Document:

Exhibit 10.1

    Exhibit
      10.1

    
 

    CONSULTING
      AGREEMENT
      made as
      of the 1st day of June, 2007.

    

    

    B
      E T W E
      E N: 

    

    Blackmont
      Resources Inc.,
      a
      company duly incorporated under the laws of the State of Nevada, and having
      its
      registered office at 502 East John St., Carson City, NV, 89706;

    

    (hereinafter
      called the “Company”)

    

    OF
      THE
      FIRST PART

    

    -
      and
      -

    

    LAIRD
      EXPLORATION LTD.

    PO
      Box
      672

    Lions
      Bay, British Columbia, Canada

    V0N
      2E0

    Tel:
      (604) 921-4031

    Email:
      Lairdex@telus.net

    

    A
      company
      incorporated under the laws 

    of
      the
      Province of British Columbia, 

    (Hereinafter
      called the (“Consultant”)

    

    OF
      THE
      SECOND PART

    

    

    WHEREAS
      the Consultant represents that it has in its employ James Laird, a qualified
      mineral exploration manager who has considerable experience and expertise in
      all
      phases of mineral property discovery and development.

    (Hereinafter
      called “Laird”)

    

    

    AND
      WHEREAS the Company wishes to obtain consulting advise with respect to
      exploration management and mineral property development pertaining to the
      Company’s business and wishes to retain the Consultant for such
      purpose;

    

    

    AND
      WHEREAS the Consultant is desirous of providing the services of Laird to the
      Company for the aforesaid purposes upon the terms and conditions hereinafter
      set
      out;

    

    

    NOW
      THEREFORE THIS AGREEMENT WITNESSETH that the parties hereto agree as follows;
      (Note - all funds stated in Canadian dollars)

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    
      	1.  	
              The
                Consultant agrees, in consideration of the retainer and fees payable
                hereunder, to provide the Company with the services of Laird with
                respect
                to exploration management and mineral property development (hereinafter
                called the “Services”) in connection with existing and proposed
                exploration programs of the Company and its affiliated or subsidiary
                companies in areas either inside or outside of Canada as the company
                may
                from time to time request.

            

    

    

    

    
      	2.  	
              The
                term of this Agreement shall be for three months, commencing on June
                1,
                2007, and shall, unless renewed by mutual agreement in writing, terminate
                on September 1, 2007.

            

    

    

    
      	3.  	
              The
                Company shall pay the consultant $500 per day plus Goods and Services
                Tax
                (GST). Such retainer shall be payable whether or not the Company
                requests
                services during any particular calendar
                month.

            

    

    

    

    
      	4.  	
              The
                Consultant shall, in consideration of the monthly retainer referred
                to in
                paragraph 3 hereof, at the Company’s request provide not less than 3
                calendar days per month of Services (“the minimum period”) with respect to
                exploration management and mineral property development. As used
                herein
                the term “Services” shall include, but not be limited to, assisting
                Company staff in designing, permitting and budgeting exploration
                programs,
                hiring and supervising a field crew, coordinating and performing
                the
                agreed on exploration programs, interpretation, compilation, and
                preparation of maps and reports, evaluation of exploration programs,
                discussions with the Company’s staff and related field examinations,
                participation in the Company’s promotional events and community relations,
                and other assistance as may be specified or requested by the
                Company.

            

    

    

    

    
      	5.  	
              (a)If,
                at the Company’s request, the Consultant provides Services in excess of
                the minimum period, the Company shall pay the Consultant a fee of
                $ 500
                plus GST for each day in excess of the minimum period that the Consultant
                is directly engaged in providing such
                Services.

            

    

    

    (b) If
      the
      Consultant is, in any calendar month, unable because of prior commitment or
      other bona fide reason, to provide the Services requested for the minimum
      period, then in such an event the Company may, at its option, either:

    

    
      	(i)  	
              require
                the Consultant to carry forward the minimum period for such month
                and to
                add same to the minimum service requirements for the next succeeding
                month; or

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      	(ii)  	
              require
                the Consultant to remit it, promptly upon request, an amount of $500
                plus
                GST per day for each day of the minimum period that the Services
                are not
                provided.

