Document:

EXHIBIT
10.15

    

    SUBORDINATION
AGREEMENT

    

    SUBORDINATION
AGREEMENT dated as of March 20, 2009 among the parties listed on Exhibit A
hereto (collectively, the “Subordinated Creditors”),
PERF-GO GREEN, INC., a Delaware corporation (the “Client”), PERF GO-GREEN
HOLDINGS, INC., a Delaware corporation (the “Guarantor”) (the Client and
the Guarantor herein collectively called the “Debtors” and each a “Debtor”), and STAR FUNDING,
INC., a New York corporation (the “Senior
Creditor”).

    

    RECITALS:

    

    A.              Concurrently
herewith, the Client and the Senior Creditor are entering into (i) a Supply
Agreement dated as of the date hereof (as it may be amended, supplemented or
otherwise modified from time to time, herein called the “Supply Agreement”), pursuant
to which the Senior Creditor is agreeing to supply, or extend credit to the
Client in order to enable it to purchase, Goods (as defined in the Supply
Agreement) and (ii) a Factoring Agreement dated as of the date hereof (as it
maybe amended, supplemented or otherwise modified from time to time, herein
called the “Factoring
Agreement”), pursuant to which the Senior Creditor is agreeing to
purchase certain Accounts Receivable of the Client.

    

    B.           Concurrently
herewith, (a) the Guarantor is (i) executing and delivering a Guarantee of even
date herewith (the “Guarantee”), pursuant to which
it is guaranteeing the payment and performance in full when due of the Client’s
obligations to the Senior Creditor under the Factoring Agreement, the Supply
Agreement and all related instruments and documents and (ii) issuing a Warrant
of even date herewith in favor of the Senior Creditor, and (b) the Client and
the Guarantor are each executing and delivering a security agreement, pursuant
to which they are granting to Senior Creditor a security interest in all of
their respective assets, in order to secure their respective obligations under
the Senior Credit Documents.

    

    C.           The
Subordinated Creditors have previously made available to the Guarantor certain
loans, pursuant to the Subordinated Credit Documents (as hereinafter defined).
In connection therewith, the Guarantor and/or Client have executed the
Subordinated Security Documents and Subordinated Warrant Documents (in each case
as hereinafter defined) in favor of the Subordinated Creditors.

    

    D.           The
Senior Creditor and the Subordinated Creditors wish to set forth their agreement
as to certain of their respective rights, obligations and priority with respect
to the Debtors’ obligations under the Senior Credit Documents and Subordinated
Credit Documents.

    

    E.           The
Senior Creditor is not willing to execute the Senior Credit Documents or to
supply Goods or extend credit to the Client thereunder unless the Subordinated
Creditors have executed and delivered this Subordination Agreement and have
subordinated the Subordinated Debt (as defined below) pursuant
hereto.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    ACCORDINGLY,
in consideration of the premises, and in order to induce the Senior Creditor to
execute and deliver the Supply Agreement and the Factoring Agreement, and to
supply Goods and extend credit to the Client thereunder, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Subordinated Creditors and the Debtors hereby agree with the
Senior Creditor as follows:

    

    1.           Certain
Definitions.

    

    (a)           Capitalized
terms that are defined in the Factoring Agreement and/or Supply Agreement and
are not otherwise defined herein have the respective meanings ascribed to them
in such agreements and, in addition, the following terms have the following
meanings:

    

    “Bankruptcy Code” means the
provisions of Title 11 of the United States Code, 11 U.S.C. §§101 ­et seq.

    

    “Client” ”  has
the meaning specified in the Preamble.

    

    “Creditor” means the Senior
Creditor or any Subordinated Creditor; and “Creditors” means the Senior Creditor
and the Subordinated Creditors, collectively.

    

    “Debtor” and “Debtors” have the meanings
specified in the Preamble.

    

    “Distribution” means, with
respect to any indebtedness or obligation, (a) any payment or distribution by
any person or entity of cash, securities or other property, by set-off or
otherwise, on account of such indebtedness or obligation or (b) any redemption,
purchase or other acquisition of such indebtedness or obligation by any person
or entity. Restrictions on Distributions set forth herein shall not be construed
as limiting any restrictions on Distributions or other payments set forth in the
Senior Credit Documents.

    

    “Factoring Agreement” has the
meaning specified in Recital A.

    

    “Guarantor” has the meaning
specified in the Preamble.

    

    “Lien” means any mortgage,
pledge, hypothecation, assignment, security deposit arrangement, encumbrance,
lien (whether statutory, consensual or otherwise), charge or other security
interest or any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including, without limitation, any
conditional sale or other title retention agreement having substantially the
same economic effect as any of the foregoing).

    

    “Obligations” means all
obligations of the Debtors to Senior Creditor under the Senior Credit Documents
and/or to Subordinated Creditors under the Subordinated Credit Documents, as the
context may require.

    

    “Paid in Full” or “Payment in Full”
means, with respect to any Obligations, that: (a) all of such Obligations have
been indefeasibly paid in full in cash and all commitments to lend under the
relevant Documents have been terminated, (b) no person or entity has any
further
right to obtain any loans, letters of credit, bankers’ acceptances, or other
extensions of credit under the documents relating to such Obligations, and (c)
any and all letters of credit, bankers’ acceptances or similar instruments
issued under such documents have been cancelled and returned in accordance with
the terms of such documents.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Post-Petition Interest” means
any interest accrued on the Senior Debt after the commencement of a Proceeding
with respect to any Debtor.

    

    “Proceeding” means as to any
Debtor, any of the following: (i) any case or proceeding under the Bankruptcy
Code or any other Federal or State bankruptcy, insolvency, reorganization or
other law affecting creditors’ rights or any other or similar proceedings
seeking any stay, reorganization, arrangement, composition or readjustment of
the obligations and indebtedness of such Debtor, (ii) any proceeding seeking the
appointment of any trustee, receiver, liquidator, custodian or other insolvency
official with similar powers with respect to such Debtor or any of its assets,
(iii) any proceeding for liquidation, dissolution or other winding up of the
business of such Debtor, or (iv) any assignment for the benefit of creditors or
any marshalling of assets of such Debtor.

    

    “Security Documents” means the
Senior Security Documents and the Subordinated Security Documents,
collectively.

    

    “Senior Credit Documents”
means, collectively, the Factoring Agreement, the Supply Agreement, the Senior
Warrant Documents, the Senior Security Documents, and all other agreements,
instruments and documents governing or relating to the Senior Debt or any
portion thereof.

    

    “Senior Debt” means all
“Obligations”, as such term is defined in the Senior Credit Documents, and all
extensions, modifications, deferrals or renewals thereof

    

    “Senior Security Documents”
means, collectively, the Security Agreements dated as of the date hereof by the
Client and the Guarantor, respectively, in each case in favor of the Senior
Creditor (as each may be amended, restated, supplemented or otherwise modified
from time to time), all financing statements relating thereto, and all other
agreements, instruments or documents which create, grant, evidence or serve to
perfect, protect or provide notice of the Senior Creditor’s security interests
in the assets of the Debtors.

    

    “Senior Warrant Documents”
means, collectively, that certain Warrant to Purchase Shares of the Guarantor by
the Guarantor in favor of Senior Creditor dated as of the date hereof, that
certain letter agreement of even date herewith by the Debtors in favor of the
Senior Creditor and any and all other agreements, instruments or documents
related to or executed in connection with the foregoing.

    

    “Specified IP Collateral” means
all patents and patent applications and the inventions and improvements
described and claimed therein, all patentable inventions, all trademarks, trade
names, corporate names, company names, business names, fictitious business
names, trade styles, service marks, logos and other source or business
identifiers, and the goodwill
associated therewith, and any agreement providing for the grant by or to the
Debtor of any right to use any such patent or trademark.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Standstill Period” means the
period commencing on the date the Senior Creditor receives written notice from a
Subordinated Creditor pursuant to Section 7(c) that such Creditor intends to
take an enforcement action against any of the assets of a Debtor and ending on
the earlier to occur of(a) the 180tb
day following the Senior Creditor’s receipt of such notice and (b) the
commencement of any Proceedings against the Client (whether voluntary or
involuntary) that are not initiated by any of the Subordinated Creditors or any
group to which any Subordinated Creditor is a party.

    

    “Subordinated Credit Documents”
means, collectively, the documents listed in Schedule I hereto and all other
agreements, instruments and documents governing or relating to the Subordinated
Debt or any portion thereof.

    

    “Subordinated Debt” means
collectively all obligations, liabilities and indebtedness of every kind, nature
and description owing by the Debtors to the Subordinated Creditors evidenced by
or arising under the Subordinated Credit Documents, including, without
limitation, the indebtedness specified in Schedule I hereto, and all extensions,
deferrals or renewals thereof.

    

    “Subordinated Security
Documents” means, collectively, that certain Security Agreement by the
Guarantor in favor of Subordinated Creditors dated as of June 10, 2008, that
certain Intellectual Property Security Agreement by the Guarantor and Client in
favor of Subordinated Creditors dated as of June 10, 2008, and any and all other
agreements, instruments or documents which create, grant, evidence or serve to
perfect, protect or provide notice of the Subordinated Creditors’ respective
security interests in the assets of the Debtors.

    

    “Subordinated Warrant
Documents” means, collectively, (i) those certain Warrants to Purchase
Common Stock of the Guarantor dated May 13, 2008 and June 10, 2008 and (ii) that
certain Registration Rights Agreement, in each case by the Guarantor in favor of
Subordinated Creditors dated as of June 10, 2008, and any and all other
agreements, instruments or documents related to or executed in connection with
(i) and (ii).

    

    “Supply Agreement” has the
meaning specified in Recital A.

    

    (b)           Unless
otherwise expressly specified herein, defined terms denoting the singular number
shall, when in the plural form, denote the plural number of the matter or item
to which such defined terms refer, and vice-versa.

    

    (c)           Words
of the neuter gender mean and include correlative words of the masculine and
feminine gender.

    

    (d)           Section,
Exhibit, and Schedule headings used in this Agreement are for convenience only
and shall not affect the construction or meaning of any provisions of this
Agreement.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (e)           Unless
otherwise specified, the words “hereof’, “herein”, “hereunder” and other similar
words refer to this Agreement as a whole and not just to the Section, subsection
or clause in which they are used; and the words “this Agreement” refer to this
Subordination Agreement, as amended, modified or supplemented from time to
time.

