators, legal representatives, successors, and assigns
      of the Parties. 

     

    (e) This
      Agreement and the rights and obligations hereunder shall not be assignable
      or
      transferable by Purchaser or Company without the prior written consent of the
      other Party, except (i) in the case of Company, by operation of law in
      connection with a merger, consolidation or sale of substantially all of its
      assets or (ii) in the case of a Purchaser, (1) to any Affiliates (as
      defined below) of Purchaser or (2) to partners, members, beneficiaries or
      other equity interest holders of Purchaser; provided,
      that in
      each case referred to in (1) and (2) above, the third party transferee
      would have been eligible to be an original purchaser of the Preferred Shares
      pursuant to this Agreement and executes a counterpart signature page hereto
      becoming a “Purchaser” hereunder, subject to all of the rights and obligations
      of this Agreement. Subject to the preceding sentence, this Agreement shall
      be
      binding upon, inure to the benefit of and be enforceable by the Parties and
      their respective successors and assigns. “Person”
means
      an individual, corporation, partnership, association, trust or other entity
      or
      organization, including a government or political subdivision or agency or
      instrumentality thereof. “Affiliate”
means,
      with respect to any Person, any other Person who, directly or indirectly, owns
      or controls, is under common ownership or control with, or is owned or
      controlled by, such Person.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    (f) This
      Agreement is for the sole benefit of the Parties and their permitted assigns
      and
      nothing expressed or implied in this Agreement shall give or be construed to
      give to any Person, other than the Parties and such assigns, any legal or
      equitable rights hereunder. 

     

    (g) If
      any
      legal action or any arbitration or other proceeding is brought for the
      enforcement of this Agreement, or because of an alleged dispute, breach,
      default, or misrepresentation in connection with any of the provisions of this
      Agreement, the successful or prevailing party or parties shall be entitled
      to
      recover reasonable attorneys’ fees and other costs incurred in that action or
      proceeding, in addition to any other relief to which it may be entitled.

     

    (h) This
      Agreement shall be construed in accordance with its intent and without regard
      to
      any presumption or any other rule requiring construction against the party
      causing the same to be drafted. 

     

    (i) If
      any
      provision of this Agreement, or any portion of any provision, shall be deemed
      invalid
      or
      unenforceable for any reason whatsoever, such invalidity or unenforceability
      shall
      not
      affect the enforceability and validity of the remaining provisions.

     

    (j) This
      Agreement may be executed in counterparts, each of which shall be deemed to
      be
      an original but which taken together shall constitute one agreement.
      Signatures to this Agreement may be transmitted by facsimile or other electronic
      means and such transmission shall be deemed to be an original. 

     

    [Signature
      page follows.]

     

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    SIGNATURE
      PAGE FOR ENTITY INVESTOR

    

    [FOR
      INVESTOR THAT IS A CORPORATION, TRUST, CUSTODIANSHIP, PARTNERSHIP OR LIMITED
      LIABILITY COMPANY]

     

    

    THE
      UNDERSIGNED HEREBY SWEARS AND AFFIRMS THAT HE OR SHE IS DULY AUTHORIZED TO
      EXECUTE THIS SECURITIES PURCHASE AGREEMENT ON BEHALF OF THE ENTITY NAMED BELOW
      AND THAT HE OR SHE HAS READ THAT AGREEMENT, UNDERSTANDS ITS CONTENTS, AND
      AFFIRMS THE ACCURACY OF THE INVESTOR REPRESENTATIONS CONTAINED
      HEREIN.

    

    Dated
      this ___ of ____________, 2008. 

    

    Number
      of
      Preferred Shares at $650 per Preferred Share: ___________

    Dollar
      Amount Paid for Purchased Shares $____________

    

    The
      signature(s) should be of the person(s) with the authority to make the
      investment decision on behalf of the corporation, trust, custodianship,
      partnership or limited liability company.

    

    ________________________________________________________________

    Name
      of
      Corporation, Trust, Custodianship, Partnership or Limited Liability
      Company

    

    

      
        	 	 	 
	
                Signature

              	 	
                Signature

              
	 	 	 
	 	 	 
	 	 	 
	
                Print
                  Name

              	 	
                Print
                  Name

              
	 	 	 
	 	 	 
	 	 	 
	
                Title

              	 	
                Title

              
	 	 	 
	 	 	 
	 	 	 
	
                Tax
                  I.D. No. of Investor

              	 	
                Telephone
                  #

              

      

       

    

    
      	 	 	 
	
              State
                in which principal business office is located:

            	 	
              SMF
                ENERGY CORPORATION

            
	 	 	 
	 	 	
              ACCEPTED
                THIS ___ DAY OF _______, 2008.

            
	
              Investor
                Mailing Address:

            	 	 
	 	 	
              By:________________________________________

            
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 	 
	 	 	 
	 	 	 

    

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    SIGNATURE
      PAGE FOR INDIVIDUAL INVESTOR(S)

    

    THE
      UNDERSIGNED HEREBY SWEARS AND AFFIRMS THAT HE OR SHE HAS READ THIS SECURITIES
      PURCHASE AGREEMENT, UNDERSTANDS ITS CONTENTS, AND AFFIRMS THE ACCURACY OF THE
      INVESTOR REPRESENTATIONS CONTAINED HEREIN.

    

    Dated
      this _____ of _____________, 2008.

    

    Number
      of
      Preferred Shares at $650 per Preferred Share: ___________

    Dollar
      Amount Paid for Purchased Shares $____________

    

    _________________________________

    Signature

     

    
      
        	
                _________________________________

              	
                ______________________________

              
	
                Subscriber
                  Name (Please Print)

              	
                Tax
                  ID or Social Security
                  Number

              

      

    Address:
      __________________________

     __________________________

     __________________________  

    Telephone
      No.: _____________________

    Fax
      No.:
      __________________________

    

    If
      Joint Ownership (Joint Tenants or Tenants in Common)

    

    

    _________________________________

    Signature

     

    
      
        	
                _________________________________

              	
                _________________________________

              
	
                Second
                  Subscriber Name (Please Print)

              	
                Second
                  Subscriber Tax ID or Social Security
                  No.

              

      

       

      Address:
        __________________________

       __________________________

       __________________________  

      Telephone
        No.: _____________________

      Fax
        No.:
        __________________________

    

     

    
      	 
	
              SMF
                ENERGY CORPORATION

            
	 
	
              ACCEPTED
                THIS ___ DAY OF _______, 2008.

            
	 
	
              By:_________________________________

            
	
              Name:

            
	
              Title:

            
	 

    

    
      
        --

         

      

      
        -8-

        
          

        

      

      
         

      

    

    Manner
      in
      which Title is to be Held (Check One):

    

    
      	
              _______

               

            	
              Individual
                Ownership

            	
              _______

            	
              Company
                (include a copy of Partnership Agreement, and any amendments, as
                applicable, and a resolution with authorization
                signature)

            
	
              _______

               

               

               

               

               

            	
              Joint
                Tenants with Rights of Survivorship

              (both
                parties must sign)

            	
              _______

            	
              Trust
                (include name of the trust, name of trustee and date trust was
                formed)

            
	
              _______

               

               

            	
              Tenants
                in Common

              (both
                parties must sign)

            	
              _______

            	
              Corporation
                (include certified corporate resolution with authorization
                signature)

            
	
              _______

               

               

               

               

               

            	
              Community

            	
              _______

            	
              Other
                (please specify)

               

              _____________________________

               

              _____________________________

            

    

    

    

    

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    ATTACHMENT
      A

     

    Certificate
      of Designation

     

    

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ATTACHMENT
      B

    TO

    SECURITIES
      PURCHASE AGREEMENT

     

    Registration
      Rights Agreement

     

    1. Registration
      Rights.
      This
      Registration Rights Agreement (the “RRA”),
      is
      attached to and made a part of each Securities Purchase Agreement dated August
      ___, 2008 (the “SPA”)
      between SMF Energy Corporation, a Delaware corporation (the “Company”)
      and
      the various Purchasers listed on Exhibit 1 to this RRA for the purchase of
      the
      shares of Series C Preferred Stock sold under the SPA (the “Preferred
      Shares”).
      This
      RRA provides the terms and conditions governing Company’s obligation under the
      SPA to use reasonable commercial efforts to register under the Securities Act
      the shares of Company’s Common Stock that may be obtained upon conversion of the
      Series C Preferred Stock purchased pursuant to the SPA (collectively, the
“Shares”).
      All
      capitalized terms used in the RRA that are not defined herein have the same
      meaning as in the SPA.

     

    (a) Demand
      Registration.
      After
      the sale of all the Preferred Shares pursuant to the SPA has been effected,
      the
      holders of Shares into which the Preferred Shares are or may be convertible
      (the
“Registrable
      Securities”)
      shall be
      deemed to have requested registration under the Securities Act for all of the
      Registrable Securities upon the terms and conditions set forth in this
Section 1(a).
      Promptly thereafter Company shall notify each registered holder of the
      Registrable Securities (a “Holder”)
      in
      writing of such request for registration. Company shall, as soon as practicable
      after the date on which such notice is given, use reasonable commercial efforts
      to file a Registration Statement with the Securities and Exchange Commission
      (the “SEC”)
      covering the Registrable Securities and will use reasonable commercial efforts
      to cause the Registration Statement to become effective. No right to
      registration of Shares under this Section 1(a)
      shall be
      construed to limit any registration required under Section 1(b)
      hereof.
      The obligations of Company under this Section 1(a)
      shall
      expire after Company has afforded the Holders the opportunity to exercise
      registration rights under this Section 1(a)
      for one
      registration. 

     

    (b) Piggy-back
      Registration.
      If at
      any time commencing on the date of issuance of the Preferred Shares (the
“Issue
      Date”)
      and
      ending on the date that a registration statement covering the Registrable
      Securities has been declared effective by the Securities and Exchange
      Commission, Company shall determine to prepare and file with the SEC a
      Registration Statement relating to an offering for its own account or the
      account of others under the Securities Act of any securities of Company, other
      than on Form S-4 or Form S-8 or their then equivalents relating to equity
      securities to be issued solely in connection with any acquisition of any entity
      or business or equity securities issuable in connection with employee benefit
      plans, Company shall send to the Holders written notice of such determination
      and if, within ten (10) days after receipt of such notice, any Holder shall
      so
      request in writing, Company shall include in such Registration Statement all
      or
      any part of the Shares that such Holder requests to be registered, except that
      if, in connection with any underwritten public offering for the account of
      Company, the managing underwriter(s) thereof shall impose a limitation on the
      number of Registrable Securities which may be included in the Registration
      Statement because, in such underwriter(s)’ judgment, such limitation is
      necessary to effect an orderly public distribution, then Company shall be
      obligated to include in such Registration Statement only such limited portion
      of
      the Registrable Securities with respect to which such Holder has requested
      inclusion. Any exclusion of Registrable Securities shall be made pro rata among
      all Holders who have requested that Registrable Securities be included, in
      proportion to the number of Registrable Securities specified in their respective
      requests; provided, however, that Company shall not exclude any Registrable
      Securities unless Company has first excluded all outstanding securities the
      holders of which are not entitled by right to inclusion of securities in such
      Registration Statement; and provided further, however, that, after giving effect
      to the immediately preceding proviso, any exclusion of Registrable Securities
      shall be made pro rata with holders of other securities having the right to
      include such securities in the Registration Statement, based on the number
      of
      securities for which registration is requested except to the extent such pro
      rata exclusion of such other securities is prohibited under any written
      agreement entered into by Company with the holder of such other securities
      prior
      to the Issue Date in which case such other securities shall be excluded, if
      at
      all, in accordance with the terms of such agreement. No right to registration
      of
      Shares under this Section 1(b)
      shall be
      construed to limit any registration required under Section 1(a)
      hereof.
      Holders of at least sixty-six and two-thirds percent (66 2/3%) of the
      Registrable Securities may waive the obligations of Company under this Section
      1(b).

