Document:

Unassociated Document

    ENTRUSTMENT
      AGREEMENT

    

    Party
      A: Beijing Deli Solar Technology Development Co., Ltd.
      (“Entrustor”);

    

    Party
      B: Tianjin Wanshitong Business Management Consulting Co., Ltd
      (“Entrustee”).

    
 

    WHEREAS,
      Party A intends to acquire the state-owned equity interest in Tianjin Huaneng
      Group Energy Equipment Co., Ltd. (hereinafter refer to as “Tianjin Huaneng”)
      held by Tianjin Municipal Ji County State-owned Assets Administration Commission
      (hereinafter refer to as the “SAAC”), and in order to facilitate the transfer of
      the aforementioned equity interest, Party A desires to entrust Party B to
      coordinate the equity acquisition;

    

    THEREFORE,
      based on the principle of good faith bargaining, Party A and Party B, via
      negotiations, hereby agree as follows: 

    

    Article
      1: Entrusted Matters

    
      	 	
              1.

            	
              Assisting
                Party A to design, amend and complete the plan of
                acquisition;

            

    

    
      	 	
              2.

            	
              Assisting
                Party A to communicate, coordinate with all relevant governments
                of
                Tianjin and Ji County , to facilitate the work of public
                relations;

            

    

    
      	 	
              3.

            	
              Assisting
                Party A to negotiate and mediate with People’s Government of Tianjin Ji
                County and the SAAC in order to accelerate relevant
                process;

            

    

    
      	 	
              4.

            	
              According
                to Party A’s request, assisting Party A to complete other work during the
                acquisition.

            

    

    

    Article
      2: Service Fee

    In
      consideration of the entrustment provided in Article 1, Party B shall receive
      RMB 5,860,000 as the service fee. Party A shall pay Party B in lump-sum within
      ONE month after Tianjin Huaneng registers the change of equity interest with
      the
      Bureau of Administration of Industry and Commerce. 

    

    Article
      3: Liability for Breach of Contract

    Upon
      the
      effectiveness of this Contract, both parties shall duly perform the obligations
      agreed to herein. Any failure by either party to perform the obligations
      stipulated in this Contract, in part or in whole, shall constitute a breach
      of
      the Contract. The breaching party shall compensate the non-breaching party
      for
      the losses incurred as a result of such breach. 

    

    Article
      4: Dispute Resolution

    In
      the
      event that no agreement is reached as to the settlement of any dispute arising
      out of the execution of this Contract, both parties hereby agree to submit
      the
      dispute to Beijing Arbitration Committee for arbitration. 

     

    Article
      5: Effectiveness of the Contract

    The
      originals of the Contract are in duplicate, and each party shall hold one.
      The
      Agreement shall be effective after it is duly signed by both parties with seals
      affixed and until the Party B’s completion of the entrustment.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (Signature
      Page)

    

    
      

      Party
        A: Beijing Deli Solar Technology Development Co., Ltd. 

       

      
        	 	
                (Seal) affixed

                 

                
                  
                    Legal
                      Representative (authorized representative): /s/ Deli
                      Du                
                      

                    (Signature)                
                      

                    Deli
                      Du                     
                      

                    

                    Date:
                      08/07/2007      

                  

                

              

      

      
 

      

      Party
        B: Party B: Tianjin Wanshitong Business Management Consulting Co., Ltd

       

      
        
          	 	
                  (Seal) affixed

                   

                  
                    
                      Legal
                        Representative (authorized representative): /s/ Wantong
                        Zheng    

                      
                        (Signature)                 
                          

                        Wantong
                          Zheng         

                        

                        Date:
                          08/07/2007       

                      

                    

                  

                

        

           
          

      

    

     

    
      
        
        

      

      
        2Exhibit
      10.1

     

    SUBSCRIPTION
      AGREEMENT

    

    
      
        

      

    Private
      Offering

    of
      Shares of

    Common
      Stock

    

    This
      Subscription Agreement (this "Agreement"),
      made
      as of the date set forth below by and among Northern Oil & Gas, Inc., a
      Nevada corporation (the "Company"),
      and
      the undersigned subscriber (the "Subscriber"),
      is
      intended to set forth certain representations, covenants and agreements among
      the Company and the Subscriber, with respect to the offering (the "Offering")
      for
      sale by the Company of shares of Common Stock, par value $.001 per share (the
      "Common
      Stock"),
      as
      described in the Private Placement Memorandum dated August 17, 2007 (the
      "Memorandum"),
      a
      copy of which has been delivered to Subscriber. The Shares are being offered
      by
      the Company through FIG Partners, as placement agent (the "Placement
      Agent").

    

    1. Subscription.
      Subject
      to the terms and conditions hereof, the Subscriber hereby subscribes for and
      agrees to purchase from the Company the number of shares of Common Stock (the
      "Shares")
      set
      forth under the Subscriber’s name on the signature page hereto at a purchase
      price of $3.30 per share (the "Offering
      Price"),
      and
      the Company agrees to sell such Shares to the Subscriber at the Offering Price,
      subject to the terms and conditions hereof. The Company agrees that, if the
      conditions set forth in this Agreement are satisfied, the Company will issue
      to
      the Subscriber a warrant (the "Warrant"),
      in
      the form attached hereto as Exhibit A, to purchase a number of shares of Common
      Stock equal to the number of Shares acquired by the Subscriber in the Offering,
      with half of such shares having an exercise price of $5.00 per share for a
      term
      of 18 months and half of such shares having an exercise price of $6.00 per
      share
      for a term of 48 months.

     

    2. Closing
      Deliveries.
      Subscriber understands and agrees that this subscription is made subject to
      the
      following terms and conditions:

     

    (a) Subscriber
      understands that separate subscription agreements will be executed with other
      subscribers for up to an aggregate of 4,242,424 shares of Common Stock to be
      sold by the Company in the Offering.

     

    (b) Contemporaneously
      with the execution and delivery of this Agreement, Subscriber shall execute
      and
      deliver the Certificate of Accredited Investor Status, and shall submit payment
      in the form of a wire transfer or a check payable to the Company. Such payment
      shall be made in immediately available funds in the amount equal to the Offering
      Price multiplied by the number of Shares for which the Subscriber has subscribed
      (the "Subscription
      Amount")
      in
      accordance with the Subscription Instructions set forth on Exhibit B
      hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) The
      Company shall have the right to allocate the Common Stock being offered by
      the
      Company among subscribers in any manner it may desire.

     

    (d) The
      payment of the Subscription Amount will be returned promptly, without interest,
      if the Closing does not occur or the Offering is withdrawn or
      canceled.

     

    (e) The
      Placement Agent and the Company may conduct one or more closings of this
      Offering (each a "Closing")
      until
      all 4,242,424 shares of Common Stock offered hereby are sold. The Closing of
      the
      Subscriber's purchase of Shares shall take place as soon as practicable after
      the date hereof that all conditions to this Agreement have been satisfied.
      The
      parties shall use best efforts to effect the Closing as soon as practicable.
      Either party may terminate this Agreement if the Closing has not occurred within
      30 days from the date hereof due to the failure of any of the conditions to
      its
      obligation to close to be met.

     

    (f) Certificates
      representing the Shares purchased and the Warrant will be issued in the name
      of
      the Subscriber within five business days of the applicable Closing.

     

    3. Closing
      Conditions.

     

    (a) The
      Company’s obligation to issue and sell the Shares to the Subscriber is subject
      to the following conditions:

     

    (i) receipt
      by the Company of immediately available funds in the full amount of the
      Subscription Amount;

     

    (ii) receipt
      by the Company from
      the
      Subscriber of
      an
executed
      Certificate of Accredited Investor Status and an executed copy of the
      Registration Rights Agreement;

     

    (iii) the
      representations and warranties of the Subscriber contained in this Agreement
      being true and correct in all material respects as of the Closing with the
      same
      effect as though such representations and warranties had been made as of the
      Closing, and the fulfillment of those undertakings of the Subscriber to be
      fulfilled prior to the Closing;

     

    (iv) absence
      of any order, writ, injunction, judgment or decree that could negatively affect
      the validity of this Agreement or the right of the Company to enter into this
      Agreement or to consummate the transactions contemplated hereby;
      and

     

    (v) receipt
      by the Company of subscriptions to purchase at least 4,242,424
      shares
      of
      Common Stock of the Company on the terms contained in this
      Agreement.