    

    (f)           Unless
otherwise specified, references to Sections, Recitals, Exhibits or Schedules are
references to Sections of, and Recitals, Exhibits, and Schedules to, this
Agreement.

    

    2.           Subordination of
Debt.

    

    (a)           Subject
to the terms and conditions herein, the Subordinated Debt shall be subordinate
and subject in right of payment, in all respects, to all Senior Debt. Except as
provided in paragraph (b) below, until the Payment in Full of the outstanding
amount of all Senior Debt, including, without limitation, the outstanding
principal of and all accrued interest on any advances made by the Senior
Creditor and the expiration or termination of the Senior Credit Documents (i) no
Debtor shall make any payment in respect of, and no Subordinated Creditor shall
accept any payment from any Debtor on account of; the Subordinated Debt or any
portion thereof, (ii) no Debtor shall purchase or otherwise acquire, and no
Subordinated Creditor shall sell to the Debtor, the Subordinated Debt or any
portion thereof, and (iii) no Debtor shall permit any of its assets to be
applied to the satisfaction or acquisition of, and no Subordinated Creditor
shall resort to or have any recourse against any assets of any Debtor to
satisfy, the Subordinated Debt or any portion thereof

    

    (b)           Anything
in this Agreement to the contrary notwithstanding, the Guarantor may make
scheduled payments of interest pursuant to those certain 10% Senior Secured
Convertible Debentures dated May 13, 2008 and June 10, 2008, in the original
aggregate principal amount of up to $5,400,000, in favor of Subordinated
Creditors (the “Subordinated
Debentures”), so long as: (i) immediately prior and after giving effect
thereto there shall exist no Default or Event of Default under the Senior Credit
Documents and (ii) such payments are made at the times and in in amounts not
exceeding the amounts required by Section 2 of the Subordinated Debentures, as
in effect on the date hereof (and which provision is subject to Section 7(d)
hereof).

    

    (c)           If
any payment or distribution of assets of any Debtor of any kind or character
(other than the Specified IP Collateral), whether in cash, property or
securities, shall be received by a Subordinated Creditor on account of the
Subordinated Debt before all Obligations under the Senior Debt are terminated,
which payment or distribution is inconsistent with the provisions of this
Agreement, such payment or distribution shall be held in trust by such
Subordinated Creditor for the benefit of the Senior Creditor, and shall be paid
over or delivered to the Senior Creditor to the extent necessary to pay all
Obligations under the Senior Debt in frill, after giving effect to any
concurrent payment or distribution on such Senior Debt.

    

    (d)           If
any payment or distribution of assets of any Debtor which constitutes Specified
IP Collateral, whether in cash, property or securities, shall be received by
Senior Creditor on account of the Senior Debt before all Obligations under the
Subordinated Debt are terminated, which payment or distribution is inconsistent
with the provisions of this Agreement, such payment
or distribution shall be held in trust by the Senior Creditor for the benefit of
the Subordinated Creditors, and shall be paid over or delivered to the
Subordinated Creditors to the extent necessary to pay all Obligations under the
Subordinated Debt in full, after giving effect to any concurrent payment or
distribution on such Subordinated Debt.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (e)           The
Debtors, the other Creditors, and any receiver, trustee in bankruptcy,
liquidating trustee or other person making payments to creditors of the Debtors
may rely conclusively on any certification by the Senior Creditor or
Subordinated Creditors as to the outstanding amount of Obligations under the
Senior Debt or Subordinated Debt, respectively.

    

    3.           Subordination of
Liens.

    

    (a)           The
liens and security interests of the Senior Creditor in the respective assets of
the Debtors other than the Specified IP Collateral shall be prior and superior
to any liens and security interests of any Subordinated Creditor therein, and
each Subordinated Creditor hereby expressly subordinates any liens and security
interests such Subordinated Creditor may hold from time to time in any assets of
a Debtor other than the Specified IP Collateral to the Senior Creditor’s liens
and security interests therein.

    

    (b)           The
liens and security interests of the Subordinated Creditors in the Specified IP
Collateral
shall be prior and superior to any liens and security interests of the Senior
Creditor therein,
and the Senior Creditor hereby expressly subordinates any liens and security
interests the Senior
Creditor may hold from time to time in the Specified IP Collateral to the
Subordinated Creditors’
respective liens and security interests therein.

    

    (c)           The
priorities specified in this Agreement are applicable irrespective of the time
or order of attachment or perfection of the Creditors’ respective liens and
security interests or the time or order of execution, filing or recording of the
Security Documents or the giving, or the failure to give, notice of any lien or
security interest.

    

    (c)           So
long as any portion of the Senior Debt shall remain outstanding, the Senior
Creditor may at all times, in its sole and absolute discretion, exercise any and
all powers and rights it may now or at any time hereafter have against the
assets of the Debtors or any portion thereof; except for the Specified IP
Collateral, including, without limitation, the right to foreclose or otherwise
realize upon them and the right to exercise any remedy available to it under the
Senior Credit Documents or applicable law, all without the necessity of
obtaining any consent or approval of the Subordinated Creditors and without any
accountability to the Subordinated Creditors. The Senior Creditor shall have no
liability to the Subordinated Creditors or any of them for any action taken or
failure to act with respect to any asset of the Debtors, except for the
Specified IP Collateral, in its possession beyond the exercise of reasonable
care to assure the safe custody thereof

    

    (d)           Any
amounts realized by the Senior Creditor or any Subordinated Creditor upon the
sale or other disposition of:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)            any
assets of any Debtor other than the Specified IP Collateral shall be applied,
first, to the payment of any costs and expenses incurred by Senior Creditor in
connection with such foreclosure or exercise, second, to the
Payment in Full of the Senior Debt in such order and manner as the Senior
Creditor may determine in its sole and absolute discretion, third, after Payment
in Full of the Senior Debt, to the Payment in Full of the Subordinated Debt in
such order and manner as the Subordinated Creditors may together determine in
their sole and absolute discretion and, fourth, after the
Payment in Full of the Senior Debt and the Subordinated Debt, to such Debtor or
as otherwise directed
by a court of competent jurisdiction; and

    

    (ii)            any
Specified IP Collateral shall be applied, first, to the payment
of any costs and expenses incurred by the Creditors in connection with such
foreclosure or exercise, second, to the
Payment in Full of the Subordinated Debt in such order and manner as the
Subordinated Creditors may together determine in their sole and absolute
discretion, third, after Payment
in Full of the Subordinated Debt, to the Payment in Full of the Senior Debt in
such order and manner as the Senior Creditor may determine in its sole and
absolute discretion and, fourth, after the
Payment in Full of the Senior Debt and the Subordinated Debt, to such Debtor or
as otherwise directed by a court of competent jurisdiction.

    

    (e)           With
respect to the collection of the proceeds of any policy of insurance, the
proceeds of which are assigned to a Creditor pursuant to any Security Document,
the Creditors shall join in any instructions to the insurance companies involved
so that the proceeds will be delivered to the parties entitled thereto pursuant
to the terms of this Agreement.

    

    4.           Further Assurances.
The Debtors and the Subordinated Creditors agree to execute and deliver to the
Senior Creditor, at the expense of the Debtors, such further instruments, and to
take such further action, as the Senior Creditor or the Subordinated Creditors
may at any time or times reasonably request in order to carry out the provisions
and intent of this Agreement. Each Subordinated Creditor hereby agrees to take
any reasonable action and execute any instrument that the Senior Creditor may
deem necessary or advisable to accomplish the purposes hereof; including but not
limited to the execution, acknowledgment, filing and/or recordation, as
applicable, of such instruments as the Senior Creditor, in its sole discretion,
shall deem necessary, appropriate and/or advisable with respect to the
enforcement and administration of the Senior Debt and the furtherance of the
collection thereof

    

    5.           Consent: Subordination
Absolute.

    

    (a)           Each
Subordinated Creditor hereby consents to the execution, delivery and performance
by each Debtor of the Supply Agreement, the Factoring Agreement and the other
Senior Credit Documents to which it is a party and the consummation of the
transactions contemplated thereby, and hereby acknowledges and confirms that
such execution, delivery, performance and consummation do not violate any term,
covenant or condition of any Subordinated Credit Document or any other
agreement, instrument or document to which such Subordinated Creditor is a party
or which inures to such Subordinated Creditor’s benefit, or constitute a default
thereunder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b)           No
extension, renewal, modification, forbearance or waiver of the Senior Debt or
any portion thereof or of any terms of the Supply Agreement, the Factoring
Agreement, the other Senior Credit Documents, or any other instrument or
document referred to in such documents, and no release, modification or
substitution of any collateral therefor, shall affect, modify or impair the
subordination provided for herein or the rights of the Senior Creditor
hereunder.

    

    6.           Representations and
Warranties of the Subordinated Creditors. Each Subordinated Creditor
hereby severally and not jointly represents and warrants to the Senior Creditor
that:

    

    (a)           Such
Subordinated Creditor has frill legal capacity to execute and deliver this
Agreement, to subordinate the Subordinated Debt pursuant hereto, and to incur
and perform the obligations provided for herein.

    

    (b)           The
execution, delivery and performance of this Agreement by such Subordinated
Creditor, the subordination of the Subordinated Debt pursuant hereto and the
incurrence and performance of the obligations provided for herein will not (1)
violate any law or regulation applicable to such Subordinated Creditor or any of
such Subordinated Creditor’s properties, (2) violate or constitute (with due
notice or lapse of time or both) a default under any provision of any indenture,
agreement, license or other instrument to which the Subordinated Creditor is a
party or by which such Subordinated Creditor or such Subordinated Creditor’s
properties may be bound or affected, (3) violate any order of any court,
tribunal or governmental agency binding upon such Subordinated Creditor or any
of such Subordinated Creditor’s properties or (4) result in the creation or
imposition of any lien or encumbrance of any nature whatsoever upon any assets
or revenues of such Subordinated Creditor.

    

    (c)           No
authorizations, approvals and consents of, and no filings and registrations
with, any governmental or regulatory authority or agency are necessary for the
execution, delivery or performance by such Subordinated Creditor of this
Agreement or for the validity or enforceability hereof

    

    (d)           This
Agreement constitutes the legal, valid and binding obligation of such
Subordinated Creditor, enforceable against such Subordinated Creditor in
accordance with its terms.