     

    
      
         

      

      
        
          Attachment
            B to Securities
            Purchase Agreement

          Page
            1
of
            9

        

        
          

        

      

      
         

      

    

     

    (c) Obligations
      of Company.
      In
      connection with the registration of the Shares, Company shall:

     

    (i) prepare
      promptly and file with the SEC the Registration Statement provided in
Section 1(a)
      with
      respect to the Shares and thereafter to use reasonable commercial efforts to
      cause such Registration Statement relating to the Shares to become effective
      as
      soon as possible after such filing, and keep the Registration Statement
      effective at all times until two (2) years from the Expiration Date (the
“Registration
      Period”);
      submit to the SEC, within three (3) Business Days after Company learns that
      no
      review of the Registration Statement will be made by the staff of the SEC or
      the
      staff of the SEC has no further comments on the Registration Statement, as
      the
      case may be, a request for acceleration of the effectiveness of the Registration
      Statement to a time and date not later than forty-eight (48) hours after the
      submission of such request; notify the Holders of the effectiveness of the
      Registration Statement on the date the Registration Statement is declared
      effective; and, Company represents and warrants to, and covenants and agrees
      with the Holders that the Registration Statement (including any amendments
      or
      supplements thereto and prospectuses contained therein, at the time it is first
      filed with the SEC, at the time it is ordered effective by the SEC and at all
      times during which it is required to be effective hereunder) and each such
      amendment and supplement at the time it is filed with the SEC and all times
      during which it is available for use in connection with the offer and sale
      of
      Shares shall not contain any untrue statement of a material fact or omit to
      state a material fact required to be stated therein, or necessary to make the
      statements therein, in light of the circumstances in which they were made,
      not
      misleading;

     

    (ii) prepare
      and file with the SEC such amendments (including post-effective amendments)
      and
      supplements to the Registration Statement and the prospectus used in connection
      with the Registration Statement as may be necessary to keep the Registration
      Statement effective at all times during the Registration Period, and during
      the
      Registration Period, comply with the provisions of the Securities Act with
      respect to the disposition of all Shares covered by the Registration Statement
      until such time as all of such Shares have been disposed of in accordance with
      the intended methods of disposition by the Holders as set forth in the
      Registration Statement;

    
       

      
        
           

        

        
          
            Attachment
              B to Securities
              Purchase Agreement

            Page
              2
of
              9

          

          
            

          

        

        
           

        

      

       

    

    (iii) furnish
      to the Holders (A) promptly after the same is prepared and publicly
      distributed, filed with the SEC or received by Company, one (1) copy of the
      Registration Statement and any amendment thereto, each preliminary prospectus
      and prospectus and each amendment or supplement thereto, each letter written
      by
      or on behalf of Company to the SEC or the staff of the SEC and each item of
      correspondence from the SEC or the staff of the SEC relating to such
      Registration Statement (other than any portion of any thereof which contains
      information for which Company has sought confidential treatment) and
      (B) such number of copies of a prospectus, including a preliminary
      prospectus and all amendments and supplements thereto and such other documents,
      as any Holder reasonably may request in order to facilitate the disposition
      of
      the Shares;

     

    (iv) use
      reasonable commercial efforts to register and qualify the Shares covered by
      the
      Registration Statement under such securities or blue sky laws of such
      jurisdictions as the Holders of at least sixty-six and two-thirds percent
      (662/3%)
      of the
      Registrable Securities being offered reasonably request and use reasonable
      efforts to (A) prepare and file in those jurisdictions such amendments
      (including post-effective amendments) and supplements to such registrations
      and
      qualifications as may be necessary to maintain the effectiveness thereof at
      all
      times until the end of the Registration Period, (B) take such other actions
      as may be necessary to maintain such registrations and qualifications in effect
      at all times during the Registration Period and (C) take all other actions
      reasonably necessary or advisable to qualify the Shares for sale in such
      jurisdictions; provided, however, that Company shall not be required in
      connection therewith or as a condition thereto (A) to qualify to do
      business in any jurisdiction where it would not otherwise be required to qualify
      but for this Section 1(c)(iv),
      (B) to subject itself to general taxation in any such jurisdiction,
      (C) to file a general consent to service of process in any such
      jurisdiction or (D) to make any change in its Articles of Incorporation or
      Bylaws which the Board of Directors of Company determines to be contrary to
      the
      best interests of Company and its stockholders;

     

    (v) as
      promptly as practicable after becoming aware of such event or circumstance,
      notify the Holders of any event or circumstance of which Company has knowledge,
      as a result of which the prospectus included in the Registration Statement,
      as
      then in effect, includes an untrue statement of a material fact or omits to
      state a material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading, and use its reasonable commercial efforts promptly to prepare
      a
      supplement or amendment to the Registration Statement to correct such untrue
      statement or omission, file such supplement or amendment with the SEC at such
      time as shall permit the Holders to sell Shares pursuant to the Registration
      Statement as promptly as practicable, and deliver a number of copies of such
      supplement or amendment to any Holder as such Holder may reasonably
      request;

    
       

      
        
           

        

        
          
            Attachment
              B to Securities
              Purchase Agreement

            Page
              3
of
              9

          

          
            

          

        

        
           

        

      

       

    

    (vi) as
      promptly as practicable after becoming aware of such event, notify the Holders
      (or, in the event of an underwritten offering the managing underwriters) of
      the
      issuance by the SEC of any stop order or other suspension of effectiveness
      of
      the Registration Statement at the earliest possible time;

     

    (vii) permit
      one legal counsel designated by the Holders of at least sixty-six and two-thirds
      percent (662/3%)
      of the
      Registrable Securities being sold to review and comment on the Registration
      Statement and all amendments and supplements thereto a reasonable period of
      time
      prior to their filing with the SEC and to pay the reasonable fees and costs
      incurred by such counsel;

     

    (viii) make
      generally available to its security holders as soon as practical, but not later
      than ninety (90) days after the close of the period covered thereby, an earnings
      statement (in form complying with the provisions of Rule 158 under the
      Securities Act) covering a twelve (12) month period beginning not later than
      the
      first day of Company’s fiscal quarter next following the effective date of the
      Registration Statement;

     

    (ix) during
      the period Company is required to maintain effectiveness of the Registration
      Statement pursuant to Section 1(c)(i),
      Company
      shall not bid for or purchase any Common Stock or other securities or any right
      to purchase Common Stock or other securities or attempt to induce any person
      to
      purchase any such security or right if such bid, purchase or attempt would
      in
      any way limit the right of the Holders to sell Shares by reason of the
      limitations set forth in Regulation M under the Securities Exchange Act of
      1934,
      as amended (the “Exchange
      Act”);
      and

     

    (x) take
      all
      other reasonable actions necessary to expedite and facilitate disposition by
      the
      Holders of the Shares pursuant to the Registration Statement.

     

    (d) Obligations
      of the Holders.
      In
      connection with the registration of the Shares, the Holders shall have the
      following obligations:

     

    (i) it
      shall
      be a condition precedent to the obligations of Company to complete the
      registration pursuant hereto with respect to any Holder’s Shares that the Holder
      shall furnish to Company such information regarding Holder, the Shares held
      by
      Holder and the intended method of disposition of the Shares held by Holder
      as
      shall be reasonably required to effect the registration of such Shares and
      shall
      execute such documents in connection with such registration as Company may
      reasonably request. At least ten (10) days prior to the first anticipated filing
      date of the Registration Statement, Company shall notify the Holders of the
      information Company requires from each Holder (the “Requested
      Information”)
      if any
      of such Holder’s Shares are eligible for inclusion in the Registration
      Statement. If at least two (2) Business Days prior to the filing date Company
      has not received the Requested Information from any such Holder (at such time
      Holder becoming a “Non-Responsive
      Holder”),
      then
      Company may file the Registration Statement without including the Non-Responsive
      Holder’s Shares but shall not be relieved of its obligation to file a
      Registration Statement with the SEC relating to the Shares of Non-Responsive
      Holder promptly after Non-Responsive Holder provides the Requested
      Information;

    
       

      
        
           

        

        
          
            Attachment
              B to Securities
              Purchase Agreement

            Page
              4
of
              9

          

          
            

          

        

        
           

        

      

       

    

    (ii) by
      purchasing or accepting an assignment of the Preferred
      Shares
      or
      Shares, each Holder agrees to cooperate with Company as reasonably requested
      by
      Company in connection with the preparation and filing of the Registration
      Statement for the Registrable Securities, unless such Holder has notified
      Company in writing of such Holder’s election to exclude all of Holder’s Shares
      from the Registration Statement;

     

    (iii) in
      the
      event Holders of at least sixty-six and two-thirds percent (662/3%)
      of the
      Registrable Securities being registered determine to engage the services of
      an
      underwriter, each Holder agrees to enter into and perform such Holder’s
      obligations under an underwriting agreement, in usual and customary form,
      including, without limitation, customary indemnification and contribution
      obligations, with the managing underwriter of such offering and take such other
      actions as are reasonably required in order to expedite or facilitate the
      disposition of Shares, unless such Holder has notified Company in writing of
      the
      Holder’s election to exclude all of Holder’s Shares from the Registration
      Statement;

     

    (iv) each
      Holder agrees that, upon receipt of any notice from Company of the happening
      of
      any event of the kind described in Section
      1(c)(v),
      Holder
      will immediately discontinue disposition of Shares pursuant to the Registration
      Statement covering such Shares until Holder’s receipt of the copies of the
      supplemented or amended prospectus contemplated by Section
      1(c)(v)
      and, if
      so directed by Company, Holder shall deliver to Company (at the expense of
      Company) or destroy (and deliver to Company a certificate of destruction) all
      copies in such Holder’s possession of the prospectus covering such Shares
      current at the time of receipt of such notice; 

     

    (v) Holders
      may not participate in any underwritten registration hereunder unless the Holder
      (A) agrees to sell Holder’s Shares on the basis provided in any
      underwriting arrangements approved by the Holders entitled hereunder to approve
      such arrangements, (B) completes and executes all questionnaires, powers of
      attorney, indemnities, underwriting agreements and other documents reasonably
      required under the terms of such underwriting arrangements and (C) agrees
      to pay its pro rata share of all underwriting discounts and commissions and
      other fees and expenses of investment bankers and any manager or managers of
      such underwriting and legal expenses to the underwriters applicable with respect
      to its Shares, in each case to the extent not payable by Company pursuant to
      the
      terms of this Agreement; and

     

    (vi) each
      Holder agrees to take all reasonable actions necessary to comply with the
      prospectus delivery requirements of the Securities Act applicable to its sales
      of Shares.

