Document:

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                                                                  EXHIBIT (4)(a)

                     FIRST SUNAMERICA LIFE INSURANCE COMPANY
                       A STOCK COMPANY NEW YORK, NEW YORK

CONTRACT NUMBER            [P9999999999]

OWNER                      [JOHN DOE]

        EXECUTIVE OFFICE                            ANNUITY SERVICE CENTER
   One World Financial Center                            PO BOX 54299
       200 Liberty Street                         LOS ANGELES, CA 90054-0299
    NEW YORK, NEW YORK 10281

FIRST SUNAMERICA LIFE INSURANCE COMPANY ("We", "Us", the "Company", or "First
SunAmerica") agrees to provide benefits to the Owner in accordance with the
provisions set forth in this Contract and in consideration of the Application
and/or confirmation thereof and Purchase Payments We receive.

THE VALUE OF AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DURING THE ACCUMULATION
AND ANNUITY PERIODS IS NOT GUARANTEED, AND WILL INCREASE OR DECREASE BASED UPON
THE INVESTMENT EXPERIENCE OF THE VARIABLE PORTFOLIOS YOU CHOOSE.

THE SEPARATE ACCOUNT CHARGE IS CHARGED AGAINST THE ASSETS OF THE SEPARATE
ACCOUNT. THIS CHARGE INCLUDES FEES FOR MORTALITY AND EXPENSE RISK AND THE
DISTRIBUTION EXPENSE. ON AN ANNUALIZED BASIS THE CHARGE EQUALS 1.90% FOR
CONTRACT YEARS 1-9 AND 1.30% FOR CONTRACT YEARS 10 AND THEREAFTER. THESE CHARGES
ARE ASSESSED, ON A SIMPLE INTEREST BASIS, AS A PERCENTAGE OF THE AVERAGE DAILY
ENDING VALUE OF THE ASSETS ATTRIBUTABLE TO THE ACCUMULATION UNITS OF THE
VARIABLE PORTFOLIOS TO WHICH YOUR CONTRACT VALUE IS ALLOCATED. THE DAILY CHARGE
IS 1/365TH OF THE ANNUALIZED CHARGE. THUS, THE SMALLEST ANNUAL EFFECTIVE RATE OF
THE INVESTMENT RETURN THAT WOULD HAVE TO BE EARNED ON ASSETS OF THE SEPARATE
ACCOUNT SO THAT THE DOLLAR AMOUNT OF VARIABLE ANNUITY PAYMENTS WILL NOT DECREASE
IS 5.49% FOR CONTRACT YEARS 1-9 AND 4.85% FOR CONTRACT YEARS 10 AND
THEREAFTER COMPOUNDED DAILY. THE CONTRACT'S RATE OF RETURN IS BASED ON COMPOUND
INTEREST.

THE FIXED ACCOUNT OPTIONS, DOLLAR COST AVERAGING (DCA) FIXED ACCOUNT OPTION(s)
OR ONE OR MORE FIXED ACCOUNT GUARANTEE PERIODS MAY NOT BE AVAILABLE ON THE ISSUE
DATE. PLEASE CHECK WITH YOUR REGISTERED REPRESENTATIVE FOR AVAILABILITY OF THESE
OPTIONS.

RIGHT TO EXAMINE -- IF, WITHIN 10 DAYS OF RECEIPT OF THIS CONTRACT (60 DAYS IF
THE CONTRACT REPLACED ANY OTHER LIFE INSURANCE OR ANNUITY CONTRACT(s)) YOU ARE
NOT SATISFIED WITH IT, YOU MAY RETURN THIS CONTRACT OR YOUR WRITTEN REQUEST TO
CANCEL TO OUR ANNUITY SERVICE CENTER OR TO THE AGENT THROUGH WHOM THE CONTRACT
WAS PURCHASED. THE COMPANY WILL REFUND THE GREATER OF PURCHASE PAYMENT(s) OR THE
CONTRACT VALUE REDUCED BY THE AMOUNT OF ALL PAYMENT ENHANCEMENT(s) WE ALLOCATED
TO YOUR CONTRACT VALUE, COMPUTED AS OF THE BUSINESS DAY DURING WHICH WE RECEIVE
THE CONTRACT OR YOUR WRITTEN REQUEST TO CANCEL IS RECEIVED BY US IN GOOD ORDER.
UPON SUCH REFUND, THE CONTRACT SHALL BE VOID.

For Individual Retirement Annuities, or if a refund of the Purchase Payment(s)
is otherwise required, We reserve the right to allocate Your Purchase Payment(s)
to the Cash Management Portfolio until the end of the Right To Examine period.

With 30 days advance notice, we may cease offering Fixed Account Guarantee
Period Options and/or Dollar Cost Averaging Options if market conditions are
such that we are not able to credit the Minimum Guarantee Rate shown on the
Contract Data Page.

                  THIS IS A LEGAL DOCUMENT. READ IT CAREFULLY.

                              /s/ BRUCE R. ABRAMS
                      -----------------------------------
                                 BRUCE R. ABRAMS
                                    PRESIDENT
                               FOR INQUIRIES CALL:
                                [1-800-445-7862]

                              INDIVIDUAL FIXED AND
                            VARIABLE ANNUITY CONTRACT
                                Nonparticipating

                                       1

FS-997-PVGII (5/11)
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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                     <C>
CONTRACT DATA PAGE......................................................PAGE 3-4

DEFINITIONS...............................................................PAGE 5

PURCHASE PAYMENT PROVISIONS...............................................PAGE 8

PAYMENT ENHANCEMENT PROVISIONS............................................PAGE 9

ACCUMULATION PROVISIONS..................................................PAGE 10

CHARGES AND DEDUCTIONS...................................................PAGE 11

TRANSFER PROVISIONS......................................................PAGE 11

WITHDRAWAL PROVISIONS....................................................PAGE 12

DEATH PROVISIONS.........................................................PAGE 14

ANNUITY PROVISIONS.......................................................PAGE 17

GENERAL PROVISIONS.......................................................PAGE 19

ANNUITY INCOME PAYMENT OPTIONS ..........................................PAGE 21

FIXED ANNUITY INCOME PAYMENT OPTIONS TABLE...............................PAGE 22

VARIABLE ANNUITY INCOME PAYMENT OPTIONS TABLE............................PAGE 25
</TABLE>

                                       2
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                               CONTRACT DATA PAGE

CONTRACT NUMBER:  [P9999999999]                    CONTRACT DATE:  [May 2, 2011]

OWNER:  [JOHN DOE]        DATE OF BIRTH:  [March 1, 1976]    AGE AT ISSUE:  [35]

OWNER:  [JANE DOE]        DATE OF BIRTH:  [June 10, 1976]    AGE AT ISSUE:  [34]

ANNUITANT:  [JOHN DOE]    DATE OF BIRTH:  [March 1, 1976]    AGE AT ISSUE:  [35]

ANNUITANT:  [JANE DOE]    DATE OF BIRTH:  [June 10, 1976]    AGE AT ISSUE:  [34]

BENEFICIARY:  As named by You

INITIAL PURCHASE PAYMENT:  [$25,000.00]

PAYMENT ENHANCEMENT RATE:  1% *
* Due to economic conditions, the Payment Enhancement Rate may be greater or
less than the rate shown above.

PURCHASE PAYMENT AGE LIMIT:  Prior to the 86th birthday

MINIMUM SUBSEQUENT PURCHASE PAYMENT:  $500

FIXED ACCOUNT OPTIONS -- MINIMUM GUARANTEE RATE:  [1.0% - 3.0%]
With 30 days advance notice, we may cease offering the Fixed Account Options,
Fixed Account Guarantee Period Options and/or Dollar Cost Averaging Account
Options if market conditions are such that we are not able to credit the Minimum
Guarantee Rate Shown on this page.

FIXED ACCOUNT OPTIONS:  1 Year Fixed, 6 Month DCA Fixed, 1 Year DCA Fixed

MINIMUM PARTIAL WITHDRAWAL AMOUNT:  $1,000

MAXIMUM PENALTY-FREE WITHDRAWAL PERCENTAGE:  10%

MINIMUM SYSTEMATIC WITHDRAWAL AMOUNT:  $100

MINIMUM AMOUNT REMAINING AFTER A PARTIAL WITHDRAWAL:  $2,500

WITHDRAWAL CHARGE SCHEDULE:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Number of Contribution Years Elapsed From the           Withdrawal Charge as a
Date any Purchase Payment is allocated to the           Percentage of Withdrawn
   Contract and to the Date of Withdrawal                  Purchase Payment
--------------------------------------------------------------------------------
<S>                                                     <C>
                      0                                           9%
--------------------------------------------------------------------------------
                      1                                           9%
--------------------------------------------------------------------------------
                      2                                           8%
--------------------------------------------------------------------------------
                      3                                           8%
--------------------------------------------------------------------------------
                      4                                           7%
--------------------------------------------------------------------------------
                      5                                           6%
--------------------------------------------------------------------------------
                      6                                           5%
--------------------------------------------------------------------------------
                      7                                           4%
--------------------------------------------------------------------------------
                      8                                           3%
--------------------------------------------------------------------------------
                     9+                                           0%
--------------------------------------------------------------------------------
</TABLE>

See Page 11  for Withdrawal Provisions.

                                       3
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                          CONTRACT DATA PAGE (CONT'D.)

MINIMUM TRANSFER AMOUNT:  $100

SEPARATE ACCOUNT CHARGE (including guaranteed death benefit risk charge
of 0.10%):   Contract Years 1-9: 1.90%

         Contract Years 9 & Thereafter: 1.30%

ANNUAL CONTRACT MAINTENANCE FEE:  $50

TRANSFER FEE:  $25

EARLIEST ANNUITY DATE AFTER THE CONTRACT DATE:  13 months

LATEST ANNUITY DATE: 1st day of the month following Age 90 or 10 years after the
Contract Date

SEPARATE ACCOUNT:  FS VARIABLE SEPARATE ACCOUNT

<TABLE>
<CAPTION>
OPTIONAL ELECTIONS:                                OPTIONAL ELECTION DETAILS:
<S>                                                <C>
Optional Guaranteed Living Benefit Endorsement     See Attached Endorsement FSE-6248
Maximum Anniversary Value
  Optional Death Benefit Endorsement               See Attached Endorsement FSE-6235
</TABLE>

                                       4
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                                   DEFINITIONS

Defined in this section are some of the words and phrases used in this Contract.
These terms are capitalized when used in the Contract with the meaning set forth
below.

ACCUMULATION UNIT

A unit of measure used to compute the Contract Value in a Variable Portfolio
before the Annuity Date.

AGE

Age as of last birthday. In the case of Joint Owners/Annuitants, the age of the
older person will be used to determine any age-driven benefit.

ANNUITANT

The natural person or persons (collectively, Joint Annuitants) whose life or
lives is/are used to determine the benefits under the Contract. If the Contract
is in force and the Annuitant(s) is/are alive on the Annuity Date, We will begin
annuity income payments to the Payee. This Contract cannot have Joint Annuitants
if it is issued in connection with a tax-qualified retirement plan.

ANNUITY DATE

The date on which annuity income payments to the Payee begin. This date cannot
be later than the Latest Annuity Date.

ANNUITY SERVICE CENTER

The location shown on Page 1 of this Contract where all requests and Purchase
Payments regarding this Contract are to be sent.

ANNUITY UNIT

A unit of measure determined on or after the Annuity Date used to compute
annuity income payments from the Variable Portfolio(s).

BENEFICIARY

The Beneficiary You name at issue to receive the death benefit under this
Contract upon Your death. You may later change Your Beneficiary in a written
request to Us at Our Annuity Service Center.

CONTINUATION DATE

The date on which We receive, at Our Annuity Service Center: (a) the Spousal
Beneficiary's written request to continue the Contract in a form satisfactory to
Us; and (b) Due Proof of Death of the Owner. If We receive (a) and (b) on
different dates, the Continuation Date will be the later date.

CONTRACT DATE

The date Your Contract is issued, as shown on the Contract Data Page. It is the
date from which Contract Years and Contract anniversaries are measured.

CONTRACT VALUE

The sum of: (1) Your share of the Variable Portfolios' Accumulation Unit Values;
and (2) the value of amounts if any, allocated to any available Fixed Account
Option(s).

                                       5
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CONTRACT YEAR

The one year period starting from the Contract Date in one calendar year and
ending on the day preceding the anniversary in the following calendar year, and
every year thereafter.

DOLLAR COST AVERAGING (DCA)

An optional program under which You authorize the systematic transfer of
specified amounts or percentages from any Variable Portfolio(s) or any available
Fixed Account Option into any Variable Portfolio(s) other than the source
account.

FIXED ACCOUNT OPTION(S)

The investment options, if available under this Contract, that become part of
the Company's general asset account and are credited with a fixed rate of
interest declared by the Company. The general asset account contains all the
assets of the Company except for the Separate Account and other segregated asset
accounts. The amount You have in any Fixed Account Option at a given time is a
result of Purchase Payment(s) You have allocated to it or any part of Your
Contract Value You have transferred to it.

FIXED ANNUITIZATION

A series of periodic annuity income payments of predetermined amounts that do
not vary with investment experience. Such payments are made from the Company's
general asset account. This Contract provides several fixed annuity income
payment options.

GUARANTEE PERIOD

The period for which interest is credited to amounts allocated to any available
Fixed Account Option(s). We determine in Our sole discretion the periods, if
any, that will be offered.

IRC

The Internal Revenue Code of 1986 or as it may be amended or superseded.

JOINT OWNER

Any person named as Joint Owner on the Application and/or confirmation thereof
and listed on the Contract Data Page, unless subsequently changed. The Joint
Owner, if any, possesses an undivided interest in this Contract in conjunction
with the Owner. All references within this Contract to Owner will also apply to
the Joint Owner.

LATEST ANNUITY DATE

The later of first day of the month following Age 90 of the Owner or ten years
after the Contract Date. If the Owner is a non-natural person, the Latest
Annuity Date is the later of the first day of the month following Age 90 of the
Annuitant or ten years after the Contract Date.

MAXIMUM ANNUAL WITHDRAWAL AMOUNT

Guaranteed withdrawals applicable only if You have elected an optional living
benefit or guaranteed minimum withdrawal benefit and have not terminated the
benefit under this Contract.

NET PURCHASE PAYMENT

The sum of all Purchase Payment(s), reduced for each Withdrawal in the same
proportion that the Contract Value is reduced by each such Withdrawal.

NYSE

New York Stock Exchange.

                                       6
<PAGE>

OWNER

The person or entity named in the Contract who is entitled to exercise all
rights and privileges of ownership under the Contract. Owner means both Joint
Owners, if applicable.

PAYEE

The person receiving annuity income payments under this Contract.

PAYMENT ENHANCEMENT

An amount allocated to Your Contract Value by Us. Payment Enhancements are not
considered Purchase Payments.

PAYMENT ENHANCEMENT RATE

The percentage applied to each Purchase Payment to calculate the Payment
Enhancement.

PURCHASE PAYMENTS

Payments in U.S. currency made by or on behalf of the Owner to the Company to
fund the Contract.