    

    (e)           Schedule
I accurately lists all of the agreements, instruments and documents in effect on
the date hereof which govern or relate to the Subordinated Debt with respect to
such Subordinated Creditor and (with respect to each Subordinated Creditor on
its own behalf) correctly sets forth the amount of Subordinated Debt of the
Debtors with respect to such Subordinated Creditor outstanding on the date
hereof; the character of such Subordinated Debt, the interest rate applicable
thereto and the maturity thereof

    

    (f)           The
Subordinated Credit Documents are in full force and effect and, to the knowledge
of the Subordinated Creditors, no default has occurred
thereunder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (g)           To
such Subordinated Creditor’s knowledge, the information, schedules, exhibits and
reports furnished by such Subordinated Creditor to the Senior Creditor in
connection with the negotiation and preparation of this Agreement did not
contain any omissions or misstatements of fact which would make the statements
contained therein misleading or incomplete in any material respect.

    

    (h)           Warrants.
Such Subordinated Creditor acknowledges that Senior Creditor has been granted
certain warrants to purchase shares of stock in the Guarantor, as set forth more
filly in the Senior Warrant Documents. With respect thereto, Subordinated
Creditor hereby consents to the granting of such warrants pursuant to, and the
exercise by Senior Creditor of any of its rights under, the Senior Warrant
Documents, and agrees that neither the execution nor performance of such
documents in accordance with their terms shall trigger any anti-dilutive
provisions of the Subordinated Warrant Documents or Subordinated
Debentures.

    

    7.           Covenants of Subordinated
Creditors. Each Subordinated Creditor hereby agrees that, so long as the
Client may incur obligations to the Senior Creditor under the Factoring
Agreement and/or Supply Agreement, and until the Senior Debt has been Paid in
Full, such Subordinated Creditor shall not, without the prior written consent of
the Senior Creditor:

    

    (a)           Except
as permitted by Section 2(b) hereof, accept any payments or prepayments of the
Subordinated Debt by the Debtor or out of any of Debtor’s assets or sell the
Subordinated Debt or any portion thereof to any Debtor.

    

    (b)           Permit
the Subordinated Debt with respect to such Subordinated Creditor or any portion
thereof to be secured by any lien on any assets of any Debtor, other than (i)
liens on the Specified IP Collateral, which liens are in existence as of the
date hereof; and (ii) liens that are subordinated to the liens of the Senior
Creditor on such assets (other than the Specified IP Collateral) pursuant to
this Agreement.

    

    (c)           Take
any action to enforce its rights and remedies relating to the Subordinated Debt
or any portion thereof against any Debtor, unless it has given written notice of
its intention to do so to Senior Creditor and the Standstill Period has ended;
such enforcement actions shall include, without limitation, any of the
following:

    

    
      	
               
      

            	
              (i)

            	
              accelerate
      the Subordinated Debt or any portion thereof; accept any prepayment of the
      Subordinated Debt, or require that the Subordinated Debt or any portion
      thereof be paid prior to the stated maturity thereof or prior to any
      regularly scheduled dates of
payment;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              commence
      any proceeding against any Debtor or against any properties or assets of
      any Debtor (including without limitation, the Specified IP Collateral),
      including, without limitation, any proceeding under the Federal Bankruptcy
      Code or any other bankruptcy, insolvency, reorganization, arrangement,
      liquidation, dissolution, moratorium or similar law of the United States
      of America or any other
      jurisdiction, or apply for a trustee, receiver or custodian (however
      named) for all or a substantial part of the property of any Debtor;
      or

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (iii)

            	
              foreclose
      on, or exercise any other remedy available to such Subordinated Creditor
      by contract, at law or in equity, against any asset of any Debtor
      (including without limitation, the Specified IP
    Collateral).

            

    

    

    (d)           Modify
or amend, or consent to the modification or amendment of, or permit any Debtor
to modify or amend, any Subordinated Credit Document solely to the extent such
modification would increase the interest rate specified in the Subordinated
Credit Documents, accelerate any payments thereunder, or otherwise adversely
affect the Senior Creditor’s rights pursuant to this Agreement or any of the
Senior Credit Documents or the Debtor’s ability to perform its obligations
thereunder.

    

    (e)           Contest
the validity, perfection, priority or enforceability of any lien or security
interest granted to the Senior Creditor in any property or assets of any Debtor,
except with respect to liens granted to the Senior Creditor in the Specified IP
Collateral.

    

    8.           Covenants of Senior
Creditor. Senior Creditor hereby agrees that, so long as the Subordinated
Debt remains outstanding and until the Subordinated Debt has been Paid in Full,
without prior written notice to the Subordinated Creditors, Senior Creditor
shall not:

    

    
      	
               
      

            	
              (a)

            	
              Take
      any action to enforce its rights and remedies against any of the Specified
      IP Collateral, unless it has given written notice of its intention to do
      so to the Subordinated Creditors;
or

            

    

    

    
      	
               
      

            	
              (b)

            	
              Contest
      the validity, perfection, priority or enforceability of any lien or
      security interest granted to the Subordinated Creditors in any Specified
      IP Collateral.

            

    

    

    The
foregoing provisions of Sections 7 and 8 are solely for the purposes of defining
the relative rights and obligations of the Creditors to each other and shall not
limit or otherwise affect any rights which any Creditor may have against the
Debtors under the terms of any agreement or instrument executed in connection
with such Creditor’s Senior Debt or Subordinated Debt, as
applicable..

    

    9.           Covenants of Debtors.
Each Debtor hereby agrees that, so long as the Client may incur obligations to
the Senior Creditor under the Factoring Agreement and/or Supply Agreement, and
until the Senior Debt has been Paid in Full, such Debtor shall not, without the
prior written consent of the Senior Creditor:

    

    (a)           Except
as permitted by Section 2(b) hereof; pay or purchase the Subordinated Debt or
any portion thereof

    

    (b)           Permit
the Subordinated Debt or any portion thereof to be secured by any lien on any
assets of such Debtor, other than (i) liens on the Specified IP Collateral,
which liens are in existence as of the date hereof; and (ii) liens that are
subordinated to the liens of the Senior Creditor on such assets pursuant to this
Agreement.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    (c)           Modify
or amend, or consent to the modification or amendment of; or permit any
Subordinated Creditor to modify or amend, any Subordinated Credit
Document.

    

    10.           Bankruptcy
Matters.

    

    (a)           In
connection with any Proceeding, the agreements contained in this Agreement shall
remain in full force and effect and enforceable pursuant to their terms in
accordance with Section 510(a) of the Bankruptcy Code, and all references herein
to any Debtor shall be deemed to apply to such Debtor as debtor-in-possession
and to any trustee or receiver for the estate of such Debtor.

    

    (b)           In
the event of and during the continuance of any Proceeding, all Senior Debt shall
be Paid in Full before any payment or Distribution of any kind or character,
whether in cash, securities or other property, may be made to or retained by any
Subordinated Creditor on account of any Subordinated Debt other than those
payment specifically permitted by Section 2 hereof In the event of and during
the continuation of any Proceeding, any payment or Distribution in any such
Proceeding of any kind or character, whether in cash, securities or other
property that would otherwise (but for this Agreement) be payable or deliverable
in respect of the respective Subordinated Debt, shall be paid or delivered by
the person making such Distribution or payment, whether a trustee in bankruptcy,
receiver, assignee for the benefit of creditors, liquidating trustee or agent,
or otherwise, directly to the Senior Creditor for application to payment of the
Senior Debt. In the event that, notwithstanding the foregoing, any payment or
distribution of assets or securities, or the proceeds of any thereof; shall be
collected or received by a Subordinated Creditor in contravention of any of the
terms of this Agreement, such payment or distribution shall be received in trust
by the respective Subordinated Creditor as the property of and for the benefit
of the Senior Creditor, and shall be promptly paid over to the Senior Creditor
in accordance with Section 2(c) above.

    

    (c)           In
connection with any Proceeding, the Creditors agree that they will not initiate,
prosecute, facilitate or assist with any other person or entity to initiate or
prosecute any claim, action or other proceeding (i) contesting or challenging
the validity or enforceability of this Agreement, (ii) contesting or challenging
the validity, perfection, priority (as set forth in Section 3) or enforceability
of any Liens of any Secured Creditor, or (iii) seeking to enjoin any collection,
enforcement, disposition or acceptance of; or other remedial action with respect
to, any assets of any Debtor by any Secured Creditor that is consistent with the
terms of this Agreement.

    

    (d)           If
in or as a result of any Proceeding, any Creditor disgorges, returns, refunds or
repays to any Debtor or any trustee, receiver, liquidation agent, or committee
appointed in such Proceeding, or any similar party, any payment of an interest
of any Debtor in property, or proceeds of any Collateral in connection with any
action, suit or proceeding alleging that such Creditor’s receipt of such payment
or proceeds was a transfer voidable or avoidable under state or federal law (a
“Recovery”), whether by
settlement, pursuant to an order of a court, or otherwise, then such Creditor
shall be deemed not to have ever received such payment or proceeds for purposes
of this Agreement in determining whether and when any discharge of debt
shall
have occurred and any payments or distributions received by any other Creditor
prior to such Recovery shall be delivered to the appropriate Creditor pursuant
to Section 3(d)(i).

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (e)           Each
Subordinated Creditor agrees that Senior Creditor may consent to the use of cash
collateral or provide financing to any Debtor on such terms and conditions and
in such amounts as Senior Creditor, in its sole discretion, consistent with the
terms of this Agreement, may decide and, in connection therewith, any Debtor may
grant to Senior Creditor liens and security interests upon all of the property
of such Debtor, which liens and security interests (i) shall secure payment of
all Senior Debt (whether such Senior Debt arose prior to the commencement of any
Proceeding or at any time thereafter) and all other financing provided by Senior
Creditor during the Proceeding and (ii) shall be superior in priority to the
Liens and security interests, if any, in favor of the Subordinated Creditors on
the Collateral. Each Subordinated Creditor agrees that it will not object to or
oppose a sale or other disposition of any property securing all of any part of
the Senior Debt free and clear of security interests, liens or other claims of
such Subordinated Creditor under Section 363 of the Bankruptcy Code or any other
provision of the Bankruptcy Code if Senior Creditor has consented to such sale
or disposition. Each Subordinated Creditor agrees not to assert any right it may
have to “adequate protection” of such Subordinated Creditor’s interest in any
Collateral in any Proceeding and agrees that it will not seek to have the
automatic stay lifted with respect to any Collateral without the prior written
consent of Senior Creditor. Each Subordinated Creditor waives any claim it may
now or hereafter have arising out of Senior Creditor’s election, in any
Proceeding instituted under the Bankruptcy Code, of the application of Section
1111 (b)(2) of the Bankruptcy Code, and/or any borrowing or grant of a security
interest under Section 364 of the Bankruptcy Code by any Debtor, as
debtor-in-possession. Each Subordinated Creditor further agrees that it will not
participate or seek to participate on any creditor’s committee without Senior
Creditor’s prior written consent.