     

    (b) The
      obligation of the Subscriber to purchase and pay for the Shares is subject
      to
      the following conditions, any one or more of which may be waived in writing
      at
      any time by the Subscriber:

     

    (i) delivery
      to the Subscriber of an opinion of counsel to the Company, dated as of the
      Closing, in form and substance reasonably satisfactory to the
      Subscriber;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (ii) (A)
      the
      representations and warranties of the Company contained in this Agreement being
      true and correct in all material respects as of the Closing with the same effect
      as though such representations and warranties had been made as of the Closing
      (except with respect to representations and warranties that are made as of
      a
      specific date or period, which shall continue to be true and correct in all
      material respects as of the respective dates and for the respective periods
      covered), and (B) the Company shall have performed all obligations and covenants
      herein required to be performed by it on or prior to the Closing;

     

    (iii) receipt
      by the Subscriber of a certificate, dated as of the Closing and signed by the
      chief financial officer of the Company, to the effect that the condition set
      forth in clause (ii) above has been satisfied;

     

    (iv) receipt
      by the Subscriber of a certificate, dated as of the Closing and signed by an
      authorized officer of the Company, certifying on behalf of the Company: (a)
      that
      attached thereto is a true and complete copy of the articles of incorporation
      and by-laws of the Company as in effect as of the Closing; (ii) that attached
      thereto is a true and complete copy of all resolutions adopted by the Board
      of
      Directors and/or stockholders of the Company authorizing the execution, delivery
      and performance of this Agreement and the consummation of the transactions
      contemplated hereby; and (iii) to the incumbency of each officer of the Company
      executing on behalf of the Company this Agreement and the other documents and
      agreements contemplated hereby;

     

    (v) receipt
      from the Company of a good standing certificate of the Company from its state
      of
      incorporation dated as of a date within three business days of the
      Closing;

     

    (vi) receipt
      from the Company of an executed
      copy of the Registration Rights Agreement; and

     

    (vii) absence
      of any order, writ, injunction, judgment or decree that could negatively affect
      the validity of this Agreement or the right of the Company to enter into this
      Agreement or to consummate the transactions contemplated hereby.

     

    4. Terms
      of Subscription.

     

    (a) The
      Placement Agent will receive a fee equal to six percent of the gross proceeds
      received by the Company in the Offering and warrants to purchase a number of
      shares of Common Stock equal to six percent of the aggregate number of shares
      of
      Common Stock sold by the Company in the Offering (the "Placement Agent
      Warrants"). The Placement Agent Warrants will be in
      the
      form attached hereto as Exhibit A, and half of the shares subject to the
      warrants will have an exercise price of $5.00 per share for a term of 18 months
      and half of such shares will have an exercise price of $6.00 per share for
      a
      term of 48 months. The
      Company shall pay all expenses in connection with the Offering, except for
      those
      expenses that the Placement Agent has agreed with the Company to
      pay.

     

    (b) If
      the
      Subscriber is not a United States citizen, the Subscriber hereby represents
      that
      it has satisfied itself as to the full observance of the laws of its
      jurisdiction in connection with any invitation to subscribe for the Shares
      or
      any use of this Agreement, including (i) the legal requirements within its
      jurisdiction for the purchase of the Shares, (ii) any foreign exchange
      restrictions applicable to such purchase, (iii) any governmental or other
      consents that may need to be obtained, and (iv) the income tax and other tax
      consequences, if any, that may be relevant to the purchase, holding, redemption,
      sale or transfer of the Shares. The Subscriber’s subscription and payment for,
      and his, her or its continued beneficial ownership of the Shares, will not
      violate any applicable securities or other laws of the Subscriber’s
      jurisdiction. The Subscriber shall comply in all respects with all applicable
      provisions of Regulation S promulgated under the Securities Act of 1933, as
      amended (the "Securities
      Act").
      

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    5. Registration
      Rights.
      

     

    (a) Contemporaneous
      with the execution and delivery of this Agreement, the Company and Subscriber
      are executing and delivering a Registration Rights Agreement, in the form
      attached hereto as Exhibit C (the "Registration
      Rights Agreement"),
      pursuant to which the Company has agreed under certain circumstances to register
      the resale of the Shares under the Securities
      Act and
      the
      rules and regulations promulgated thereunder, and applicable state securities
      laws.

     

    (b) Subscriber
      acknowledges that it is acquiring the Shares for its own account and for the
      purpose of investment and not with a view to any distribution or resale thereof
      in violation of the Securities Act or other applicable securities laws. The
      Subscriber further agrees that it will not sell, assign or transfer the Shares
      at any time in violation of the Securities Act and acknowledges that, in taking
      unregistered securities, it must continue to bear the economic risk of its
      investment for an indefinite period of time because of the fact that the Shares
      have not been registered under the Securities Act, and further realizes that
      the
      Shares cannot be sold unless subsequently registered under the Securities Act
      or
      an exemption from such registration is available. The Subscriber also
      acknowledges that appropriate legends reflecting the status of the Shares under
      the Securities Act may be placed on the face of the certificates for such shares
      at the time of their transfer and delivery to the holder thereof.

     

    (c) The
      Shares may not be transferred except in a transaction that is in compliance
      with
      the Securities Act. Except as provided in the Registration Rights Agreement,
      it
      shall be a condition to any such transfer that, if requested by the Company,
      the
      Company shall be furnished with an opinion of counsel, reasonably satisfactory
      to the Company, to the effect that the proposed transfer would be in compliance
      with the Securities Act.

     

    6. Representations,
      Warranties and Covenants of the Subscriber.
      Subscriber hereby represents, warrants and covenants to the Company as
      follows:

     

    (a) Subscriber
      is purchasing the Shares for its own account, not as a nominee or agent, for
      investment purposes and not with a present view towards resale, except pursuant
      to sales exempted from registration under the Securities Act, or registered
      under the Securities Act as contemplated by the Registration Rights
      Agreement.

     

    (b) The
      Subscriber understands that (A) the Shares (1) have not been registered under
      the Securities Act or any state securities laws, (2) will be transferred in
      reliance upon an exemption from the registration and prospectus delivery
      requirements of the Securities Act pursuant to Regulation D promulgated
      thereunder, (3) will be transferred in reliance upon exemptions from the
      registration and prospectus delivery requirements of state securities laws
      that
      relate to private offerings, and (4) must be held by the Subscriber
      indefinitely, and (B) the Subscriber must therefore bear the economic risk
      of
      such investment indefinitely unless a subsequent disposition thereof is
      registered under the Securities Act and applicable state securities laws or
      is
      exempt therefrom. Subscriber further understands that such exemptions depend
      upon, among other things, the bona fide nature of the investment intent of
      the
      Subscriber expressed herein. Pursuant to the foregoing, the Subscriber
      acknowledges that until such time as the resale of the Shares has been
      registered under the Securities Act as contemplated by the Registration Rights
      Agreement or otherwise may be sold pursuant to an exemption from registration,
      the certificates representing the Shares acquired by the Subscriber shall bear
      a
      restrictive legend substantially as follows (and a stop-transfer order may
      be
      placed against transfer of the certificates evidencing such
      Shares):

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	 	
              "THE
                SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS
                ON
                TRANSFER UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND STATE
                SECURITIES LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED,
                TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS (I) REGISTERED
                UNDER
                THE APPLICABLE SECURITIES LAWS OR (II) AN OPINION OF COUNSEL, WHICH
                OPINION AND COUNSEL ARE BOTH REASONABLY SATISFACTORY TO THE COMPANY,
                HAS
                BEEN DELIVERED TO THE COMPANY AND SUCH OPINION STATES THAT THE SHARES
                MAY
                BE TRANSFERRED WITHOUT SUCH REGISTRATION."

            	 

    

     

    (c) The
      Subscriber has knowledge, skill and experience in financial, business and
      investment matters relating to an investment of this type and is capable of
      evaluating the merits and risks of such investment and protecting the
      Subscriber’s interest in connection with the acquisition of the Shares. The
      Subscriber understands that the acquisition of the Shares is a speculative
      investment and involves substantial risks and that the Subscriber could lose
      the
      Subscriber’s entire investment in the Shares. Further, the undersigned has
      carefully read and considered the matters set forth under the section entitled
      "Risk Factors" in the Company’s Annual Report on Form 10-KSB for its fiscal year
      ended December 31, 2006 and in the Memorandum, and has taken full cognizance
      of
      and understands all of the risks related to the purchase of the Shares. To
      the
      extent deemed necessary by the Subscriber, the Subscriber has retained, at
      its
      own expense, and relied upon, appropriate professional advice regarding the
      investment, tax and legal merits and consequences of purchasing and owning
      the
      Shares. The Subscriber has the ability to bear the economic risks of the
      Subscriber’s investment in the Company, including a complete loss of the
      investment, and the Subscriber has no need for liquidity in such
      investment.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (d) The
      Subscriber has been furnished by the Company all information (or provided access
      to all information) regarding the business and financial condition of the
      Company, its expected plans for future business activities, the attributes
      of
      the Shares and the merits and risks of an investment in the Shares that the
      Subscriber has requested or otherwise needs to evaluate the investment in the
      Company.