REQUIRED DOCUMENTATION

Is: (a) Due Proof of Death that the Owner or the Spousal Beneficiary died before
the Annuity Date; (b) an election form specifying the annuity income payment
options; and (c) any other documentation We may require.

SEPARATE ACCOUNT

A segregated asset account named on the Contract Data Page. The Separate Account
consists of several Variable Portfolios, each investing in shares of the
Underlying Fund(s). The assets of the Separate Account are not commingled with
the general assets and liabilities of the Company. The value of amounts
allocated to the Variable Portfolios of the Separate Account is not guaranteed.

SPOUSAL BENEFICIARY

The original deceased Owner's surviving spouse who is designated as the primary
Beneficiary at the time of the Owner's death and may continue the Contract as
the Owner on the Continuation Date.

SUBSEQUENT PURCHASE PAYMENTS

Purchase Payments made after the initial Purchase Payment.

UNDERLYING FUND

The underlying investment portfolios in which the Variable Portfolio(s) invest.

VARIABLE ANNUITIZATION

A series of periodic annuity income payments which vary in amount according to
the investment experience of one or more Variable Portfolios, as selected by
You. Such payments are made from the Company's Separate Account. This Contract
provides several variable annuity income payment options.

VARIABLE PORTFOLIO

One or more divisions of the Separate Account which provides for the variable
investment options available under this Contract. Each Variable Portfolio has
its own investment objective and is invested in the Underlying Fund(s). A
Variable Portfolio is not chargeable with liabilities arising out of any other
Variable Portfolio.

WE, OUR, US, THE COMPANY

First SunAmerica Life Insurance Company.

                                       7
<PAGE>

WITHDRAWAL(S)

Amount(s) withdrawn from the Contract Value including any charges and fees
applicable to each such Withdrawal.

WITHDRAWAL ADJUSTMENTS

The term used to calculate how the amount of the death benefit will be adjusted
for Withdrawals depending on the amount of the Withdrawal and whether a living
benefit or guaranteed minimum withdrawal benefit is elected and has not been
terminated.

YOU, YOUR

The Owner.

                           PURCHASE PAYMENT PROVISIONS

PURCHASE PAYMENTS

Purchase Payments are flexible. This means that, subject to Company disclosed
restrictions, You may change the amounts, frequency and/or timing of Purchase
Payments. Purchase Payments can be made at any time after the Contract Date, but
must be received before the Purchase Payment Age Limit as shown on the Contract
Data Page. With instructions from You, Purchase Payments will be allocated to
the Variable Portfolio(s) and/or Fixed Account Option(s), if available. We
reserve the right to limit the maximum amount of Purchase Payments.

DOLLAR COST AVERAGING (DCA) FIXED ACCOUNT OPTION(S)

Any portion of a Purchase Payment allocated to the DCA Fixed Account Option(s)
must be transferred out to the Variable Portfolio(s) within the specified DCA
Fixed Account Option period. Upon termination of the DCA program, any amounts
remaining in the DCA Fixed Account Option(s) will be transferred to the DCA
target allocation(s) for the program being terminated. Upon annuitization, any
amounts remaining in the DCA Fixed Account Option(s) will be applied to a Fixed
Annuitization. The unit values credited and applied to Your Contract are
determined on each date of transfer. The minimum contribution amount that may be
allocated to the DCA Fixed Account Option(s) is $600 for the 6 month DCA, $1,200
for the 1 year DCA.

CHANGES TO VARIABLE PORTFOLIO OFFERINGS

If the shares of an Underlying Fund should no longer be available for investment
by the Separate Account, then We may substitute shares of another Underlying
Fund, for shares already purchased, or to be purchased in the future. At any
given time, some Variable Portfolios may not be available for receipt of
Purchase Payment(s) or transfer(s). Substitutions may be necessary and will be
carried out in accordance with any applicable state and/or federal laws or
regulations.

                                       8
<PAGE>

                         PAYMENT ENHANCEMENT PROVISIONS

We will allocate Payment Enhancement(s) to available Variable Portfolio(s)
and/or Fixed Account Option(s) in the same proportion as each corresponding
Purchase Payment. The Initial Payment Enhancement Rate applicable to the Initial
Purchase Payment is as shown on the Contract Data Page.

Payment Enhancement(s) for subsequent Purchase Payment(s) [are limited to the
first two Contract Years and] will be determined by the Payment Enhancement Rate
in effect at the time Your subsequent Purchase Payment is received by Us. We
will send You a confirmation of the Payment Enhancement allocated to Your
Contract Value.

                             ACCUMULATION PROVISIONS

Before the Annuity Date, the Contract Value is the sum of the Separate Account
Accumulation Value and the Fixed Account Accumulation Value. If Your Contract
Value falls below $2,500 as a result of taking partial Withdrawals, subject to
applicable state and federal laws, rules and regulations, We may terminate Your
Contract and send You the remaining dollar amount.

SEPARATE ACCOUNT ACCUMULATION VALUE

The Separate Account Accumulation Value under the Contract is the sum of the
Accumulation Unit Values held in the Variable Portfolios for You.

NUMBER OF ACCUMULATION UNITS

Your Contract is credited with Accumulation Units of the Separate Account when
amounts are allocated to the Variable Portfolio(s). For that portion of each
Purchase Payment and/or transfer amount allocated to a Variable Portfolio, the
number of Accumulation Units credited is equal to:

The sum of each Purchase Payment and/or transfer amount allocated to the
Variable Portfolio reduced by premium taxes, if any:

Divided by

The Accumulation Unit Value for that Variable Portfolio for the NYSE business
day in which the Purchase Payment or transfer amount is received.

The number of Accumulation Units will be reduced for Withdrawals of Contract
Value, annuitizations, amounts transferred out of a Variable Portfolio, the
Contract Maintenance Fee, if applicable, and applicable charges for any elected
features as set forth in Endorsements to this Contract. Any reduction to the
Contract Value will be made as of the NYSE business day in which We receive all
requirements for the transaction, as appropriate.

ACCUMULATION UNIT VALUE (AUV)

The AUV of a Variable Portfolio for any NYSE business day is calculated by
subtracting (2) from (1) and dividing the result by (3) where:

         (1)      is the total value at the end of the given NYSE business day
                  of the assets attributable to the Variable Portfolio minus any
                  applicable liabilities other than those owed to You;

         (2)      is the amount equal to the daily Separate Account Charge plus
                  the daily charge for any optional features that impose a daily
                  charge;

         (3)      is the number of Accumulation Units outstanding at the end of
                  the given NYSE business day.

                                       9
<PAGE>

FIXED ACCOUNT ACCUMULATION VALUE

The Fixed Account Accumulation Value, if any, is the sum of all amounts
allocated or transferred to the Fixed Account Option(s), if available, reduced
by any applicable premium taxes, plus all interest credited on the Fixed Account
Option(s) during the period that You have Contract Value allocated to the Fixed
Account Option(s). This amount will be adjusted for Withdrawals, annuitizations,
transfers, the deduction of the Contract Maintenance Fee and applicable charges
for any elected features as set forth in Endorsements to this Contract. The
Fixed Account Accumulation Value will not be less than the minimum values
required by law in the state where this Contract is issued.

FIXED ACCOUNT GUARANTEE PERIOD OPTIONS AND INTEREST CREDITING

The portion of Your Contract Value within the Fixed Account Option(s), if any,
is credited with interest at rates guaranteed by Us for the Guarantee Period(s)
selected. Interest is credited on a daily basis at the then applicable effective
interest rate for the applicable Guarantee Period. You may select from one or
more Guarantee Periods which We may offer at any particular time. We reserve the
right at any time to add or delete Guarantee Periods. A written notification
will be provided to the Owner at least 30 days prior to the discontinuation of a
Guarantee Period. If You have allocated any part of Your initial Purchase
Payment to a Guarantee Period, the percentage allocated, as well as the duration
of the Guarantee Period, is shown on the election form and/or confirmation
thereof as completed by You.

The interest rate applicable to the allocation of a Purchase Payment or transfer
of Contract Value to a Guarantee Period is the rate in effect for that Guarantee
Period at the time of the allocation or transfer. If You have allocated or
transferred amounts at different times to the Fixed Account Option(s), each
allocation or transfer may have a unique effective interest rate associated with
that amount. We guarantee that the effective annual rate of interest for the
Fixed Account Option(s), including any of the available Guaranteed Periods, will
not be less than the Minimum Guarantee Rate as mandated by Your state, and shown
on the Contract Data Page. The minimum guarantee rate under Your Contract as
referenced on the Contract Data Page is at least equal to the lesser of: (a) 3%
per annum; or (b) the three-month average value of the five-year Constant
Maturity Treasury Rate reported by the Federal Reserve, rounded up to the
nearest 1/4th of 1%, for the second, third and fourth month preceding the first
day of the calendar quarter during which the Contract is issued, reduced by
1.25% and where the resulting interest rate is not less than 1%.

                             CHARGES AND DEDUCTIONS

We will deduct the following charges from the Contract:

CONTRACT MAINTENANCE FEE

The charge as shown on the Contract Data Page, if applicable, will be deducted
on each Contract anniversary on or prior to the Annuity Date. It will also be
deducted when the Contract Value is withdrawn in full if the Withdrawal is not
on the Contract anniversary. We reserve the right to waive the fee for Contract
Values of $75,000.00 and up.

WITHDRAWAL CHARGE

The charge, as shown on the Contract Data Page, if any, may be deducted upon
Withdrawal of any portion of the Contract Value that is not considered a
Penalty-Free Withdrawal. See WITHDRAWAL PROVISIONS.

SEPARATE ACCOUNT CHARGE

This charge, as shown on the Contract Data Page, on an annualized basis equals a
percentage of the average daily ending value of the assets attributable to the
Accumulation Units of the Variable Portfolio(s) to which the Contract Value is
allocated. This charge compensates Us for the mortality and expense risk and the
costs of contract distribution assumed by Us. We subtract this charge daily.

                                       10
<PAGE>

TRANSFER FEE

We permit 15 free transfers between Variable Portfolios and/or available Fixed
Account Option(s) each Contract Year. We may charge You a fee, as shown on the
Contract Data Page, for each additional transfer that Contract Year, except for
transfers made as part of an automated transfer program.

                               TRANSFER PROVISIONS

Subject to applicable restrictions, You may transfer all or part of Your
Contract Value amongst the Variable Portfolios and/or available Fixed Account
Option(s) (unless otherwise noted). The minimum amount that can be transferred
and the amount that can remain in a Variable Portfolio and/or available Fixed
Account Option are subject to Company limits. We reserve the right to restrict
Your transfer privileges, including but not limited to possible termination of
those privileges.

Furthermore, the Underlying Funds, may have their own transfer policies that are
applicable to this Contract as a result of investment in the Variable
Portfolios. These policies, likewise, may include termination of Your transfer
privileges and/or penalty fees resulting from transfer activity that is defined
as excessive according to the Underlying Funds' policies.

TRANSFERS BEFORE THE ANNUITY DATE

Before the Annuity Date, transfers are subject to certain restrictions. You may
transfer all or a portion of Your Contract Value from one Variable Portfolio to
another Variable Portfolio(s) or any available Fixed Account Option(s) other
than the DCA Fixed Account Options. You may also transfer from any available
Fixed Account Option(s) to the Variable Portfolio(s) and/or any available Fixed
Account Option(s) of the Contract. A transfer will result in the redemption of
Accumulation Units in a Variable Portfolio and the purchase of Accumulation
Units in the other Variable Portfolio. Transfers will be effected at the end of
the NYSE business day in which We receive Your completed request for the
transfer.

TRANSFERS AFTER THE ANNUITY DATE

On and after the Annuity Date, transfers into and out of any available Fixed
Account Option(s) are not allowed. You may transfer all or a portion of Your
Annuity Units from one Variable Portfolio to another Variable Portfolio(s). A
transfer will result in the redemption of Annuity Units in a Variable Portfolio
and the purchase of Annuity Units in the other Variable Portfolio. Transfers
will be effected for the last NYSE business day of the month in which We receive
Your request for the transfer.

                              WITHDRAWAL PROVISIONS

On or before the Annuity Date and while You are living, You may withdraw all or
part of Your Contract Value under this Contract by informing Us in writing in a
form satisfactory to Us at Our Annuity Service Center. For a full Withdrawal,
this Contract must be returned to Our Annuity Service Center. The minimum amount
that can be withdrawn and the amount remaining after Withdrawal are as shown on
the Contract Data Page, subject to minimums set forth by the laws of the State
of New York. If the amount of a partial Withdrawal request reduces Your Contract
Value below the Minimum Amount Remaining After a Partial Withdrawal, as shown on
the Contract Data Page, We may treat Your request as a request for a full
Withdrawal.

                                       11
<PAGE>

Unless You tell Us otherwise in writing, Withdrawals will be deducted from the
Contract Value in proportion to their allocation among any available Fixed
Account Option(s) and the Variable Portfolios. Withdrawals will be based on
values for the NYSE business day in which the request for Withdrawal is received
at Our Annuity Service Center. In the case of a full Withdrawal, the Withdrawal
will be based on values for the NYSE business day in which the request for
Withdrawal and the Contract are received at Our Annuity Service Center. Unless
the SUSPENSION OF PAYMENTS or DEFERMENT OF PAYMENTS sections are in effect,
payment of Withdrawals will be made within seven calendar days.

WITHDRAWAL CHARGE

Withdrawals of all or a portion of the Contract Value may be subject to a
Withdrawal Charge as shown on the Contract Data Page. The Withdrawal Charge
percentage applied to any withdrawal will depend on how long the Purchase
Payment to which the Withdrawal is attributed has been in the Contract. No
Withdrawal Charge is deducted on an amount which is considered a Penalty-Free
Withdrawal or a Purchase Payment no longer subject to a Withdrawal Charge.

For the purpose of determining the Withdrawal Charge applicable to a partial
Withdrawal, the Withdrawal will be attributed to amounts in the following order:
(1) any remaining Penalty-Free Withdrawal amount (except in the case of a full
Withdrawal); (2) Purchase Payments not yet withdrawn and no longer subject to
Withdrawal Charges; (3) Purchase Payments not yet withdrawn and still subject to
Withdrawal Charges; and (4) any remaining Contract Value. A Purchase Payment, or
portion thereof, is considered withdrawn when the Withdrawal incurs a Withdrawal
Charge, and are assumed to be withdrawn on a first-in-first-out (FIFO) basis.
You will not receive the benefit of a Penalty-Free Withdrawal if You take a full
Withdrawal.

The Withdrawal Charge will be assessed against the Variable Portfolio(s) and the
available Fixed Account Option(s) in the same proportion as the remaining
Contract Value is allocated unless You request that the Withdrawal come from a
particular Variable Portfolio or available Fixed Account Option. If the amount
of a partial Withdrawal request causes the Contract Value to be less than the
Minimum Amount Remaining After a Partial Withdrawal, as shown on the Contract
Data Page, We may treat Your partial Withdrawal request as a request for a full
Withdrawal.

PENALTY-FREE WITHDRAWALS

On any day in a Contract Year before the Annuity Date, You may make a partial
Withdrawal of up to the Penalty-Free Withdrawal amount as of that day without
incurring a Withdrawal Charge. The Maximum Penalty-Free Withdrawal Percentage,
the Minimum Partial Withdrawal Amount and the Minimum Amount Remaining After a
Partial Withdrawal are shown on the Contract Data Page.