     

    (e) Expenses
      of Registration.
      All
      costs and expenses, other than underwriting or brokerage discounts, commissions
      and other fees related to the distribution of the Registrable Securities,
      incurred in connection with registrations, filings or qualifications for sale
      of
      the Registrable Securities, including, without limitation, all registration,
      listing and qualifications fees, printers and accounting fees and the fees
      and
      disbursement of counsel for Company shall be borne by Company, provided,
      however, that Company shall bear the fees and out-of-pocket expenses of the
      one
      legal counsel selected by the Holders pursuant to Section 1(c)(vii)
      hereof.

    
       

      
        
           

        

        
          
            Attachment
              B to Securities
              Purchase Agreement

            Page
              5
of
              9

          

          
            

          

        

        
           

        

      

       

    

    (f) Indemnification.
      In the
      event any Shares are included in a Registration Statement under this
      Agreement:

     

    (i) To
      the
      extent permitted by law, Company will indemnify and hold harmless the Holders,
      the directors, if any, of Holders, the officers, if any, of Holders, each
      person, if any, who controls Holders within the meaning of the Securities Act
      or
      the Exchange Act, any underwriter (as defined in the Securities Act) for
      Holders, the directors, if any, of such underwriter and the officers, if any,
      of
      such underwriter, and each person, if any, who controls any such underwriter
      within the meaning of the Securities Act or the Exchange Act (each, an
“Indemnified
      Person”),
      against any losses, claims, damages, liabilities or expenses (joint or several)
      incurred (collectively, “Claims”)
      to
      which any of them may become subject under the Securities Act, the Exchange
      Act
      or otherwise, insofar as such Claims (or actions or proceedings, whether
      commenced or threatened, in respect thereof) arise out of or are based upon
      any
      of the following statements, omissions or violations in the Registration
      Statement or any post-effective amendment thereof, or any prospectus included
      therein: (A) any untrue statement or alleged untrue statement of a material
      fact contained in the Registration Statement or any post-effective amendment
      thereof or the omission or alleged omission to state therein a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading, (B) any untrue statement or alleged untrue statement of a
      material fact contained in any preliminary prospectus if used prior to the
      effective date of such Registration Statement, or contained in the final
      prospectus (as amended or supplemented, if Company files any amendment thereof
      or supplement thereto with the SEC) or the omission or alleged omission to
      state
      therein any material fact necessary to make the statements made therein, in
      light of the circumstances under which the statements therein were made, not
      misleading or (C) any violation or alleged violation by Company of the
      Securities Act, the Exchange Act, any state securities law or any rule or
      regulation under the Securities Act, the Exchange Act or any state securities
      law (the matters in the foregoing clauses (A) through (C) being, collectively,
      “Violations.”)
      Subject to the restrictions set forth in Section 1(f)(v)
      with
      respect to the number of legal counsel, Company shall reimburse Holders and
      the
      other Indemnified Persons, promptly as such expenses are incurred and are due
      and payable, for any legal fees or other reasonable expenses incurred by them
      in
      connection with investigating or defending any such Claim. Notwithstanding
      anything to the contrary contained herein, the indemnification agreement
      contained in this Section 1(f)(i):
      (A) shall not apply to a Claim arising out of or based upon a Violation
      which occurs in reliance upon and in conformity with information furnished
      in
      writing to Company by any Indemnified Person or underwriter for such Indemnified
      Person expressly for use in connection with the preparation of the Registration
      Statement, the prospectus or any such amendment thereof or supplement thereto,
      if such prospectus was timely made available by Company pursuant to Section 1(c)(iii)
      hereof;
      (B) with respect to any preliminary prospectus shall not inure to the
      benefit of any Indemnified Person if the untrue statement or omission of
      material fact contained in the preliminary prospectus was corrected in the
      prospectus, as then amended or supplemented, if such prospectus was timely
      made
      available by Company pursuant to Section 1(c)(iii)
      hereof,
      and (C) shall not apply to amounts paid in settlement of any Claim if such
      settlement is effected without the prior written consent of Company, which
      consent shall not be unreasonably withheld. Such indemnity shall remain in
      full
      force and effect regardless of any investigation made by or on behalf of the
      Indemnified Person and shall survive the transfer of the Shares by
      Holders.

    
       

      
        
           

        

        
          
            Attachment
              B to Securities
              Purchase Agreement

            Page
              6
of
              9

          

          
            

          

        

        
           

        

      

       

    

    (ii) In
      connection with any Registration Statement in which a Holder is participating,
      each Holder agrees to indemnify and hold harmless, to the same extent and in
      the
      same manner set forth in Section 1(f)(i),
      Company, each of its directors, each of its officers who signs the Registration
      Statement, each person on, if any, who controls Company within the meaning
      of
      the Securities Act or the Exchange Act, any underwriter and any other
      stockholder selling securities pursuant to the Registration Statement or any
      of
      its directors or officers or any person who controls such stockholder or
      underwriter within the meaning of the Securities Act or the Exchange Act
      (collectively and together with an Indemnified Person, an “Indemnified
      Party”),
      against any Claim to which any of them may become subject, under the Securities
      Act, the Exchange Act or otherwise, insofar as such Claim arises out of or
      is
      based upon any Violation, in each case to the extent (and only to the extent)
      that such Violation occurs in reliance upon and in conformity with written
      information furnished to Company by such Holder expressly for use in connection
      with such Registration Statement, and such Holder will reimburse any legal
      or
      other expenses reasonably incurred by any Indemnified Party, promptly as such
      expenses are incurred and are due and payable, in connection with investigating
      or defending any such Claim; provided, however, that the indemnity agreement
      contained in this Section 1(f)(ii)
      shall
      not apply to amounts paid in settlement of any Claim if such settlement is
      effected without the prior written consent of the Holder, which consent shall
      not be unreasonably withheld; provided further, however, that the Holder shall
      be liable under this Section 1(f)(ii)
      for only
      that amount of a Claim as does not exceed the amount by which the net proceeds
      to the Holder from the sale of Shares pursuant to such Registration Statement
      exceeds the cost of such Shares to the Holder. Such indemnity shall remain
      in
      full force and effect regardless of any investigation made by or on behalf
      of
      such Indemnified Party and shall survive the transfer of the Shares by the
      Holder. Notwithstanding anything to the contrary contained herein, the
      indemnification agreement contained in this Section 1(f)(ii)
      with
      respect to any preliminary prospectus shall not inure to the benefit of any
      Indemnified Party if the untrue statement or omission of material fact contained
      in the preliminary prospectus was corrected on a timely basis in the prospectus,
      as then amended or supplemented. 

     

    (iii) If
      the
      indemnification provided to any Indemnified Party by Section
      1(f)(i) is
      for
      any reason (other than the bad faith, willful misconduct or gross negligence
      of
      such Indemnified Party) not available or insufficient to hold an Indemnified
      Party harmless, Company will contribute to the Losses involved in such
      proportion as is appropriate to reflect the relative benefits received (or
      anticipated to be received) by Company, on the one hand, and by the Indemnified
      Party, on the other hand, with respect to the transaction or, if such allocation
      is determined by a court or arbitral tribunal to be unavailable, in such
      proportion as is appropriate to reflect other equitable considerations such
      as
      the relative fault of Company on the one hand and of the Indemnified Party
      on
      the other hand; provided, however, that, to the extent permitted by applicable
      law, the Indemnified Parties shall not be responsible for amounts which in
      the
      aggregate are in excess of the amount of all benefits actually received by
      the
      Indemnified Party from the ownership and sale of the Shares. 

    
       

      
        
           

        

        
          
            Attachment
              B to Securities
              Purchase Agreement

            Page
              7
of
              9

          

          
            

          

        

        
           

        

      

       

    

    (iv) Company
      shall be entitled to receive indemnities from underwriters, selling brokers,
      dealer managers and similar securities industry professionals participating
      in
      any distribution, to the same extent as provided above, with respect to
      information so furnished in writing by such persons expressly for inclusion
      in
      the Registration Statement.

     

    (v) Promptly
      after receipt by an Indemnified Person or Indemnified Party under this
Section 1(f)
      of
      notice of the commencement of any action (including any governmental action),
      such Indemnified Person or Indemnified Party shall, if a Claim in respect
      thereof is to be made against any indemnifying party under this Section 1(f),
      deliver
      to the indemnifying party a written notice of the commencement thereof and
      the
      indemnifying party shall have the right to participate in, and, to the extent
      the indemnifying party so desires, jointly with any other indemnifying party
      similarly noticed, to assume control of the defense thereof with counsel
      selected by the indemnifying party but reasonably acceptable to the Indemnified
      Person or the Indemnified Party, as the case may be; provided, however, that
      an
      Indemnified Person or Indemnified Party shall have the right to retain its
      own
      counsel with the fees and expenses to be paid by the indemnifying party, if,
      in
      the reasonable opinion of counsel retained by the indemnifying party, the
      representation by such counsel of the Indemnified Person or Indemnified Party
      and the indemnifying party would be inappropriate due to actual or potential
      differing interests between such Indemnified Person or Indemnified Party and
      any
      other party represented by such counsel in such proceeding. In such event,
      Company shall pay for only one separate legal counsel for the Holders; such
      legal counsel shall be selected by the Holders of at least sixty-six and
      two-thirds percent (662/3%)
      of the
      Registrable Securities included in the Registration Statement to which the
      Claim
      relates. The failure to deliver written notice to the indemnifying party within
      a reasonable time of the commencement of any such action shall not relieve
      such
      indemnifying party of any liability to the Indemnified Person or Indemnified
      Party under this Section
      1(f),
      except
      to the extent that the indemnifying party is prejudiced in its ability to defend
      such action. The indemnification required by Section
      1(f)
      shall be
      made by periodic payments of the amount thereof during the course of the
      investigation or defense, as such expense, loss, damage or liability is incurred
      and is due and payable.

     

    2. The
      agreements, representations and warranties of Company and the Holders set forth
      or provided in Section
      1
      shall
      survive the execution and delivery of the SPA and payment for the Registrable
      Securities under the SPA and shall remain in full force and effect, regardless
      of any investigation made by or on behalf of Company and the
      Holder.

     

    3. In
      the
      SPA, Company agrees to make all reasonable commercial efforts to cause the
      Registration Statement to be filed within ninety (90) days following the Closing
      Date and to cause such Registration Statement to become effective as soon as
      practicable thereafter. Such obligation is subject to the receipt of a demand
      for such registration from the requisite number of Holders or from the Placement
      Agent as their agent hereunder. The Holders further agree that, so long as
      Company proceeds in good faith, it shall not be liable for any financial penalty
      or monetary damages resulting from its failure to cause such filing or
      effectiveness to occur by the times specified.

     

    4. This
      Attachment
      B
      is
      incorporated by reference into the SPA and its terms made a part thereof.