     

    (e) Subscriber
      is in receipt of and has carefully read and understands the following items
      (collectively, the "Disclosure
      Documents"):

     

    (i) the
      Memorandum;

     

    (ii) the
      Annual Report on Form 10-KSB of the Company filed with the Securities and
      Exchange Commission (the "SEC")
      for
      its fiscal year ended December 31, 2006; 

     

    (iii) the
      Quarterly Report on Form 10-QSB of the Company filed with the SEC for its
      quarterly period ended March 31, 2007;

     

    (iv) the
      Current Reports on Form 8-K filed or furnished by the Company with the SEC
      since
      December 31, 2006, including the Current Reports on Form 8-K filed or furnished
      by the Company on March 8, 2007, March 23, 2007, April 23, 2007, May 9, 2007
      and
      July 2, 2007; and

     

    (v) the
      Amendment No. 1 to Registration Statement on Form SB-2 of the Company filed
      with
      the SEC on July 23, 2007. 

     

    (f) In
      making
      the proposed investment decision, the Subscriber is relying solely on
      investigations made by the Subscriber and the Subscriber’s representatives. The
      offer to sell the Shares was communicated to the Subscriber in such a manner
      that the Subscriber was able to ask questions of and receive answers from the
      management of the Company concerning the terms and conditions of the proposed
      transaction and that at no time was the Subscriber presented with or solicited
      by or through any advertisement, article, leaflet, public promotional meeting,
      notice or other communication published in any newspaper, magazine or similar
      media or broadcast over television or radio or presented at any seminar or
      meeting or any other form of general or public advertising or
      solicitation.

     

    (g) The
      Subscriber acknowledges that the Subscriber has been advised that:

     

    (i) The
      Shares offered hereby have not been approved or disapproved by the SEC or any
      state securities commission nor has the SEC or any state securities commission
      passed upon the accuracy or adequacy of any representation by the Company.
      Any
      representation to the contrary is a criminal offense.

     

    (ii) In
      making
      an investment decision, the Subscriber must rely on its own examination of
      the
      Company and the terms of the Offering, including the merits and risks involved.
      The Shares have not been recommended by any federal or state securities
      commission or regulatory authority. Furthermore, the foregoing authorities
      have
      not confirmed the accuracy or determined the adequacy of any representation
      by
      the Company. Any representation to the contrary is a criminal
      offense.

     

    (iii) The
      Shares will be "restricted securities" within the meaning of Rule 144 under
      the
      Securities Act, are subject to restrictions on transferability and resale and
      may not be transferred or resold except as permitted under the Securities Act
      and applicable state securities laws, pursuant to registration or exemption
      therefrom. The Subscriber is aware that the Subscriber may be required to bear
      the financial risks of this investment for an indefinite period of
      time.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (h) The
      Subscriber agrees to furnish the Company with such other information as the
      Company may reasonably request in order to verify the accuracy of the
      information contained herein and agrees to notify the Company immediately of
      any
      material change in the information provided herein that occurs prior to the
      Closing.

     

    (i) The
      Subscriber further represents and warrants that the Subscriber is an "accredited
      investor" within the meaning of Rule 501 of Regulation D promulgated under
      the
      Securities Act, and Subscriber has executed the Certificate of Accredited
      Investor Status, attached hereto as Exhibit D.

     

    (j) As
      of the
      date of this Agreement the Subscriber and its affiliates do not have, and during
      the 30-day period prior to the date of this Agreement the Subscriber and its
      affiliates have not entered into, any "put equivalent position" as such term
      is
      defined in Rule 16a-1 of under the Securities Exchange Act of 1934, as amended
      (the "Exchange
      Act"),
      or
      short sale positions with respect to the Common Stock of the Company. In
      addition, the Subscriber shall comply with all applicable provisions of
      Regulation M promulgated under the Securities Act. 

     

    (k) If
      the
      Subscriber is a natural person, the Subscriber has reached the age of majority
      in the state in which the Subscriber resides, has adequate means of providing
      for the Subscriber’s current financial needs and contingencies, is able to bear
      the substantial economic risks of an investment in the Shares for an indefinite
      period of time, has no need for liquidity in such investment and, at the present
      time, could afford a complete loss of such investment.

     

    (l) If
      this
      Agreement is executed and delivered on behalf of a partnership, corporation,
      limited liability company, trust, estate or other entity (an "Entity"):
      (i)
      such Entity has the full legal right and power and all authority and approval
      required (a) to execute and deliver, or authorize execution and delivery of,
      this Agreement and all other instruments executed and delivered by or on behalf
      of such Entity in connection with the purchase of the Shares, (b) to delegate
      authority pursuant to power of attorney, and (c) to purchase and hold such
      Shares; (ii) the signature of the party signing on behalf of such Entity is
      binding upon such Entity; and (iii) such Entity has not been formed for the
      specific purpose of acquiring such Shares, unless each beneficial owner of
      such
      Entity is qualified as an accredited investor within the meaning of Rule 501(a)
      of Regulation D promulgated under the Securities Act and has submitted
      information substantiating such individual qualification.

     

    (m) If
      the
      Subscriber is a retirement plan or is investing on behalf of a retirement plan,
      the Subscriber acknowledges that investment in the Common Stock poses additional
      risks, including the inability to use losses generated by an investment in
      the
      Common Stock to offset taxable income.

     

    (n) The
      Subscriber understands and confirms that the Company will rely on the
      representations and covenants contained herein in effecting the transactions
      contemplated by this Agreement and the other Transaction Documents (as defined
      herein). All representations and warranties provided to the Company furnished
      by
      or on behalf of the Subscriber, taken as a whole, are true and correct and
      do
      not contain any untrue statement of material fact or omit to state any material
      fact necessary in order to make the statements made therein, in the light of
      the
      circumstances under which they were made, not misleading. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    7. Representations,
      Warranties and Covenants of the Company.
      Except
      as set forth in the Company’s Disclosure Schedule attached hereto, the Company
      represents and warrants to the Subscriber as follows:

     

    (a) The
      Company has no subsidiaries. The Company is a corporation duly organized,
      validly existing and in good standing under the laws of the jurisdiction in
      which it is incorporated or organized, with corporate power and authority to
      own, lease, use and operate its properties and to carry on its business as
      now
      operated and conducted. The Company is duly qualified as a foreign corporation
      to do business and is in good standing in each jurisdiction in which its
      ownership or use of property or the nature of the business conducted by it
      makes
      such qualification necessary, except where the failure to be so qualified or
      in
      good standing would not reasonably be expected to have a material adverse effect
      on the business, operations, assets, financial condition or prospects of the
      Company (a "Material
      Adverse Effect").
      

     

    (b) The
      Company has all requisite corporate power and authority to enter into and
      perform this Agreement, the Registration Rights Agreement, and each of the
      other
      documents contemplated by this Agreement to be executed and delivered by the
      Company (collectively, the "Transaction
      Documents"),
      and
      to consummate the transactions contemplated hereby and thereby, in accordance
      with the terms hereof and thereof. The execution and delivery of this Agreement
      and each of the other Transaction Documents by the Company and the consummation
      by it of the transactions contemplated hereby and thereby have been duly
      authorized by the Company’s Board of Directors and no further consent or
      authorization of the Company, its Board of Directors, or its stockholders is
      required. This Agreement and each of the other Transaction Documents have been
      duly executed and delivered by the Company. This Agreement and each of the
      other
      Transaction Documents will constitute, upon execution and delivery by the
      Company, a legal, valid and binding obligation of the Company enforceable
      against the Company in accordance with its terms, except as such enforceability
      may be limited by: (i) applicable bankruptcy, insolvency, reorganization,
      moratorium or other similar laws in effect that limit creditors’ rights
      generally; (ii) equitable limitations on the availability of specific remedies;
      (iii) principles of equity (regardless of whether such enforcement is considered
      in a proceeding in law or in equity); and (iv) to the extent rights to
      indemnification and contribution may be limited by federal securities laws
      or
      the public policy underlying such laws.