Each Contract Year, the Penalty-Free Withdrawal amount is calculated as the
Maximum Penalty-Free Withdrawal Percentage multiplied by the remaining Purchase
Payments not yet withdrawn and still subject to Withdrawal Charges.

Although amounts withdrawn as Penalty-Free Withdrawals reduce the Contract
Value, they do not reduce the remaining Purchase Payments for purposes of
calculating future Penalty-Free Withdrawal amounts and Withdrawal Charges.
Partial Withdrawals in a Contract Year that are in excess of the Penalty-Free
Withdrawal amount incur a Withdrawal Charge applicable to the remaining Purchase
Payments and reduce those Purchase Payments on a first-in-first-out (FIFO)
basis. If You choose to take less than the Penalty-Free Withdrawal amount during
a Contract Year, You may not carry over the unused Penalty-Free Withdrawal
amount in any subsequent Contract Years. A Penalty-Free Withdrawal is not
available to You if You take a full Withdrawal.

                                       12
<PAGE>

SYSTEMATIC WITHDRAWAL PROGRAM

Prior to the Annuity Date, You may elect to participate in a Systematic
Withdrawal Program by informing Us at Our Annuity Service Center. The Systematic
Withdrawal Program allows You to make automatic Withdrawals from Your Contract
monthly, quarterly, semiannually or annually. The minimum systematic withdrawal
amount is shown on the Contract Data Page. Any amount withdrawn through the
Systematic Withdrawal Program may be subject to a Withdrawal Charge as discussed
in the WITHDRAWAL CHARGE and PENALTY-FREE WITHDRAWALS provisions. You may
terminate Your participation in the Systematic Withdrawal Program at any time by
sending Us a written request.

                                DEATH PROVISIONS

Notwithstanding any provision of this Contract to the contrary, all payments of
benefits under this Contract will be made in a manner that satisfies the
requirements of IRC Section 72(s), as amended from time to time. If the Contract
is owned by a trust or other non-natural person, We will treat the death of any
Annuitant as the death of the "Primary Annuitant" and as the death of any Owner.

DUE PROOF OF DEATH

Due Proof of Death means:

        1.     a certified copy of a death certificate; or

        2.     a certified copy of a decree of a court of competent jurisdiction
               as to the finding of death; or

        3.     a written statement by a medical doctor who attended the deceased
               Owner at the time of death; or

        4.     any other proof satisfactory to Us.

DEATH OF OWNER BEFORE THE ANNUITY DATE

We will pay a death benefit to the Beneficiary upon Our receiving all Required
Documentation at Our Annuity Service Center. Unless You have previously
designated a payment option on behalf of the Beneficiary, the Beneficiary must
select one of the following options:

        1.     Immediately collect the death benefit in a lump sum payment. If a
               lump sum payment is elected, payment will be in accordance with
               any applicable laws and regulations governing payments on death;
               or

        2.     Collect the death benefit in the form of one of the Annuity
               Income Payment Options. If an Annuity Income Payment Option is
               desired, an option must be elected within 60 days of Our receipt
               of all Required Documentation. The annuity income payments must
               be over the life of the Beneficiary or over a period not
               extending beyond the life expectancy of the Beneficiary.
               Consistent with applicable tax rules, payments under this option
               generally must begin within one year after the Owner's death,
               otherwise, the death benefit will be paid in accordance with
               option 1 above; or

        3.     If eligible, continue the Contract as the Spousal Beneficiary. On
               the Continuation Date, We will contribute to the Contract any
               amount by which the Death Benefit exceeds the Contract Value,
               calculated based on the Owner's date of death. This amount is not
               considered a Purchase Payment except in the calculation of
               certain death benefits upon the death of the

                                       13
<PAGE>

               Spousal Beneficiary. If this option is elected, no death benefit
               is paid out to the Spousal Beneficiary on the Continuation Date;
               or

        4.     A payment option that is mutually agreeable between You and Us.

The entire interest in the Contract will be distributed within the five year
period specified under applicable laws and regulations, commencing with the date
of death of the Owner unless option 2 or 3 was selected under DEATH OF OWNER
BEFORE THE ANNUITY DATE.

You cannot change any elected death benefit option specified on the Contract
Data Page. Upon Spousal Continuation, Your Spousal Beneficiary cannot change any
death benefit elected by You. Upon the Spousal Beneficiary's death, the entire
interest of the Contract must be distributed immediately under option 1 or 2 as
provided under DEATH OF OWNER BEFORE THE ANNUITY DATE.

AMOUNT OF DEATH BENEFIT

Upon Our receipt of all Required Documentation at Our Annuity Service Center,
the Death Benefit payable upon the death of the Owner will be calculated. If
Your death occurs within 12 months of a Payment Enhancement being allocated to
Your Contract, We will deduct the Payment Enhancement from the Death Benefit
amount. The death benefit calculation is different depending on whether a living
benefit or guaranteed minimum withdrawal benefit has been elected and if the
benefit has been terminated.

If You did not elect a living benefit or guaranteed minimum withdrawal benefit,
We will calculate the Death Benefit as the greater of:

        1.     The Contract Value for the NYSE business day during which We
               receive all Required Documentation at Our Annuity Service Center;
               or

        2.     Net Purchase Payment(s) received prior to the Owner's 86th
               birthday.

NOTE: In declining market environments, the death benefit payable may be less
than the Net Purchase Payments received.

If You elected a living benefit or guaranteed minimum withdrawal benefit, We
will calculate the Death Benefit as the greater of:

        1.     The Contract Value for the NYSE business day during which We
               receive all Required Documentation at Our Annuity Service Center;
               or

        2.     Purchase Payment(s) received prior to the Owner's 86th birthday
               reduced by:

               (a)    any Withdrawal Adjustments if the benefit has not been
                      terminated; or

               (b)    any Withdrawal Adjustments prior to the date the benefit
                      is terminated, and reduced proportionately by any
                      Withdrawals on and after the date the benefit is
                      terminated.

                                       14
<PAGE>

SPOUSAL BENEFICIARY CONTINUATION

If the Spousal Beneficiary continues the Contract on the Continuation Date and
upon Our receipt of all Required Documentation at Our Annuity Service Center,
the Death Benefit payable upon the death of the Spousal Beneficiary will be
calculated. The death benefit calculation is different depending on whether a
living benefit or a guaranteed minimum withdrawal benefit has been elected and
if the benefit has been terminated.

If the Spousal Beneficiary was Age 80 or younger on the Continuation Date, and
if the Owner did not elect a living benefit or a guaranteed minimum withdrawal
benefit, We will calculate the Death Benefit as the greater of:

        1.     The Contract Value for the NYSE business day during which We
               receive all Required Documentation at Our Annuity Service Center;
               or

        2.     The Contract Value on the Continuation Date, plus Purchase
               Payment(s) received since the Continuation Date and prior to the
               Spousal Beneficiary's 86th birthday, and reduced proportionately
               by any Withdrawals after the Continuation Date.

If the Spousal Beneficiary was Age 80 or younger on the Continuation Date, and
if the Owner elected a living benefit or guaranteed minimum withdrawal benefit,
We will calculate the Death Benefit as the greater of:

        1.     The Contract Value for the NYSE business day during which We
               receive all Required Documentation at Our Annuity Service Center;
               or

        2.     The Contract Value on the Continuation Date, plus Purchase
               Payment(s) received since the Continuation Date and prior to the
               Spousal Beneficiary's 86th birthday, and reduced by:

               (a)    any Withdrawal Adjustments after the Continuation Date if
                      the benefit has not been terminated; or

               (b)    any Withdrawal Adjustments after the Continuation Date and
                      prior to the date the benefit is terminated, and reduced
                      proportionately by any Withdrawals after the Continuation
                      Date and on and after the date the benefit is terminated.

WITHDRAWAL ADJUSTMENTS

If a living benefit or guaranteed minimum withdrawal benefit is elected and the
benefit has not been terminated, the amount of the Death Benefit will be
adjusted for Withdrawals as follows:

        1.     If the current Contract Year's cumulative Withdrawals, including
               the current Withdrawal, are taken prior to your 81st birthday and
               are less than or equal to the Maximum Annual Withdrawal Amount,
               the amount of adjustment will be the amount of each Withdrawal;
               or

        2.     If the current Contract Year's cumulative Withdrawals, including
               the current Withdrawal, are taken on and/or after your 81st
               birthday and/or are in excess of the Maximum Annual Withdrawal
               Amount, the amount of adjustment is equal to the proportion that
               the amount of each Withdrawal in excess of the Maximum Annual
               Withdrawal Amount reduces the Contract Value.

If the Spousal Beneficiary was age 81 or older on the Continuation Date, the
Death Benefit will be the Contract Value for the NYSE business day during which
We receive all Required Documentation at Our Annuity Service Center.

                                       15
<PAGE>

DEATH OF OWNER OR ANNUITANT ON OR AFTER THE ANNUITY DATE

If any Owner or Annuitant dies on or after the Annuity Date and before the
entire interest in the Contract has been distributed, We will pay any remaining
portion of the annuity income payment(s) to the Beneficiary upon Our receipt of
all Required Documentation. For further information pertaining to death of the
Annuitant, see ANNUITY INCOME PAYMENT OPTIONS.

BENEFICIARY

The Beneficiary is selected by the Owner. While the Owner is living and before
the Annuity Date, the Owner may change the Beneficiary by written notice. A
change in Beneficiary will take effect on the date We receive the written notice
in a form satisfactory to Us at Our Annuity Service Center. If two or more
persons are named as Beneficiaries under the Contract, those surviving the Owner
will share equally unless otherwise specified by the Owner and each must elect
to receive their respective portions of the death benefit according to the
options listed under DEATH OF OWNER BEFORE THE ANNUITY DATE. If the Annuitant
survives the Owner, and there are no surviving Beneficiaries, the Annuitant will
be deemed the Beneficiary.

Joint Owners, if applicable, shall be each other's primary Beneficiary. Joint
Annuitants, if any, when the Owner is a non-natural person, shall be each
other's primary Beneficiary. Any other Beneficiary designation will be treated
as a contingent Beneficiary.

If the Owner is also the Annuitant and there are no surviving Beneficiaries,
upon Our receipt of all Required Documentation, We will pay the Death Benefit to
the estate of the Owner in accordance with option 1, under DEATH OF OWNER BEFORE
THE ANNUITY DATE.

                               ANNUITY PROVISIONS

ANNUITY DATE

You may specify an anticipated Annuity Date. You may change the Annuity Date at
any time, at least seven days prior to the Annuity Date, by written notice to Us
at Our Annuity Service Center. The Annuity Date must always be the first day of
the calendar month. The Earliest Annuity Date After the Contract Date is shown
on the Contract Date Page. The Annuity Date must not be beyond the Latest
Annuity Date shown on the Contract Data Page. If no Annuity Date is specified by
You, the Annuity Date will be the Latest Annuity Date.

PAYMENTS TO OWNER

Unless You request otherwise, We will make annuity income payments to You. If
You want the annuity income payments to be made to some other Payee, We will
make such annuity income payments subject to receipt of a written request signed
by You and filed at the Annuity Service Center no later than thirty (30) days
before the due date of the first annuity income payment or subsequent annuity
income payment.

Any such request is subject to the rights of any assignee. No annuity income
payments available to or being paid to the Payee while the Annuitant is alive
can be transferred, commuted, anticipated or encumbered.

BETTERMENT OF RATES

The amount of the Owner's monthly payment will be at least equal to the monthly
payment produced by the application of an amount equal to the Contract Value of
this Contract to purchase any single consideration immediate annuity contract
offered by the Company at the same time to the same class of annuitants. We are
not currently offering any single premium immediate annuity contracts.

                                       16
<PAGE>

FIXED ANNUITIZATION

If a Fixed Annuitization has been elected, the proceeds payable under this
Contract less any applicable premium taxes, shall be applied to the payment of
the fixed annuity income payment option elected at rates which are at least
equal to the annuity rates based upon the applicable tables in the Contract. In
no event will the Fixed Annuitization be changed once it begins.

AMOUNT OF FIXED ANNUITY INCOME PAYMENTS

The amount of each fixed annuity income payment will be determined by applying
the portion of the Contract Value allocated by You for Fixed Annuitization on
the Annuity Date, less any applicable premium taxes, to the annuity factor
applicable to the fixed annuity income payment option chosen. In no event will
the Fixed Annuitization be changed once it begins.

AMOUNT OF VARIABLE ANNUITY INCOME PAYMENTS

(a)      FIRST VARIABLE ANNUITY INCOME PAYMENT: The dollar amount of the first
         Variable Annuitization payment will be determined by applying the
         portion of the Contract Value allocated to the Variable Portfolio(s) on
         the Annuity Date, less any applicable premium taxes, to rates which are
         at least equal to the annuity rates based upon the annuity factor
         applicable to the variable annuity income payment option chosen. If the
         Contract Value is allocated to more than one Variable Portfolio, the
         value of Your interest in each Variable Portfolio is applied separately
         to the variable annuity income payment option table to determine the
         amount of the first annuity income payment attributable to each
         Variable Portfolio.

(b)      NUMBER OF VARIABLE ANNUITY UNITS: The number of Annuity Units for each
         applicable Variable Portfolio is the amount of the first annuity income
         payment attributable to that Variable Portfolio divided by the value of
         the applicable Annuity Unit for that Variable Portfolio as of the
         Annuity Date. The number of Annuity Units will not change as a result
         of investment experience.

(c)      VALUE OF EACH VARIABLE ANNUITY UNIT: The value of an Annuity Unit may
         increase or decrease from one month to the next. For any month, the
         value of an Annuity Unit of a particular Variable Portfolio is the
         value of that Annuity Unit as of the last NYSE business day of the
         preceding month, multiplied by the Net Investment Factor for that
         Variable Portfolio for the last NYSE business day of the current month.

The Net Investment Factor for any Variable Portfolio for a certain month is
determined by dividing (1) by (2) and multiplying by (3) where:

               (1)    is the Accumulation Unit Value of the Variable Portfolio
                      determined as of the last business day at the end of that
                      month, and

               (2)    is the Accumulation Unit Value of the Variable Portfolio
                      determined as of the last business day at the end of the
                      preceding month, and

               (3)    is a factor that neutralizes the assumed investment rate
                      of 3.5%.

(d)      SUBSEQUENT VARIABLE ANNUITY INCOME PAYMENTS: After the first Variable
         Annuitization payment, subsequent Variable Annuitization payments will
         vary in amount according to the investment performance of the
         applicable Variable Portfolio(s) in which You are invested. The

                                       17
<PAGE>

          amount may change from month to month. The amount of each subsequent
          payment for each Variable Portfolio is (1) multiplied by (2) where:

               (1)    Is the number of Annuity Units for each Variable Portfolio
                      as determined for the first annuity income payment

               (2)    Is the value of an Annuity Unit for that Variable
                      Portfolio at the end of the month immediately preceding
                      the month in which payment is due.

         We guarantee that the amount of each Variable Annuitization payments
         will not be affected by variations in expenses or mortality experience.