    

    (f)           Each
Subordinated Creditor agrees to execute, verify, deliver and file any proofs of
claim in respect of the Subordinated Obligations owing to it requested by Senior
Creditor in connection with any such Proceeding and hereby irrevocably
authorizes, empowers and appoints Senior Creditor its agent and attorney-in-fact
to (i) execute, verify, deliver and file such proofs of claim upon the failure
of such Subordinated Creditor promptly to do so at least 15 days before the
expiration of the time to file any such proof of claim and (ii) vote such claim
in any such Proceeding upon the failure of such Subordinated Creditor to do so
at least 5 days before the expiration of the time to vote any such claim; provided that Senior
Creditor shall have no obligation to execute, verify, deliver and/or file any
such proof of claim or to vote any such claim. In the event that Senior Creditor
votes any claim in accordance with the authority granted hereby, the relevant
Subordinated Creditor shall not be entitled to change or withdraw such
vote.

    

    (g)           The
Senior Debt shall continue to be treated as Senior Debt and the provisions of
this Agreement shall continue to govern the relative rights and priorities of
Senior Creditor and Subordinated Creditors even if all or part of the Senior
Debt or the Liens or security interests securing the Senior Debt are
subordinated, set aside, avoided, invalidated or disallowed in connection with
any such Proceeding. This Agreement shall be reinstated if at any time any
payment of any of the Senior Debt is rescinded or must otherwise be returned by
any holder of Senior Debt or any representative of such holder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (h)           Except
as restricted by this Agreement, each Subordinated Creditor shall be entitled to
file any necessary responsive or defensive pleadings in opposition to any
motion, claim, adversary proceeding or other pleading made by any person or
entity objecting to or otherwise seeking the disallowance of the claims of such
Subordinated Creditor. Consistent with the terms of this Agreement, each
Subordinated Creditor shall be entitled to file any other pleadings, objections,
motions or agreements which assert the rights or interests available to
unsecured creditors of any Debtor arising under either the Bankruptcy Code or
applicable non-bankruptcy law.

    

    11.           Legend on Subordinated
Notes. Each Subordinated Creditor shall promptly cause a conspicuous
legend to be placed on any promissory note that evidences or may from time to
time hereafter evidence the Subordinated Debt or any portion thereof; to the
following effect:

    

    “This
Note and the indebtedness evidenced hereby is subject to the restrictions
contained in a Debt Subordination Agreement dated as of March 12, 2009, by and
among the Subordinated Creditors described therein and Star Funding, Inc., and
each holder of this Note, by its or his acceptance hereof, shall be bound by
said Agreement.”

    

    12.           Subrogation. Subject
to the Payment in Full of all Senior Debt, the holders of the Subordinated Debt
shall be subrogated to the rights of the holders of the Senior Debt to receive
payments or distributions of cash, property or securities of the Debtors made on
the Senior Debt, until the Subordinated Debt shall be Paid in Full and the
Obligations thereunder shall be terminated. No payments or distributions on the
Subordinated Debt of any cash, property or securities which any holder of
Subordinated Debt pays or delivers to any holder of Senior Debt pursuant to the
subordination provisions contained in Section 2 shall be deemed to be a payment
by the Debtors to or on account of the Senior Debt.

    

    13.           Cumulative Rights.
Each and every right granted to the Senior Creditor hereunder or in connection
herewith, or allowed it by law or equity, shall be cumulative and may be
exercised from time to time.

    

    14.           Waivers and
Amendments. No failure on the part of the Senior Creditor to exercise,
and no delay in exercising, and no course of dealing with respect to, any right,
power or remedy hereunder shall operate as a waiver thereof or of any default
hereunder, nor shall any single or partial exercise by the Senior Creditor of
any right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy of the Senior
Creditor. No amendment, modification or waiver of any provision of this
Agreement, nor any consent to any departure herefrom, shall in any event be
effective unless the same shall be in writing and signed by the party to be
charged therewith, and then such amendment, modification, waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. No notice to or demand on any Subordinated Creditor or any Debtor in any
case shall, of itself; entitle such Subordinated Creditor or Debtor to any other
or further notice or demand in similar or other circumstances.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    15.           GOVERNING
LAW. THIS AGREEMENT AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND SHALL
BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REFERENCE TO ITS PRINCIPLES OF CONFLICT OF LAWS, OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW.

    

    
      	
               
      

            	
              16.

            	
              SUBMISSION
      TO JURISDICTION.

            

    

    

    (A)           THE SUBORDINATED CREDITORS AND THE
DEBTORS HEREBY EXPRESSLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ALL FEDERAL
AND STATE COURTS SITTING IN NEW YORK COUNTY, STATE OF NEW YORK, IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE SUBORDINATED CREDITORS’ OR
THE DEBTORS’ OBLIGATIONS HEREUNDER AND THE SUBORDINATED CREDITORS AND
THE DEBTORS AGREE THAT ANY
PROCESS OR NOTICE OF MOTION OR OTHER APPLICATION TO ANY OF SAID COURTS OR A
JUDGE THEREOF MAY BE SERVED UPON THE SUBORDINATED CREDITORS OR THE DEBTORS
WITHIN OR WITHOUT SUCH COURT’S JURISDICTION BY REGISTERED OR CERTIFIED MAIL
(RETURN RECEIPT REQUESTED) OR BY PERSONAL SERVICE, AT THE ADDRESS OF SUCH PARTY
SPECIFIED NEXT TO ITS SIGNATURE HERETO (OR AT SUCH OTHER ADDRESS AS SUCH PARTY
SHALL SPECIFY BY A PRIOR NOTICE IN WRITING TO THE SENIOR
CREDITOR).

    

    (B)           THE SUBORDINATED CREDITORS AND THE
DEBTORS HEREBY IRREVOCABLY WAIVE ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT BROUGHT IN ANY FEDERAL OR STATE COURT SITTING IN NEW YORK
COUNTY, STATE OF NEW YORK, AND HEREBY FURTHER IRREVOCABLY WAIVE ANY
CLAIM THAT ANY SUCH
SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

    

    (C)           NOTWITHSTANDING THE FOREGOING, THE
SENIOR CREDITOR MAY SUE ANY SUBORDINATED CREDITOR OR DEBTOR IN
ANY  JURISDICTION WHERE SUCH SUBORDINATED CREDITOR OR DEBTOR OR ANY OF
THEIR RESPECTIVE ASSETS MAY BE FOUND AND MAY SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW.

    

    17.           WAIVER OF
JURY TRIAL. EACH PARTY
HERETO HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE
ARISING UNDER OR RELATING TO THE AGREEMENT AND AGREES THAT ANY SUCH DISPUTE
SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    18.           Expenses. The Debtor
agrees to pay all costs and expenses of the Senior Creditor (including the
reasonable fees and disbursements of counsel) in connection with the preparation
of this Agreement and any amendment hereof. The Debtor and the Subordinated
Creditors jointly and severally agree to pay all costs and expenses (including
the reasonable fees and disbursements of counsel) in connection with the
enforcement of any rights of the Senior Creditor hereunder.

    

    19.           Termination; Payment in
Full; Reinstatement.

    

    (a)           This
Agreement is a continuing agreement and shall remain in full force and effect so
long as the Client may incur obligations to the Senior Creditor under the
Factoring Agreement and/or Supply Agreement, and until the Senior Debt has been
Paid in Full.

    

    (b)           The
Senior Debt shall not be deemed to have been Paid in Full for purposes of this
Agreement until all amounts owing thereon (including, without limitation, all
Post-Petition Interest, if any) shall have been paid to the Senior Creditor,
whether or not a claim for such amounts (including a claim for such
Post-Petition Interest) is enforceable and all applicable periods during which a
trustee may avoid such payment under the Federal Bankruptcy Code or any
insolvency, bankruptcy, liquidation or reorganization statute of any state shall
have lapsed.

    

    (c)           If
at any time all or any part of any payment of the Subordinated Debt received by
the Senior Creditor is or must be rescinded or returned to any Debtor for any
reason whatsoever (including, without limitation, by reason of the insolvency,
bankruptcy, or reorganization of such Debtor) this Agreement shall be reinstated
with respect to such payment so rescinded or returned as though such payment had
never been received by the Senior Creditor. The Subordinated Creditors and the
Debtors jointly and severally agree that they will indemnify the Senior Creditor
on demand for all reasonable costs and expenses (including, without limitation,
attorney’s fees and disbursements) incurred by it in connection with such
rescission or return.

    

    20.           Assignments. This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. In the event the Senior Debt or any
portion thereof is acquired by any Person, the powers, benefits and obligations
of the Senior Creditor under this Agreement and the subordination provided for
herein shall, at the election of the Senior Creditor, inure to such Person, and
all references herein to the “Senior Creditor” shall include such Person to the
extent of the Senior Debt assigned to such Person. No Subordinated Creditor
shall transfer, sell or otherwise dispose of the Subordinated Debt (or any
portion thereof) or of any promissory note evidencing the Subordinated Debt
except to a Person who agrees to become a party hereto and to be bound by all
provisions hereof binding on the Subordinated Creditors. If the Subordinated
Debt (or any portion thereof) is acquired by any Person, such Person, with
respect to the Subordinated Debt acquired by it, shall in any event be subject
and bound by the subordination provided for herein and all other obligations of
the Subordinated Creditors hereunder.