    
       

      
        
           

        

        
          
            Attachment
              B to Securities
              Purchase Agreement

            Page
              8
of
              9

          

          
            

          

        

        
           

        

      

       

    

    Exhibit
      1 to Registration Rights Agreement

    

    

    LIST
      OF PURCHASERS

    

    

     

     

     

     

     

    
      
         

      

      
        
          Attachment
            B to Securities
            Purchase Agreement

          Page
            9
of
            9

        

        
          

        

      

      
         

      

    

    ATTACHMENT
      C

    

    Accredited
      Investor and NASD Affiliation

     

    Representations

     

    

     

    As
      provided by Rule 501(a) of Regulation D, my representation that I am or
      represent an accredited investor is based upon one of the following grounds
      that
      I am or represent (please check one):

     

    
      	 	o	
              A
                private business development Company as defined in Section 202(a)(22)
                of
                the Investment Advisors Act of
                1940;

            

    

     

    
      	 	o	
              An
                organization described in Section 501(c)(3) of the Internal Revenue
                Code,
                corporation, Massachusetts or similar business trust, or partnership,
                not
                formed for the specific purpose of acquiring the securities offered,
                with
                total assets in excess of Five Million Dollars
                ($5,000,000);

            

    

     

    
      	 	o	
              A
                director or executive officer of
                Company;

            

    

     

    
      	 	o	
              A
                natural person whose individual net worth, or joint net worth with
                that
                person’s spouse, exceeds One Million Dollars
                ($1,000,000);

            

    

     

    
      	 	o	
              A
                natural person who has an individual income in excess of Two Hundred
                Thousand Dollars ($200,000) in each of the two (2) most recent years
                and
                has a reasonable expectation of reaching the same income level in
                the
                current year; 

            

    

     

    
      	 	o	
              A
                natural person who has a joint income with that person’s spouse in excess
                of Three Hundred Thousand Dollars ($300,000) in each of the two (2)
                most
                recent years and has a reasonable expectation of reaching the same
                income
                level in the current year; 

            

    

     

    
      	 	o	
              A
                trust, with total assets in excess of Five Million Dollars ($5,000,000),
                not formed for the specific purpose of acquiring the securities offered,
                whose purchase is directed by a sophisticated person as defined by
                Rule
                506(b)(2)(ii) of the Securities Act; or 

            

      	 	 	 

      	 	o	An entity in which all of the equity owners are
              accredited investors.

    

     

    AFFILIATION
      WITH A U. S. REGISTERED BROKER-DEALER:

     

    Are
      you
      associated with an NASD member firm? (Please check one)

     

    YES
      _______  NO
      _______

     

    
      
         

      

      
        
          Attachment
            C to Securities
            Purchase Agreement

          Page
            1
of
            2

        

        
          

        

      

      
         

      

    

     

    (1)
      The
      NASD defines a “person associated with a member” or “associated person of a
      member” as being every sole proprietor, general or limited partner, officer,
      director or branch manager of any member, or any natural person occupying a
      similar status or performing similar functions, or any natural person engaged
      in
      the investment banking or securities business who is directly or indirectly
      controlling or controlled by such member (for example, any employee), whether
      or
      not any such person is registered or exempt from registration with the NASD.
      Thus, “person associated with a member” or “associated person of a member”
includes a sole proprietor, general or limited partner, officer, director or
      branch manager of an organization of any kind (whether a corporation,
      partnership or other business entity) which itself is either a “member” or a
“person associated with a member” or “associated person of a member.” In
      addition, an organization of any kind is a “person associated with a member” or
“associated person of a member” if its sole proprietor or any one of its general
      or limited partners, officers, directors or branch managers is a “member,”
“person associated with a member” or “associated person of a
      member.”

     

    (2)
      The
      NASD defines a “member” as being any individual, partnership, corporation or
      other legal entity that is a broker or dealer admitted to membership in the
      NASD.

     

    IF
      PURCHASER IS ASSOCIATED WITH AN NASD MEMBER FIRM, THE FOLLOWING ACKNOWLEDGMENT,
      OR A SUBSTANTIALLY IDENTICAL ACKNOWLEDGMENT, MUST BE SIGNED AND SUBMITTED BEFORE
      PURCHASER’S OFFER TO PURCHASE UNITS WILL BE ACCEPTED BY
      COMPANY:

     

    The
      undersigned NASD member firm acknowledges receipt of the notice required by
      Rule
      3050 of the NASD Conduct Rules or any successor rules or
      regulations.

     

    
      	
              NAME
                OF NASD MEMBER FIRM:

               

            
	
              __________________________________

            
	
              BY:______________________________

            
	
              NAME:____________________________

            
	
              TITLE:_____________________________

            

    

    

     

    I
      hereby
      declare that the foregoing representations concerning my qualifications as
      an
      accredited investor and my affiliations, if any, with any NASD member firm,
      are
      accurate and complete.

     

    
      	
              INDIVIDUAL:

            	
              ENTITY:

            
	
              __________________________________

            	
              ___________________________________

            
	
              Print
                Name: ________________________

            	
              By:
                ________________________________

            
	 	
              Print
                Name: _________________________

            
	 	
              Title:
                ______________________________

            

    

    

    

    
      
         

      

      
        
          Attachment
            C to Securities
            Purchase Agreement

          Page
            2
of
            2Exhibit
      10.1

    SPLIT-OFF
      AGREEMENT

    

    This
      SPLIT-OFF AGREEMENT,
      dated
      as of August 15, 2008 (this “Agreement”), is entered into by and among La Cortez
      Energy, Inc. (formerly known as La Cortez Enterprises, Inc.), a Nevada
      corporation (“Seller”), De La Luz Gourmet Chocolates, Inc., Inc., a Nevada
      corporation (“Split-Off Subsidiary”), and Maria de la Luz (the
“Buyer”).

     

    R
      E C I T A L S:

    

    WHEREAS, Seller
      was formed to create, market and sell gourmet chocolates wholesale and retail
      throughout Mexico, as more fully described in the Seller’s registration
      statement on Form SB-2 as filed with the Securities and Exchange Commission
      (the
“SEC”) on November 7, 2006 (the “Legacy Business”); 

    

    WHEREAS,
      Seller
      discontinued the Legacy Business and decided to redirect its business focus
      towards identifying and pursuing opportunities in the energy sector in South
      America (the “New Business”);

    

    WHEREAS, Seller
      is
      the owner of all of the issued and outstanding capital stock of Split-Off
      Subsidiary; and Split-Off Subsidiary is a wholly-owned subsidiary of Seller
      which, pursuant to this Agreement, will acquire the assets and liabilities
      relating to the Legacy Business;

    

    WHEREAS,
      Buyer
      desires to purchase the Shares (as defined in Section
      2.1)
      from
      Seller, and to assume, as between Seller and Buyer, all responsibility for
      any
      debts, obligations and liabilities of Seller and Split-Off Subsidiary relating
      to the Legacy Business, on the terms and subject to the conditions specified
      in
      this Agreement; and

    

    WHEREAS,
      Seller
      desires to sell and transfer the Shares to the Buyer, on the terms and subject
      to the conditions specified in this Agreement.

    

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

    

    
      	I.	
              ASSIGNMENT
                AND ASSUMPTION OF SELLER’S ASSETS AND LIABILITIES. 

            

    

     

    Subject
      to the terms and conditions provided below:

     

    1.1 Assignment
      of Assets.
      Seller
      hereby contributes, assigns, conveys and transfers to Split-Off Subsidiary,
      and
      Split-Off Subsidiary hereby receives, acquires and accepts, all assets and
      properties of Seller relating
      to the Legacy Business,
      if any,
      including but not limited to the following:

     

    
      	 	
              (a)

            	
              All
                inventories of raw materials, work in process, parts, supplies and
                finished products;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              all
                of Seller’s rights, title and interests in, to and under all contracts,
                agreements, leases, licenses (including software licenses), supply
                agreements, consulting agreements, commitments, purchase orders,
                customer
                orders and work orders, and including all of Seller’s rights thereunder to
                use and possess equipment provided by third parties, and all
                representations, warranties, covenants and guarantees related to
                the
                foregoing (provided that to the extent any of the foregoing or any
                claim
                or right or benefit arising thereunder or resulting therefrom is
                not
                assignable by its terms, or the assignment thereof shall require
                the
                consent or approval of another party thereto, this Agreement shall
                not
                constitute an assignment thereof if an attempted assignment would
                be in
                violation of the terms thereof or if such consent is not obtained
                prior to
                the date hereof, and in lieu thereof Seller shall reasonably cooperate
                with Split-Off Subsidiary in any reasonable arrangement designed
                to
                provide Split-Off Subsidiary the benefits thereunder or any claim
                or right
                arising thereunder);

            

    

     

    
      	 	
              (c)

            	
              all
                intellectual property, including but not limited to issued patents,
                patent
                applications (whether or not patents are issued thereon and whether
                modified, withdrawn or resubmitted), unpatented inventions, product
                designs, copyrights (whether registered or unregistered), know-how,
                technology, trade secrets, technical information, notebooks, drawings,
                software, computer coding (both object and source) and all documentation,
                manuals and drawings related thereto, trademarks or service marks
                and
                applications therefor, unregistered trademarks or service marks,
                trade
                names, logos and icons and all rights to sue or recover for the
                infringement or misappropriation
                thereof;

            

    

     

    
      	 	
              (d)

            	
              all
                fixed assets, including but not limited to the machinery, equipment,
                furniture, vehicles, office equipment and other tangible personal
                property
                owned or leased by Seller;

            

    

     

    
      	 	
              (e)

            	
              all
                customer lists, business records, customer records and files, customer
                financial re-cords, and all other files and information related to
                customers, all customer proposals, all open service agreements with
                customers and all uncompleted customer contracts and agreements;
                and

            

    

     

    
      	 	
              (f)

            	
              to
                the extent legally assignable, all licenses, permits, certificates,
                approvals and authorizations issued by Governmental Entities and
                necessary
                to own, lease or operate the assets and properties of the Seller
                relating
                to the Legacy Business and to conduct the Seller’s Legacy Business as it
                is presently conducted;

            

    

     

    but
      excluding
      in all cases (i) the right, title and assets of Seller relating to the New
      Business, (ii) the capital stock of Split-Off Subsidiary, (iii) all cash and
      cash equivalents and (iv) all accounts receivable
      (all of
      the foregoing being referred to herein as the “Assigned Assets”). 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    1.2 Assignment
      and Assumption of Liabilities. Seller
      hereby assigns to Split-Off Subsidiary, and Split-Off Subsidiary hereby assumes
      and agrees to pay, honor and discharge all debts, adverse claims, liabilities,
      judgments and obligations of Seller relating to the Legacy Business, whether
      accrued, contingent or otherwise and whether known or unknown, including those
      arising under any law (including the common law) or any rule or regulation
      of
      any Governmental Entity or imposed by any court or any arbitrator in a binding
      arbitration resulting from, arising out of or relating to the assets,
      activities, operations, actions or omissions relating to the Lagacy Business
      of
      the Seller, or pro-ducts manufactured or sold thereby or services provided
      thereby, or under contracts, agreements (whether written or oral), leases,
      commitments or undertakings thereof, but
      excluding
      in all cases the obligations of Seller relating to the New
      Business
      (all of
      the foregoing being referred to herein as the “Assigned
      Liabilities”).

     

    The
      assignment and assumption of Seller’s assets and liabilities provided for in
      this Article
      I
      is
      referred to as the “Assignment.”

    

    
      II.
        PURCHASE
        AND SALE OF STOCK.

    

     

    2.1 Purchased
      Shares.
      Subject
      to the terms and conditions provided below, Seller shall sell and transfer
      to
      Buyer and Buyer shall purchase from Seller, on the Closing Date (as defined
      in
Section
      3.1),
      all of
      the issued and outstanding shares of capital stock of Split-Off Subsidiary
      (the
“Shares”).

     

    2.2 Purchase
      Price.
      The
      purchase price for the Shares shall be the transfer and delivery by the Buyer
      to
      Seller of the type and number of shares of common stock and other securities
      of
      Seller that Buyer owns (the “Purchase Price Securities”), as set forth in
      Exhibit A attached hereto, deliverable as provided in Section
      3.3.
      