                               GENERAL PROVISIONS

ENTIRE CONTRACT

The Entire Contract between You and Us consists of this Contract, this
Application and/or confirmation thereof, and any attached endorsement(s) or
rider(s). An agent cannot change the terms or conditions of this Contract. Any
change must be in writing and approved by Us. Only Our President, Secretary, or
one of Our Vice-Presidents can give Our approval.

CHANGE OF ANNUITANT

If the Owner is an individual, the Owner may change the Annuitant(s) at any time
prior to the Annuity Date. To make a change, the Owner must send a written
notice to Us at least 30 days before the Annuity Date. If the Owner is a
non-natural person, the Owner may not change the Annuitant.

DEATH OF ANNUITANT

If the Owner is a natural person, the Owner and Annuitant are different, and the
Annuitant dies before the Annuity Date, the Owner becomes the Annuitant until
the Owner elects a new Annuitant. If there are Joint Annuitants, upon the death
of any Annuitant prior to the Annuity Date, the Owner may elect a new Joint
Annuitant. However, if the Owner is a non-natural person, We will treat the
death of any Annuitant as the death of the "Primary Annuitant" as defined in the
IRC, and as the death of the Owner, as explained in the DEATH PROVISIONS.

MISSTATEMENT OF AGE OR SEX

If the Age or sex of any Annuitant has been misstated, future annuity payments
will be adjusted using the correct Age and sex, according to Our rates in effect
on the date that annuity payments were determined. Any overpayment, plus
interest at the rate of 4% per year, will be deducted from the next payment(s)
due. Any underpayment, plus interest at the rate of 4% per year, will be paid in
full with the next payment due.

With respect to Contract issue Age and other age driven features in the
Contract, should We discover a misstatement of Age, We reserve the right to
fully pursue Our remedies including possible termination of the Contract and/or
revocation of any Age driven benefits.

PROOF OF AGE, SEX, OR SURVIVAL

We may require satisfactory proof of correct Age or sex at any time. If any
payment under this Contract depends on the Annuitant being alive, We may require
satisfactory proof of survival.

                                       18
<PAGE>

DEFERMENT OF PAYMENTS

We may defer making payments, subject to state requirements, from the available
Fixed Account Option(s) for up to six (6) months. Interest, subject to state
requirements, will be credited during the deferral period.

SUSPENSION OF PAYMENTS

We may suspend or postpone any payments from the Variable Portfolios if any of
the following occur:

(a)      the NYSE is closed;

(b)      trading on the NYSE is restricted;

(c)      an emergency exists such that it is not reasonably practical to dispose
         of securities in the Variable Portfolios or to determine the value of
         its assets;

(d)      the United States Securities and Exchange Commission, by order, so
         permits for the protection of Owners; or

(e)      We are on notice that this Contract is the subject of a court
         proceeding, an arbitration, a regulatory matter or other legal action.

Conditions in (b) and (c) will be decided by or in accordance with rules of the
United States Securities and Exchange Commission.

CONFORMITY WITH STATE LAWS

The provisions of this Contract will be interpreted by the laws of the State of
New York, the state in which this Contract is delivered. Any provision which, on
the Contract Date, is in conflict with the law of such state is amended to
conform to the minimum requirements of such law.

CHANGES IN LAW

If the laws governing this Contract or the taxation of benefits under the
Contract change, We will amend this Contract, subject to New York Insurance
Department approval, to comply with any changes.

ASSIGNMENT / CHANGE OF OWNER

Unless restricted by federal tax law, You may assign this Contract before the
Annuity Date, but We will not be bound by an assignment unless the request for
assignment is signed by You and received by Us. Your rights and those of any
other person referred to in this Contract will be subject to the assignment.
Certain assignments may be taxable. We do not assume any responsibility for the
validity or tax consequences of any assignment. We reserve the right to not
recognize assignments if it changes the risk profile of the Owner of the
Contract as determined in Our sole discretion.

INSURABLE INTEREST

Evidence must exist that the Owner(s), Annuitant(s) or Beneficiary(ies) will
suffer a financial loss at the death of the life that triggers the death
benefit. Generally, We consider an interest insurable if a familial relationship
and/or economic interest exists. A familial relationship generally includes
those persons related by blood or by law. An economic interest exists when the
Owner has a lawful and substantial economic interest in having the life, health
or bodily safety of the insured life preserved.

CLAIMS OF CREDITORS

To the extent permitted by law, no right or proceeds payable under this Contract
will be subject to claims of creditors or legal process.

PREMIUM TAXES OR OTHER TAXES

We may deduct from Your Contract Value any premium tax or other taxes payable to
a state or other government entity, if applicable. Should We advance any amount
so due, We are not waiving any right to collect such amount at a later date. We
will deduct any withholding taxes required by applicable law.

                                       19
<PAGE>

WRITTEN NOTICE

Any notice We send to You will be sent to Your address shown in the Application
and/or confirmation thereof unless You request otherwise. Any written request or
notice to Us must be sent to Our Annuity Service Center, as specified on the
Contract Data Page.

PERIODIC REPORTS

At least once during each Contract Year, We will send You a statement of the
account activity of the Contract. The statement will include all transactions
which have occurred during the accounting period shown on the statement.

INCONTESTABILITY

This Contract will be incontestable after it has been in force for a period of
two years from the Contract Date during the lifetime of any Owner who is
required to provide Us with information concerning their Age, sex and identity.
Accurate statements as to any Owner's Age, sex and identity are required as a
condition of issuing this Contract. The Incontestability of this Contract
applies to any statements any Owner makes, except as otherwise stated in the
Misstatement of Age or Sex Provision.

NONPARTICIPATING

This Contract does not share in Our surplus.

WAIVER

Our waiver of any of the terms and conditions under this Contract will not be
deemed to constitute waiver of the right to enforce strict compliance.

                                       20
<PAGE>

                         ANNUITY INCOME PAYMENT OPTIONS

During the Annuitant's life, upon written election and the return of this
Contract to Us at Our Annuity Service Center, the Contract Value may be applied
to provide one of the following annuity income payment options or any annuity
income payment option that is mutually agreeable. Prior to the Annuity Date but
not before the Earliest Annuity Date After The Contract Date shown on the
Contract Data Page, You can choose one of the options described below. If no
option has been selected by the Annuity Date, You will automatically receive
option 4, below, with 120 monthly payments guaranteed; for Joint Owners, You
will automatically receive Option 3, below, with 120 monthly payments
guaranteed.

OPTIONS 1 & 1v - LIFE ANNUITY, LIFETIME PAYMENTS GUARANTEED

Payments payable to a Payee during the lifetime of the Annuitant. No further
annuity income payments are payable after the death of the Annuitant.

OPTIONS 2 & 2v - JOINT AND SURVIVOR LIFE ANNUITY

Payments payable to the Payee during the lifetime of the Annuitant and during
the lifetime of a designated second person. No further annuity income payments
are payable after the deaths of both the Annuitant and the designated second
person.

OPTIONS 3 & 3v - JOINT AND SURVIVOR LIFE ANNUITY - WITH 120 OR 240 MONTHLY
PAYMENTS GUARANTEED

Payments payable to the Payee during the lifetime of the Annuitant and during
the lifetime of a designated second person. If, at the death of the survivor,
annuity income payments have been made for less than 120 or 240 monthly periods,
the remaining guaranteed annuity income payments will be continued to the
Beneficiary. If, at the death of the survivor, annuity income payments have been
made for at least 120 or 240 monthly periods, as selected at the time of
annuitization, no further annuity income payments will be made.

OPTIONS 4 & 4v - LIFE ANNUITY WITH - 120 OR 240 MONTHLY PAYMENTS GUARANTEED

Payments payable to the Payee during the lifetime of the Annuitant. If, at the
death of the Annuitant, annuity income payments have been made for less than the
120 or 240 monthly periods, as selected at the time of annuitization, the
remaining guaranteed annuity income payments will be continued to the
Beneficiary. If, at death of the Annuitant, annuity income payments have been
made for at least 120 or 240 monthly periods, no further payments will be made.

OPTIONS 5 & 5v - FIXED PAYMENTS FOR A SPECIFIED PERIOD CERTAIN

Payments payable to the Payee for any specified period of time for five (5)
years or more, but not exceeding thirty (30) years, as selected at the time of
annuitization. The selection must be made for full twelve month periods. In the
event of death of the Annuitant during the specified period of time, any
remaining annuity income payments will be continued to the Beneficiary. If the
Annuitant dies after the end of the specific period of time, no further annuity
income payments will be made. If Variable Annuity Income Payments are elected
under this Annuity Income Payment Option, any remaining guaranteed Variable
Annuity Income Payments may be redeemed for a discounted value determined by Us.
Any applicable Withdrawal Charges will be deducted from the discounted value as
if Your Contract was fully withdrawn.

                                       21
<PAGE>

                   FIXED ANNUITY INCOME PAYMENT OPTIONS TABLE

BASIS OF COMPUTATION

The actuarial basis for the Table of Annuity Rates is the Annuity 2000 Mortality
Table with a guaranteed interest rate of 1.50%, with quinquennial age setbacks.
For every five years that the Contract has been in effect at the time of
annuitization, the Annuitant's age will be set back by one year to determine the
applicable factors. The Fixed Annuity Income Payment Options Table does not
include any applicable premium tax.

            OPTIONS 1 & 4 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
   (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)

<TABLE>
<CAPTION>
                     OPTION 1                       OPTION 4                              OPTION 4
                                                  LIFE ANNUITY                          LIFE ANNUITY
                   LIFE ANNUITY           (W/120 PAYMENTS GUARANTEED)             (W/240 PAYMENTS GUARANTEED)
 AGE OF          ----------------         ---------------------------             ---------------------------
ANNUITANT        MALE      FEMALE          MALE               FEMALE              MALE                FEMALE
---------        ----      ------         ------             --------             ----               --------
<S>              <C>        <C>           <C>                <C>                  <C>                 <C>
   55            3.68       3.38            3.64               3.35               3.48                3.27
   56            3.77       3.46            3.73               3.43               3.55                3.34
   57            3.87       3.54            3.82               3.51               3.62                3.40
   58            3.98       3.63            3.92               3.60               3.69                3.47
   59            4.09       3.73            4.02               3.69               3.76                3.54
   60            4.21       3.83            4.13               3.78               3.83                3.62
   61            4.34       3.93            4.24               3.89               3.90                3.69
   62            4.47       4.05            4.36               3.99               3.97                3.77
   63            4.62       4.17            4.49               4.10               4.04                3.84
   64            4.77       4.30            4.62               4.22               4.10                3.92
   65            4.93       4.44            4.76               4.35               4.17                4.00
   66            5.11       4.58            4.90               4.48               4.24                4.07
   67            5.30       4.74            5.05               4.62               4.30                4.15
   68            5.49       4.91            5.20               4.76               4.36                4.22
   69            5.71       5.09            5.36               4.92               4.41                4.29
   70            5.93       5.29            5.53               5.08               4.47                4.36
   71            6.17       5.50            5.70               5.25               4.51                4.42
   72            6.43       5.73            5.87               5.43               4.56                4.48
   73            6.70       5.98            6.05               5.62               4.60                4.53
   74            6.99       6.24            6.23               5.81               4.63                4.58
   75            7.31       6.53            6.41               6.01               4.67                4.62
   76            7.64       6.84            6.59               6.21               4.69                4.65
   77            8.00       7.18            6.78               6.41               4.72                4.69
   78            8.38       7.55            6.96               6.62               4.74                4.71
   79            8.79       7.94            7.13               6.83               4.75                4.74
   80            9.23       8.37            7.31               7.03               4.77                4.75
   81            9.70       8.84            7.47               7.23               4.78                4.77
   82            10.20      9.34            7.63               7.42               4.79                4.78
   83            10.73      9.88            7.78               7.60               4.80                4.79
   84            11.30      10.47           7.93               7.77               4.80                4.80
   85            11.90      11.10           8.06               7.93               4.81                4.80
</TABLE>

                                       22
<PAGE>

              OPTION 2 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
   (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
                       JOINT & 100% SURVIVOR LIFE ANNUITY

<TABLE>
<CAPTION>
  AGE OF                                             AGE OF FEMALE ANNUITANT
   MALE               --------------------------------------------------------------------------------------
ANNUITANT              55            60            65            70           75           80            85
---------             ----          ----          ----          ----         ----         ----          ----
<S>                   <C>           <C>           <C>           <C>          <C>          <C>           <C>
    55                3.01          3.18          3.33          3.45         3.54         3.60          3.64
    60                3.12          3.36          3.59          3.78         3.94         4.05          4.12
    65                3.21          3.51          3.83          4.13         4.40         4.61          4.75
    70                3.27          3.63          4.03          4.46         4.89         5.26          5.53
    75                3.32          3.70          4.18          4.74         5.35         5.95          6.45
    80                3.34          3.76          4.29          4.95         5.75         6.62          7.45
    85                3.36          3.79          4.35          5.09         6.05         7.20          8.44
</TABLE>

              OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
         JOINT & 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
  AGE OF                                              AGE OF FEMALE ANNUITANT
   MALE               --------------------------------------------------------------------------------------
ANNUITANT              55            60            65            70           75           80            85
---------             ----          ----          ----          ----         ----         ----          ----
<S>                   <C>           <C>           <C>           <C>          <C>          <C>           <C>
    55                3.01          3.18          3.33          3.45         3.53         3.59          3.62
    60                3.12          3.36          3.58          3.78         3.93         4.03          4.09
    65                3.21          3.51          3.82          4.12         4.38         4.56          4.67
    70                3.27          3.62          4.02          4.44         4.84         5.16          5.36
    75                3.31          3.70          4.16          4.70         5.26         5.76          6.11
    80                3.33          3.74          4.25          4.88         5.59         6.28          6.80
    85                3.35          3.77          4.31          4.99         5.81         6.66          7.35
</TABLE>

              OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
         JOINT & 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
  AGE OF                                              AGE OF FEMALE ANNUITANT
   MALE               --------------------------------------------------------------------------------------
ANNUITANT              55            60            65            70           75           80            85
---------             ----          ----          ----          ----         ----         ----          ----
<S>                   <C>           <C>           <C>           <C>          <C>          <C>           <C>
    55                3.00          3.16          3.30          3.39         3.45         3.47          3.48
    60                3.11          3.33          3.53          3.68         3.77         3.81          3.82
    65                3.18          3.46          3.72          3.94         4.08         4.15          4.17
    70                3.23          3.54          3.86          4.14         4.33         4.43          4.46
    75                3.26          3.59          3.94          4.27         4.50         4.62          4.66
    80                3.27          3.61          3.98          4.33         4.58         4.71          4.76
    85                3.27          3.62          3.99          4.35         4.61         4.75          4.80
</TABLE>

                                       23
<PAGE>

              OPTION 5 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
                       FIXED PAYMENT FOR SPECIFIED PERIOD

<TABLE>
<CAPTION>
 NUMBER            MONTHLY        NUMBER        MONTHLY       NUMBER       MONTHLY      NUMBER       MONTHLY
OF YEARS           PAYMENT       OF YEARS       PAYMENT      OF YEARS      PAYMENT     OF YEARS      PAYMENT
--------           -------       --------       -------      --------      -------     --------      -------
<S>                <C>           <C>            <C>          <C>           <C>         <C>           <C>
                                    10           8.96           17          5.55          24           4.13
                                    11           8.21           18          5.27          25           3.99
   5                17.28           12           7.58           19          5.03          26           3.86
   6                14.51           13           7.05           20          4.81          27           3.75
   7                12.53           14           6.59           21          4.62          28           3.64
   8                11.04           15           6.20           22          4.44          29           3.54
   9                 9.89           16           5.85           23          4.28          30           3.44
</TABLE>

                                       24
<PAGE>

                  VARIABLE ANNUITY INCOME PAYMENT OPTIONS TABLE

BASIS OF COMPUTATION

The actuarial basis for the Table of Annuity Rates is the Annuity 2000 Mortality
Table with an effective annual Assumed Investment Rate of 3.50%, with
quinquennial age setbacks. For every five years that the Contract has been in
effect at the time of annuitization, the Annuitant's age will be set back by one
year to determine the applicable factors. The Variable Annuity Income Payment
Options Table does not include any applicable premium tax.