    

    21.           Addresses for Notices.
Etc. All notices, requests, demands, instructions, directions and other
communications provided for hereunder shall be in writing (which term shall
include telecopied communications) and shall be mailed (by registered or
certified mail, postage prepaid),
telecopied or delivered to the applicable party at the address or telecopier
number specified for such party opposite its signature line below or, as to any
party, to such other address or telecopier number as such party shall specify by
a notice in writing to the other parties hereto. Each notice, request, demand,
instruction, direction or other communication provided for hereunder shall be
deemed delivered (i) if by mail, five Business Days after being deposited in the
mails, addressed to the applicable party at its address described above, (ii) if
by hand, when delivered to the applicable party at such address, and (iii) if by
telecopy, when it has been transmitted to the applicable party at such
telecopier number.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    22.           Severability. Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render such provision unenforceable in any
other jurisdiction.

    

    23.           Benefit of Agreement.
The debt subordination provisions of this Agreement are solely for the benefit
of the parties hereto and are intended to regulate their rights and obligations
among themselves and said provisions will not limit, enlarge or in any way
affect the obligations of the Debtor to any Person not a party hereto. No
provision of this Agreement shall, as between the Debtors and the Subordinated
Creditors, impair the absolute right of the Subordinated Creditors to payment of
the Subordinated Debt (subject to the rights of the Senior Creditor under this
Agreement), it being understood that the subordination provisions hereof are
intended to define the rights of the Senior Creditor on the one hand and the
Subordinated Creditors on the other.

    

    24.           Execution in Counterparts;
Facsimile Signatures. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, all of which
when taken together shall constitute but one and the same agreement. Delivery of
an executed signature page to this Agreement by facsimile transmission shall be
as effective as delivery of a manually signed counterpart of this
Agreement.

    

    

    [Remainder
of page left blank; signature page follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    [Signature
page to Subordination Agreement]

    

    IN
WITNESS WHEREOF, the parties hereto have duly executed, or caused their duly
authorized officers to execute,
this Agreement as of the date first above written.

    

    Debtors:

    

    
      	
              Address:

            	
              PERF-GO
      GREEN, INC.

            
	
              12
      East 52nd
      Street, 4th
      floor

            	 
      
	
              New
      York, New York 10022

            	 
      
	
              Attn:  Louis
      Giusto

            	
              By:  /s/
      Michael Caridi

            
	
              Telecopier:  (917)
      210-3110

            	
              Name:  Michael
      Caridi

            
	 
      	
              Title:  COO

            
	 
      	 
      
	 
      	 
      
	
              Address:

            	
              PERF
      GO-GREEN HOLDING ,
      INC.

            
	
              12
      East 52nd
      Street, 4th
      floor

            	 
      
	
              New
      York, New York 10022

            	 
      
	
              Attn:
      Louis Giusto

            	
              By:  /s/
      Michael Caridi

            
	
              Telecopier:  (917)
      210-3110

            	
              Name:  Michael
      Caridi

            
	 
      	
              Title:  COO

            

    

    

    

    
      	 
      	
              Subordinated Creditors:

            
	 
      	 
      
	
              Address:

            	
              WHALEHAVEN
      CAPITAL FUND LIMITED

            
	 	 
      
	 	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
                      Name:

            
	
              Attn:

            	
                      Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              EXCALIBUR
      SPECIAL OPPORTUNITY FUND

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    [Signature
page to Subordination Agreement]

    

    IN
WITNESS WHEREOF, the parties hereto have duly executed, or caused their duly
authorized officers to execute,
this Agreement as of the date first above written.

    

    Debtors:

    

    
      	
              Address:

            	
              PERF-GO
      GREEN, INC.

            
	
              12
      East 52nd
      Street, 4th
      floor

            	 
      
	
              New
      York, New York 10022

            	 
      
	
              Attn:  Louis
      Giusto

            	
              By:

            
	
              Telecopier:  (917)
      210-3110

            	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              Address:

            	
              PERF
      GO-GREEN HOLDING ,
      INC.

            
	
              12
      East 52nd
      Street, 4th
      floor

            	 
      
	
              New
      York, New York 10022

            	 
      
	
              Attn:
      Louis Giusto

            	
              By: 
      _______________________________

            
	
              Telecopier:  (917)
      210-3110

            	
              Name:

            
	 
      	
              Title:

            

    

    

    

    Subordinated
Creditors:

    

    
      	
              Address:

            	
              WHALEHAVEN
      CAPITAL FUND LIMITED

            
	 
      	 
      
	 
      	 
      
	_______________________________	
              By:   /s/Brian
  Mazzella

            
	_______________________________	
              Name:
      Brian Mazzella

            
	
              Attn:

            	
              Title:
      CFO    8/18/09

            
	
              Telecopier:
      

            	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              EXCALIBUR
      SPECIAL OPPORTUNITY FUND

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:  _________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    [Signature
page to Subordination Agreement]

    

    IN
WITNESS WHEREOF, the parties hereto have duly executed, or caused their duly
authorized officers to execute,
this Agreement as of the date first above written.

    

    Debtors:

    

    
      	
              Address:

            	
              PERF-GO
      GREEN, INC.

            
	
              12
      East 52nd
      Street, 4th
      floor

            	 
      
	
              New
      York, New York 10022

            	 
      
	
              Attn:  Louis
      Giusto

            	
              By: 
      _______________________________

            
	
              Telecopier:  (917)
      210-3110

            	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      
	 
      	 
      
	
              Address:

            	
              PERF
      GO-GREEN HOLDING ,
      INC.

            
	
              12
      East 52nd
      Street, 4th
      floor

            	 
      
	
              New
      York, New York 10022

            	 
      
	
              Attn:
      Louis Giusto

            	
              By: 
      _______________________________

            
	
              Telecopier:  (917)
      210-3110

            	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      
	
              Subordinated Creditors:

            	 
      
	 
      	 
      
	
              Address:

            	
              WHALEHAVEN
      CAPITAL FUND LIMITED

            
	 
      	 
      
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              EXCALIBUR
      SPECIAL OPPORTUNITY FUND

            
	 
      	 
      
	_______________________________	
              By:  /s/William
    Hechter

            
	_______________________________	
              Name:
      William Hechter

            
	
              Attn:_________________

            	
              Title:
      President of General Partner

            
	
              Telecopier:
      ___________

            	 
      

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Address:

            	 
      
	 
      	
              CASTLERIGG
      MASTER INVESTMENTS LTD.

            
	 
      	 
      
	 
      	
              By: 
      _______________________________

            
	 
      	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              BRIO
      CAPITAL L.P.

            
	 
      	 
      
	_______________________________	
              By:
      /s/ Shaye
      Hinch

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title: 
      Managing Partner

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              BHANSALI
      EQUITIES

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              _______________________________

            
	 
      	
              ERIK
      SADAH

            
	_______________________________	 
      
	_______________________________	 
      
	
              Attn:_________________

            	
              _______________________________

            
	
              Telecopier:
      ___________

            	
              MIKAL
      DROR

            
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              E.G.G.
      PENSION PLAN

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Address:

            	 
      
	 
      	
              CASTLERIGG
      MASTER INVESTMENTS LTD.

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              BRIO
      CAPITAL L.P.

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              BHANSALI
      EQUITIES

            
	 
      	 
      
	_______________________________	
              By: 
      /s/ Rishikumar
      Bhansali

            
	_______________________________	
              Name:
      Rishikumar Bhansali

            
	
              Attn:_________________

            	
              Title:
      President

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	 
      
	 
      	_______________________________
	 
      	
              ERIK
      SADAH

            
	_______________________________	 
      
	_______________________________	 
      
	
              Attn:_________________

            	
              _______________________________

            
	
              Telecopier:
      ___________

            	
              MIKAL
      DROR

            
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              E.G.G.
      PENSION PLAN

            
	 
      	 
      
	_______________________________	
              By:

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Address:

            	 
      
	 
      	
              CASTLERIGG
      MASTER INVESTMENTS LTD.

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              BRIO
      CAPITAL L.P.

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              BHANSALI
      EQUITIES

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	 
      
	 
      	
              /s/
      Erik Sadah

            
	 
      	
              ERIK
      SADAH

            
	_______________________________	 
      
	_______________________________	 
      
	
              Attn:_________________

            	
              /s/
      Mikal Dror

            
	
              Telecopier:
      ___________

            	
              MIKAL
      DROR (Michal)

            
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              E.G.G.
      PENSION PLAN

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Address:

            	 
      
	 
      	
              CASTLERIGG
      MASTER INVESTMENTS LTD.

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              BRIO
      CAPITAL L.P.

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              BHANSALI
      EQUITIES

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	 
      
	 
      	_______________________________
	 
      	
              ERIK
      SADAH

            
	_______________________________	 
      
	_______________________________	 
      
	
              Attn:_________________

            	
              _______________________________

            
	
              Telecopier:
      ___________

            	
              MIKAL
      DROR

            
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              E.G.G.
      PENSION PLAN

            
	_______________________________	 
      
	
              _______________________________

            	
              /s/
      Stephen B. Wechsler

            
	
              Attn:_________________

            	
              Name:
      Stephen B. Wechsler

            
	
              Telecopier:
      ___________

            	
              Title:   Trustee

            

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Address:

            	 
      
	 
      	
              BROKERAGE
      SERVICES PENSION TRUST

            
	 
      	 
      
	_______________________________	
              By: 
      /s/ Marvin
      Meyer

            
	_______________________________	
              Name:
      Marvin Meyer

            
	
              Attn:_________________

            	
              Title:   Trustee

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              SEMPER
      GESTION SA

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              Senior
      Creditor:

            
	
              Address:

            	 
      
	
              237
      West 37th
      Street

            	
              STAR
      FUNDING, INC.

            
	
              New
      York, New York 10018

            	 
      
	
              Attn:
      Mr. Martin Weingarten

            	
              By: 
      _______________________________

            
	 
      	
              Name:

            
	
              Telecopier:
      (212) 768-9800

            	
              Title:

            
	
              Telephone:
      (212) 768-9900

            	 
      

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Address:

            	 
      
	 
      	
              BROKERAGE
      SERVICES PENSION TRUST

            
	 
      	 
      
	_______________________________	
              By: 
      _______________________________

            
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	
              Address:

            	 
      
	 
      	
              SEMPER
      GESTION SA

            
	 
      	 
      
	_______________________________	
              By: 
      /s/ Henri de Raemy/Blaise
      Hett-Arnold- Secy.

            
	_______________________________	
              Name:
      Henri de Raemy

            
	
              Attn:_________________

            	
              Title:   Director

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              Senior
      Creditor:

            
	
              Address:

            	 
      
	
              237
      West 37th
      Street

            	
              STAR
      FUNDING, INC.