     

    
      III.
        CLOSING.

    

     

    3.1 Closing.
      The
      closing of the transactions contemplated in this Agreement (the “Closing”) shall
      take place as soon as practicable following the execution of this Agreement.
      The
      date on which the Closing occurs shall be referred to herein as the “Closing
      Date.”

     

    3.2 Transfer
      of Shares.
      At the
      Closing, Seller shall deliver to Buyer certificates representing the Shares
      purchased by Buyer, duly endorsed to Buyer or as directed by Buyer, which
      delivery shall vest Buyer with good and marketable title to such Shares, free
      and clear of all liens and encumbrances.

     

    3.3 Payment
      of Purchase Price.
      At the
      Closing, Buyer shall deliver to Seller a certificate or certificates
      representing that portion of the Buyer’s Purchase Price Securities not
      previously delivered to Seller, duly endorsed to Seller, which delivery shall
      vest Seller with good and marketable title to the Purchase Price Securities,
      free and clear of all liens and encumbrances.

     

    3.4 Transfer
      of Records.
      On or
      before the Closing, Seller shall transfer to Split-Off Subsidiary all existing
      corporate books and records in Seller’s possession relating to Split-Off
      Subsidiary and its business, including but not limited to all agreements,
      litigation files, real estate files, personnel files and filings with
      governmental agencies, if any; provided,
      however,
      when
      any such documents relate to both Seller and Split-Off Subsidiary, only copies
      of such documents need be furnished. On or before the Closing, Buyer and
      Split-Off Subsidiary shall transfer to Seller all existing corporate books
      and
      records in the possession of Buyer or Split-Off Subsidiary relating to Seller,
      including but not limited to all corporate minute books, stock ledgers,
      certificates and corporate seals of Seller and all agreements, litigation files,
      real property files, personnel files and filings with governmental agencies;
      provided,
      however,
      when
      any such documents relate to both Seller and Split-Off Subsidiary or its
      business, only copies of such documents need be furnished.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    3.5 Instruments
      of Assignment.
      At the
      Closing, Seller and Split-Off Subsidiary shall deliver to each other such
      instruments providing for the Assignment as the other may reasonably request
      (the “the Instruments of Assignment”).

     

    
      IV.
        BUYER’S
        REPRESENTATIONS AND WARRANTIES.
        Buyer
        represents and warrants to Seller that:

    

     

    4.1 Capacity
      and Enforceability.
      Buyer
      has the legal capacity to execute and deliver this Agreement and the documents
      to be executed and delivered by Buyer at the Closing pursuant to the
      transactions contemplated hereby. This Agreement and all such documents
      constitute valid and binding agreements of Buyer, enforceable in accordance
      with
      their terms.

     

    4.2 Compliance.
      Neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby by Buyer will result in the breach of any
      term
      or provision of, or constitute a default under, or violate any agreement,
      indenture, instrument, order, law or regulation to which Buyer is a party or
      by
      which Buyer is bound.

     

    4.3 Purchase
      for Investment.
      Buyer
      is financially able to bear the economic risks of acquiring the Shares and
      the
      other transactions contemplated hereby, and has no need for liquidity in his
      investment in the Shares. Buyer has such knowledge and experience in financial
      and business matters in general, and with respect to businesses of a nature
      similar to the business of Split-Off Subsidiary (after giving effect to the
      Assignment), so as to be capable of evaluating the merits and risks of, and
      making an informed business decision with regard to, the acquisition of the
      Shares and the other transactions contemplated hereby. Buyer is acquiring the
      Shares solely for his own account and not with a view to or for resale in
      connection with any distribution or public offering thereof, within the meaning
      of any applicable securities laws and regulations, unless such distribution
      or
      offering is registered under the Securities Act of 1933, as amended (the
“Securities Act”), or an exemption from such registration is available. Buyer
      has (i) received all the information she has deemed necessary to make an
      informed decision with respect to the acquisition of the Shares and the other
      transactions contemplated hereby; (ii) had an opportunity to make such
      investigation as she has desired pertaining to Split-Off Subsidiary (after
      giving effect to the Assignment) and the acquisition of an interest therein
      and
      the other transactions contemplated hereby, and to verify the information which
      is, and has been, made available to her; and (iii) had the opportunity to
      ask questions of Seller concerning Split-Off Subsidiary (after giving effect
      to
      the Assignment). Buyer acknowledges that Buyer was a director and officer of
      Seller and,
      as
      such, has actual knowledge of the business, operations and financial affairs
      of
      Split-Off Subsidiary (after giving effect to the Assignment). Buyer has received
      no public solicitation or advertisement with respect to the offer or sale of
      the
      Shares. Buyer realizes that the Shares are “restricted securities” as that term
      is defined in Rule 144 promulgated by the SEC under the Securities Act, the
      resale of the Shares is restricted by federal and state securities laws and,
      accordingly, the Shares must be held indefinitely unless their resale is
      subsequently registered under the Securities Act or an exemption from such
      registration is available for their resale. Buyer understands that any resale
      of
      the Shares by her must be registered under the Securities Act (and any
      applicable state securities law) or be effected in circumstances that, in the
      opinion of counsel for Split-Off Subsidiary at the time, create an exemption
      or
      otherwise do not require registration under the Securities Act (or applicable
      state securities laws). Buyer acknowledges and consents that certificates now
      or
      hereafter issued for the Shares will bear a legend substantially as
      follows:

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR QUALIFIED UNDER
      ANY APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”), HAVE BEEN ACQUIRED FOR
      INVESTMENT AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED
      EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
      QUALIFICATION UNDER THE STATE ACTS OR PURSUANT TO EXEMPTIONS FROM SUCH
      REGISTRATION OR QUALIFICATION REQUIREMENTS (INCLUDING, IN THE CASE OF THE
      SECURITIES ACT, THE EXEMPTIONS AFFORDED BY SECTION 4(1) OF THE SECURITIES ACT
      AND RULE 144 THEREUNDER). AS A PRECONDITION TO ANY SUCH TRANSFER, THE ISSUER
      OF
      THESE SECURITIES SHALL BE FURNISHED WITH AN OPINION OF COUNSEL OPINING AS TO
      THE
      AVAILABILITY OF EXEMPTIONS FROM SUCH REGISTRATION AND QUALIFICATION AND/OR
      SUCH
      OTHER EVIDENCE AS MAY BE SATISFACTORY THERETO THAT ANY SUCH TRANSFER WILL NOT
      VIOLATE THE SECURITIES LAWS.

     

    Buyer
      understands that the Shares are being sold to her pursuant to the exemption
      from
      registration contained in Section 4(1) of the Securities Act and that the Seller
      is relying upon the representations made herein as one of the bases for claiming
      the Section 4(1) exemption. 

     

    4.4 Liabilities.
      Following the Closing, Seller will have no liability for any debts, liabilities
      or obligations of Split-Off Subsidiary or its business or activities, and there
      are no outstanding guaranties, performance or payment bonds, letters of credit
      or other contingent contractual obligations that have been undertaken by Seller
      directly or indirectly in relation to Split-Off Subsidiary or its business
      and
      that may survive the Closing. 

     

    4.5 Title
      to Purchase Price Securities.
      Buyer
      is the sole record and beneficial owner of her Purchase Price Securities. At
      Closing, Buyer will have good and marketable title to her Purchase Price
      Securities, which Purchase Price Securities are, and at the Closing will be,
      free and clear of all options, warrants, pledges, claims, liens and
      encumbrances, and any restrictions or limitations prohibiting or restricting
      transfer to Seller, except for restrictions on transfer as contemplated by
      applicable securities laws. 

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    V.
      SELLER’S
      AND SUBSIDIARY’S REPRESENTATIONS AND WARRANTIES.
      Seller
      and Split-Off Subsidiary, jointly and severally, represent and warrant to Buyer
      that: 

     

    5.1 Organization
      and Good Standing.
      Each of
      the Seller and Split-Off Subsidiary is a corporation duly incorporated, validly
      existing, and in good standing under the laws of the State of
      Nevada.

     

    5.2 Authority
      and Enforceability.
      The
      execution and delivery of this Agreement and the documents to be executed and
      delivered at the Closing pursuant to the transactions contemplated hereby,
      and
      performance in accordance with the terms hereof and thereof, have been duly
      authorized by Seller and all such documents constitute valid and binding
      agreements of Seller enforceable in accordance with their terms.

     

    5.3 Title
      to Shares.
      Seller
      is the sole record and beneficial owner of the Shares. At Closing, Seller will
      have good and marketable title to the Shares, which Shares are, and at the
      Closing will be, free and clear of all options, warrants, pledges, claims,
      liens
      and encumbrances, and any restrictions or limitations prohibiting or restricting
      transfer to Buyer, except for restrictions on transfer as contemplated by
Section
      4.3
      above.
      The Shares constitute all of the issued and outstanding shares of capital stock
      of Split-Off Subsidiary.

     

    5.4 WARN
      Act.
      Split-Off Subsidiary does not have a sufficient number of employees to make
      it
      subject to the Worker Adjustment and Retraining Notification Act. 

     

    VI.
      OBLIGATIONS
      OF BUYER PENDING CLOSING.
      Buyer
      covenants and agrees that between the date hereof and the Closing:

     

    6.1 Not
      Impair Performance.
      Buyer
      shall not take any intentional action that would cause the conditions upon
      the
      obligations of the parties hereto to effect the transactions contemplated hereby
      not to be fulfilled, including, without limitation, taking or causing to be
      taken any action that would cause the representations and warranties made by
      any
      party herein not to be true, correct and accurate as of the Closing, or in
      any
      way impairing the ability of Seller to satisfy its obligations as provided
      in
Article
      VII.

     

    6.2 Assist
      Performance.
      Buyer
      shall exercise its reasonable best efforts to cause to be fulfilled those
      conditions precedent to Seller’s obligations to consummate the transactions
      contemplated hereby which are dependent upon actions of Buyer and to make and/or
      obtain any necessary filings and consents in order to consummate the sale
      transaction contemplated by this Agreement.

     

    VII. OBLIGATIONS
      OF SELLER PENDING CLOSING.
      Seller
      covenants and agrees that between the date hereof and the Closing:

     

    7.1 Business
      as Usual.
      Split-Off Subsidiary shall operate and Seller shall cause Split-Off Subsidiary
      to operate in accordance with past practices and shall use best efforts to
      preserve its goodwill and the goodwill of its employees, customers and others
      having business dealings with Split-Off Subsidiary, if any. Without limiting
      the
      generality of the foregoing, from the date of this Agreement until the Closing
      Date, Split-Off Subsidiary shall, as applicable, (a) make all normal and
      customary repairs to its equipment, assets and facilities, (b) keep in
      force all insurance, (c) preserve in full force and effect all material
      franchises, licenses, contracts and real property interests and comply in all
      material respects with all laws and regulations, (d) collect all accounts
      receivable and pay all trade creditors in the ordinary course of business at
      intervals historically experienced, and (e) preserve and maintain Split-Off
      Subsidiary’s assets in their current operating condition and repair, ordinary
      wear and tear excepted. From the date of this Agreement until the Closing Date,
      Split-Off Subsidiary shall not (i) amend, terminate or surrender any
      material franchise, license, contract or real property interest, or
      (ii) sell or dispose of any of its assets except in the ordinary course of
      business. Neither Split-Off Subsidiary nor Buyer shall take or omit to take
      any
      action that results in Seller incurring any liability or obligation prior to
      or
      in connection with the Closing.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    7.2 Not
      Impair Performance.
      Seller
      shall not take any intentional action that would cause the conditions upon
      the
      obligations of the parties hereto to effect the transactions contemplated hereby
      not to be fulfilled, including, without limitation, taking or causing to be
      taken any action which would cause the representations and warranties made
      by
      any party herein not to be materially true, correct and accurate as of the
      Closing, or in any way impairing the ability of Buyer to satisfy her obligations
      as provided in Article
      VI.