           OPTIONS 1v & 4v - TABLE OF MONTHLY INSTALLMENTS PER $1,000

   (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)

<TABLE>
<CAPTION>
                    OPTION 1v                      OPTION 4v                              OPTION 4v
                                                 LIFE ANNUITY                           LIFE ANNUITY
                                                (W/120 PAYMENTS                        (W/240 PAYMENTS
                   LIFE ANNUITY                   GUARANTEED)                            GUARANTEED)
  AGE OF        -----------------          -------------------------              -------------------------
ANNUITANT       MALE       FEMALE          MALE               FEMALE              MALE               FEMALE
---------       ----       ------          ----               ------              ----               ------
<S>             <C>        <C>             <C>                <C>                 <C>                <C>
    55          4.80        4.48           4.74                4.45               4.54                4.34
    56          4.89        4.56           4.82                4.52               4.60                4.40
    57          4.99        4.64           4.91                4.60               4.67                4.46
    58          5.09        4.73           5.01                4.68               4.73                4.53
    59          5.21        4.82           5.11                4.77               4.79                4.59
    60          5.33        4.92           5.21                4.86               4.86                4.66
    61          5.45        5.03           5.32                4.96               4.92                4.73
    62          5.59        5.14           5.44                5.06               4.98                4.80
    63          5.73        5.26           5.56                5.17               5.05                4.87
    64          5.89        5.39           5.69                5.29               5.11                4.94
    65          6.06        5.53           5.83                5.41               5.17                5.01
    66          6.24        5.68           5.97                5.54               5.23                5.08
    67          6.43        5.84           6.11                5.67               5.29                5.14
    68          6.63        6.01           6.26                5.82               5.34                5.21
    69          6.84        6.19           6.42                5.97               5.39                5.28
    70          7.07        6.39           6.57                6.12               5.44                5.34
    71          7.32        6.60           6.74                6.29               5.48                5.39
    72          7.58        6.84           6.91                6.46               5.52                5.45
    73          7.86        7.09           7.08                6.64               5.56                5.49
    74          8.16        7.36           7.25                6.83               5.59                5.54
    75          8.47        7.65           7.42                7.02               5.62                5.57
    76          8.82        7.97           7.59                7.22               5.64                5.61
    77          9.18        8.31           7.77                7.41               5.67                5.64
    78          9.57        8.69           7.94                7.61               5.68                5.66
    79          9.99        9.09           8.11                7.81               5.70                5.68
    80          10.43       9.53           8.27                8.00               5.71                5.70
    81          10.91      10.00           8.43                8.19               5.72                5.71
    82          11.42      10.51           8.58                8.38               5.73                5.72
    83          11.96      11.07           8.72                8.55               5.74                5.73
    84          12.53      11.67           8.85                8.71               5.74                5.74
    85          13.15      12.31           8.98                8.86               5.75                5.74
</TABLE>

                                       25
<PAGE>

              OPTION 2v - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
   (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
                       JOINT & 100% SURVIVOR LIFE ANNUITY

<TABLE>
<CAPTION>
 AGE OF                                             AGE OF FEMALE ANNUITANT
  MALE             -----------------------------------------------------------------------------------------
ANNUITANT           55             60             65           70            75            80            85
---------          ----           ----           ----         ----          ----          ----          ----
<S>                <C>            <C>            <C>          <C>           <C>           <C>           <C>
   55              4.09           4.25           4.40         4.52          4.62          4.69          4.74
   60              4.20           4.42           4.64         4.84          5.00          5.13          5.21
   65              4.29           4.56           4.87         5.17          5.45          5.67          5.83
   70              4.35           4.68           5.07         5.49          5.92          6.30          6.60
   75              4.40           4.77           5.23         5.78          6.38          6.99          7.50
   80              4.43           4.83           5.34         6.00          6.79          7.66          8.50
   85              4.45           4.87           5.42         6.15          7.10          8.25          9.49
</TABLE>
              OPTION 3v - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
        JOINT AND 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
 AGE OF                                             AGE OF FEMALE ANNUITANT
  MALE             -----------------------------------------------------------------------------------------
ANNUITANT           55             60             65           70            75            80            85
---------          ----           ----           ----         ----          ----          ----          ----
<S>                <C>            <C>            <C>          <C>           <C>           <C>           <C>
   55              4.08           4.25           4.40         4.52          4.61          4.68          4.71
   60              4.19           4.41           4.63         4.83          4.99          5.10          5.16
   65              4.28           4.56           4.86         5.15          5.41          5.61          5.73
   70              4.35           4.68           5.05         5.46          5.86          6.18          6.40
   75              4.39           4.76           5.20         5.72          6.27          6.76          7.11
   80              4.42           4.81           5.30         5.91          6.60          7.26          7.77
   85              4.44           4.84           5.36         6.03          6.82          7.63          8.29
</TABLE>

              OPTION 3v - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
        JOINT AND 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
 AGE OF                                             AGE OF FEMALE ANNUITANT
  MALE             -----------------------------------------------------------------------------------------
ANNUITANT           55             60             65           70            75            80            85
---------          ----           ----           ----         ----          ----          ----          ----
<S>                <C>            <C>            <C>          <C>           <C>           <C>           <C>
   55              4.07           4.22           4.36         4.45          4.51          4.53          4.54
   60              4.17           4.38           4.56         4.71          4.80          4.84          4.85
   65              4.25           4.50           4.74         4.95          5.08          5.14          5.17
   70              4.30           4.58           4.88         5.14          5.31          5.40          5.43
   75              4.32           4.63           4.96         5.25          5.46          5.57          5.61
   80              4.34           4.65           4.99         5.31          5.54          5.66          5.70
   85              4.34           4.66           5.00         5.33          5.57          5.69          5.74
</TABLE>

                                       26
<PAGE>

              OPTION 5v - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
                         PAYMENTS FOR A SPECIFIED PERIOD

<TABLE>
<CAPTION>
    NUMBER           MONTHLY        NUMBER        MONTHLY       NUMBER        MONTHLY       NUMBER        MONTHLY
   OF YEARS          PAYMENT       OF YEARS       PAYMENT      OF YEARS       PAYMENT      OF YEARS       PAYMENT
   --------          -------       --------       -------      --------       -------      --------       -------
   <S>               <C>           <C>           <C>           <C>            <C>          <C>            <C>
                                      10            8.96          17           5.55           24           4.13
                                      11            8.21          18           5.27           25           3.99
       5              17.28           12            7.58          19           5.03           26           3.86
       6              14.51           13            7.05          20           4.81           27           3.75
       7              12.53           14            6.59          21           4.62           28           3.64
       8              11.04           15            6.20          22           4.44           29           3.54
       9              9.89            16            5.85          23           4.28           30           3.44
</Table>

                                       27
<PAGE>

                     FIRST SUNAMERICA LIFE INSURANCE COMPANY
                       A STOCK COMPANY NEW YORK, NEW YORK

                              INDIVIDUAL FIXED AND
                            VARIABLE ANNUITY CONTRACT

                                Nonparticipating

                                       28exv10w46

EXHIBIT NO. 10.46

REVISED

EQUITY PURCHASE AGREEMENT

BY AND BETWEEN

UFOOD RESTAURANT GROUP, INC

AND

SOUTHRIDGE PARTNERS II, LP

Dated

September 28, 2011

 

 

     THIS EQUITY PURCHASE AGREEMENT entered into as of the 27th day of September, 2011 (this
“AGREEMENT”), by and between SOUTHRIDGE PARTNERS II, LP, Delaware limited partnership (“INVESTOR”),
and UFood Restaurant Group, Inc, a Nevada corporation (the “COMPANY”).

     WHEREAS, the parties desire that, upon the terms and subject to the conditions contained
herein, the Company shall issue and sell to Investor, from time to time as provided herein, and
Investor shall purchase, up to three Million Dollars ($3,000,000) of its Common Stock (as defined
below); and

     NOW, THEREFORE, the parties hereto agree as follows:

ARTICLE I

CERTAIN DEFINITIONS

     Section 1.1 DEFINED TERMS as used in this Agreement, the following terms shall have the
following meanings specified or indicated (such meanings to be equally applicable to both the
singular and plural forms of the terms defined)

          “AGREEMENT” shall have the meaning specified in the preamble hereof.

          “BY-LAWS” shall have the meaning specified in Section 4.8.

          “CERTIFICATE” shall have the meaning specified in Section 4.8.

          “CLAIM NOTICE” shall have the meaning specified in Section 9.3(a).

          “CLEARING DATE” shall be the date in which the Estimated Put Shares (as defined in Section
2.2(a)) have been deposited into the Investor’s brokerage account and Investor’s broker has
confirmed with Investor that Investor may execute trades of such Estimated Put Shares.

          “CLOSING” shall mean one of the closings of a purchase and sale of shares of Common Stock
pursuant to Section 2.3.

          “CLOSING CERTIFICATE” shall mean the closing certificate of the Company in the form of Exhibit
B hereto.

          “CLOSING PRICE” shall mean the volume weighted average price (“VWAP”) for the Company’s common
stock on the Principal Market on a Trading Day as reported by Bloomberg Finance L.P.

          “COMMITMENT PERIOD” shall mean the period commencing on the Effective Date, and ending on the
earlier of (i) the date on which Investor shall have purchased Put Shares

1

 

pursuant to this
Agreement for an aggregate Purchase Price of the Maximum Commitment Amount, or (ii) the date
occurring twenty four (24) months from the date of commencement of the Commitment Period.

          “COMMON STOCK” shall mean the Company’s common stock, $0.001 par value per share, and any
shares of any other class of common stock whether now or hereafter authorized, having the right to
participate in the distribution of dividends (as and when declared) and assets (upon liquidation of
the Company).

          “COMMON STOCK EQUIVALENTS” shall mean any securities that are convertible into or exchangeable
for Common Stock or any options or other rights to subscribe for or purchase Common Stock or any
such convertible or exchangeable securities.

          “COMPANY” shall have the meaning specified in the preamble to this Agreement.

          “CONDITION SATISFACTION DATE” shall have the meaning specified in Section 7.2.

          “DAMAGES” shall mean any loss, claim, damage, liability, cost and expense (including, without
limitation, reasonable attorneys’ fees and disbursements and costs and expenses of expert witnesses
and investigation).

          “DISPUTE PERIOD” shall have the meaning specified in Section 9.3(a).

          “DOLLAR VOLUME” shall mean the product of (a) the Closing Price multiplied by (b) the trading
volume on the Principal Market on a Trading Day.

          “DTC” shall have the meaning specified in Section 2.3.

          “DWAC” shall have the meaning specified in Section 2.3.

          “EFFECTIVE DATE” shall mean the Subscription Date.

          “ESTIMATED PUT SHARES” shall have the meaning specified in Section 2.2(a)

          “EXCHANGE ACT” shall mean the Securities Exchange Act of 1934 and the rules and regulations
promulgated thereunder.

          “FAST” shall have the meaning specified in Section 2.3.

          “FINRA” shall mean the Financial Industry Regulatory Authority, Inc.

          “INDEMNIFIED PARTY” shall have the meaning specified in Section 9.3(a).

2

 

          “INDEMNIFYING PARTY” shall have the meaning specified in Section 9.3(a).

          “INDEMNITY NOTICE” shall have the meaning specified in Section 9.3(b).

          “INVESTMENT AMOUNT” shall mean the dollar amount to be invested by Investor to purchase Put
Shares with respect to any Put as notified by the Company to Investor in accordance with Section
2.2.

          “INVESTOR” shall have the meaning specified in the preamble to this Agreement.

          “LEGEND” shall have the meaning specified in Section 8.1.

          “MARKET PRICE” shall mean the average of the Closing Prices during the Valuation Period.

          “MATERIAL ADVERSE EFFECT” shall mean any effect on the business, operations, properties, or
financial condition of the Company that is material and adverse to the Company and/or any
condition, circumstance, or situation that would prohibit or otherwise materially interfere with
the ability of the Company to enter into and perform its obligations under any of this Agreement.

          “MAXIMUM COMMITMENT AMOUNT” shall mean three Million Dollars ($3,000,000).

          “MAXIMUM PUT AMOUNT” shall mean the lesser of (i) Five Hundred Thousand Dollars ($500,000),
or (ii) Five Hundred (500%) percent of the average of the Dollar Volume for the twenty (20) Trading
Days immediately preceding the Put Date.

          “NEW PRICE” shall have the meaning specified in Section 2.6.

          “OLD PRICE” shall have the meaning specified in Section 2.6.

          “PAR VALUE PAYMENT” shall have the meaning specified in Section 2.2(a)

          “PERSON” shall mean an individual, a corporation, a partnership, an association, a trust or
other entity or organization, including a government or political subdivision or an agency or
instrumentality thereof.

          “PRINCIPAL MARKET” shall mean any of the national exchanges (i.e. NYSE, AMEX, Nasdaq), the OTC
Bulletin Board, or other principal exchange which is at the time the principal trading exchange or
market for the Common Stock.

3

 

          “PURCHASE PRICE” shall mean 92% of the Market Price on such date on which the Purchase Price
is calculated in accordance with the terms and conditions of this Agreement.

          “PUT” shall mean the right of the Company to require the Investor to purchase shares of Common
Stock, subject to the terms and conditions of this Agreement.

          “PUT DATE” shall mean any Trading Day during the Commitment Period that a Put Notice is deemed
delivered pursuant to Section 2.2(b).

          “PUT NOTICE” shall mean a written notice, substantially in the form of Exhibit A hereto, to
Investor setting forth the Investment Amount with respect to which the Company intends to require
Investor to purchase shares of Common Stock pursuant to the terms of this Agreement.

          “PUT SHARES” shall mean all shares of Common Stock issued or issuable pursuant to a Put that
has been exercised or may be exercised in accordance with the terms and conditions of this
Agreement.