            
	
              New
      York, New York 10018

            	 
      
	
              Attn:
      Mr. Martin Weingarten

            	
              By: 
      _______________________________

            
	 
      	
              Name:

            
	
              Telecopier:
      (212) 768-9800

            	
              Title:

            
	
              Telephone:
      (212) 768-9900

            	 
      

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Address:

            	 
      
	 
      	
              SEMPER
      GESTION SA

            
	 	 
	_______________________________	By: 
      _______________________________
	_______________________________	
              Name:

            
	
              Attn:_________________

            	
              Title:

            
	
              Telecopier:
      ___________

            	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              Senior
      Creditor:

            
	
              Address:

            	 
      
	
              237
      West 37th
      Street

            	
              STAR
      FUNDING, INC.

            
	
              New
      York, New York 10018

            	 
      
	
              Attn:
      Mr. Martin Weingarten

            	
              By: 
      /s/ Martin
      Weingarten

            
	 
      	
              Name:
      Martin Weingarten

            
	
              Telecopier:
      (212) 768-9800

            	
              Title:   Chief
      Executive Officer

            
	
              Telephone:
      (212) 768-9900

            	 
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

    

    LIST OF SUBORDINATED
CREDITORS

    

    See List
Annexed Hereto

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

    

    LIST OF SUBORDINATED
CREDITORS

    

    

    

    

    Dr. Eric
Sadah & Mrs. Mikal Dror

    Bhansali
Equities

    EGG
PENSION TRUST

    BROKERAGE
SERVICE PENSION TRUST

    Whalehaven
Capital Fund Limited

    Brio
Capital L.P.

    Excalibur
Special Opportunity Fund L.P.

    Semper
Gestion

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
I

    

    SCHEDULE OF SUBORDINATED
DEBT

    

     

    
      	
              1.

            	
              List
      of agreements, instruments and documents governing or related to the
      Subordinated Debt:

            

    

    

    10%
Secured Convertible Debenture between the Guarantor and each Subordinated
Creditor;

    

    Form of
Warrant between the Guarantor and each Subordinated Creditor;

    

    Form of
Security Agreement between the Guarantor and each Subordinated
Creditor;

    

    Form of
Registration Rights Agreement between the Guarantor and each Subordinated
Creditor

    

     

    
      	
              2.

            	
              Outstanding
      amount, character and maturity of the Subordinated Debt and applicable interest
      rate:

            

    

    

    See List
Annexed hereto.

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Perf
Go-Green Holdings, Inc.

    Note
Holder

    March,
2009

    

    

    
      	 
      	 	
              Amount
      of

              Note

            	 	 	
              Interest

              Rate

            	 	 	
              Interest

              One Year

            	 	 	
              #
      of

              Years

            	 	 	
              Total

              Interest

              Calculated

            	 
	
              Dr.
      Eric Sadah & Mrs. Mikal Dror

            	 	$	50,000.00	 	 	 	10	%	 	$	5,000.00	 	 	 	3	 	 	$	15,000-00	 
	
              Bhansali
      Equities

            	 	$	500,000.00	 	 	 	10	%	 	$	50,000.00	 	 	 	3	 	 	$	150,000.00	 
	
              EGG
      PENSION TRUST

            	 	$	100,000.00	 	 	 	10	%	 	$	10,000.00	 	 	 	3	 	 	$	30,000.00	 
	
                    
                BROKERAGE
      SERVICE PENSION TRUST

              

            	 	$	100,000.00	 	 	 	10	%	 	$	10,000.00	 	 	 	3	 	 	$	30,000.00	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Whalehaven
      Capital Fund Limited

            	 	$	140,471.25	 	 	 	10	%	 	$	14,047.13	 	 	 	3	 	 	$	49,344.18	 
	
              Brio
      Capital L.P.

            	 	$	125,000.00	 	 	 	10	%	 	$	12,500.00	 	 	 	3	 	 	$	37,500.00	 
	
              Excalibur
      Special Opportunity Fund L.P.

            	 	$	225,000.00	 	 	 	10	%	 	$	22,500.00	 	 	 	3	 	 	$	67,50000	 
	
              Semper
      Gestion

            	 	$	1,500,000.00	 	 	 	10	%	 	$	150,000.00	 	 	 	3	 	 	$	450,000.00	 
	
              Castlerigg

            	 	$	2,500,000.00	 	 	 	10	%	 	$	250,000.00	 	 	 	3	 	 	$	750,000.00	 
	 
      	 	$	5,240,471.25	 	 	 	 	 	 	 	524,047.13	 	 	 	 	 	 	 	1,579,344.18EXHIBIT
10.16

    

    THE SECURITIES EVIDENCED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH
SECURITIES MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR HYPOTHECATED
UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE
STATE SECURITIES LAWS, OR THE ISSUER RECEIVES AN OPINION OF COUNSEL, IN FORM
AND SUBSTANCE REASONABLY
SATISFACTORY TO THE ISSUER, TIIAT THE SECURITIES EVIDENCED HEREBY MAY BE SOLD IN
ACCORDANCE WITH AN EXEMPTION THEREUNDER.

    

    March
20, 2009

    

    Void
after 6:00 p.m. Eastern Time on the Expiration Date

    

    WARRANT
TO PURCHASE SHARES

    

    OF

    

    PERF
GO-GREEN HOLDINGS, INC.

    

    This Is
To Certify That, FOR VALUE RECEIVED, Star Funding, Inc., a Delaware corporation,
and its successors and assigns (collectively, “Holder”), is entitled to
purchase, subject to the provisions of this Warrant (“Warrant”) from PERF Go-Green
Holdings, Inc., a Delaware corporation (the “Company”), Eight Hundred
Thousand (800,000) fully paid, validly issued and non-assessable shares of
Common Stock, par value $0.0001 per
share, of the Company (“Common
Stock”), at an exercise price of$1 .00 per share, at any time or from
time to time to time during the period (the “Exercise Period”) beginning on the
date of this Warrant, and ending 6:00 p.m. Eastern Standard Time five (5) years thereafter (the
“Expiration Date”). The number of shares of Common Stock to be received upon the
exercise of this Warrant may be adjusted from time to time as hereinafter set
forth. The shares of Common Stock that may be purchased pursuant to this
Warrant, as adjusted from time to time, are hereinafter sometimes referred to as
“Warrant Shares” and the
exercise price of the Warrant Shares in effect at any time and as adjusted from
time to time is hereinafter sometimes referred to as the “Exercise Price.”

    

    (I)            EXERCISE
OF WARRANT. (a) Method.
This Warrant may be exercised in whole or in part at any time or from
time to time during the Exercise Period on any day on which banking institutions
in the State of New York are not authorized by law to close. This Warrant may be
exercised by presentation and surrender of this Warrant to the Company at its
principal office or to the Company’s warrant agent, if any has been appointed,
with the Exercise Form annexed hereto (the “Exercise Form”) duly executed
and accompanied by payment of the Exercise Price, in cash or by certified or
bank cashier’s check, for the number of Warrant Shares specified in such form.
As soon as practicable after each such exercise of the Warrant, the Company
shall issue or cause to be issued and delivered to the Holder a certificate or
certificates for the Warrant Shares issuable upon such exercise, registered in
the name of the Holder as more particularly set forth in Section 2 hereof. The
Warrant shall be deemed to have been exercised immediately prior to the close of
business on the date of any such exercise, provided such exercise is in
accordance with the provisions set forth herein. If this Warrant should be
exercised in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the rights of the
Holder thereof to purchase the balance of the Warrant Shares purchasable
thereunder. Upon receipt by the Company
of this Warrant at its office in proper form for exercise, the Holder shall be
deemed to be the holder of record of the Common Stock issuable upon such
exercise, notwithstanding that the stock transfer books of the Company shall
then be closed or that certificates representing such Common Stock shall not
then be physically delivered to the Holder.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)            Cashless Exercise.
Notwithstanding any provisions herein to the contrary and commencing on
the date hereof if all of the Warrant Shares are not registered for resale under
an effective registration statement under the Securities Act by the six-month
anniversary date of the issuance of this Warrant, unless the registration
statement is not effective due to any factors primarily within the control of
the Holder (such event, an “Excluded Event”), in lieu of
exercising this Warrant by payment of cash, the Holder may exercise this Warrant
by a cashless exercise and shall receive the number of shares of Common Stock
equal to an amount (as determined below) by surrender of this Warrant at the
principal office of the Company together with the properly endorsed Exercise
Form, in which event the Company shall issue to the Holder a number of shares of
Common Stock computed using the following formula:

    

    X=Y-
(A)(Y)

    B

    

    
      	
              Where

            	
              X
      =

            	
               the
      number of shares of Common Stock to be issued to the
    Holder.

            

    

    

    
      	
               
      

            	
              Y
      =

            	
              the
      number of shares of Common Stock purchasable upon exercise of all of the
      Warrant or, if only a portion of the Warrant is being exercised, the
      portion of the Warrant being
exercised.

            

    

    

    A
=            the
Exercise Price.

    

    B
=            the
Market Value of one Warrant Share.

    

    (2)            RESERVATION
OF SHARES. The Company shall at all times reserve for issuance and/or delivery
upon exercise of this Warrant such number of shares of Common Stock as shall be
required for issuance and delivery upon exercise of the Warrants.