     

    7.3 Assist
      Performance.
      Seller
      shall exercise its reasonable best efforts to cause to be fulfilled those
      conditions precedent to Buyer’s obligations to consummate the transactions
      contemplated hereby which are dependent upon the actions of Seller and to work
      with Buyer to make and/or obtain any necessary filings and consents. Seller
      shall cause Split-Off Subsidiary to comply with its obligations under this
      Agreement.

     

    VII. SELLER’S
      AND SUBSIDIARY’S CONDITIONS PRECEDENT TO CLOSING.
      The
      obligations of Seller and Split-Off Subsidiary to close the transactions
      contemplated by this Agreement are subject to the satisfaction at or prior
      to
      the Closing of each of the following conditions precedent (any or all of which
      may be waived by Seller in writing):

     

    8.1 Representations
      and Warranties; Performance.
      All
      representations and warranties of Buyer contained in this Agreement shall have
      been true and correct, in all material respects, when made and shall be true
      and
      correct, in all material respects, at and as of the Closing, with the same
      effect as though such representations and warranties were made at and as of
      the
      Closing. Buyer shall have performed and complied with all covenants and
      agreements and satisfied all conditions, in all material respects, required
      by
      this Agreement to be performed or complied with or satisfied by Buyer at or
      prior to the Closing.

     

    8.2 Additional
      Documents.
      Buyer
      shall deliver or cause to be delivered such additional documents as may be
      necessary in connection with the consummation of the transactions contemplated
      by this Agreement and the performance of their obligations
      hereunder.

     

    8.3 Release
      by Split-Off Subsidiary.
      At the
      Closing, Split-Off Subsidiary shall execute and deliver to Seller a general
      release which in substance and effect releases Seller from any and all
      liabilities and obligations that Seller may owe to Split-Off Subsidiary in
      any
      capacity, and from any and all claims that Split-Off Subsidiary may have against
      Seller or its managers, members, officers, directors, stockholders, employees
      and agents (other than those arising pursuant to this Agreement or any document
      delivered in connection with this Agreement).

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    IX. BUYER’S
      CONDITIONS PRECEDENT TO CLOSING.
      The
      obligation of Buyer to close the transactions contemplated by this Agreement
      is
      subject to the satisfaction at or prior to the Closing of each of the following
      conditions precedent (any and all of which may be waived by Buyer in
      writing):

     

    9.1 Representations
      and Warranties; Performance.
      All
      representations and warranties of Seller and Split-Off Subsidiary contained
      in
      this Agreement shall have been true and correct, in all material respects,
      when
      made and shall be true and correct, in all material respects, at and as of
      the
      Closing with the same effect as though such representations and warranties
      were
      made at and as of the Closing. Seller and Split-Off Subsidiary shall have
      performed and complied with all covenants and agreements and satisfied all
      conditions, in all material respects, required by this Agreement to be performed
      or complied with or satisfied by them at or prior to the Closing.

     

    X. OTHER
      AGREEMENTS.

     

    10.1 Expenses.
      Each
      party hereto shall bear its expenses separately incurred in connection with
      this
      Agreement and with the performance of its obligations hereunder.

     

    10.2 Confidentiality.
      The
      parties hereto shall not make any public announcements concerning this
      transaction other than in accordance with mutual agreement reached prior to
      any
      such announcement(s) and other than as may be required by applicable law or
      judicial process. If for any reason the transactions contemplated hereby are
      not
      consummated, then Buyer shall return any information received by Buyer from
      Seller or Split-Off Subsidiary, and Buyer shall cause all confidential
      information obtained by Buyer concerning Split-Off Subsidiary and its business
      to be treated as such.

     

    10.3 Brokers’
      Fees.
      In
      connection with the transaction specifically contemplated by this Agreement,
      no
      party to this Agreement has employed the services of a broker and each agrees
      to
      indemnify the other against all claims of any third parties for fees and
      commissions of any brokers claiming a fee or commission related to the
      transactions contemplated hereby.

     

    10.4 Access
      to Information Post-Closing; Cooperation. 

     

    (a) Following
      the Closing, Buyer and Split-Off Subsidiary shall afford to Seller and its
      authorized accountants, counsel and other designated representatives, reasonable
      access (and including using reasonable efforts to give access to persons or
      firms possessing information) and duplicating rights during normal business
      hours to allow records, books, contracts, instruments, computer data and other
      data and information (collectively, “Information”) within the possession or
      control of Buyer or Split-Off Subsidiary insofar as such access is reasonably
      required by Seller. Information may be requested under this Section
      10.4(a)
      for,
      without limitation, audit, accounting, claims, litigation and tax purposes,
      as
      well as for purposes of fulfilling disclosure and reporting obligations and
      performing this Agreement and the transactions contemplated hereby. No files,
      books or records of Split-Off Subsidiary existing at the Closing Date shall
      be
      destroyed by Buyer or Split-Off Subsidiary after Closing but prior to the
      expiration of any period during which such files, books or records are required
      to be maintained and preserved by applicable law without giving the Seller
      at
      least 30 days’ prior written notice, during which time Seller shall have the
      right to examine and to remove any such files, books and records prior to their
      destruction.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    (b) Following
      the Closing, Seller shall afford to Split-Off Subsidiary and its authorized
      accountants, counsel and other designated representatives reasonable access
      (including using reasonable efforts to give access to persons or firms
      possessing information) duplicating rights during normal business hours to
      Information within Seller’s possession or control relating to the business of
      Split-Off Subsidiary. Information may be requested under this Section
      10.4(b)
      for,
      without limitation, audit, accounting, claims, litigation and tax purposes
      as
      well as for purposes of fulfilling disclosure and reporting obligations and
      for
      performing this Agreement and the transactions contemplated hereby. No files,
      books or records of Split-Off Subsidiary existing at the Closing Date shall
      be
      destroyed by Seller after Closing but prior to the expiration of any period
      during which such files, books or records are required to be maintained and
      preserved by applicable law without giving the Buyer at least 30 days prior
      written notice, during which time Buyer shall have the right to examine and
      to
      remove any such files, books and records prior to their
      destruction.

     

    (c) At
      all
      times following the Closing, Seller, Buyer and Split-Off Subsidiary shall use
      their reasonable efforts to make available to the other party on written
      request, the current and former officers, directors, employees and agents of
      Seller or Split-Off Subsidiary for any of the purposes set forth in Section
      10.4(a) or (b)
      above or
      as witnesses to the extent that such persons may reasonably be required in
      connection with any legal, administrative or other proceedings in which Seller
      or Split-Off Subsidiary may from time to be involved.

     

    (d) The
      party
      to whom any Information or witnesses are provided under this Section
      10.4
      shall
      reimburse the provider thereof for all out-of-pocket expenses actually and
      reasonably incurred in providing such Information or witnesses.

     

    (e) Seller,
      Buyer, Split-Off Subsidiary and their respective employees and agents shall
      each
      hold in strict confidence all Information concerning the other party in their
      possession or furnished by the other or the other’s representative pursuant to
      this Agreement with the same degree of care as such party utilizes as to such
      party’s own confidential information (except to the extent that such Information
      is (i) in the public domain through no fault of such party or
      (ii) later lawfully acquired from any other source by such party), and each
      party shall not release or disclose such Information to any other person, except
      such party’s auditors, attorneys, financial advisors, bankers, other consultants
      and advisors or persons with whom such party has a valid obligation to disclose
      such Information, unless compelled to disclose such Information by judicial
      or
      administrative process or, as advised by its counsel, by other requirements
      of
      law.

     

    (f) Seller,
      Buyer and Split-Off Subsidiary shall each use their best efforts to forward
      promptly to the other party all notices, claims, correspondence and other
      materials which are received and determined to pertain to the other
      party.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    10.5 Guarantees,
      Surety Bonds and Letter of Credit Obligations.
      In the
      event that Seller is obligated for any debts, obligations or liabilities of
      Split-Off Subsidiary by virtue of any outstanding guarantee, performance or
      surety bond or letter of credit provided or arranged by Seller on or prior
      to
      the Closing Date, Buyer and Split-Off Subsidiary shall use their best efforts
      to
      cause to be issued replacements of such bonds, letters of credit and guarantees
      and to obtain any amendments, novations, releases and approvals necessary to
      release and discharge fully Seller from any liability thereunder following
      the
      Closing. Buyer and Split-Off Subsidiary, jointly and severally, shall be
      responsible for, and shall indemnify, hold harmless and defend Seller from
      and
      against, any costs or losses incurred by Seller arising from such bonds, letters
      of credits and guarantees and any liabilities arising therefrom and shall
      reimburse Seller for any payments that Seller may be required to pay pursuant
      to
      enforcement of its obligations relating to such bonds, letters of credit and
      guarantees.

     

    10.6 Filings
      and Consents.
      Buyer,
      at its risk, shall determine what, if any, filings and consents must be made
      and/or obtained prior to Closing to consummate the purchase and sale of the
      Shares. Buyer shall indemnify the Seller Indemnified Parties (as defined in
      Section
      12.1
      below)
      against any Losses (as defined in Section
      12.1
      below)
      incurred by such Seller Indemnified Parties by virtue of the failure to make
      and/or obtain any such filings or consents. Recognizing that the failure to
      make
      and/or obtain any filings or consents may cause Seller to incur Losses or
      otherwise adversely affect Seller, Buyer and Split-Off Subsidiary confirm that
      the provisions of this Section
      10.6
      will not
      limit Seller’s right to treat such failure as the failure of a condition
      precedent to Seller’s obligation to close pursuant to Article
      VIII
      above.

     

    10.7 Insurance.
      Buyer
      acknowledges that on the Closing Date, effective as of the Closing, all
      insurance coverage and bonds provided by Seller for Split-Off Subsidiary, and
      all certificates of insurance evidencing that Split-Off Subsidiary maintains
      any
      required insurance by virtue of insurance provided by Seller, will terminate
      with respect to any insured damages resulting from matters occurring subsequent
      to Closing. 

     

    10.8 Agreements
      Regarding Taxes. 

     

    (a) Tax
      Sharing Agreements.
      Any tax
      sharing agreement between Seller and Split-Off Subsidiary is terminated as
      of
      the Closing Date and will have no further effect for any taxable year (whether
      the current year, a future year or a past year).