            

    

    

    

    
      	6.  	
              The
                Company shall, with respect to Services requested, reimburse the
                Consultant for all reasonable travelling, lodging and out-of-pocket
                expenses as may be incurred by the Consultant while engaged in the
                performance of such Services. The Consultant shall submit to the
                company
                from time to time, invoices for such expenses and for consulting
                time, in
                excess of the minimum period, which may have been spent by the Consultant
                in providing Services requested by the Company. Usage of Laird Exploration
                Ltd. vehicles shall be calculated at $ per
                kilometer.

            

    

    

    

    
      	7.	
              The
                Company, as an added incentive to the Consultant, agrees to provide
                a
                share purchase option for common stock in the Company. The share
                purchase
                option shall have a minimum term of two years, or as the appropriate
                regulatory bodies deem. Calculation of the option price shall be
                in
                accordance with the laws of the appropriate regulatory body and shall
                be
                completed as soon as feasible after signing of this
                Agreement.

            

    

    

    

    
      	
              8.

            	
              Whereas
                the Consultant has a proven prospecting record of significant and
                economic
                new mineral discoveries, the concept of a Discovery Bonus in the
                form of
                cash, shares, or additional share purchase options is hereby presented
                to
                the Company. In recognition of the unpredictable nature of such
                discoveries in terms of economic impact, any such bonus paid shall
                be
                commensurate with the perceived value of the discovery at the time.
                The
                presentation and content of a Discovery Bonus will be entirely at
                the
                discretion of the management of the
                Company.

            

    

    

    

    
      	
              9.

            	
              The
                Consultant shall provide the Services hereunder in a good and workmanlike
                fashion, diligently, in good faith and without waste, interruption
                or
                delay except for causes beyond the reasonable control of the Consultant.
                With respect to all claims or damages on account of loss or damage
                to
                property, or injury to, or death of, any person or persons arising
                from or
                out of the provision of such Services by the Consultant hereunder,
                the
                consultant shall be deemed to be an independent contractor and neither
                it
                nor Laird shall be deemed to be a representative, agent, or employee
                of
                the Company and with respect to any such claim, damage, loss, injury
                or
                death, the Consultant shall indemnify and save the Company harmless
                from
                and against any and all liability for such a loss , damage, injury
                or
                death, including any expenses, costs and legal fees incurred in connection
                therewith, except such liability as may arise out of the sole negligence
                of the Company.

            

    

     

    
 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	
              10.

            	
              The
                Consultant shall, at its cost, comply with all applicable federal
                and
                provincial statutes and regulations and the lawful requirements and
                directions of any governmental authority having jurisdiction with
                respect
                to the Services it provides hereunder including the obtaining of
                all
                necessary permits and licenses and agrees to indemnify the Company
                against
                all claims, loss, damages or expenses incurred by the Consultant’s failure
                to make the necessary returns or payments or by any violation of
                any such
                statutes or regulations.

            

    

    

    

    
      	
              11.

            	
              Without
                in any way limiting the liability of the Consultant under this Agreement,
                including the Consultant’s indemnity to the Company as set out in
                paragraph 9 hereof, it shall be the sole responsibility of the Consultant
                to maintain and keep in force and effect during the term of this
                agreement
                the following insurance coverage:

            

    

    

    (a) Comprehensive
      General Liability Insurance shall be no less than One Million Dollars
      ($1,000,000).

    

    (b) Automobile
      Bodily Injury and Property Damage Liability Insurance covering the automobile
      owned or leased by the Consultant, its agents or employees in connection with
      the work under this agreement. The limits of such insurance shall be no less
      than One Million Dollars ($1,000,000) inclusive for any one
      occurrence.