          “REGISTERED SECURITIES” shall mean the (a) Put Shares, and (b) any securities issued or
issuable with respect to any of the foregoing by way of exchange, stock dividend or stock split or
in connection with a combination of shares, recapitalization, merger, consolidation or other
reorganization or otherwise. As to any particular Registered Securities, once issued such
securities shall cease to be Registrable Securities when (i) a Registration Statement has been
declared effective by the SEC and such Registrable Securities have been disposed of pursuant to a
Registration Statement, (ii) such Registrable Securities have been sold under circumstances under
which all of the applicable conditions of Rule 144 are met, (iii) such time as such Registrable
Securities have been otherwise transferred to holders who may trade such shares without restriction
under the Securities Act or (iv) in the opinion of counsel to the Company, which counsel shall be
reasonably acceptable to Investor, such Registrable Securities may be sold without registration
under the Securities Act or the need for an exemption from any such registration requirements and
without any time, volume or manner limitations pursuant to Rule 144(b)(i) (or any similar provision
then in effect) under the Securities Act.

          “REGISTRATION STATEMENT” shall mean the Company’s effective registration statement on file
with the SEC, and any follow up registration statement or amendment thereto.

          “REGULATION D” shall mean Regulation D promulgated under the Securities Act.

          “RULE 144” shall mean Rule 144 under the Securities Act or any similar provision then in force
under the Securities Act.

4

 

          “SEC” shall mean the Securities and Exchange Commission.

          “SECURITIES ACT” shall have the meaning specified in the recitals of this Agreement.

          “SEC DOCUMENTS” shall mean, as of a particular date, all reports and other documents filed by
the Company pursuant to Section 13(a) or 15(d) of the Exchange Act since the end of the Company’s
then most recently completed and reported fiscal year as of the time in question (provided that if
the date in question is within ninety days of the beginning of the Company’s fiscal year, the term
shall include all documents filed since the beginning of the preceding fiscal year).

          “SHORT SALES” shall mean all “short sales” as defined in Rule 200 of Regulation SHO under the
Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable
shares of Common Stock).

          “SUBSCRIPTION DATE” shall mean the date on which this Agreement is executed and delivered by
the Company and Investor.

          “THIRD PARTY CLAIM” shall have the meaning specified in Section 9.3(a).

          “TRADING DAY” shall mean a day on which the Principal Market shall be open for business.

          “TRANSACTION DOCUMENTS” shall mean this Agreement.

          “TRANSFER AGENT” shall mean the transfer agent for the Common Stock (and to any substitute or
replacement transfer agent for the Common Stock upon the Company’s appointment of any such
substitute or replacement transfer agent).

          “UNDERWRITER” shall mean any underwriter participating in any disposition of the Registered
Securities on behalf of Investor pursuant to the Registration Statement.

          “VALUATION EVENT” shall mean an event in which the Company at any time during a Valuation
Period takes any of the following actions:

               (a) subdivides or combines the Common Stock;

               (b) pays a dividend in shares of Common Stock or makes any other distribution of shares of
Common Stock, except for dividends paid with respect to any series of preferred stock authorized by
the Company, whether existing now or in the future;

               (c) issues any options or other rights to subscribe for or purchase shares of Common Stock
other than pursuant to this Agreement and the price per share for which

5

 

shares of Common Stock may
at any time thereafter be issuable pursuant to such options or other rights shall be less than the
Closing Price in effect immediately prior to such issuance;

               (d) issues any securities convertible into or exchangeable for shares of Common Stock and the
consideration per share for which shares of Common Stock may at any time thereafter be issuable
pursuant to the terms of such convertible or exchangeable securities shall be less than the Closing
Price in effect immediately prior to such issuance;

               (e) issues shares of Common Stock otherwise than as provided in the foregoing subsections (a)
through (d), at a price per share less, or for other consideration lower, than the Closing Price in
effect immediately prior to such issuance, or without consideration; or

               (f) makes a distribution of its assets or evidences of indebtedness to the holders of Common
Stock as a dividend in liquidation or by way of return of capital or other than as a dividend
payable out of earnings or surplus legally available for dividends under applicable law or any
distribution to such holders made in respect of the sale of all or substantially all of the
Company’s assets (other than under the circumstances provided for in the foregoing subsections (a)
through (e).

          “VALUATION PERIOD” shall mean the period of five (5) Trading Days immediately following the
Clearing Date associated with the applicable Put Notice, and during which the Purchase Price of the
Common Stock is valued; provided, however, that if a Valuation Event occurs during any Valuation
Period, a new Valuation Period shall begin on the Trading Day immediately after the occurrence of
such Valuation Event and end on the fifth (5th) Trading Day thereafter.

ARTICLE II

PURCHASE AND SALE OF COMMON STOCK

     Section 2.1 INVESTMENTS.

          (a) PUTS. Upon the terms and conditions set forth herein (including, without limitation, the
provisions of Article VII), on any Put Date the Company may exercise a Put by the delivery of a Put
Notice. The number of Put Shares that Investor shall purchase pursuant to such Put shall be
determined by dividing the Investment Amount specified in the Put Notice by the Purchase Price with
respect to such Put Notice.

          (b) RESTRICTED COMMON STOCK. As a condition for the execution of this Agreement by the
Investor, the Company shall issue to the Investor one hundred thirty three thousand three hundred
thirty three (133,333) shares of restricted Common Stock (the “Restricted Shares”). The Restricted
Shares shall be delivered to the Investor upon the execution of this Agreement.

6

 

     Section 2.2 MECHANICS.

          (a) PUT NOTICE. At any time and from time to time during the Commitment Period, the Company
may deliver a Put Notice to Investor, subject to the conditions set forth in Section 7.2; provided,
however, that the Investment Amount identified in the applicable Put Notice shall not be greater
than the Maximum Put Amount and, when taken together with any prior Put Notices, shall not exceed
the Maximum Commitment. On the Put Date the Company shall deliver to Investor’s brokerage account
estimated put shares equal to the Investment Amount indicated in the Put Notice divided by the
Closing Price on the Trading Day immediately preceding the Put Date, multiplied by one hundred
twenty five percent (125%) (the “Estimated Put Shares”).Simultaneous with the delivery of the
Estimated Put Shares, Investor shall deliver payment by check or wire transfer to the Company an
amount equal to the par value of the Estimated Put Shares (“Par Value Payment”).

          (b) DATE OF DELIVERY OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the Trading
Day it is received by facsimile or otherwise by Investor if such notice is received on or prior to
12:00 noon New York time, or (ii) the immediately succeeding Trading Day if it is received by
facsimile or otherwise after 12:00 noon New York time on a Trading Day or at any time on a day
which is not a Trading Day.

     Section 2.3 CLOSINGS. Investor shall notify the Company in writing of the occurrence of the
Clearing Date associated with a Put Notice. The Valuation Period shall begin the first Trading Day
following such written notice from Investor. At the end of the Valuation Period the Purchase Price
shall be established and the number of Put Shares shall be determined for a particular Put. If the
number of Estimated Put Shares initially delivered to Investor is greater than the Put Shares
purchased by Investor pursuant to such Put, then immediately after the Valuation Period that
Investor shall deliver to Company any excess Estimated Put Shares associated with such Put. If
the number of Estimated Put Shares delivered to Investor is less than the Put Shares purchased by
Investor pursuant to a Put, then immediately after the Valuation Period the Company shall deliver
to Investor the difference between the Estimated Put Shares and the Put Shares issuable pursuant to
such Put. The Closing of a Put shall occur upon the date in which the settlement of trades of the
Put Shares associated with such Put Notice in the Investor’s brokerage account has been completed,
whereby Investor shall deliver the Investment Amount specified in the Put Notice, less the Par
Value Payment, by wire transfer of immediately available funds to an account designated by the
Company. In lieu of delivering physical certificates representing the Common Stock issuable in
accordance with clause (a) of this Section 2.3, and provided that the Transfer Agent then is
participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”)
program, upon request of Investor, but subject to the applicable provisions of Article VIII hereof,
the Company shall use its commercially reasonable efforts to cause the Transfer Agent to
electronically transmit, prior to the applicable Closing Date, the applicable Put Shares by
crediting the account of the Investor’s prime broker with DTC through its Deposit Withdrawal Agent
Commission (“DWAC”) system, and provide proof satisfactory to the Investor of such delivery. In
addition, on or prior to such Closing Date, each of the Company and Investor shall deliver to each
other all documents,

7

 

instruments and writings required to be delivered or reasonably requested by
either of them pursuant to this Agreement in order to implement and effect the transactions
contemplated herein.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF INVESTOR

     Investor represents and warrants to the Company that:

     Section 3.1 INTENT. Investor is entering into this Agreement for its own account and Investor
has no present arrangement (whether or not legally binding) at any time to sell the Registered
Securities to or through any person or entity; provided, however, that Investor reserves the right
to dispose of the Registered Securities at any time in accordance with federal and state securities
laws applicable to such disposition.

     Section 3.2 NO LEGAL ADVICE FROM THE COMPANY. The Investor acknowledges that it has had the
opportunity to review this Agreement and the transactions contemplated by this Agreement with its
own legal counsel and investment and tax advisors. The Investor is relying solely on such counsel
and advisors and not on any statements or representations of the Company or any of its
representatives or agents for legal, tax or investment advice with respect to this investment, the
transactions contemplated by this Agreement or the securities laws of any jurisdiction.

     Section 3.3 SOPHISTICATED INVESTOR. Investor is a sophisticated investor (as described in Rule
506(b)(2)(ii) of Regulation D) and an accredited investor (as defined in Rule 501 of Regulation D),
and Investor has such experience in business and financial matters that it is capable of evaluating
the merits and risks of an investment in the Registered Securities. Investor acknowledges that an
investment in the Registered Securities is speculative and involves a high degree of risk.

     Section 3.4 AUTHORITY. (a) Investor has the requisite power and authority to enter into and
perform its obligations under this Agreement and the transactions contemplated hereby in accordance
with its terms; (b) the execution and delivery of this Agreement and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all necessary action and
no further consent or authorization of Investor or its partners is required; and (c) this Agreement
has been duly authorized and validly executed and delivered by Investor and constitutes a valid and
binding obligation of Investor enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the
enforcement of, creditors’ rights and remedies or by other equitable principles of general
application.

     Section 3.5 NOT AN AFFILIATE. Investor is not an officer, director or “affiliate” (as that
term is defined in Rule 405 of the Securities Act) of the Company.

8

 

     Section 3.6 ORGANIZATION AND STANDING. Investor is a limited partnership duly organized,
validly existing and in good standing under the laws of the Delaware and has all requisite power
and authority to own, lease and operate its properties and to carry on its business as now being
conducted. Investor is duly qualified and in good standing in every jurisdiction in which the
nature of the business conducted or property owned by it makes such qualification necessary, other
than those in which the failure so to qualify would not have a material adverse effect on Investor.

     Section 3.7 ABSENCE OF CONFLICTS. The execution and delivery of this Agreement and any other
document or instrument contemplated hereby, and the consummation of the transactions contemplated
hereby and thereby, and compliance with the requirements hereof and thereof, will not (a) violate
any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on Investor,
(b) violate any provision of any indenture, instrument or agreement to which Investor is a party or
is subject, or by which Investor or any of its assets is bound, or conflict with or constitute a
material default thereunder, (c) result in the creation or imposition of any lien pursuant to the
terms of any such indenture, instrument or agreement, or constitute a breach of any fiduciary duty
owed by Investor to any third party, or (d) require the approval of any third-party (that has not
been obtained) pursuant to any material contract, instrument, agreement, relationship or legal
obligation to which Investor is subject or to which any of its assets, operations or management may
be subject.

     Section 3.8 DISCLOSURE; ACCESS TO INFORMATION. Investor had an opportunity to review copies of
the SEC Documents filed on behalf of the Company and has had access to all publicly available
information with respect to the Company.

     Section 3.9 MANNER OF SALE. At no time was Investor presented with or solicited by or through
any leaflet, public promotional meeting, television advertisement or any other form of general
solicitation or advertising.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to Investor that, except as disclosed in the SEC
Documents:

     Section 4.1 ORGANIZATION OF THE COMPANY. The Company is a corporation duly organized and
validly existing and in good standing under the laws of the State of Nevada and has all requisite
power and authority to own, lease and operate its properties and to carry on its business as now
being conducted. The Company is duly qualified as a foreign corporation to do business and is in
good standing in every jurisdiction in which the nature of the business conducted or property owned
by it makes such qualification necessary, other than those in which the failure so to qualify would
not have a Material Adverse Effect.

9

 

     Section 4.2 AUTHORITY. (a) The Company has the requisite corporate power and authority to
enter into and perform its obligations under this Agreement and to issue the Put Shares and
Restricted Shares; (b) the execution and delivery of this Agreement by the Company and the
consummation by it of the transactions contemplated hereby and thereby have been duly authorized by
all necessary corporate action and no further consent or authorization of the Company or its Board
of Directors or stockholders is required; and (c) each of this Agreement and has been duly executed
and delivered by the Company and constitutes a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally
the enforcement of, creditors’ rights and remedies or by other equitable principles of general
application.

     Section 4.3 CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company
consists of 300,000,000 shares of Common Stock, $0.001 par value per share, of which 47,410,037
shares were issued and outstanding as of September 22, 2011, and 10,000,000 shares of preferred
stock, $0.001 par value per share, of which 86,210 shares were issued and outstanding as of
September 22, 2011.

     Except as otherwise disclosed in the SEC Documents, there are no outstanding securities which
are convertible into shares of Common Stock, whether such conversion is currently exercisable or
exercisable only upon some future date or the occurrence of some event in the future.

     All of the outstanding shares of Common Stock of the Company have been duly and validly
authorized and issued and are fully paid and non-assessable.

     Section 4.4 COMMON STOCK. The Company is in full compliance with all reporting requirements of
the Exchange Act, and the Company has maintained all requirements for the continued listing or
quotation of the Common Stock, and such Common Stock is currently listed or quoted on the Principal
Market.

     Section 4.5 SEC DOCUMENTS. The Company may make available to Investor true and complete copies
of the SEC Documents (including, without limitation, proxy information and solicitation materials).
To the Company’s knowledge, the Company has not provided to Investor any information that,
according to applicable law, rule or regulation, should have been disclosed publicly prior to the
date hereof by the Company, but which has not been so disclosed. As of their respective dates, the
SEC Documents complied in all material respects with the requirements of the Exchange Act, and
other federal laws, rules and regulations applicable to such SEC Documents, and none of the SEC
Documents contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The financial statements of the Company
included in the SEC Documents comply as to form and substance in all material respects with
applicable accounting requirements and the published rules and regulations of the SEC or other
applicable rules and regulations with respect

10

 

thereto. Such financial statements have been prepared
in accordance with generally accepted accounting principles applied on a consistent basis during
the periods involved (except (a) as may be otherwise indicated in such financial statements or the
notes thereto or (b) in the case of unaudited interim statements, to the extent they may not
include footnotes or may be condensed or summary statements) and fairly present in all material
respects the financial position of the Company as of the dates thereof and the results of
operations and cash flows for the periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments).

     Section 4.6 VALID ISSUANCES. When issued and paid for as herein provided, the Put Shares and
the Restricted Shares shall be duly and validly issued, fully paid, and non-assessable. Neither the
sales of the Put Shares or the Restricted Shares pursuant to this Agreement nor the Company’s
performance of its obligations hereunder shall (a) result in the creation or imposition of any
liens, charges, claims or other encumbrances upon the Put Shares or Restricted Shares, or any of
the assets of the Company, or (b) entitle the holders of outstanding shares of Common Stock to
preemptive or other rights to subscribe to or acquire the Common Stock or other securities of the
Company. The Put Shares and Restricted Shares shall not subject Investor to personal liability, in
excess of the subscription price by reason of the ownership thereof.