     

    (c) As
      of the
      date hereof, the authorized capital stock of the Company consists of 100,000,000
      shares of Common Stock, of which 22,809,123 shares are issued and outstanding,
      and no shares are held by the Company as treasury shares. All outstanding shares
      of Common Stock are duly authorized, validly issued, fully paid and
      nonassessable. No shares of capital stock of the Company are subject to
      preemptive rights or any other similar rights of the stockholders of the Company
      or any liens or encumbrances imposed through the actions or failure to act
      of
      the Company. As of the date hereof, the Company has outstanding options to
      purchase 1,100,000 shares of Common Stock. As of the date of this Agreement,
      except to the extent described in the preceding sentence or on Schedule
      7(c),
      (i)
      there are no outstanding options, warrants, scrip, rights to subscribe for,
      puts, calls, rights of first refusal, agreements, understandings, claims or
      other commitments or rights of any character whatsoever relating to, or
      securities or rights convertible into or exchangeable for any shares of capital
      stock of the Company, or arrangements by which the Company is or may become
      bound to issue additional shares of capital stock, and (ii) except for the
      Registration Rights Agreement or as set forth on Schedule
      7(c),
      there
      are no agreements or arrangements under which the Company is obligated to
      register the sale of any of its securities under the Securities Act. Except
      as
      may be described in any documents which have been publicly filed by any of
      the
      Company's stockholders, to the Company’s knowledge, there are no agreements
      between the Company’s stockholders with respect to the voting or transfer of the
      Company’s capital stock or with respect to any other aspect of the Company’s
      affairs.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (d) The
      execution, delivery and performance of this Agreement and each of the other
      Transaction Documents by the Company and the consummation by the Company of
      the
      transactions contemplated hereby and thereby will not (i) conflict with or
      result in a violation of any provision of the articles of incorporation, as
      amended, of the Company or the bylaws, as amended, of the Company, (ii) violate
      or conflict with, or result in a breach of any provision of, or constitute
      a
      default (or an event which with notice or lapse of time or both could become
      a
      default) under, or give to others any rights of termination, amendment,
      acceleration or cancellation of, any material agreement, indenture, patent,
      patent license or instrument to which the Company is a party, or (iii) result
      in
      a violation of any federal, state, local, municipal, foreign, international,
      multinational or other law, rule, regulation, order, judgment, decree,
      ordinance, policy or directive, including those entered, issued, made, rendered
      or required by any court, administrative or other governmental body, agency
      or
      authority, or any arbitrator (collectively, a "Legal
      Requirement")
      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, reasonably be expected to have a Material
      Adverse Effect). The Company is not in violation of its articles of
      incorporation, as amended, or bylaws, as amended, or other organizational
      documents and the Company is not in default (and no event has occurred that
      with
      notice or lapse of time would result in a default) under, and the Company has
      not taken any action or failed to take any action that would give to others
      any
      rights of termination, amendment, acceleration or cancellation of, any agreement
      or instrument to which the Company is a party or by which any property or assets
      of the Company is bound or affected, except for possible defaults as would
      not,
      individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect. Except as required by the NASD or under the Securities Act
      and
      any applicable state securities laws, the Company is not required to obtain
      any
      consent, authorization or order of, or make any filing or registration with,
      any
      court, governmental agency, regulatory agency, self regulatory organization
      or
      stock market or any third party in order for it to execute, deliver or perform
      any of its obligations under the Transaction Documents. All consents,
      authorizations, orders, filings and registrations that the Company is required
      to effect or obtain pursuant to the preceding sentence have been obtained or
      effected on or prior to the date hereof. 

     

    (e) Since
      January 1, 2006, the Company has timely filed all reports, schedules, forms,
      statements and other documents required to be filed by it with the SEC pursuant
      to the reporting requirements of the Securities Act and the Exchange Act (all
      of
      the foregoing filed after January 1, 2006 and prior to the date hereof and
      all
      exhibits included therein and financial statements and schedules thereto and
      documents (other than exhibits to such documents) incorporated by reference
      therein, being hereinafter referred to herein as the "SEC
      Documents"),
      or
      has timely filed for a valid extension of such time of filing and has filed
      any
      such SEC Documents prior to the expiration of any such extension. As of their
      respective dates, the SEC Documents complied in all material respects with
      the
      requirements of the Securities Act or the Exchange Act, as applicable, and
      the
      applicable rules and regulations of the SEC promulgated thereunder, and none
      of
      the SEC Documents, at the time they were filed with the SEC, contained any
      untrue statement of a material fact or omitted to state a material fact required
      to be stated therein or necessary in order to make the statements therein,
      in
      light of the circumstances under which they were made, not
      misleading.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (f) As
      of
      their respective dates, the financial statements of the Company included in
      the
      SEC Documents complied as to form in all material respects with applicable
      accounting requirements and the applicable published rules and regulations
      of
      the SEC with respect thereto. Such financial statements have been prepared
      in
      accordance with United States generally accepted accounting principles
      ("GAAP"),
      consistently applied, during the periods involved (except (i) as may be
      otherwise indicated in such financial statements or the notes thereto, or (ii)
      in the case of unaudited interim statements, to the extent they may not include
      footnotes, year end adjustments or may be condensed or summary statements)
      and
      fairly present in all material respects the consolidated financial position
      of
      the Company as of the dates thereof and the consolidated results of its
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited statements, to normal year-end audit adjustments). Except as set
      forth
      in the financial statements of the Company included in the SEC Documents, the
      Company has no liabilities, contingent or otherwise, other than (x) liabilities
      incurred in the ordinary course of business subsequent to December 31, 2006,
      and
      (y) obligations under contracts and commitments incurred in the ordinary course
      of business and not required under GAAP to be reflected in such financial
      statements, which, individually or taken in the aggregate, would not reasonably
      be expected to have a Material Adverse Effect.

     

    (g) The
      Company has established and maintains disclosure controls and procedures (as
      such term is defined in Rule 13a-15(e) under the Exchange Act). Such disclosure
      controls and procedures: (i) are designed to ensure that material information
      relating to the Company is made known the Company’s President and its Secretary
      by others within those entities, particularly during the periods in which the
      Company’s reports and filings under the Exchange Act are being prepared, (ii)
      have been evaluated for effectiveness as of the end of the most recent annual
      period reported to the SEC, and (iii) are effective to perform the functions
      for
      which they were established.

     

    (h) Except
      with respect to the transactions contemplated hereby and by each of the other
      Transaction Documents and except as disclosed in the Disclosure Documents or
      has
      been disclosed in any public disclosure as defined in Section 101(e) of
      Regulations FD promulgated under the Exchange Act, since December 31, 2006:
      (i)
      the Company has conducted its business only in the ordinary course, consistent
      with past practice, and since that date, no changes have occurred which would
      reasonably be expected to have a Material Adverse Effect; and (ii) the Company
      has not incurred any liabilities (contingent or otherwise) other than (A) trade
      payables, accrued expenses and other liabilities incurred in the ordinary course
      of business consistent with past practice and (B) liabilities not required
      to be
      reflected on the Company’s financial statements pursuant to GAAP or required to
      be disclosed in filings made with the SEC. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (i) There
      is
      no Action pending or, to the knowledge of the Company, overtly threatened
      against or affecting the Company that (i) adversely affects or challenges the
      legality, validity or enforceability of the Agreement, or (ii) if there were
      an
      unfavorable decision, would reasonably be expected to have a Material Adverse
      Effect. Neither the Company nor any director or officer thereof (in his or
      her
      capacity as such) is or has been the subject of any Action involving a claim
      of
      violation of or liability under federal or state securities laws or a claim
      of
      breach of fiduciary duty. There has not been, and to the knowledge of the
      Company, there is not pending any investigation by the SEC involving the Company
      or any current or former director or officer of the Company (in his or her
      capacity as such). The SEC has not issued any stop order or other order
      suspending the effectiveness of any registration statement filed by the Company
      under the Exchange Act or the Securities Act. As used in this Agreement,
      "Action"
      means
      any action, suit, claim, inquiry, notice of violation, proceeding (including
      any
      partial proceeding such as a deposition) or investigation against or affecting
      the Company or any of its respective properties before or by any court,
      arbitrator, governmental or administrative agency, regulatory authority
      (federal, state, county, local or foreign), public board, stock market, stock
      exchange or trading facility.

     

    (j) The
      Company owns or possesses the requisite licenses or rights to use all patents,
      patent applications, patent rights, inventions, know-how, trade secrets,
      copyrights, trademarks, trademark applications, service marks, service names,
      trade names and copyrights ("Intellectual
      Property")
      necessary to enable it to conduct its business as now operated (and, to the
      Company’s knowledge, as presently contemplated to be operated in the future).
      There is no claim or Action by any person pertaining to, or proceeding pending
      or, to the Company’s knowledge, threatened that challenges, the right of the
      Company with respect to any Intellectual Property necessary to enable it to
      conduct its business as now operated. To the best of the Company’s knowledge,
      the Company does not infringe on any Intellectual Property or other rights
      held
      by any person, except where any such infringement would not reasonably be
      expected to have a Material Adverse Effect.