    

    (a)            Issuance. In the event of any
exercise of this Warrant in accordance with and subject to the terms and
conditions hereof, certificates for the Warrant Shares so purchased shall be
dated the date of such exercise and delivered to the Holder hereof within a
reasonable time, not exceeding three (3) Trading Days after such exercise (the
“Delivery Date”) or, at
the request of the Holder (provided that a registration statement under the
Securities Act providing for the resale of the Warrant Shares is then in
effect), issued and delivered to the Depository Trust Company (“DTC”) account on the
Holder’s behalf via the Deposit Withdrawal Agent Commission System (“DWAC”) within a reasonable
time, not exceeding three (3) Trading Days after such exercise, and the Holder
hereof shall be deemed for all purposes to be the holder of the Warrant Shares
so purchased as of the date of such exercise. Notwithstanding the foregoing, the
Company or its transfer agent shall only be obligated to issue and deliver the
shares to the DTC on a holder’s behalf via DWAC if such exercise is in
connection with a sale and the Company and its transfer agent are participating
in DTC through the DWAC system. The Holder shall deliver this original Warrant,
or an indemnification undertaking
with respect to such Warrant in the case of its loss, theft or destruction, at
such time that this Warrant is hilly exercised. With respect to partial
exercises of this Warrant, the Company shall keep written records for the Holder
of the number of Warrant Shares exercised as of each date of
exercise.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b)            Compensation for Buy-In. In
addition to any other rights available to the Holder, if the Company fails to
cause its transfer agent to transmit to the Holder a certificate or certificates
representing the Warrant Shares pursuant to an exercise on or before the
Delivery Date, and if after such date the Holder is required by its broker to
purchase (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by the Holder of the Warrant Shares which the
Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company
shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total
purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the
number of shares of Warrant Shares that the Company was required to deliver to
the Holder in connection with the exercise at issue times (B) the price at which
the sell order giving rise to such purchase obligation was executed, and (2) at
the option of the Holder, either reinstate the portion of the Warrant and
equivalent number of shares of Warrant Shares for which such exercise was not
honored or deliver to the Holder the number of shares of Common Stock that would
have been issued had the Company timely complied with its exercise and delivery
obligations hereunder. For example, if the Holder purchases Common Stock having
a total purchase price of $l1,000 to cover a Buy-In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (1) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In, together with applicable confirmations
and other evidence reasonably requested by the Company. Nothing herein shall
limit a Holder’s right to pursue any other remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to
timely deliver certificates representing shares of Common Stock upon exercise of
this Warrant as required pursuant to the terms hereof.

    

    (3)            FRACTIONAL
SHARES. No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of this Warrant. If more than one Warrant shall be
exercised at one time by the Holder, the number of full shares of Common Stock
which shall be issuable upon exercise thereof shall be computed on the basis of
the aggregate number of hill shares issuable upon such exercise. No adjustment
shall be made in respect of cash dividends on Warrant Shares delivered upon
exercise of any Warrant. With respect to any fraction of a share called for upon
exercise hereof, the Company shall pay to the Holder an amount in cash equal to
such fraction multiplied by the average bid and asked prices of the Common Stock
on the last available date for which quotations are available immediately
preceding the date of exercise of this Warrant, if the bid and asked prices are
not so reported, then the current market value shall be an amount, not less than
the book value thereof as at the end of the most recent fiscal year of the
Company ending prior to the date of the exercise of the Warrant, determined in
such reasonable manner as may be prescribed by the Board of Directors of the
Company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (4)            EXCHANGE
OR LOSS OF WARRANT. This Warrant is exchangeable, without expense, at the option
of the Holder, upon presentation and surrender hereof to the Company for other
Warrants of different denominations entitling the holder thereof to purchase in
the aggregate the same number of shares of Common Stock purchasable hereunder.
This Warrant may be divided or combined with other Warrants which carry the same
rights upon presentation hereof at the principal office of the Company with a
written notice specifying the denominations in which new Warrants are to be
issued and signed by the Holder hereof. The term “Warrant” as used herein
includes any Warrants into which this Warrant may be divided or exchanged. Upon
receipt by the Company or its warrant agent, if any, of evidence satisfactory to
it of the loss, theft, destruction or mutilation of this Warrant, and (in the
case of loss, theft or destruction) of reasonably satisfactory indemnification,
and upon surrender and cancellation of this Warrant, if mutilated, the Company
will execute and deliver a new Warrant of like tenor and date.

    

    (5)            RIGHTS
OF THE HOLDER. The Holder shall not, by virtue hereof, be entitled to any rights
of a stockholder in the Company, either at law or equity, and the rights of the
Holder are limited to those expressed in the Warrant and are not enforceable
against the Company except to the extent set forth herein and in any warrant
agreement entered into by and between the Company and a warrant agent with
respect to the Warrants. In the event the Company enters into a warrant
agreement with a warrant agent, the terms of the Warrant shall be embodied in
the warrant agreement; and the acceptance of this Warrant by the Holder shall be
deemed consent by the Holder for the Company to enter into any such warrant
agreement, upon such terms and conditions mutually agreeable between the Company
and any such warrant agent, provided such warrant agreement does not adversely
affect any of the rights of the Holder, as set forth in this
Warrant.

    

    (6)            ANTI-DILUTION
PROVISIONS.

    

    (a)           Stock Dividends, Splits,
Combinations, etc. In case the Company shall at any time after the date
of this Warrant (i) declare a dividend, or make a distribution, on the
outstanding Common Stock, (ii) subdivide the outstanding Common Stock, (iii)
combine the outstanding Common Stock into a smaller number of shares of Common
Stock, or (iv) issue any shares of Common Stock by reclassification (including
any such reclassification in connection with a consolidation or merger in which
the Company is the continuing corporation), then in each case, the number and
kind of shares of Common Stock receivable upon exercise of this Warrant, in
effect at the time of the record date for such dividend or distribution or of
the effective date of such subdivision, combination, or reclassification, shall
be proportionately increased or decreased, as the case maybe, so that the Holder
after such time shall be entitled to receive the aggregate number and kind of
shares which if such Warrant had been exercised immediately prior to such time,
it would have owned upon such exercise and been entitled to receive by virtue of
such dividend, distribution, subdivision, combination or reclassification.
Whenever the number of shares of Common Stock purchasable upon the exercise of
this Warrant is adjusted as provided in this Section 6(a), then the Exercise
Price shall also be adjusted by multiplying such Exercise Price immediately
prior to such adjustment by a fraction (A) the numerator of which shall be the
number of shares of Common Stock purchasable upon the exercise immediately prior
to such adjustment, and (B) the denominator of which shall be the number of
shares of Common Stock so purchasable immediately thereafter. Such adjustment
shall be made successively whenever any event listed above shall
occur.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b)           Reorganization, Consolidation,
Merger, Etc. In the case of any reorganization of the Company (or any
other corporation, the securities of which are at the time receivable on the
exercise of this Warrant) or if the Company (or any other such corporation)
shall consolidate with or merge into another corporation or convey all or
substantially all of its assets to another corporation, then, and in each such
case, the Holder of this Warrant upon the exercise as provided for in Section 1
at any time after the consummation of such reorganization, consolidation, merger
or conveyance, shall be entitled to receive in lieu of the securities and
property receivable upon the exercise of this Warrant prior to such
consummation, the securities or property to which such Holder would have been
entitled upon such consummation if such Holder had exercised this Warrant
immediately prior thereto, and the terms of this Warrant shall be applicable to
the securities or property received upon the exercise of this Warrant after such
combination.

    

    (c)            Extraordinary Dividends. In
case the Company shall distribute to all holders of Common Stock (including any
such distribution made to the stockholders of the Company in connection with a
consolidation or merger in which the Company is the continuing corporation)
evidences of its indebtedness or assets (other than dividends payable in Common
Stock), or subscription rights, options, or warrants or convertible or
exchangeable securities containing the right to subscribe for or purchase shares
of Common Stock (excluding those referred to in Section 6(b) hereof), then, in
each case, the Exercise Price shall be adjusted by multiplying the Exercise
Price in effect immediately prior to the record date for the determination of
stockholders entitled to receive such distribution by a fraction, the numerator
of which shall be the current Exercise Price per share on such record date, less
the fair market value (as determined in good faith by the Board of Directors of
the Company, whose determination shall be conclusive absent manifest error) of
the portion of the evidences of indebtedness or assets so to be distributed, or
of such subscription rights, options, or warrants or convertible or exchangeable
securities containing the right to subscribe for or purchase shares of Common
Stock, applicable to one share, and the denominator of which shall be such
current Exercise Price per share of Common Stock. Such adjustment shall be made
whenever any such distribution is made, and shall become effective on the date
of such distribution retroactive to the record date for the determination of
stockholders entitled to receive such distribution.

    

    (d)            De Minimis Exception. No
adjustment in the Exercise Price shall be required if such adjustment is less
than $.01; provided, however, that any
adjustments which by reason of this Section 6 are not required to be made shall
be carried forward and taken into account in any subsequent adjustment. All
calculations under this Section 6 shall be made to the nearest one-thousandth of
a share.

    

    (e)            Date of Issuance. The
provisions of this Section 6 may result in an adjustment or adjustments on a
certain date (the “Effective Date”) for holders of Common Stock as of a record
date (the “Record Date”). Such adjustments may entitle a Holder to purchase more
shares of Common Stock than would have been the case prior to the adjustments
(such additional Common Stock, the “Extra Common Stock”). If a Holder exercises
a Warrant after the Record Date but before the Effective Date and will be
entitled to Extra Common Stock, the Company may defer issuing such Extra Common
Stock until the Effective Date.

    

    (f)           Adjustment to Number of shares of
Common Stock. Upon each adjustment of the Exercise Price as a result of
the calculations made in Section 6(c) hereof each Warrant outstanding
prior to the making of the adjustment in the Exercise Price shall thereafter
evidence the right to purchase, at the adjusted Exercise Price, that number of
shares of Common Stock (calculated to the nearest thousandth) obtained by
dividing (i) the product obtained by multiplying the number of shares of Common
Stock purchasable upon exercise of a Warrant prior to adjustment of the number
of shares of Common Stock by the Exercise Price in effect prior to adjustment of
the Exercise Price by (ii) the Exercise Price in effect after such adjustment of
the Exercise Price.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (g)            Notice of Adjustments.
Whenever there shall be an adjustment as provided in this Section 6, the
Company shall promptly cause written notice thereof to be sent by overnight
courier, to the Holder, at its principal office, which notice shall be
accompanied by an officer’s certificate setting forth the number of Warrant
Shares purchasable upon the exercise of this Warrant and the Exercise Price
after such adjustment and setting forth a brief statement of the facts requiring
such adjustment and the computation thereof, which officer’s certificate shall
be conclusive evidence of the correctness of any such adjustment absent any
error.

    

    (h)            Outstanding Options/Warrants.
No adjustment in the Exercise Price shall be required in the case of the
issuance of any and all shares of Common Stock upon exercise of(i) any options,
warrants or convertible securities outstanding on or before the date hereof, or
(ii) any options, warrants or restricted stock issued or granted under the
Corporation’s 2008 Share Incentive Plan (the “Share Incentive Plan”), so long as
the total number of shares of Common Stock issued or issuable upon the exercise
of such options, warrants or convertible securities does not exceed ten (10)
million ((i) and (ii) together, the “Excluded Options”).