     Section 4.7 [INTENTIONALLY OMITTED]

     Section 4.8 [INTENTIONALLY OMITTED]

     Section 4.9 NO CONFLICTS. The execution, delivery and performance of this Agreement by the
Company and the consummation by the Company of the transactions contemplated hereby, including
without limitation the issuance of the Put Shares and the Restricted Shares, do not and will not
(a) result in a violation of the Certificate or By-Laws or (b) conflict with, or constitute a
material default (or an event that with notice or lapse of time or both would become a material
default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, indenture, instrument or any “lock-up” or similar
provision of any underwriting or similar agreement to which the Company is a party, or (c) result
in a violation of any federal, state or local law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations) applicable to the Company or by which
any property or asset of the Company is bound or affected (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would not, individually or
in the aggregate, have a Material Adverse Effect) nor is the Company otherwise in violation of,
conflict with or in default under any of the foregoing. The business of the Company is not being
conducted in violation of any law, ordinance or regulation of any governmental entity, except for
possible violations that either singly or in the aggregate do not and will not have a Material
Adverse Effect. The Company is not required under federal, state or local law, rule or regulation
to obtain any consent, authorization or order of, or make any filing or registration with, any
court or governmental agency in order for it to execute, deliver or perform any of its obligations
under this Agreement or issue and sell the Common Stock in accordance with the terms hereof (other
than any SEC, FINRA or state securities filings that may

11

 

be required to be made by the Company
subsequent to any Closing, any registration statement that may be filed pursuant hereto); provided
that, for purposes of the representation made in this sentence, the Company is assuming and relying
upon the accuracy of the relevant representations and agreements of Investor herein.

     Section 4.10 NO MATERIAL ADVERSE CHANGE. Since May 18, 2011 no event has occurred that would
have a Material Adverse Effect on the Company.

     Section 4.11 LITIGATION AND OTHER PROCEEDINGS. There are no lawsuits or proceedings pending or
to the knowledge of the Company threatened, against the Company, nor has the Company received any
written or oral notice of any such action, suit, proceeding or investigation, which would have a
Material Adverse Effect. No judgment, order, writ, injunction or decree or award has been issued by
or, so far as is known by the Company, requested of any court, arbitrator or governmental agency
which would have a Material Adverse Effect.

     Section 4.12 DILUTION. The number of shares of Common Stock issuable as Put Shares may
increase substantially in certain circumstances, including, but not necessarily limited to, the
circumstance wherein the trading price of the Common Stock declines during the period between the
Effective Date and the end of the Commitment Period. The Company’s executive officers and
directors have studied and fully understand the nature of the transactions contemplated by this
Agreement and recognize that they have a potential dilutive effect. The board of directors of the
Company has concluded in its good faith business judgment that such issuance is in the best
interests of the Company. The Company specifically acknowledges that, subject to Section 2.2(c),
its obligation to issue the Put Shares is binding upon the Company and enforceable regardless of
the dilution such issuance may have on the ownership interests of other shareholders of the
Company.

ARTICLE V

COVENANTS OF INVESTOR

     Section 5.1 COMPLIANCE WITH LAW; TRADING IN SECURITIES. Investor’s trading activities with
respect to shares of the Common Stock will be in compliance with all applicable state and federal
securities laws, rules and regulations and the rules and regulations of FINRA and the Principal
Market on which the Common Stock is listed or quoted.

     Section 5.2 SHORT SALES AND CONFIDENTIALITY. Neither Investor nor any affiliate of the
Investor acting on its behalf or pursuant to any understanding with it will execute any Short Sales
during the period from the date hereof to the end of the Commitment Period. For the purposes
hereof, and in accordance with Regulation SHO, the sale after delivery of a Put Notice of such
number of shares of Common Stock reasonably expected to be purchased under a Put Notice shall not
be deemed a Short Sale.

12

 

     Other than to other Persons party to this Agreement, Investor has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the
existence and terms of this transaction).

ARTICLE VI

COVENANTS OF THE COMPANY

     Section 6.1 [INTENTIONALLY OMITTED]

     Section 6.2 RESERVATION OF COMMON STOCK. The Company will, from time to time as needed in
advance of a Closing Date, reserve and keep available until the consummation of such Closing, free
of preemptive rights sufficient shares of Common Stock for the purpose of enabling the Company to
satisfy its obligation to issue the Put Shares to be issued in connection therewith. The number of
shares so reserved from time to time, as theretofore increased or reduced as hereinafter provided,
may be reduced by the number of shares actually delivered hereunder.

     Section 6.3 LISTING OF COMMON STOCK. If the Company applies to have the Common Stock traded
on any other Principal Market, it shall include in such application the Put Shares and the
Restricted Shares, and shall take such other action as is necessary or desirable in the reasonable
opinion of Investor to cause the Common Stock to be listed on such other Principal Market as
promptly as possible. The Company shall use its commercially reasonable efforts to continue the
listing and trading of the Common Stock on the Principal Market (including, without limitation,
maintaining sufficient net tangible assets) and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the FINRA and the Principal
Market.

     Section 6.4 [INTENTIONALLY OMITTED]

     Section 6.5 CERTAIN AGREEMENTS. So long as this Agreement remains in effect, the Company
covenants and agrees that it will not, without the prior written consent of the Investor, enter
into any other equity line of credit agreement with a third party during the Commitment Period
having terms and conditions substantially comparable to this Agreement. For the avoidance of
doubt, nothing contained in the Transaction Documents shall restrict, or require the Investor’s
consent for, any agreement providing for the issuance or distribution of (or the issuance or
distribution of) any equity securities pursuant to any agreement or arrangement that is not
commonly understood to be an “equity line of credit.”

ARTICLE VII

CONDITIONS TO DELIVERY OF

PUT NOTICES AND CONDITIONS TO CLOSING

     Section 7.1 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY TO ISSUE AND SELL COMMON
STOCK. The obligation hereunder of the

13

 

Company to issue and sell the Put Shares to Investor incident to each Closing is subject to the
satisfaction, at or before each such Closing, of each of the conditions set forth below.

          (a) ACCURACY OF INVESTOR’S REPRESENTATIONS AND WARRANTIES. The representations and warranties
of Investor shall be true and correct in all material respects as of the date of this Agreement and
as of the date of each such Closing as though made at each such time.

          (b) PERFORMANCE BY INVESTOR. Investor shall have performed, satisfied and complied in all
respects with all covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by Investor at or prior to such Closing.

          (c) PRINCIPAL MARKET REGULATION. The Company shall not issue any Put Shares, or Restricted
Shares, and the Investor shall not have the right to receive any Put Shares or Restricted Shares,
if the issuance of such shares would exceed the aggregate number of shares of Common Stock which
the Company may issue without breaching the Company’s obligations under the rules or regulations of
the Principal Market (the “EXCHANGE CAP”).

     Section 7.2 CONDITIONS PRECEDENT TO THE RIGHT OF THE COMPANY TO DELIVER A PUT NOTICE AND THE
OBLIGATION OF INVESTOR TO PURCHASE PUT SHARES. The right of the Company to deliver a Put Notice and
the obligation of Investor hereunder to acquire and pay for the Put Shares incident to a Closing is
subject to the satisfaction, on (i) the date of delivery of such Put Notice and (ii) the applicable
Closing Date (each a “CONDITION SATISFACTION DATE”), of each of the following conditions:

          (a) EFFECTIVE REGISTRATION STATEMENT. The Registration Statement, and any amendment or
supplement thereto, shall remain effective for the sale by Investor of the Registered Securities
subject to such Put Notice, and such Registration Statement shall remain effective on each
Condition Satisfaction Date and (i) neither the Company nor Investor shall have received notice
that the SEC has issued or intends to issue a stop order with respect to such Registration
Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of such
Registration Statement, either temporarily or permanently, or intends or has threatened to do so
(unless the SEC’s concerns have been addressed and Investor is reasonably satisfied that the SEC no
longer is considering or intends to take such action), and (ii) no other suspension of the use or
withdrawal of the effectiveness of such Registration Statement or related prospectus shall exist.

          (b) ACCURACY OF THE COMPANY’S REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Company shall be true and correct in all material respects as of each Condition
Satisfaction Date as though made at each such time (except for representations and warranties
specifically made as of a particular date) with respect to all periods, and as to all events and
circumstances occurring or existing to and including each Condition Satisfaction Date, except for
any conditions which have temporarily caused any

14

 

representations or warranties herein to be incorrect and which have been corrected with no
continuing impairment to the Company or Investor.

          (c) PERFORMANCE BY THE COMPANY. The Company shall have performed, satisfied and complied in
all material respects with all covenants, agreements and conditions required by this Agreement to
be performed, satisfied or complied with by the Company at or prior to each Condition Satisfaction
Date.

          (d) NO INJUNCTION. No statute, rule, regulation, executive order, decree, ruling or injunction
shall have been enacted, entered, promulgated or adopted by any court or governmental authority of
competent jurisdiction that prohibits or directly and materially adversely affects any of the
transactions contemplated by this Agreement, and no proceeding shall have been commenced that may
have the effect of prohibiting or materially adversely affecting any of the transactions
contemplated by this Agreement.

          (e) ADVERSE CHANGES. Since the date of filing of the Company’s most recent SEC Document, no
event that had or is reasonably likely to have a Material Adverse Effect has occurred.

          (f) NO SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common Stock
shall not have been suspended by the SEC, the Principal Market or the FINRA and the Common Stock
shall have been approved for listing or quotation on and shall not have been delisted from the
Principal Market.

          (g) [INTENTIONALLY OMITTED]

          (h) TEN PERCENT LIMITATION. On each Closing Date, the number of Put Shares then to be
purchased by Investor shall not exceed the number of such shares that, when aggregated with all
other shares of Common Stock then owned by Investor beneficially or deemed beneficially owned by
Investor, would result in Investor owning more than 9.99% of all of such Common Stock as would be
outstanding on such Closing Date, as determined in accordance with Section 16 of the Exchange Act
and the regulations promulgated thereunder. For purposes of this Section, in the event that the
amount of Common Stock outstanding as determined in accordance with Section 16 of the Exchange Act
and the regulations promulgated thereunder is greater on a Closing Date than on the date upon which
the Put Notice associated with such Closing Date is given, the amount of Common Stock outstanding
on such Closing Date shall govern for purposes of determining whether Investor, when aggregating
all purchases of Common Stock made pursuant to this Agreement, would own more than 9.99% of the
Common Stock following such Closing Date.

          (i) Principal Market Regulation. The Company shall not issue any Put Shares or
Restricted Shares, and the Investor shall not have the right to receive any Put Shares or
Restricted Shares, if the issuance of such shares would exceed the Exchange Cap.

15

 

          (j) NO KNOWLEDGE. The Company shall have no knowledge of any event more likely than not to
have the effect of causing such Registration Statement to be suspended or otherwise ineffective
(which event is more likely than not to occur within the fifteen (15) Trading Days following the
Trading Day on which such Put Notice is deemed delivered).

          (k) NO VIOLATION OF SHAREHOLDER APPROVAL REQUIREMENT. The issuance of shares of Common Stock
with respect to the applicable Closing, if any, shall not violate the shareholder approval
requirements of the Principal Market.

          (l) NO VALUATION EVENT. No Valuation Event shall have occurred since the Put Date.

          (m) OTHER. On each Condition Satisfaction Date, Investor shall have received a certificate in
substantially the form and substance of Exhibit B hereto, executed by an executive officer of the
Company and to the effect that all the conditions to such Closing shall have been satisfied as at
the date of each such certificate.

ARTICLE VIII

LEGENDS

     Section 8.1 RESERVED

     Section 8.2 NO STOCK LEGEND OR STOCK TRANSFER RESTRICTIONS. No legend shall be placed on the
share certificates representing the Put Shares.

     Section 8.3 INVESTOR’S COMPLIANCE. Nothing in this Article VIII shall affect in any way
Investor’s obligations under any agreement to comply with all applicable securities laws upon the
sale of the Common Stock.

ARTICLE IX

NOTICES; INDEMNIFICATION

     Section 9.1 NOTICES. All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be in writing and, unless otherwise specified
herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges
prepaid, or (d) transmitted by hand delivery, telegram, facsimile, or email as a PDF, addressed as
set forth below or to such other address as such party shall have specified most recently by
written notice given in accordance herewith. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by
facsimile, with accurate confirmation generated by the transmitting facsimile machine, or email as
a PDF, at the address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal

16

 

business hours where such notice is to be received) or (ii) on the second business day following
the date of mailing by express courier service or on the fifth business day after deposited in the
mail, in each case, fully prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur.

The addresses for such communications shall be:

     If to the Company: UFood Restaurant Group, Inc

Attn: George Naddaff

Chief Executive Officer

Tel: (617) 787-6000

Fax: (617) 7876010

Email: Naddaff@ufoodgrill.com

     If to Investor:

Southridge Partners II, LP

90 Grove Street

Ridgefield, Connecticut 06877

Tel: 203-431-8300

Fax: 203-431-8301

Email: info@southridgellc.com

Either party hereto may from time to time change its address or facsimile number for notices under
this Section 9.1 by giving at least ten (10) days’ prior written notice of such changed address or
facsimile number to the other party hereto.

     Section 9.2 INDEMNIFICATION. Each party (an “Indemnifying Party”) agrees to indemnify and
hold harmless the other party along with its officers, directors, employees, and authorized agents,
and each Person or entity, if any, who controls such party within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act (an “Indemnified Party”) from and against any
Damages, joint or several, and any action in respect thereof to which the Indemnified Party becomes
subject to, resulting from, arising out of or relating to (i) any misrepresentation, breach of
warranty or nonfulfillment of or failure to perform any covenant or agreement on the part of
Indemnifying Party contained in this Agreement, (ii) any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement or any post-effective
amendment thereof or supplement thereto, or the omission or alleged omission therefrom of a
material fact required to be stated therein or necessary to make the

17

 

statements therein not misleading, (iii) any untrue statement or alleged untrue statement of a
material fact contained in any preliminary prospectus or contained in the final prospectus (as
amended or supplemented, if the 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 the light of the circumstances under which the statements therein were
made, not misleading, or (iv) any violation or alleged violation by the 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, as such Damages are incurred, except to the extent
such Damages result primarily from Indemnified Party’s failure to perform any covenant or agreement
contained in this Agreement or Indemnified Party’s negligence, recklessness or bad faith in
performing its obligations under this Agreement; provided, however, that the foregoing indemnity
agreement shall not apply to any Damages of an Indemnified Party to the extent, but only to the
extent, arising out of or based upon any untrue statement or alleged untrue statement or omission
or alleged omission made by an Indemnifying Party in reliance upon and in conformity with written
information furnished to the Indemnifying Party by the Indemnified Party expressly for use in the
Registration Statement, any post-effective amendment thereof or supplement thereto, or any
preliminary prospectus or final prospectus (as amended or supplemented).