     

    (k) The
      Company has made or filed all federal, state and foreign income and all other
      tax returns, reports and declarations required by any jurisdiction to which
      it
      is subject (unless and only to the extent that the Company has set aside on
      its
      books provisions reasonably adequate for the payment of all unpaid and
      unreported taxes) and has paid all taxes and other governmental assessments
      and
      charges that are material in amount, shown or determined to be due on such
      returns, reports and declarations, except those being contested in good faith.
      There are no unpaid taxes in any material amount claimed to be due by the taxing
      authority of any jurisdiction, and the officers of the Company know of no basis
      for any such claim. The Company has not executed a waiver with respect to the
      statute of limitations relating to the assessment or collection of any foreign,
      federal, state or local tax. 

     

    (l) The
      Company is in possession of all material franchises, grants, authorizations,
      licenses, permits, easements, variances, exemptions, consents, certificates,
      approvals and orders necessary to own, lease and operate its properties and
      to
      carry on its business as it is now being conducted (collectively, "Permits"),
      except where the failure to have the same would not reasonably be expected
      to
      result in a Material Adverse Effect, and would not prohibit or otherwise
      materially interfere with the ability of the Company to continue business in
      the
      ordinary course or perform its obligations under this Agreement and under its
      other material agreements. There is no Action pending or, to the knowledge
      of
      the Company, threatened regarding suspension or cancellation of any of the
      Permits. The Company is not in conflict with, or in default or violation of,
      any
      of the Permits, except for any such conflicts, defaults or violations which,
      individually or in the aggregate, would not reasonably be expected to have
      a
      Material Adverse Effect.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (m) Since
      December 31, 2006, except as set forth in any document filed with the SEC,
      no
      event has occurred or, to the knowledge of the Company, circumstance exists
      that
      (with or without notice or lapse of time): (i) may constitute or result in
      a
      violation by the Company, or a failure on the part of the Company to comply
      with, any Legal Requirement; or (ii) may give rise to any obligation on the
      part
      of the Company to undertake, or to bear all or any portion of the cost of,
      any
      remedial action of any nature in connection with a failure to comply with any
      Legal Requirement, except in either case that would not reasonably be expected
      to have a Material Adverse Effect. The Company has not received any notice
      or
      other communication from any regulatory authority or any other person, nor does
      the Company have any knowledge regarding: (x) any actual, alleged, possible
      or
      potential violation of, or failure to comply with, any Legal Requirement, or
      (y)
      any actual, alleged, possible or potential obligation on the part of the Company
      to undertake, or to bear all or any portion of the cost of, any remedial action
      of any nature in connection with a failure to comply with any Legal Requirement,
      except in either case that would not reasonably be expected to have a Material
      Adverse Effect.

     

    (n) The
      Company is in compliance in all material respects with the provisions of the
      Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder
      or pursuant thereto that are applicable to it. 

     

    (o) The
      Company is, and has reason to believe that for the foreseeable future it will
      continue to be, in compliance with all applicable rules of the NASD relating
      to
      the OTC Bulletin Board, including all listing and corporate governance
      requirements. The Company has not, at any time since December 31, 2006, received
      any notice from the NASD that the Company is not in compliance with the listing
      or maintenance requirements thereof. 

     

    (p) Except
      for such matters as would not, individually or in the aggregate, reasonably
      be
      expected to result in a Material Adverse Effect, (i) the Company has complied
      and is in compliance with all applicable Environmental Laws; (ii) without
      limiting the generality of the foregoing, the Company has obtained, has complied
      with, and is in compliance with all Permits that are required pursuant to
      Environmental Laws for the operation of its businesses; (iii) the Company has
      not received any written notice, report or other information regarding any
      actual or alleged violation by it of any Environmental Laws, or any liabilities
      or potential liabilities (including fines, penalties, costs and expenses),
      including any investigatory, remedial or corrective obligations, relating to
      it
      arising under Environmental Laws, nor, to the knowledge of the Company, is
      there
      any factual basis for the same; and (iv) to the knowledge of the Company, the
      Company has not, contractually, by operation of law or otherwise, succeeded
      to
      any liabilities arising under any Environmental Laws of any predecessors or
      any
      other Person. As used herein, "Environmental
      Laws"
      shall
      mean, collectively, all Legal Requirements, including any federal, state, local
      or foreign statute, law, rule, regulation, ordinance, code, policy or rule
      of
      common law or any judicial or administrative interpretation thereof, including
      any judicial or administrative order, consent, decree or judgment, relating
      to
      pollution or protection of human health, the environment (including, without
      limitation, ambient air, surface water, groundwater, land surface or subsurface
      strata) or wildlife, including, without limitation, laws and regulations
      relating to the release or threatened release of chemicals, pollutants,
      contaminants, wastes, toxic substances, hazardous substances, petroleum or
      petroleum products (collectively, "Hazardous
      Materials")
      or to
      the manufacture, processing, distribution, use, treatment, storage, disposal,
      transport or handling of Hazardous Materials.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (q) Except
      for any lien for current taxes not yet delinquent or which are being contested
      in good faith and by appropriate proceedings, the Company has good and
      marketable title to all real property interests and all personal property owned
      by it that is material to the business of the Company. Any leases of real
      property and facilities of the Company are valid and effective in accordance
      with their respective terms, except as would not reasonably be expected to
      have
      a Material Adverse Effect.

     

    (r) Except
      pursuant to the Registration Rights Agreement, effective upon the Closing,
      the
      Company is not currently subject to any agreement providing any person or entity
      any rights (including piggyback registration rights) to have any securities
      of
      the Company registered with the SEC or registered or qualified with any other
      governmental authority.

     

    (s) Based
      in
      part on the representations and warranties made by the Subscriber and the other
      subscribers in the Offering in Section 6 of this Agreement, the Offering will
      be
      exempt from the registration requirements of the Securities Act. The Common
      Stock is registered pursuant to Section 12(g) of the Exchange Act, and the
      Company has taken no action designed to, or which, to the knowledge of the
      Company, is reasonably likely to have the effect of, terminating the
      registration of the Common Stock under the Exchange Act. The Company is eligible
      to register its Common Stock for resale under Form S-3 promulgated under the
      Securities Act.

     

    (t) No
      dispute exists or, to the knowledge of the Company, is imminent or threatened,
      with respect to any of the independent contractors of the Company that,
      individually or in the aggregate, would reasonably be expected to have a
      Material Adverse Effect.

     

    (u) Except
      as
      set forth in the SEC Documents, none of the officers, directors or employees
      of
      the Company is presently a party to any transaction or agreement with the
      Company (other than for services as an officer, director or employee) exceeding
      $60,000, including any contract, agreement or other arrangement providing for
      the furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any such
      officer, director or employee or, to the knowledge of the Company, any entity
      in
      which any such officer, director or employee has a substantial interest or
      is an
      officer, director, trustee or partner.

     

    (v) The
      Company has insurance policies in full force and effect of a type, covering
      such
      risks and in such amounts, and having such deductibles and exclusions as are
      customary for conducting businesses and owing assets similar in nature and
      scope
      to those of the Company. The amounts of all such insurance policies and the
      risks covered thereby are in accordance in all material respects with all
      material contracts and agreements to which the Company is a party and with
      all
      applicable Legal Requirements. With respect to each such insurance policy:
      (i)
      the policy is valid, outstanding and enforceable in accordance with its terms,
      except as such enforceability may be limited by applicable bankruptcy,
      insolvency, reorganization, moratorium or other similar laws in effect that
      limit creditors’ rights generally, equitable limitations on the availability of
      specific remedies and principles of equity (regardless of whether such
      enforcement is considered in a proceeding in law or in equity); (ii) the Company
      is not in breach or default with respect to its obligations thereunder in any
      material respect; and (iii) no party to the policy has repudiated, or given
      notice of an intent to repudiate, any provision thereof.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (w) The
      Company will file with the SEC a Form 8-K disclosing the Offering within four
      (4) business days of the final Closing of the Offering and attach the relevant
      agreements to either such Form 8-K.

     

    (x) The
      Company understands and confirms that the Subscriber will rely on the
      representations and covenants contained herein in effecting the transactions
      contemplated by this Agreement and the other Transaction Documents. All
      representations and warranties provided to the Subscriber including the
      disclosures in the Company’s Disclosure Schedules attached hereto furnished by
      or on behalf of the Company, taken as a whole, are true and correct and do
      not
      contain any untrue statement of material fact or omit to state any material
      fact
      necessary in order to make the statements made therein, in the light of the
      circumstances under which they were made, not misleading. No event or
      circumstance has occurred or information exists with respect to the Company
      or
      its businesses, properties, prospects, operations or financial conditions,
      that,
      under applicable law, rule or regulation, requires public disclosure or
      announcement by the Company but that has not been so publicly announced or
      disclosed. 