    

    (c) Workman’s
      Compensation or other like coverage as required by applicable law or other
      authorized Governmental authority covering all persons directly employed by
      the
      Consultant on work to be performed under this agreement.

    

    (d) Such
      other insurance as may be mutually agreed upon in writing.

    

    

    
      	
              12.

            	
              The
                Consultant shall (and shall cause all its employees to) keep confidential
                all information disclosed by the Company or acquired by the Consultant
                through the performance of Services hereunder, and shall not disclose
                or
                divulge such information to third parties without the prior written
                consent of the Company. The obligation to keep secret and confidential
                and
                not to disclose any such information shall not apply to any information
                which is in the public domain or which at the time of disclosure
                is
                already known to the Consultant, in which event the Consultant shall,
                upon
                request, provide evidence, satisfactory to the Company, of such prior
                knowledge.

            

    

    

    

    
      	
              13.

            	
              The
                Consultant shall not, during the term of this Agreement, provide
                similar
                consulting services or advice to third parties relating to or in
                connection with any specific areas in which the Company has an interest
                or
                with respect to which services have been provided, without the prior
                consent of the Company.

            

    

     

    
 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    
      	
              14.

            	
              Notwithstanding
                paragraph 2 of this Agreement, the Company shall have the right at
                any
                time to terminate this Agreement on thirty (30) days written notice
                to the
                Consultant.

            

    

    

    

    
      	
              15.

            	
              In
                cases of disputes or differences arising under this Agreement, which
                are
                not settled within a reasonable time and not exceeding three (3)
                months,
                the parties shall refer such disputes and differences to arbitration
                under
                The Arbitration Act of British
                Columbia.

            

    

    

    

    
      	16.          	
              The
                Consultant may not assign, pledge, mortgage or otherwise encumber
                any of
                its rights hereunder without the prior written consent of the
                Company.

            

    

    

    

    
      	17.       
               	
              Any
                notice of communication to any party under this Agreement may be
                given by
                delivering the same by hand to such party or by mailing the same
                by
                prepaid, registered mail to such party, addressed as
                follows:

            

    

    

    

    To
      the
      Company:

    

    Blackmont
      Resources Ltd., 

    502
      East
      John St., 

    Carson
      City, NV, 

    89706;

    

    

    To
      the
      Consultant:

    

    Laird
      Explorations Ltd.

    PO
      Box
      672

    Lions
      Bay, British Columbia, Canada

    V0N
      2E0

    Tel:
      (604) 921-4031

    Email:
      Lairdex@telus.net

    

    

    or
      to
      such address as a party hereto may designate for itself and such notice so
      mailed shall be deemed to have been received at the latest on the third business
      day next following the mailing hereof.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    
      	
              18.

            	
              This
                Agreement shall enure to the benefit of and be binding upon the parties
                hereto and their respective successors and permitted assigns. This
                Agreement shall be interpreted in accordance with the laws of the
                Province
                of British Columbia.

            

    

    

    

    IN
      WITNESS WHEREOF the parties hereto have executed this Agreement as of the date
      first above recorded, but actually on the ________day of June, 2007

    

    

    BLACKMONT
      RESOURCES INC.

    

    

    By________________________________________________

    

    Corporate
      Seal

    

    By________________________________________________

    

    

    

    LAIRD
      EXPLORATION LTD.

    

    

    

    By________________________________________________

    

    Corporate
      Seal

    

    By________________________________________________

     

     

     

    6Promissory note

    Exhibit
      10.1

    

      PROMISSORY
        NOTE 

      

        
          	
                  FACE
                    AMOUNT

                	
                  $200,000
                    

                
	
                  PRICE
                    

                	
                  $200,000
                    

                
	
                  INTEREST
                    RATE 

                	
                  12%
                    per annum 

                
	
                  NOTE
                    NUMBER 

                	
                  June-2006-101
                    

                
	
                  ISSUANCE
                    DATE 

                	
                  June
                    20, 2007 

                
	