     Section 9.3 METHOD OF ASSERTING INDEMNIFICATION CLAIMS. All claims for indemnification by any
Indemnified Party (as defined below) under Section 9.2 shall be asserted and resolved as follows:

          (a) In the event any claim or demand in respect of which an Indemnified Party might seek
indemnity under Section 9.2 is asserted against or sought to be collected from such Indemnified
Party by a person other than a party hereto or an affiliate thereof (a “THIRD PARTY CLAIM”), the
Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if
any, and specifying the nature of and basis for such Third Party Claim and for the Indemnified
Party’s claim for indemnification that is being asserted under any provision of Section 9.2 against
an Indemnifying Party, together with the amount or, if not then reasonably ascertainable, the
estimated amount, determined in good faith, of such Third Party Claim (a “CLAIM NOTICE”) with
reasonable promptness to the Indemnifying Party. If the Indemnified Party fails to provide the
Claim Notice with reasonable promptness after the Indemnified Party receives notice of such Third
Party Claim, the Indemnifying Party shall not be obligated to indemnify the Indemnified Party with
respect to such Third Party Claim to the extent that the Indemnifying Party’s ability to defend has
been prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the
Indemnified Party as soon as practicable within the period ending thirty (30) calendar days
following receipt by the Indemnifying Party of either a Claim Notice or an Indemnity Notice (as
defined below) (the “DISPUTE PERIOD”) whether the Indemnifying Party disputes its liability or the
amount of its liability to the Indemnified Party under Section 9.2 and whether the Indemnifying
Party desires, at its sole cost and expense, to defend the Indemnified Party against such Third
Party Claim.

18

 

               (i) If the Indemnifying Party notifies the Indemnified Party within the Dispute Period
that the Indemnifying Party desires to defend the Indemnified Party with respect to the
Third Party Claim pursuant to this Section 9.3(a), then the Indemnifying Party shall have
the right to defend, with counsel reasonably satisfactory to the Indemnified Party, at the
sole cost and expense of the Indemnifying Party, such Third Party Claim by all appropriate
proceedings, which proceedings shall be vigorously and diligently prosecuted by the
Indemnifying Party to a final conclusion or will be settled at the discretion of the
Indemnifying Party (but only with the consent of the Indemnified Party in the case of any
settlement that provides for any relief other than the payment of monetary damages or that
provides for the payment of monetary damages as to which the Indemnified Party shall not be
indemnified in full pursuant to Section 9.2). The Indemnifying Party shall have full control
of such defense and proceedings, including any compromise or settlement thereof; provided,
however, that the Indemnified Party may, at the sole cost and expense of the Indemnified
Party, at any time prior to the Indemnifying Party’s delivery of the notice referred to in
the first sentence of this clause (i), file any motion, answer or other pleadings or take
any other action that the Indemnified Party reasonably believes to be necessary or
appropriate to protect its interests; and provided further, that if requested by the
Indemnifying Party, the Indemnified Party will, at the sole cost and expense of the
Indemnifying Party, provide reasonable cooperation to the Indemnifying Party in contesting
any Third Party Claim that the Indemnifying Party elects to contest. The Indemnified Party
may participate in, but not control, any defense or settlement of any Third Party Claim
controlled by the Indemnifying Party pursuant to this clause (i), and except as provided in
the preceding sentence, the Indemnified Party shall bear its own costs and expenses with
respect to such participation. Notwithstanding the foregoing, the Indemnified Party may
takeover the control of the defense or settlement of a Third Party Claim at any time if it
irrevocably waives its right to indemnity under Section 9.2 with respect to such Third Party
Claim.

               (ii) If the Indemnifying Party fails to notify the Indemnified Party within the Dispute
Period that the Indemnifying Party desires to defend the Third Party Claim pursuant to
Section 9.3(a), or if the Indemnifying Party gives such notice but fails to prosecute
vigorously and diligently or settle the Third Party Claim, or if the Indemnifying Party
fails to give any notice whatsoever within the Dispute Period, then the Indemnified Party
shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the
Third Party Claim by all appropriate proceedings, which proceedings shall be prosecuted by
the Indemnified Party in a reasonable manner and in good faith or will be settled at the
discretion of the Indemnified Party(with the consent of the Indemnifying Party, which
consent will not be unreasonably withheld). The Indemnified Party will have full control of
such defense and proceedings, including any compromise or settlement thereof; provided,
however, that if requested by the Indemnified Party, the Indemnifying Party will, at the
sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the
Indemnified Party and its counsel in contesting any Third Party Claim which the Indemnified
Party is contesting. Notwithstanding the foregoing provisions of this clause (ii), if the
Indemnifying Party has

19

 

notified the Indemnified Party within the Dispute Period that the Indemnifying Party
disputes its liability or the amount of its liability hereunder to the Indemnified Party
with respect to such Third Party Claim and if such dispute is resolved in favor of the
Indemnifying Party in the manner provided in clause (iii) below, the Indemnifying Party will
not be required to bear the costs and expenses of the Indemnified Party’s defense pursuant
to this clause (ii) or of the Indemnifying Party’s participation therein at the Indemnified
Party’s request, and the Indemnified Party shall reimburse the Indemnifying Party in full
for all reasonable costs and expenses incurred by the Indemnifying Party in connection with
such litigation. The Indemnifying Party may participate in, but not control, any defense or
settlement controlled by the Indemnified Party pursuant to this clause (ii), and the
Indemnifying Party shall bear its own costs and expenses with respect to such participation.

               (iii) If the Indemnifying Party notifies the Indemnified Party that it does not dispute
its liability or the amount of its liability to the Indemnified Party with respect to the
Third Party Claim under Section 9.2 or fails to notify the Indemnified Party within the
Dispute Period whether the Indemnifying Party disputes its liability or the amount of its
liability to the Indemnified Party with respect to such Third Party Claim, the amount of
Damages specified in the Claim Notice shall be conclusively deemed a liability of the
Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such
Damages to the Indemnified Party on demand. If the Indemnifying Party has timely disputed
its liability or the amount of its liability with respect to such claim, the Indemnifying
Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of
such dispute; provided, however, that if the dispute is not resolved within thirty (30) days
after the Claim Notice, the Indemnifying Party shall be entitled to institute such legal
action as it deems appropriate.

               (b) In the event any Indemnified Party should have a claim under Section 9.2 against the
Indemnifying Party that does not involve a Third Party Claim, the Indemnified Party shall deliver a
written notification of a claim for indemnity under Section 9.2 specifying the nature of and basis
for such claim, together with the amount or, if not then reasonably ascertainable, the estimated
amount, determined in good faith, of such claim (an “INDEMNITY NOTICE”) with reasonable promptness
to the Indemnifying Party. The failure by any Indemnified Party to give the Indemnity Notice shall
not impair such party’s rights hereunder except to the extent that the Indemnifying Party
demonstrates that it has been irreparably prejudiced thereby. If the Indemnifying Party notifies
the Indemnified Party that it does not dispute the claim or the amount of the claim described in
such Indemnity Notice or fails to notify the Indemnified Party within the Dispute Period whether
the Indemnifying Party disputes the claim or the amount of the claim described in such Indemnity
Notice, the amount of Damages specified in the Indemnity Notice will be conclusively deemed a
liability of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the
amount of such Damages to the Indemnified Party on demand. If the Indemnifying Party has timely
disputed its liability or the amount of its liability with respect to such claim, the Indemnifying
Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such
dispute; provided, however,

20

 

that if the dispute is not resolved within thirty (30) days after the Claim Notice, the
Indemnifying Party shall be entitled to institute such legal action as it deems appropriate.

          (c) The indemnity provisions contained herein shall be in addition to (i) any cause of action
or similar rights of the Indemnified Party against the Indemnifying Party or others, and (ii) any
liabilities the Indemnifying Party may be subject to.

ARTICLE X

MISCELLANEOUS

     Section 10.1 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by and interpreted
in accordance with the laws of the State of New York without regard to the principles of conflicts
of law. Each of the Company and Investor hereby submit to the exclusive jurisdiction of the United
States Federal and state courts located in New York with respect to any dispute arising under this
Agreement, the agreements entered into in connection herewith or the transactions contemplated
hereby or thereby.

     Section 10.2 JURY TRIAL WAIVER. The Company and the Investor hereby waive a trial by jury in
any action, proceeding or counterclaim brought by either of the parties hereto against the other in
respect of any matter arising out of or in connection with the Transaction Documents.

     Section 10.3 ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the
Company and Investor and their respective successors. Neither this Agreement nor any rights of
Investor or the Company hereunder may be assigned by either party to any other person.

     Section 10.4 THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the
Company and Investor and their respective successors, and is not for the benefit of, nor may any
provision hereof be enforced by, any other person.

     Section 10.5 TERMINATION. The Company may terminate this Agreement at any time by written
notice to the Investor. Additionally, this Agreement shall terminate at the end of Commitment
Period or as otherwise provided herein (unless extended by the agreement of the Company and
Investor); provided, however, that the provisions of Articles V and VIII, and Sections 9.1, 9.2,
9.3 10.1, 10.2 and 10.4 shall survive the termination of this Agreement for a period of eighteen
(18) months.

     Section 10.6 ENTIRE AGREEMENT, AMENDMENT; NO WAIVER. This Agreement and the instruments
referenced herein contain the entire understanding of the Company and Investor with respect to the
matters covered herein and therein and, except as specifically set forth herein or therein, neither
the Company nor Investor makes any representation, warranty, covenant or undertaking with respect
to such matters. No provision of

21

 

this Agreement may be waived or amended other than by an instrument in writing signed by the party
to be charged with enforcement.

     Section 10.7 FEES AND EXPENSES. Each of the Company and Investor agrees to pay its own
expenses in connection with the preparation of this Agreement and performance of its obligations
hereunder. The Company shall pay all stamp or other similar taxes and duties levied in connection
with issuance of the Put Shares pursuant hereto.

     Section 10.8 COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of
which may be executed by less than all of the parties and shall be deemed to be an original
instrument which shall be enforceable against the parties actually executing such counterparts and
all of which together shall constitute one and the same instrument. This Agreement may be delivered
to the other parties hereto by facsimile transmission or email of a copy of this Agreement bearing
the signature of the parties so delivering this Agreement.

     Section 10.9 SEVERABILITY. In the event that any provision of this Agreement becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement
shall continue in full force and effect without said provision; provided that such severability
shall be ineffective if it materially changes the economic benefit of this Agreement to any party.

     Section 10.10 FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may reasonably request in
order to carry out the intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby.

     Section 10.11 NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

     Section 10.12 EQUITABLE RELIEF. The Company recognizes that in the event that it fails to
perform, observe, or discharge any or all of its obligations under this Agreement, any remedy at
law may prove to be inadequate relief to Investor. The Company therefore agrees that Investor shall
be entitled to temporary and permanent injunctive relief in any such case without the necessity of
proving actual damages.

     Section 10.13 TITLE AND SUBTITLES. The titles and subtitles used in this Agreement are used
for the convenience of reference and are not to be considered in construing or interpreting this
Agreement.

     Section 10.14 REPORTING ENTITY FOR THE COMMON STOCK. The reporting entity relied upon for the
determination of the Closing Price and the VWAP for the Common Stock on any given Trading Day for
the purposes of this Agreement shall be Bloomberg Finance

22

 

L.P. or any successor thereto. The written mutual consent of Investor and the Company shall be
required to employ any other reporting entity.

     Section 10.15 PUBLICITY. The Company and Investor shall consult with each other in issuing
any press releases or otherwise making public statements with respect to the transactions
contemplated hereby and no party shall issue any such press release or otherwise make any such
public statement without the prior written consent of the other parties, which consent shall not be
unreasonably withheld or delayed, except that no prior consent shall be required if such disclosure
is required by law, in which such case the disclosing party shall provide the other parties with
prior notice of such public statement. Notwithstanding the foregoing, the Company shall not
publicly disclose the name of Investor without the prior written consent of such Investor, except
to the extent required by law. Investor acknowledges that this Agreement and all or part of the
Transaction Documents may be deemed to be “material contracts” as that term is defined by Item
601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents
as exhibits to reports or registration statements filed under the Securities Act or the Exchange
Act. Investor further agrees that the status of such documents and materials as material contracts
shall be determined solely by the Company, in consultation with its counsel.

[SIGNATURES ON FOLLOWING PAGE]

23

 

[SIGNATURE PAGE]

     IN WITNESS WHEREOF, the parties hereto have caused this Equity Purchase Agreement to be
executed by the undersigned, thereunto duly authorized, as of the date first set forth above.

	 	 	 	 	 
	 	SOUTHRIDGE PARTNERS II, LP

By: Southridge Advisors LLC

 	 
	 	By:  	 	 
	 	 	Name:  	/s/ Stephen Hicks 	 
	 	 	Title:  	Manager 	 
	 
	 	UFood Restaurant Group, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	/s/ George Naddaff 	 
	 	 	Title:  	Chief Executive Officer 	 

 

 

	 	 	 	 	 

EXHIBITS

	 	 	 

	EXHIBIT A

	 	Put Notice
	 
	 	 
	EXHIBIT B

	 	Closing Certificate

 

 

EXHIBIT A

FORM OF PUT NOTICE

TO: SOUTHRIDGE PARTNERS II, LP

We refer to the Equity Purchase Agreement dated __, 2011 (the “Agreement”) entered into by
_______________________ (the “Company”) and you. Capitalized terms defined in the Agreement
shall, unless otherwise defined, have the same meaning when used herein.

     We hereby:

	 	1.	 	Give you notice that we require you to purchase $_________ (the “Investment Amount”) in
Put Shares; and
	 
	 	2.	 	Certify that, as of the date hereof, to the best of our knowledge, the conditions set
forth in Section 7.2 of the Agreement are satisfied.

Date: _____________, 20__

	 	 	 	 	 
	 	[__________________________]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Chief Executive Officer 	 

 

 

	 	 	 	 	 

EXHIBIT B

FORM OF

CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER

OF

[_________________________]

     Pursuant to Section 7.2(m) of that certain Equity Purchase Agreement dated _______, 2011 (the
“Agreement”) by and between the Company and Southridge Partners II, LP (the “Investor”), the
undersigned, in his capacity as the Chief Executive Officer of __________________________ (the
“Company”), and not in his individual capacity, hereby certifies, as of the date hereof (such date,
the “Condition Satisfaction Date”), the following:

     1. The representations and warranties of the Company are true and correct in all material
respects as of the Condition Satisfaction Date as though made on the Condition Satisfaction Date
(except for representations and warranties specifically made as of a particular date) with respect
to all periods, and as to all events and circumstances occurring or existing to and including the
Condition Satisfaction Date, except for any conditions which have temporarily caused any
representations or warranties of the Company set forth in the Agreement to be incorrect and which
have been corrected with no continuing impairment to the Company or Investor; and

     2. All of the Company’s conditions to Closing set forth in Section 7.2 of the Agreement have
been satisfied as of the Condition Satisfaction Date.

     Capitalized terms used herein shall have the meanings set forth in the Agreement unless
otherwise defined herein.

     IN WITNESS WHEREOF, the undersigned has hereunto affixed his hand as of the ___ day of
____________, 20_.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	                    Chief Executive Officer

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