     

    (b) Returns
      for Periods Through the Closing Date.
      Seller
      will include the income and loss of Split-Off Subsidiary (including any deferred
      income triggered into income by Reg. §1.1502-13 and any excess loss accounts
      taken into income under Reg. §1.1502-19) on Seller’s consolidated federal income
      tax returns for all periods through the Closing Date and pay any federal income
      taxes attributable to such income. Seller and Split-Off Subsidiary agree to
      allocate income, gain, loss, deductions and credits between the period up to
      Closing (the “Pre-Closing Period”) and the period after Closing (the
“Post-Closing Period”) based on a closing of the books of Split-Off Subsidiary,
      and both Seller and Split-Off Subsidiary agree not to make an election under
      Reg. §1.1502-76(b)(2)(ii) to ratably allocate the year’s items of income, gain,
      loss, deduction and credit. Seller, Split-Off Subsidiary and Buyer agree to
      report all transactions not in the ordinary course of business occurring on
      the
      Closing Date after Buyer’s purchase of the Shares on Split-Off Subsidiary’s tax
      returns to the extent permitted by Reg. §1.1502-76(b)(1)(ii)(B). Buyer agrees to
      indemnify Seller for any additional tax owed by Seller (including tax owned
      by
      Seller due to this indemnification payment) resulting from any transaction
      engaged in by Split-Off Subsidiary during the Pre-Closing Period or on the
      Closing Date after Buyer’s purchase of the Shares. Split-Off Subsidiary will
      furnish tax information to Seller for inclusion in Seller’s consolidated federal
      income tax return for the period which includes the Closing Date in accordance
      with Split-Off Subsidiary’s past custom and practice.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    (c) Audits.
      Seller
      will allow Split-Off Subsidiary and its counsel to participate at Split-Off
      Subsidiary’s expense in any audits of Seller’s consolidated federal income tax
      returns to the extent that such audit raises issues that relate to and increase
      the tax liability of Split-Off Subsidiary. Seller shall have the absolute right,
      in its sole discretion, to engage professionals and direct the representation
      of
      Seller in connection with any such audit and the resolution thereof, without
      receiving the consent of Buyer or Split-Off Subsidiary or any other party acting
      on behalf of Buyer or Split-Off Subsidiary, provided that Seller will not settle
      any such audit in a manner which would materially adversely affect Split-Off
      Subsidiary after the Closing Date unless such settlement would be reasonable
      in
      the case of a person that owned Split-Off Subsidiary both before and after
      the
      Closing Date. In the event that after Closing any tax authority informs Buyer
      or
      Split-Off Subsidiary of any notice of proposed audit, claim, assessment or
      other
      dispute concerning an amount of taxes which pertain to the Seller, or to
      Split-Off Subsidiary during the period prior to Closing, Buyer or Split-Off
      Subsidiary must promptly notify the Seller of the same within 15 calendar days
      of the date of the notice from the tax authority. In the event Buyer or
      Split-Off Subsidiary do not notify the Seller within such 15 day period, Buyer
      and Split-Off Subsidiary, jointly and severally, will indemnify the Seller
      for
      any incremental interest, penalty or other assessments resulting from the delay
      in giving notice. To the extent of any conflict or inconsistency, the provisions
      of this Section 10.8
      shall
      control over the provisions of Section 12.2
      below.

     

    (d) Cooperation
      on Tax Matters.
      Buyer,
      Seller and Split-Off Subsidiary shall cooperate fully, as and to the extent
      reasonably requested by any party, in connection with the filing of tax returns
      pursuant to this Section and any audit, litigation or other proceeding with
      respect to taxes. Such cooperation shall include the retention and (upon the
      other party’s request) the provision of records and information which are
      reasonably relevant to any such audit, litigation or other proceeding and making
      employees available on a mutually convenient basis to provide additional
      information and explanation of any material provided hereunder. Split-Off
      Subsidiary shall (i) retain all books and records with respect to tax
      matters pertinent to Split-Off Subsidiary relating to any taxable period
      beginning before the Closing Date until the expiration of the statute of
      limitations (and, to the extent notified by Seller, any extensions thereof)
      of
      the respective taxable periods, and to abide by all record retention agreements
      entered into with any taxing authority, and (ii) give Seller reasonable
      written notice prior to transferring, destroying or discarding any such books
      and records and, if the Seller so requests, Buyer agrees to cause Split-Off
      Subsidiary to allow Seller to take possession of such books and
      records.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    10.9 ERISA.
      Effective as of the Closing Date, Split-Off Subsidiary shall terminate its
      participation in, and withdraw from, all employee benefit plans sponsored by
      Seller, and Seller and Buyer shall cooperate fully in such termination and
      withdrawal. Without limitation, Split-Off Subsidiary shall be solely responsible
      for (i) all liabilities under those employee benefit plans notwithstanding
      any status as an employee benefit plan sponsored by Seller, and (ii) all
      liabilities for the payment of vacation pay, severance benefits, and similar
      obligations, including, without limitation, amounts which are accrued but unpaid
      as of the Closing Date with respect thereto. Buyer and Split-Off Subsidiary
      acknowledge that Split-Off Subsidiary is solely responsible for providing
      continuation health coverage, as required under the Consolidated Omnibus
      Reconciliation Act of 1985, as amended (“COBRA”), to each person, if any,
      participating in an employee benefit plan subject to COBRA with respect to
      such
      employee benefit plan as of the Closing Date, including, without limitation,
      any
      person whose employment with Split-Off Subsidiary is terminated after the
      Closing Date.

     

    XI.
      TERMINATION.
      This
      Agreement may be terminated at, or at any time prior to, the Closing by mutual
      written consent of Seller and Buyer.

     

    If
      this
      Agreement is terminated as provided herein, it shall become wholly void and
      of
      no further force and effect and there shall be no further liability or
      obligation on the part of any party except to pay such expenses as are required
      of such party.

     

    XII.
      INDEMNIFICATION.

     

    12.1 Indemnification
      by Buyer.
      Buyer
      covenants and agrees to indemnify, defend, protect and hold harmless Seller,
      and
      its respective officers, directors, employees, stockholders, agents,
      representatives and Affiliates (collectively, the “Seller Indemnified Parties”)
      at all times from and after the date of this Agreement from and against all
      losses, liabilities, damages, claims, actions, suits, proceedings, demands,
      assessments, adjustments, costs and expenses (including specifically, but
      without limitation, reasonable attorneys’ fees and expenses of investigation),
      whether or not involving a third party claim and regardless of any negligence
      of
      any Seller Indemnified Party (collectively, “Losses”), incurred by any Seller
      Indemnified Party as a result of or arising from (i) any breach of the
      representations and warranties of Buyer set forth herein or in certificates
      delivered in connection herewith, (ii) any breach or nonfulfillment of any
      covenant or agreement (including any other agreement of Buyer to indemnify
      set
      forth in this Agreement) on the part of Buyer under this Agreement,
      (iii) any Assigned Asset or Assigned Liability or any other debt, liability
      or obligation of Split-Off Subsidiary, (iv) the conduct and operations,
      whether before or after Closing, of (A) the business of Seller pertaining to
      the
      Assigned Assets and Assigned Liabilities or (B) the business of Split-Off
      Subsidiary, (v) claims asserted, whether before or after Closing, (A)
      against Split-Off Subsidiary or (B) pertaining to the Assigned Assets and
      Assigned Liabilities, or (vi) any federal or state income tax payable by
      Seller and attributable to the transactions contemplated by this Agreement.
      The
      obligations of Buyer under this Section, as between Buyer and the Seller
      Indemnified Parties, are joint and several.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    12.2 Third
      Party Claims.

     

    (a) Defense.
      If any
      claim or liability (a “Third-Party Claim”) should be asserted against any of the
      Seller Indemnified Parties (the “Indemnitee”) by a third party after the Closing
      for which Buyer has an indemnification obligation under the terms of
Section
      12.1,
      then
      the Indemnitee shall notify Buyer (the “Indemnitor”) within 20 days after the
      Third-Party Claim is asserted by a third party (said notification being referred
      to as a “Claim Notice”) and give the Indemnitor a reasonable opportunity to take
      part in any examination of the books and records of the Indemnitee relating
      to
      such Third-Party Claim and to assume the defense of such Third-Party Claim
      and
      in connection therewith and to conduct any proceedings or negotiations relating
      thereto and necessary or appropriate to defend the Indemnitee and/or settle
      the
      Third-Party Claim. The expenses (including reasonable attorneys’ fees) of all
      negotiations, proceedings, contests, lawsuits or settlements with respect to
      any
      Third-Party Claim shall be borne by the Indemnitor. If the Indemnitor agrees
      to
      assume the defense of any Third-Party Claim in writing within 20 days after
      the
      Claim Notice of such Third-Party Claim has been delivered, through counsel
      reasonably satisfactory to Indemnitee, then the Indemnitor shall be entitled
      to
      control the conduct of such defense, and any decision to settle such Third-Party
      Claim, and shall be responsible for any expenses of the Indemnitee in connection
      with the defense of such Third-Party Claim so long as the Indemnitor continues
      such defense until the final resolution of such Third-Party Claim. The
      Indemnitor shall be responsible for paying all settlements made or judgments
      entered with respect to any Third-Party Claim the defense of which has been
      assumed by the Indemnitors. Except as provided on subsection (b) below, both
      the
      Indemnitor and the Indemnitee must approve any settlement of a Third-Party
      Claim. A failure by the Indemnitee to timely give the Claim Notice shall not
      excuse Indemnitor from any indemnification liability except only to the extent
      that the Indemnitor is materially and adversely prejudiced by such
      failure.

     

    (b) Failure
      to Defend.
      If the
      Indemnitor shall not agree to assume the defense of any Third-Party Claim in
      writing within 20 days after the Claim Notice of such Third-Party Claim has
      been
      delivered, or shall fail to continue such defense until the final resolution
      of
      such Third-Party Claim, then the Indemnitee may defend against such Third-Party
      Claim in such manner as it may deem appropriate and the Indemnitee may settle
      such Third-Party Claim, in its sole discretion, on such terms as it may deem
      appropriate. The Indemnitor shall promptly reimburse the Indemnitee for the
      amount of all settlement payments and expenses, legal and otherwise, incurred
      by
      the Indemnitee in connection with the defense or settlement of such Third-Party
      Claim. If no settlement of such Third-Party Claim is made, then the Indemnitor
      shall satisfy any judgment rendered with respect to such Third-Party Claim
      before the Indemnitee is required to do so, and pay all expenses, legal or
      otherwise, incurred by the Indemnitee in the defense against such Third-Party
      Claim.

     

    12.3 Non-Third-Party
      Claims.
      Upon
      discovery of any claim for which Buyer has an indemnification obligation under
      the terms of Section
      12.1
      which
      does not involve a claim by a third party against the Indemnitee, the Indemnitee
      shall give prompt notice to Buyer of such claim and, in any case, shall give
      Buyer such notice within 30 days of such discovery. A failure by Indemnitee
      to
      timely give the foregoing notice to Buyer shall not excuse Buyer from any
      indemnification liability except to the extent that Buyer is materially and
      adversely prejudiced by such failure.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    12.4 Survival.
      Except
      as otherwise provided in this Section
      12.4,
      all
      representations and warranties made by Buyer, Split-Off Subsidiary and Seller
      in
      connection with this Agreement shall survive the Closing. Anything in this
      Agreement to the contrary notwithstanding, the liability of all Indemnitors
      under this Article
      XII
      shall
      terminate on the third (3rd)
      anniversary of the Closing Date, except with respect to (a) liability for
      any item as to which, prior to the third (3rd)
      anniversary of the Closing Date, any Indemnitee shall have asserted a Claim
      in
      writing, which Claim shall identify its basis with reasonable specificity,
      in
      which case the liability for such Claim shall continue until it shall have
      been
      finally settled, decided or adjudicated, (b) liability of any party for
      Losses for which such party has an indemnification obligation, incurred as
      a
      result of such party’s breach of any covenant or agreement to be performed by
      such party after the Closing, (c) liability of a Buyer for Losses incurred
      by a Seller Indemnified Party due to breaches of its representations and
      warranties in Article IV
      of this
      Agreement, and (d) liability of a Buyer for Losses arising out of
      Third-Party Claims for which Buyer have an indemnification obligation, which
      liability shall survive until the statute of limitation applicable to any third
      party’s right to assert a Third-Party Claim bars assertion of such
      claim.