     

    8. Understandings.
      The
      Subscriber understands, acknowledges and agrees with the Company as
      follows:

     

    (a) The
      Subscriber hereby acknowledges and agrees that the subscription hereunder is
      irrevocable by the Subscriber, that, except as required by law, the Subscriber
      is not entitled to cancel, terminate or revoke this Agreement or any agreements
      of the Subscriber hereunder, and that this Agreement and such other agreements
      shall survive the death or disability of the Subscriber and shall be binding
      upon and inure to the benefit of the parties and their respective heirs,
      executors, administrators, successors, legal representatives and permitted
      assigns. If the Subscriber is more than one person, the obligations of the
      Subscriber hereunder shall be joint and several and the agreements,
      representations, warranties and acknowledgments herein contained shall be deemed
      to be made by and be binding upon each such person and his/her heirs, executors,
      administrators, successors, legal representatives and permitted
      assigns.

     

    (b) No
      federal or state agency has made any finding or determination as to the accuracy
      or adequacy of the Memorandum or as to the suitability of this offering for
      investment nor any recommendation or endorsement of the Shares.

     

    (c) The
      Offering is intended to be exempt from registration under Regulation D
      promulgated under the Securities Act, which is dependent upon the truth,
      completeness and accuracy of the statements made by the Subscriber
      herein.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (d) There
      is
      only a limited public market for the Common Stock. There can be no assurance
      that the Subscriber will be able to sell or dispose of the Shares. It is
      understood that in order not to jeopardize the Offering’s exempt status under
      Regulation D promulgated under the Securities Act, any transferee will, at
      a
      minimum, be required to fulfill the investor suitability requirements
      thereunder.

     

    (e) The
      representations, warranties and agreements of the Subscriber contained herein
      and in any other writing delivered in connection with the Offering shall be
      true
      and correct in all respects on and as of the date of the Closing of the sale
      of
      the Shares as if made on and as of such date and shall survive the execution
      and
      delivery of this Agreement and the purchase of the Shares.

     

    9. Survival;
      Indemnification.
      All
      representations, warranties and covenants contained in this Agreement and the
      indemnification contained in this Section 9 shall survive (i) the execution
      of
      this Agreement by the Company, (ii) changes in the transactions, documents
      and
      instruments described herein that are not material or that are to the benefit
      of
      Subscriber, and (iii) the death or disability of Subscriber. Subscriber
      acknowledges the meaning and legal consequences of the representations,
      warranties and covenants in Section 6 hereof and that the Company has relied
      upon such representations, warranties and covenants in determining Subscriber’s
      qualification and suitability to purchase the Shares. Each party to this
      Agreement agrees to indemnify, defend and hold harmless the other parties,
      and
      their respective officers, directors, employees, agents and controlling persons,
      from and against any and all losses, claims, damages, liabilities, expenses
      (including attorneys’ fees and disbursements), judgments or amounts paid in
      settlement of actions arising out of or resulting from the untruth of any
      representation of the indemnifying party herein or the breach of any warranty
      or
      covenant herein by the indemnifying party. Notwithstanding the foregoing,
      however, no representation, warranty, covenant or acknowledgment made herein
      by
      Subscriber shall in any manner be deemed to constitute a waiver of any rights
      granted to it under the Securities Act or state securities laws.

     

    10. Right
      of First Offer.
      Subject
      to the terms and conditions specified in this Section 10, the Company hereby
      grants to the Subscriber, so long as the Subscriber holds all of the Shares,
      a
      right of first offer with respect to future sales by the Company of any shares
      of its Common Stock or any securities convertible into or exercisable or
      exchangeable for any shares of its Common Stock (collectively "Securities").
      Each
      time the Company proposes to offer any Securities, the Company shall first
      make
      an offering of such Securities to the Subscriber and the other subscribers
      in
      the Offering in accordance with the following provisions:

     

    (a) The
      Company shall deliver a notice by certified mail ("Notice")
      to
      each subscriber in the Offering stating (i) its bona fide intention to offer
      such Securities, (ii) the number of such Securities to be offered, and (iii)
      the
      price and terms, if any, upon which it proposes to offer such
      Securities.

     

    (b) Within
      15
      calendar days after giving of the Notice, the Subscriber may elect to purchase,
      at the price and on the terms specified in the Notice, up to that proportion
      of
      such Securities that equals the proportion that the number of Shares then held
      by the Subscriber bears to the total number of shares of Common Stock issued
      by
      the Company to all of the subscribers (including the Subscriber) in the Offering
      (the "Pro
      Rata Amount").

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (c) If
      all
      Securities that are entitled to be purchased by the subscribers pursuant to
      subsection 10(b) are not elected to be purchased as provided in subsection
      10(b)
      hereof, the Company may, during the 90-day period following the expiration
      of
      the period provided in subsection 10(b) hereof, offer the remaining unsubscribed
      portion of such Securities to any other parties at a price not less than, and
      upon terms no more favorable to the offeree than, that specified in the Notice.
      If the Company does not enter into an agreement for the sale of the Securities
      within such 90-day period, the right provided hereunder shall be deemed to
      be
      revived and such Securities shall not be offered unless first reoffered to
      the
      Subscriber and the other subscribers in the Offering in accordance
      herewith.

     

    (d) The
      right
      of first offer set forth in this Section 10 shall not be applicable to
      (i) the issuance or sale of shares of Common Stock (or options therefor) to
      Company employees, directors, officers or consultants pursuant to stock option
      or stock issuance plans approved by the Company’s Board of Directors,
      (ii) the issuance of securities pursuant to the conversion or exercise of
      convertible or exercisable securities outstanding as of the date hereof,
      (iii) the issuance of securities in connection with a bona fide business
      acquisition of or by the Company, whether by merger, consolidation, purchase
      of
      assets, purchase or exchange of stock, or otherwise, (iv) the issuance of
      stock, warrants or other securities or rights to third parties with which the
      Company has business relationships provided such issuances are for other than
      primarily equity financing purposes and are first approved by the Company’s
      Board of Directors, or (v) the issuance of shares of Common Stock in the
      Offering.

     

    (e) The
      right
      of first offer set forth in this Section 10 shall terminate as of the date
      that
      is four years from the date this Agreement is executed by the Company (the
      "Effective
      Date").

     

    11. Anti-Dilution
      Protection.
      So long
      as the Subscriber holds all of the Shares, if and whenever on or after the
      Effective Date the Company issues or sells, or in accordance with this Section
      11 is deemed to have issued or sold, any shares of Common Stock (including
      the
      issuance or sale of shares of Common Stock owned or held by or for the account
      of the Company, but excluding Excluded Securities) for a consideration per
      share
      (the "New
      Issuance Price")
      less
      than $3.30 per share (the "Applicable
      Price")
      (the
      foregoing, a "Dilutive
      Issuance"),
      then
      immediately after such Dilutive Issuance the Company shall issue to the
      Subscriber a number of shares of Common Stock equal to the amount by which
      (a)
      the Subscription Amount divided by the New Issuance Price exceeds (b) the sum
      of
      (i) the number of Shares received by the Subscriber in the Offering at the
      Applicable Price plus (ii) the number of shares of Common Stock previously
      issued to the Subscriber pursuant to this Section 11. Upon each Dilutive
      Issuance made by the Company after the Effective Date, the Subscriber shall
      be
      issued shares of Common Stock in accordance with this Section 11. For purposes
      of this Section 11, the following shall be applicable:

     

    (a) Issuance
      of Options.
      If the
      Company in any manner grants any Options and the lowest price per share for
      which one share of Common Stock is issuable upon the exercise of any such Option
      or upon conversion, exercise or exchange of any Convertible Securities issuable
      upon exercise of any such Option is less than the Applicable Price, then such
      share of Common Stock shall be deemed to be outstanding and to have been issued
      and sold by the Company at the time of the granting or sale of such Option
      for
      such price per share. For purposes of this Section 11(a), the "lowest price
      per
      share for which one share of Common Stock is issuable upon exercise of such
      Options or upon conversion, exercise or exchange of such Convertible Securities"
      shall be equal to the sum of the lowest amounts of consideration (if any)
      received or receivable by the Company with respect to any one share of Common
      Stock upon the granting or sale of the Option, upon exercise of the Option
      and
      upon conversion, exercise or exchange of any Convertible Security issuable
      upon
      exercise of such Option. No further adjustment under this Section 11 shall
      be
      made upon the actual issuance of such Common Stock or of such Convertible
      Securities upon the exercise of such Options or upon the actual issuance of
      such
      Common Stock upon conversion, exercise or exchange of such Convertible
      Securities. 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (b) Issuance
      of Convertible Securities.
      If the
      Company in any manner issues or sells any Convertible Securities and the lowest
      price per share for which one share of Common Stock is issuable upon the
      conversion, exercise or exchange thereof is less than the Applicable Price,
      then
      such share of Common Stock shall be deemed to be outstanding and to have been
      issued and sold by the Company at the time of the issuance or sale of such
      Convertible Securities for such price per share. For the purposes of this
      Section 11(b), the "lowest price per share for which one share of Common Stock
      is issuable upon the conversion, exercise or exchange" shall be equal to the
      sum
      of the lowest amounts of consideration (if any) received or receivable by the
      Company with respect to one share of Common Stock upon the issuance or sale
      of
      the Convertible Security and upon conversion, exercise or exchange of such
      Convertible Security. No further adjustment under this Section 11 shall be
      made
      upon the actual issuance of such Common Stock upon conversion, exercise or
      exchange of such Convertible Securities, and if any such issue or sale of such
      Convertible Securities is made upon exercise of any Options for which adjustment
      has otherwise been made under this Section 11, no further adjustment under
      this
      Section 11 shall be made by reason of such issue or sale. 