                  MATURITY
                    DATE 

                	
                  December
                    20, 2007 

                

        

      

       

      FOR
        VALUE RECEIVED, Seawright Holdings, Inc., a Delaware corporation, and all
        of its
        subsidiaries (the “Company”) (OTC BB: SWRI) hereby promises to pay to the order
        of DUTCHESS
        PRIVATE EQUITIES FUND, LTD. (the
        “Holder”) by the Maturity Date, or earlier, the Face Amount of Two Hundred
        Thousand Dollars ($200,000) U.S., (this "Note") in such amounts, at such
        times
        and on such terms and conditions as are specified herein (sometimes hereinafter
        the Company and the Holder are referred to collectively as "the Parties").
        

       

      Any
        capitalized terms not defined in this Note are defined in the Investment
        Agreement for the Equity Line of Credit between Dutchess Private Equities
        Fund,
        L.P. (the “Investor”) and the Company dated September 12, 2005 (the "Equity
        Line"), which definitions the Company and the Holder incorporate herein by
        reference. 

       

      Article
        1       Method
        of Payment/Interest 

       

      Section
        1.1 The Company shall pay interest (“Interest”)
        at the rate of twelve percent (12%) per annum, compounded daily, on the unpaid
        Face Amount of this Debenture at such times and in such amounts as outlined
        in
        this Article
        1.
        The Company shall make mandatory monthly payments of interest (the “Interest
        Payments”),
        in an amount equal to the interest accrued on the principal balance of the
        Note
        from the last Interest Payment until such time as the current Interest Payment
        is due and payable. The Interest Payments shall commence the first month
        following the Issuance Date and shall continue for five (5) months thereafter
        (for a total of six (6) Interest Payments), and the Interest Payments shall
        be
        paid the 20th day of each such month (“Payment Date”). 

       

      Section
        1.2 After the date the Company’s registration statement for the Equity Line, as
        outlined in Article 20, below, is declared effective by the SEC (“Effective
        Date”), the Company shall make mandatory monthly payments on the Face Amount of
        the Note in an amount equal to the greater of 1) an amount equal to the Face
        Amount of the Note divided by the number of months from the Effective Date
        until
        the Maturity Date or 2) 100% of each Put given to the Investor by the Company.
        

       

      Section
        1.3 Payments pursuant to this Section 1.2, shall be drawn directly from the
        closing of each Put and shall be wired directly to the Holder on the Closing
        Date and shall be included in the calculation of the Threshold Amount (as
        defined in Section 1.4, below). The Company agrees to fully execute and
        diligently carry out Puts to the Investor, on the terms set forth in the
        Investment Agreement. The Company agrees that the Put Amount shall be for
        the
        maximum amount allowed under the Investment Agreement. Further, the Company
        agrees to issue Puts to the Investor for the maximum frequency allowed under
        the
        Investment Agreement. Failure to comply with the terms of the Investment
        Agreement with respect to the Puts will result in an Event of Default as
        defined
        in this Agreement in Article 4. 

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      Section
        1.4 In order to assist the Company in meeting its obligations under this
        Note,
        the Company hereby authorizes the Investor to transfer funds from any Put
        directly to the Holder. A Put shall be deemed closed after the funds are
        transferred to the Holder. 

       

      Section
        1.5 After Closing, the Company must make a prepayment to the Holder when
        the
        aggregate amount of financing ("Financing") received by the Company is in
        excess
        of one hundred thousand dollars ($100,000) (“Threshold Amount”). The Company
        agrees to pay one hundred percent (100%) of any proceeds raised by the Company
        over the Threshold Amount toward the prepayment of the Note, Interest and
        any
        penalties until the Face Amount is paid in full. The prepayments shall be
        made
        to the Holder within one (1) business day of the Company’s receipt of the
        Financing. Failure to do so will result in an Event of Default. The Threshold
        Amount shall also pertain to any assets sold, transferred or disposed of
        by the
        Company and any cash balances in the Company bank or brokerage accounts at
        the
        end of each month. 