     

    XIII. MISCELLANEOUS.

     

    13.1 Notices.
      All
      notices and communications required or permitted hereunder shall be in writing
      and deemed given when received by means of the United States mail, addressed
      to
      the party to be notified, postage prepaid and registered or certified with
      return receipt requested, or personal delivery, or overnight courier, as
      follows:

     

     

    
      	
            	(a)	
              If
                to Seller, addressed to:

            

    

     

    La
      Cortez
      Energy, Inc.

    1266
      1st
      Street, Suite
      4

    Sarasota,
      FL. 34236

    Attn:
      Andres Gutierrez

    

    With
      a
      copy to (which shall not constitute notice hereunder):

     

    Gottbetter
      & Partners, LLP

    488
      Madison Avenue, 12th
      Floor

    New
      York,
      NY 10022

    Attention:
      Adam S. Gottbetter, Esq.

    Facsimile:
      (212) 400-6901

    

    
      	
            	(b)	
              If
                to Buyer or Split-Off Subsidiary, addressed
                to:

            

    

     

    De
      La Luz
      Gourmet Chocolates, Inc.

    2260
      El
      Cajon Blvd. #882

    San
      Diego, CA 92104

    Phone:
      (775) 352-3930

    Attention:
      Maria de la Luz

    

    or
      to
      such other address as any party hereto shall specify pursuant to this
Section 13.1
      from
      time to time.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    13.2 Exercise
      of Rights and Remedies.
      Except
      as otherwise provided herein, no delay of or omission in the exercise of any
      right, power or remedy accruing to any party as a result of any breach or
      default by any other party under this Agreement shall impair any such right,
      power or remedy, nor shall it be construed as a waiver of or acquiescence in
      any
      such breach or default, or of any similar breach or default occurring later;
      nor
      shall any waiver of any single breach or default be deemed a waiver of any
      other
      breach or default occurring before or after that waiver.

     

    13.3 Time.
      Time is
      of the essence with respect to this Agreement.

     

    13.4 Reformation
      and Severability.
      In case
      any provision of this Agreement shall be invalid, illegal or unenforceable,
      it
      shall, to the extent possible, be modified in such manner as to be valid, legal
      and enforceable but so as to most nearly retain the intent of the parties,
      and
      if such modification is not possible, such provision shall be severed from
      this
      Agreement, and in either case the validity, legality and enforceability of
      the
      remaining provisions of this Agreement shall not in any way be affected or
      impaired thereby.

     

    13.5 Further
      Acts and Assurances.
      From
      and after the Closing, Seller, Buyer and Split-Off Subsidiary agree that each
      will act in a manner supporting compliance, including compliance by its
      Affiliates, with all of its obligations under this Agreement and, from time
      to
      time, shall, at the request of another party hereto, and without further
      consideration, cause the execution and delivery of such other instruments of
      conveyance, transfer, assignment or assumption and take such other action or
      execute such other documents as such party may reasonably request in order
      more
      effectively to convey, transfer to and vest in Buyer, and to put Split-Off
      Subsidiary in possession of, all Assigned Assets and Assigned Liabilities,
      and
      to convey, transfer to and vest in Seller and Buyer, and to them in possession
      of, the Purchase Price Securities and the Shares (respectively), and, in the
      case of any contracts and rights which cannot be effectively transferred without
      the consent or approval of other Persons that is unob-tainable, to use its
      best
      reasonable efforts to ensure that Split-Off Subsidiary receives the benefits
      thereof to the maximum extent permissible in accordance with applicable law
      or
      other applicable restrictions, and shall perform such other acts which may
      be
      reasonably necessary to effectuate the purposes of this Agreement.

     

    13.6 Entire
      Agreement; Amendments.
      This
      Agreement contains the entire understanding of the parties relating to the
      subject matter contained herein. This Agreement cannot be amended or changed
      except through a written instrument signed by all of the parties hereto. No
      provisions of this Agreement or any rights hereunder may be waived by any party
      without the prior written consent of the other parties.

     

    13.7 Assignment.
      No
      party may assign his, her or its rights or obligations hereunder, in whole
      or in
      part, without the prior written consent of the other parties.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    13.8 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, without giving effect to principles of conflicts or choice
      of
      laws thereof.

     

    13.9 Counterparts.
      This
      Agreement may be executed in one or more counterparts, with the same effect
      as
      if all parties had signed the same document. Each such counterpart shall be
      an
      original, but all such counterparts taken together shall constitute a single
      agreement. In the event that any signature is delivered by facsimile
      transmission, such signature shall create a valid and binding obligation of
      the
      party executing (or on whose behalf such signature is executed) the same with
      the same force and effect as if such facsimile signature page was an original
      thereof.

     

    13.10 Section
      Headings and Gender.
      The
      Section headings used herein are inserted for reference purposes only and shall
      not in any way affect the meaning or interpretation of this Agreement. All
      personal pronouns used in this Agreement shall include the other genders,
      whether used in the masculine, feminine or neuter, and the singular shall
      include the plural, and vice
      versa,
      whenever and as often as may be appropriate.

     

    13.11 Specific
      Performance; Remedies.
      Each of
      Seller, Buyer and Split-Off Subsidiary acknowledges and agrees that Seller
      would
      be damaged irreparably if any provision of this Agreement is not performed
      in
      accordance with its specific terms or is otherwise breached. Accordingly, each
      of Buyer and Split-Off Subsidiary agrees that Seller will be entitled to seek
      an
      injunction or injunctions to prevent breaches of the provisions of this
      Agreement and to enforce specifically this Agreement and its terms and
      provisions in any action instituted in any court of the United States or any
      state thereof having jurisdiction over the parties and the matter, subject
      to
Section
      8,
      in
      addition to any other remedy to which they may be entitled, at law or in equity.
      Except as expressly provided herein, the rights, obligations and remedies
      created by this Agreement are cumulative and are in addition to any other
      rights, obligations or remedies otherwise available at law or in equity, and
      nothing herein will be considered an election of remedies.
      

     

    13.12 Submission
      to Jurisdiction; Process Agent; No Jury Trial.

     

    (a) Each
      party to the Agreement hereby submits to the jurisdiction of any state or
      federal court sitting in the State of New York in any action arising out of
      or
      relating to this Agreement and agrees that all claims in respect of the action
      may be heard and determined in any such court. Each party to the Agreement
      also
      agrees not to bring any action arising out of or relating to this Agreement
      in
      any other court. Each party to the Agreement agrees that a final judgment in
      any
      action so brought will be conclusive and may be enforced by action on the
      judgment or in any other manner provided at law or in equity. Each party to
      the
      Agreement waives any defense of inconvenient forum to the maintenance of any
      action so brought and waives any bond, surety or other security that might
      be
      required of any other party with respect thereto.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    (b) EACH
      PARTY TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RIGHTS TO JURY TRIAL OF
      ANY
      DISPUTE BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OTHER AGREEMENTS
      RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR ANY DEALINGS AMONG THEM
      RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY. The scope of this waiver
      is
      intended to be all encompassing of any and all actions that may be filed in
      any
      court and that relate to the subject matter of the transactions, including
      contract claims, tort claims, breach of duty claims and all other common law
      and
      statutory claims. Each party to the Agreement hereby acknowledges that this
      waiver is a material inducement to enter into a business relationship and that
      they will continue to rely on the waiver in their related future dealings.
      Each
      party to the Agreement further represents and warrants that it has reviewed
      this
      waiver with its legal counsel, and that each knowingly and voluntarily waives
      its jury trial rights following consultation with legal counsel. NOTWITHSTANDING
      ANYTHING TO THE CONTRARY HEREIN, THIS WAIVER IS IRREVOCABLE, MEANING THAT IT
      MAY
      NOT BE MODIFIED ORALLY OR IN WRITING, AND THE WAIVER WILL APPLY TO ANY
      AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO
      ANY
      OTHER DOCUMENTS OR AGREEMENTS RELATING HERETO. In the event of commencement
      of
      any action, this Agreement may be filed as a written consent to trial by a
      court.

     

    13.13 Construction.
      The
      parties hereto have participated jointly in the negotiation and drafting of
      this
      Agreement. If an ambiguity or question of intent or interpretation arises,
      this
      Agreement will be construed as if drafted jointly by the parties hereto and
      no
      presumption or burden of proof will arise favoring or disfavoring any party
      because of the authorship of any provision of this Agreement. Any reference
      to
      any federal, state, local or foreign law will be deemed also to refer to law
      as
      amended and all rules and regulations promulgated thereunder, unless the context
      requires otherwise. The words “include,” “includes,” and “including” will be
      deemed to be followed by “without limitation.” The words “this Agreement,”
“herein,” “hereof,” “hereby,” “hereunder,” and words of similar import refer to
      this Agreement as a whole and not to any particular subdivision unless expressly
      so limited. The parties hereto intend that each representation, warranty and
      covenant contained herein will have independent significance. If any party
      hereto has breached any representation, warranty or covenant contained herein
      in
      any respect, the fact that there exists another representation, warranty or
      covenant relating to the same subject matter (regardless of the relative levels
      of specificity) which that party has not breached will not detract from or
      mitigate the fact that such party is in breach of the first representation,
      warranty or covenant.

     

    [Signature
      page follows this page.]

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have duly executed this Split-Off Agreement as of the day and
      year first above written.

     

    
      	 	
              LA
                CORTEZ ENERGY, INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Andres Gutierrez

            
	 	
              Name:

            	
              Andres
                Gutierrez

            
	 	
              Title:

            	
              President

            
	 	 	 
	 	 	 
	 	
              DE
                LA LUZ GOURMET CHOCOLATES, INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Andres Gutierrez

            
	 	
              Name:

            	
              Andres
                Gutierrez

            
	 	
              Title

            	
              President

            
	 	 	 
	 	 	 
	 	
              BUYER

            
	 	 	 
	 	 	 
	 	
              /s/Maria
                de la Luz

            
	 	
              Maria
                de la Luz

            

    

    

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    

    
      	
              Buyer

            	
              Purchase
                Price Security

            	
              Number
                of Shares

            
	 	 	 
	
              Maria
                de le Luz

            	
              Common
                Stock, $0.001 par

            	
              
                9,000,0001 

              

            
	 	
              value
                per share, of La Cortez

            	 
	 	
              Energy,
                Inc. (formerly known

            	 
	 	
              as
                La Cortez Enterprises, Inc.)

            	 
	 	 	 
	 	 	 
	
              Maria
                de le Luz

            	
              Common
                Stock, $0.001 par

            	
              2,250,000

            
	 	
              value
                per share, of La Cortez

            	 
	 	
              Energy,
                Inc.

            	 

    

     

    

     

    

    
      
        

      

      1
        These
        shares were surrendered by Ms. de la Luz to us on February 26,
        2008.

    
      
        
        

      

      
        -19-

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