     

    (c) Change
      in Option Price or Rate of Conversion.
      If the
      purchase price provided for in any Options, the additional consideration, if
      any, payable upon the issue, conversion, exercise or exchange of any Convertible
      Securities, or the rate at which any Convertible Securities are convertible
      into
      or exercisable or exchangeable for Common Stock increases or decreases at any
      time, then the adjustment required by this Section 11 shall be recalculated
      at
      such time as if such Options or Convertible Securities provided for such
      increased or decreased purchase price, additional consideration or increased
      or
      decreased conversion rate, as the case may be, at the time initially granted,
      issued or sold. For purposes of this Section 11(c), if the terms of any Option
      or Convertible Security that was outstanding as of the Effective Date are
      increased or decreased in the manner described in the immediately preceding
      sentence, then such Option or Convertible Security and the Common Stock deemed
      issuable upon exercise, conversion or exchange thereof shall be deemed to have
      been issued as of the date of such increase or decrease. No adjustment pursuant
      to this Section 11 shall be made if such adjustment would result in a lower
      number of shares of Common Stock being issued to the Subscriber than previously
      calculated pursuant to this Section 11.

     

    (d) Calculation
      of Consideration Received.
      In case
      any Option is issued in connection with the issue or sale of other securities
      of
      the Company, together comprising one integrated transaction in which no specific
      consideration is allocated to such Options by the parties thereto, the Options
      will be deemed to have been issued for a consideration of $0.0001. If any Common
      Stock, Options or Convertible Securities are issued or sold or deemed to have
      been issued or sold for cash, the consideration received therefor will be deemed
      to be the net amount received by the Company therefor. If any Common Stock,
      Options or Convertible Securities are issued or sold for a consideration other
      than cash, the amount of such consideration received by the Company will be
      the
      fair value of such consideration, except where such consideration consists
      of
      securities, in which case the amount of consideration received by the Company
      will be the Closing Sale Price of such security on the date of receipt. If
      any
      Common Stock, Options or Convertible Securities are issued to the owners of
      the
      non-surviving entity in connection with any merger in which the Company is
      the
      surviving entity, the amount of consideration therefor will be deemed to be
      the
      fair value of such portion of the net assets and business of the non-surviving
      entity as is attributable to such Common Stock, Options or Convertible
      Securities, as the case may be. The fair value of any consideration other than
      cash or securities will be determined jointly by the Board of Directors of
      the
      Company and the holders of at least a majority of the shares of Common Stock
      purchased in the Offering. If such parties are unable to reach agreement within
      10 days after the occurrence of an event requiring valuation (the "Valuation
      Event"),
      the
      fair value of such consideration will be determined within fifteen Business
      Days
      after the tenth day following the Valuation Event by an independent, reputable
      appraiser jointly selected by the Company and the holders of at least a majority
      of the shares of Common Stock purchased in the Offering. The determination
      of
      such appraiser shall be final and binding upon all parties absent manifest
      error
      and the fees and expenses of such appraiser shall be borne by the
      Company.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (e) Record
      Date.
      If the
      Company takes a record of the holders of Common Stock for the purpose of
      entitling them (A) to receive a dividend or other distribution payable in
      Common Stock, Options or in Convertible Securities or (B) to subscribe for
      or purchase Common Stock, Options or Convertible Securities, then such record
      date will be deemed to be the date of the issue or sale of the shares of Common
      Stock deemed to have been issued or sold upon the declaration of such dividend
      or the making of such other distribution or the date of the granting of such
      right of subscription or purchase, as the case may be.

     

    (f) The
      rights set forth in this Section 11 shall terminate as of the date that is
      eighteen (18) months from the Effective Date.

     

    (g) For
      purposes of this Section 11, the following terms shall have the following
      meanings:

     

    (i) "Approved
      Stock Plan"
      means
      any employee benefit plan that has been approved by the Board of Directors
      of
      the Company, pursuant to which the Company's securities may be issued to any
      employee, officer, director or consultant for services provided to the
      Company.

     

    (ii) "Bloomberg"
      means
      Bloomberg Financial Markets.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (iii) "Closing
      Sale Price"
      means,
      for any security as of any date, the last closing trade price for such security
      on the Principal Market, as reported by Bloomberg, or, if the Principal Market
      begins to operate on an extended hours basis and does not designate the closing
      trade price, then the last trade price of such security prior to 4:00:00 p.m.,
      New York Time, as reported by Bloomberg, or, if the Principal Market is not
      the
      principal securities exchange or trading market for such security, the last
      trade price of such security on the principal securities exchange or trading
      market where such security is listed or traded as reported by Bloomberg, or
      if
      the foregoing do not apply, the trade price of such security in the
      over-the-counter market on the electronic bulletin board for such security
      as
      reported by Bloomberg, or, if no last trade price is reported for such security
      by Bloomberg, the average of the bid and ask prices of any market makers for
      such security as reported in the "pink sheets" by Pink Sheets LLC (formerly
      the
      National Quotation Bureau, Inc.). If the Closing Sale Price cannot be calculated
      for a security on a particular date on any of the foregoing bases, the Closing
      Sale Price of such security on such date shall be the fair market value as
      mutually determined by the Company and the Subscriber. If the Company and the
      Subscriber are unable to agree upon the fair market value of such security,
      then
      such dispute shall be resolved pursuant to Section 13 of the Warrant. All such
      determinations to be appropriately adjusted for any stock dividend, stock split,
      stock combination or other similar transaction during the applicable calculation
      period.

     

    (iv) "Convertible
      Securities"
      means
      any stock or securities (other than Options) directly or indirectly convertible
      into or exercisable or exchangeable for Common Stock.

     

    (v) "Excluded
      Securities"
      means
      any Common Stock issued or issuable: (i) in connection with any Approved Stock
      Plan; (ii) upon exercise of any of the warrants issued in the Offering; (iii)
      pursuant to a bona fide firm commitment underwritten public offering with a
      nationally recognized underwriter that generates gross proceeds to the Company
      in excess of $25,000,000 (other than an "at-the-market offering" as defined
      in
      Rule 415(a)(4) under the Securities Act and "equity lines"); (iv) upon
      conversion of any Options or Convertible Securities that are outstanding on
      the
      day immediately preceding the Effective Date, provided that the terms of such
      Options or Convertible Securities are not amended, modified or changed on or
      after the Effective Date; (v) in connection with any acquisition, merger, joint
      venture or strategic investment that has been approved by the Board of Directors
      of the Company; (vi) securities issued to commercial banks or financial
      institutions, the primary business of which is not making equity-related loans;
      or (vii) securities issued to lessors in connection with commercial credit
      arrangements, equipment financings or similar transactions or to independent
      contractors or vendors of the Company in connection with bona fide business
      transactions.

     

    (vi) "Options"
      means
      any rights, warrants or options to subscribe for or purchase Common Stock or
      Convertible Securities.

     

    (vii) "Principal
      Market"
      means
      the OTC Bulletin Board.

     

    12. Notices.
      All
      notices and other communications provided for herein shall be in writing and
      shall be deemed to have been duly given if delivered personally or sent by
      registered or certified mail, return receipt requested, postage
      prepaid:

     

    (a) if
      to the
      Company, to the following address:

     

    Northern
      Oil & Gas, Inc.

    130
      Lake
      Street West, Suite 300

    Wayzata,
      Minnesota 55391

    Attn:
      Ryan Gilbertson, Chief Financial Officer

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (b) if
      to
      Subscriber, to the address set forth on the signature page hereto.