       

      Section
        1.6 Notwithstanding any provision to the contrary in this Note, the Company
        shall pay the Face Amount to the Holder, with any interest accrued, and
        penalities, if any, upon the Maturity Date. 

       

      Article
        2       Collateral
        

       

      Section
        2.1 The Company does hereby agree to issue to the Holder for use as collateral
        fifty (50) signed Put Notices. In the event, each of the Put Notices are
        used,
        the Holder uses the Collateral in full, the Company shall immediately deliver
        to
        the Holder additional Put Noticess as requested by the Holder.. 

       

      Section
        2.2 Upon the completion of the Company's obligation to the Holder of the
        Face
        Amount of this Note, all remaining Put Notices shall be marked “VOID” by the
        Holder and returned to the Company at the Company's request. 

       

      Article
        3       Unpaid
        Amounts 

       

      Section
        3.1 In the event that on the Maturity Date the Company has any remaining
        amounts
        unpaid on this Note (the "Residual Amount"), the Holder can exercise its
        right
        to increase the Face Amount by ten percent (10%) as an initial penalty
and
        an additional two and one-half percent (2.5%) per month paid, pro rata for
        partial periods, compounded daily, as liquidated damages ("Liquidated Damages").
        If a Residual Amount remains, the Company is in Default and the Holder may
        elect
        remedies as set forth in Article 4, below. The Parties acknowledge that
        Liquidated Damages are not interest and should not constitute a penalty.
        

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      Article
        4 Defaults
        and Remedies 

       

      Section
        4.1 Events
        of Default. An
        “Event of Default” occurs if any one of the following occur: 

       

      (a)
        The Company does not make a Payment within two (2) business days of (i) a
        Payment Date; or (ii) the closing of a Put; or, (iii) a Residual Amount on
        the
        Note exists on the Maturity Date; or 

       

      (b)
        The Company, pursuant to or within the meaning of any Bankruptcy Law (as
        hereinafter defined): (i) commences a voluntary case; (ii) consents to the
        entry
        of an order for relief against it in an involuntary case; (iii) consents
        to the
        appointment of a Custodian (as hereinafter defined) of the Company or for
        its
        property; (iv) makes an assignment for the benefit of its creditors; or (v)
        a
        court of competent jurisdiction enters an order or decree under any Bankruptcy
        Law that: (A) is for relief against the Company in an involuntary case;

       

      (B)
        appoints a Custodian of the Company or for its property; or (C) orders the
        liquidation of the Company, and the order or decree remains unstayed and
        in
        effect for sixty (60) calendar days; or 

       

      (c)
        The Company’s $0.001 par value common stock (the "Common Stock") is suspended or
        is no longer listed on any recognized exchange, including an electronic
        over-the-counter bulletin board, for in excess of two (2) consecutive trading
        days; or 

       

      (d)
        The registration statement for the underlying shares in the Equity Line is
        not
        filed within forty-five (45) days of the Issuance Date of this Note; or,
        

       

      (e)
        The registration statement for the underlying shares in the Equity Line once
        effective fails to remain effective; or, 

       

      (f)
        Any of the Company’s representations or warranties contained in this Agreement
        were false when made; or, 

       

      (g)
        The Company breaches this Agreement, and such breach, if and only if such
        breach
        is subject to cure, continues for a period of five (5) business days.