    

    (i)            Adjustments at Below Par Value.
The Company shall not permit the par value of the Common Stock to exceed
the then effective Exercise Price. Before taking any action which would cause an
adjustment reducing the Exercise Price below the then par value of the Common
Stock issuable upon exercise of this Warrant, the Company will take any
corporate action which may, in the opinion of its counsel, be necessary in order
that the Company may validly and legally issue fully paid and non-assessable
Common Stock of such the Company at such adjusted Exercise Price.

    

    (j)            Additional Covenants. The
Company shall not by any action including, without limitation, amending the
Articles of Organization or Bylaws of the Company, or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other action, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of the Holder
hereof against dilution (to the extent specifically provided herein) or
impairment. Without limiting the generality of the foregoing, the Company will
(i) not amend or modify any provision of the Articles of Organization or Bylaws
of the Company in any manner that would adversely affect the rights of the
Holders of the Warrants, (ii) take all such action as may be reasonably
necessary in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock, free and clear of any liens, claims,
encumbrances and restrictions (other than as provided herein) upon the exercise
of this Warrant, and (iii) use its best efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be reasonably necessary to enable the Company to
perform its obligations under this Warrant.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (k)           issuance of Additional Common Stock
at a Price Less than the Exercise Price. In the event the Company shall
issue any additional Common Stock (otherwise than as provided in the foregoing
subsections (a) and (b) of Section 6) at a price per share less than the
Exercise Price then in effect or without consideration (except for Common Stock
issued in connection with (A) any Excluded Options or (B) a bona fide public
offering pursuant to a firm commitment underwriting with proceeds of at least
$10,000,000), then the Exercise Price upon each such issuance shall be adjusted
to the price (rounded to the nearest cent) determined by multiplying the
Exercise Price then in effect by a fraction:

    

    (i)           the
numerator of which shall equal the sum of (x) the number of shares of Common
Stock immediately prior to the issuance of such additional Common Stock plus (y)
the number of shares of Common Stock (rounded to the nearest whole share) which
the aggregate consideration for the total number of such additional shares of
Common Stock so issued would purchase at a price per share equal to the Exercise
Price then in effect, and

    

    (ii)           the
denominator of which shall be equal to the number of shares of Common Stock
immediately after the issuance of such additional Common Stock.

    

    (7)            INVESTMENT
REPRESENTATION. By accepting this Warrant, the Holder acknowledges that it is
being taken for its own account as principal, for investment purposes only, and
not with a view to, or for, resale, distribution or fractionalization thereof,
in whole or in part, and no other person has a direct or indirect beneficial
interest in such Warrant and such Warrant may only be transferred, subject to
compliance with the legend set forth on the first page of this Warrant
Certificate. Unless the shares of Common Stock issuable upon the exercise of
this Warrant are registered under the Securities Act of 1933, as amended (the
“Act”), the Holder, upon
exercise of this Warrant will be required to provide the Company with an
investment letter and the certificates representing such shares will contain a
legend to the effect that the Holder may not transfer, sell, pledge or
hypothecate such shares unless the registration provisions of the Act have been
complied with or the Company has received an opinion of counsel that such
registration is not required.

    

    (8)            REGISTRATION
RIGHTS. The Warrant Shares issuable upon the exercise of this Warrant are the
subject of certain registration rights granted by the Company to the Holder as
more specifically set forth in a letter agreement of even date herewith by the
Company and Perf.-Go Green, Inc. in favor of the Holder.

    

    (9)            [INTENTIONALLY
OMITTED].

    

    (10)                      NOTICES.
The Company agrees to maintain a ledger of the ownership of this Warrant (the
“Ledger”). All notices
and other communications which are required or may be given under this Warrant
shall be in writing and shall be deemed to have been duly given when delivered
in person or transmitted by telecopy or three (3) days after being mailed,
postage prepaid, in the case of the Company to PERF Go-Green Holdings, Inc., 12
East 52nd Street,
4th
floor, New York, New York 10022, Attention: Chief Financial Officer, and in the
case of the Holder to the address set forth in the Ledger, or to such other
address as such party shall have specified by notice to the other party in
accordance
with this Section 10. If notice is given by registered or certified first class
mail, postage prepaid, return receipt requested, the return receipt shall be
conclusive evidence of the notice having been mailed on the date set
forth.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (11)   
DEFINITIONS.

    

    “Independent Appraiser” means a
nationally recognized or major regional investment banking firm or firm of
independent certified public accountants of recognized standing (which may be
the firm that regularly examines the financial statements of the Company) that
is regularly engaged in the business of appraising the capital stock or assets
of corporations or other entities as going concerns, and which is not affiliated
with either the Company or the Holder of any Warrant.

    

    “Market Value” means on
any particular
date (a) the
last closing bid price per share of the Common Stock on such date on the OTC
Bulletin Board or another registered national stock exchange on which the Common
Stock is then listed, or if there is no such price on such date, then the
closing bid price on such exchange or quotation system on the date nearest
preceding such date, or (b) if the Common Stock is not then listed on the OTC
Bulletin Board or any registered national stock exchange, the last closing bid
price for a share of Common Stock in the over the counter market, as reported by
the OTC Bulletin Board or in the National Quotation Bureau Incorporated or
similar organization or agency succeeding to its functions of reporting prices)
at the close of business on such date, or (c) if the Common Stock is not then
reported by the OTC Bulletin Board or the National Quotation Bureau Incorporated
(or similar organization or agency succeeding to its functions of reporting
prices), then the “Pink Sheet” quotes for the applicable Trading Days preceding
such date of determination, or (d) if the Common Stock is not then publicly
traded, the fair market value shall be the price per share of Common Stock that
the Company could obtain from a willing buyer for shares sold by the Company
from authorized but unissued shares, as such price shall be reasonably
determined in good faith by the Company’s Board of Directors. If the Holder
disagrees with the fair market value determination of the Board of Directors
within five (5) days after the Company’s receipt of the applicable Exercise Form
(the “Negotiation
Period”), the valuation shall be made by an Independent Appraiser
designated by the Company and the Holder within five (5) days after the
expiration of the Negotiation Period or, if they cannot so agree on such
Independent Appraiser, each shall select an Independent Appraiser within ten
(10) days after receipt of the notice by the Company, an Independent Appraiser
who shall designate a third Independent Appraiser within five (5) days after the
expiration of such ten (10) day period. The appraisal shall be made within ten
(10) days of such designation and shall be determinative of such value. The cost
of such appraisal shall be borne equally by the Company and the
Holder.

    

    “OTC Bulletin Board” means the
over-the counter electronic bulletin board.

    

    “Securities Act” means the
Securities Act of 1933, as amended, or any similar federal statute then in
effect.

    

    “Trading Day” means (a) a day
on which the Common Stock is traded on the OTC Bulletin Board, or (b) if the
Common Stock is not traded on the OTC Bulletin Board, a day on which the Common
Stock is quoted in the over the counter market as reported by the National
Quotation Bureau
Incorporated (or any similar organization or agency succeeding its functions of
reporting prices); provided, however, that in the event that the Common Stock is
not listed or quoted as set forth in (a) or (b) hereof, then Trading Day shall
mean any day except Saturday, Sunday and any day which shall be a legal holiday
or a day on which banking institutions in the State of New York are authorized
or required by law or other government action to close.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (12)            MISCELLANEOUS.
This Warrant (including all documents referred to herein) contains the entire
agreement and supersedes all prior agreements and understandings, oral or
written, between the parties hereto with respect to the subject matter hereof.
This Warrant may not be changed orally, but only by an agreement in writing
signed by the party against whom any waiver, change, amendment, modification or
discharge is sought. This Warrant may be assigned by Holder in accordance with
the provisions of Section 7 of this Warrant. This Warrant may not be assigned by
the Company and shall be interpreted under the laws of the State of New York
without application to the principles of conflicts of laws. The Company hereby
irrevocably submits to the non-exclusive jurisdiction of all state and Federal
courts sitting in New York, New York, in connection with any suit, action or
other proceeding arising out of or relating to this Warrant or any of the
transactions contemplated hereby, and irrevocably waives any objection to venue
in any such court and any claim that any such suit, action or proceeding has
been brought in an inconvenient forum.

     

     

    SIGNATURE
PAGE FOLLOWS

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    [Signature
Page to Warrant to Purchase Shares of Stock]

    

     

    PERF
GO-GREEN HOLDINGS, INC.

     

     

    By: 
/s/ Michael Caridi

      
        

      

    

    Name:
Michael Caridi

    

    [SEAL]

    

    Dated:  March
20,
2009

    

    

    Attest:

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    FORM OF
ASSIGNMENT

    

    

    (To be
executed by the registered holder if such holder desires to transfer the
attached Warrant.)

    

    FOR VALUE
RECEIVED, ___________ hereby sells, assigns, and transfers unto
_________________ a warrant (the “Warrant”) to purchase
______________ shares of Common Stock, $____ par value per share, of PERF
Go-Green Holdings, Inc. (the “Company”), together
with all right, title, and interest therein, and does hereby irrevocably
constitute and appoint _____________________________________ as attorney to
transfer such Warrant on the books of the Company, with full power of
substitution.

    

    

    

    Dated:_______________

     

    Signature: 
________________________

    

    

    

    NOTICE

    

    

    The
signature on the foregoing Assignment must correspond to the name as written
upon the face of this Warrant in every particular, without alteration or
enlargement or any change whatsoever.

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXERCISE
FORM

    

    

    Dated
_________,200_

    

    The
undersigned hereby irrevocably elects to exercise the within Warrant to the
extent of purchasing ______shares of Common Stock and hereby (i) tenders payment
herewith in the amount of $_____________or (ii) surrenders this Warrant in the
amount of________, in payment of the actual exercise price thereof, and requests
that certificates for such securities be issued in the name of, and delivered
to, and, if such number of Warrant Shares shall not be all the Warrant Shares
covered by the within Warrant, that a new Warrant for the balance of the Warrant
Shares be registered in the name of, and delivered to, the undersigned at the
address stated below.

    

    

    INSTRUCTIONS FOR
REGISTRATION OF STOCK

     

     

    Name: 
_______________________________________________________________________________

    (Please
type, write or print in block letters)

    

    

    Address: 
_____________________________________________________________________________

     

     

     

    Signature: 
_____________________________________________________________________________

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