     

    (c) or
      at
      such other address as either party shall have specified by notice in writing
      to
      the other party.

     

    13. Notification
      of Changes.
      Subscriber agrees and covenants to notify the Company immediately upon the
      occurrence of any event prior to the consummation of the Offering that would
      cause any representation, warranty, covenant or other statement contained in
      this Agreement to be false or incorrect or of any change in any statement made
      herein occurring prior to the consummation of the Offering.

     

    14. Assignability.
      This
      Agreement is not assignable by the Subscriber, and may not be modified, waived
      or terminated except by an instrument in writing signed by the party against
      whom enforcement of such modification, waiver or termination is
      sought.

     

    15. Binding
      Effect.
      Except
      as otherwise provided herein, this Agreement shall be binding upon and inure
      to
      the benefit of the parties and their heirs, executors, administrators,
      successors, legal representatives and assigns, and the agreements,
      representations, warranties and acknowledgments contained herein shall be deemed
      to be made by and be binding upon such heirs, executors, administrators,
      successors, legal representatives and assigns.

     

    16. Obligations
      Irrevocable.
      The
      obligations of the Subscriber shall be irrevocable, except with the consent
      of
      the Company, until the consummation or termination of the Offering.

     

    17. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement of the Subscriber and the Company
      relating to the matters contained herein, superseding all prior contracts or
      agreements, whether oral or written.

     

    18. Governing
      Law; Forum.
      This Agreement shall be governed by and construed in accordance with the laws
      of
      the State of New York, notwithstanding any conflict of law provision to the
      contrary. The parties consent to the exclusive jurisdiction and venue of the
      courts of any county in the State of New York and the United States Federal
      District Courts of New York in any judicial proceeding brought to enforce this
      Agreement. The parties agree that any forum other than the State of New York
      is
      an inconvenient forum and that a lawsuit brought by one party against another
      party in a court of any jurisdiction other than the State of New York should
      be
      forthwith dismissed or transferred to a court located in the State of New
      York.

     

    19. Severability.
      If any
      provision of this Agreement or the application thereof to Subscriber or any
      circumstance shall be held invalid or unenforceable to any extent, the remainder
      of this Agreement and the application of such provision to other subscriptions
      or circumstances shall not be affected thereby and shall be enforced to the
      greatest extent permitted by law.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    20. Construction.
      The
      headings in this Agreement are inserted for convenience and identification
      only
      and are not intended to describe, interpret, define or limit the scope, extent
      or intent of this Agreement or any provision hereof. The rule of construction
      that an agreement shall be construed strictly against the drafter shall not
      apply to this Agreement. 

     

    21. Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be deemed to be an original and all of which
      together shall be deemed to be one and the same agreement.

     

    22. Counsel.
      Subscriber hereby acknowledges that the Company and its counsel, Best &
Flanagan, represent the interests of the Company and not those of the Subscriber
      in any agreement (including this Agreement) to which the Company is a
      party.

     

    [Signature
      Page to follow]

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, Subscriber has executed this Subscription Agreement as of
      the
      date set forth below.

     

    
      	 	SUBSCRIBER:	 
	 	 	 
	 	 	 
	 	Number
              of Shares:	 
	 	Offering
              Price per Share: $3.30
	 	Subscription
              Amount: $	 

    

     

    
      	
            	By:	 
	 	Name:	 
	 	Title: 	 
	 	Address:
              	 
	 	 	 
	 	 	 
	 	 	 
	 	Date:
              September ___, 2007

    

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    IN
      WITNESS WHEREOF, the Company has executed this Subscription Agreement as of
      the
      date set forth below.

     

    
      	 	NORTHERN
              OIL & GAS, INC.
a Nevada corporation
	 	 
	 	By:	 
	 	Name:	 
	 	
              Title:

            	 
	 	 	 
	 	Date:
              September ___, 2007

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

    

    FORM
      OF WARRANT

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    

    SUBSCRIPTION
      INSTRUCTIONS

    

    (1) If
      you
      are subscribing for the purchase of Shares, please date and sign the signature
      page to this Subscription Agreement in the applicable spaces. Please signify
      the
      amount of Shares you are purchasing by inserting such amount in the space
      provided for on the signature page to the Agreement. 

    

    (2) Complete
      and sign the accompanying Accredited Investor Certificate.

    

    (3) Send
      all
      completed documents to the Company at the following address:

    

    Northern
      Oil & Gas, Inc.

    130
      Lake
      Street West, Suite 300

    Wayzata,
      Minnesota 55391

    Attn:
      Ryan Gilbertson, Chief Financial Officer

    Telephone:
      (952) 476 - 9800

    

    (4) Transmit
      funds via wire to the following account of the Company:

    

    UBS
      AG

    ABA#
      026007993

    UBS
      Financial Services

    Acct
      #
      101-WA-258641-000

    F/C:
      Northern Oil and Gas Inc.

    Acct
      Number: RP08144

    

    in
      either
      case in an amount equal to the number of shares you are purchasing multiplied
      by
      the Offering Price.

    

    ATTENTION
      SUBSCRIBERS:
      NO SUBSCRIPTION WILL BE ACCEPTED UNLESS ALL DOCUMENTATION PRESCRIBED HEREIN
      IS
      FULLY COMPLETED AND EXECUTED. ANY MATERIALS RECEIVED THAT ARE INCOMPLETE IN
      ANY
      RESPECT WILL BE RETURNED BY THE COMPANY.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      C

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      D

    

    CERTIFICATE
      OF ACCREDITED INVESTOR STATUS

    

    Except
      as
      may be indicated by the undersigned below, the undersigned is an "accredited
      investor," as that term is defined in Regulation D under the Securities Act
      of
      1933, as amended (the "Securities
      Act").
      The
      undersigned has checked the box below indicating the basis on which the
      undersigned is representing the undersigned's status as an "accredited
      investor":

    

    
      	
              o

            	
              a
                bank as defined in Section 3(a)(2) of the Securities Act, or any
                savings
                and loan association or other institution as defined in Section 3(a)(5)(A)
                of the Securities Act whether acting in its individual or fiduciary
                capacity; a broker or dealer registered pursuant to Section 15 of
                the
                Securities Exchange Act of 1934, as amended; an insurance company
                as
                defined in Section 2(13) of the Securities Act; an investment company
                registered under the Investment Company Act of 1940 or a business
                development company as defined in Section 2(a)(48) of that Act; a
                small
                business investment company licensed by the U.S. Small Business
                Administration under Section 301(c) or (d) of the Small Business
                Investment Act of 1958; a plan established and maintained by a state,
                its
                political subdivisions, or any agency or instrumentality of a state
                or its
                political subdivisions, for the benefit of its employees, and such
                plan
                has total assets in excess of $5,000,000; an employee benefit plan
                within
                the meaning of the Employee Retirement Income Security Act of 1974,
                if the
                investment decision is made by a plan fiduciary, as defined in Section
                3(21) of such Act, which is either a bank, savings and loan association,
                insurance company, or registered investment adviser, or if the employee
                benefit plan has total assets in excess of $5,000,000 or, if a
                self-directed plan, with investment decisions made solely by persons
                that
                are "accredited investors";

            

    

    

    
      	
              
                o

              

            	
              a
                private business development company as defined in Section 202(a)(22)
                of
                the Investment Advisers Act of
                1940;

            

    

    

    
      	
              
                o

              

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

            

    

    

    
      	
              
                o

              

            	
              a
                natural person whose individual net worth, or joint net worth with
                the
                undersigned’s spouse, at the time of this purchase exceeds
                $1,000,000;

            

    

    

    
      	
              
                o

              

            	
              a
                natural person who had an individual income in excess of $200,000
                in each
                of the two most recent years or joint income with the undersigned’s spouse
                in excess of $300,000 in each of those years and has a reasonable
                expectation of reaching the same income level in the current
                year;

            

    

    

    
      	
              
                o

              

            	
              a
                trust with total assets in excess of $5,000,000, not formed for the
                specific purpose of acquiring the securities offered, whose purchase
                is
                directed by a person who has such knowledge and experience in financial
                and business matters that the person is capable of evaluating the
                merits
                and risks of the prospective investment;
                or

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
    

     

    
      	
              
                
                  o

                

              

            	
              an
                entity in which all of the equity holders are "accredited investors"
                by
                virtue of their meeting one or more of the above
                standards.

            

    

    

    IN
      WITNESS WHEREOF, the undersigned has executed this Certificate of Accredited
      Investor Status as of the date set forth below.

     

    
      
        	 	 	 	 
	 	Name
                of Subscriber	 
	 	 	 	 
	 	By: 	 	 
	 	Name:
                	 	 
	 	Title:
                	 	 
	 	 	 	 
	 	Date:

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