       

      (h)
        an attachment or levy is made upon the Company’s assets having an aggregate
        value in excess of twenty-five thousand dollars ($25,000) or a judgment is
        rendered against the Company or the Company’s property involving a liability of
        more than twenty-five thousand dollars ($25,000) which shall not have been
        vacated, discharged, stayed or bonded pending appeal within ninety (90) days
        from the entry hereof; or, 

       

      (i)
        any change in the Company’s condition or affairs (financial or otherwise) which
        in the Holder’s reasonable, good faith opinion, would have a Material Adverse
        Effect; provided, however, that in the event that such failure is curable,
        the
        Company shall have ten (10) business days to cure such failure; or,

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (j)
        any Lien, except for Permitted Liens, created hereunder or under any of the
        Transaction Documents for any reason ceases to be or is not a valid and
        perfected Lien having a first priority interest; or, 

       

      (k)
        the indictment or threatened indictment of the Company, any officer of the
        Company under any criminal statute, or commencement or threatened commencement
        of criminal or civil proceeding against the Company or any officer of the
        Company pursuant to which statute or proceeding penalties or remedies sought
        or
        available include forfeiture of any of the property of the Company.

       

      (l)
        the Company’s failure to pay any taxes when due unless such taxes are being
        contested in good faith by appropriate proceedings and with respect to which
        adequate reserves have been provided on the Company’s books; provided, however,
        that in the event that such failure is curable, the Company shall have ten
        (10)
        business days to cure such failure; or, 

      

      As
        used in this Section 4.1, the term “Bankruptcy Law” means Title 11 of the United
        States Code or any similar federal or state law for the relief of debtors.
        The
        term “Custodian” means any receiver, trustee, assignee, liquidator or similar
        official under any Bankruptcy Law. 

       

      Section
        4.2 Remedies.
        In the Event of Default, the Holder shall fully enforce the Security Agreement
        and the Guarnaty, both defined below in Article 21. 

       

      For
        each
        and every
        Event of Default that has not been cured within five (5) business days, as
        outlined in this Agreement, the Holder can exercise its right to increase
        the
        Face Amount of the Note by ten percent (10%) as an initial penalty. In addition,
        the Holder may elect to increase the Face Amount of the Note by two and one-half
        percent (2.5%) as Liquidated Damages, compounded daily. The Parties acknowledge
        that Liquidated Damages are not interest under the terms of this Agreement,
        and
        shall not constitute a penalty. 

       

      In
        an Event of a Default has occurred hereunder, the Holder, at its sole election,
        shall have the right, but not the obligation, to either: 

       

      a)
        Switch the Residual Amount to a three-year (“Convertible Maturity Date”),
        eighteen percent (18%) interest bearing convertible debenture at the terms
        described hereinafter (the "Convertible Debenture"). In the Event of Default,
        the Convertible Debenture shall be considered closed (“Convertible Closing
        Date”), as of the date of the Event of Default. If the Holder chooses to convert
        the Residual Amount to a Convertible Debenture, the Company shall have twenty
        (20) business days after notice of default from the Holder (the "Notice of
        Convertible Debenture") to file a registration statement covering an amount
        of
        shares equal to three hundred percent (300%) of the Residual Amount. Such
        registration statement shall be declared effective under the Securities Act
        of
        1933, as amended (the “Securities Act”), by the Securities and Exchange
        Commission (the “Commission”) within sixty (60) business days the Convertible
        Closing Date. In the event the Company does not file such registration statement
        within twenty (20) business days of the Holder's request, or such registration
        statement is not declared effective by the Commision under the Securities
        Act
        within the time period described herein, the Residual Amount shall increase
        by
        five thousand dollars ($5,000) per day. In the event the Company is given
        the
        option for accelerated effectiveness of the registration statement, the Company
        will cause such registration statement to be declared effective as soon as
        reasonably practicable and will not take any action to delay the registration
        to
        become effective. In the event that the Company is given the option for
        accelerated effectiveness of the registration statement, but chooses not
        to
        cause such registration statement to be declared effective on such accelerated
        basis, the Residual Amount shall increase by five thousand dollars ($5,000)
        per
        day commencing on the earliest date as of which such registration statement
        would have been declared to be effective if subject to accelerated
        effectiveness; or 

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      b)
        The Holder may increase the Payment Amount described under Article 1 to fulfill
        the repayment of the Residual Amount and the Company shall provide full
        cooperation to the Holder in directing funds owed to the Holder on any Put
        made
        by the Company to the Investor. The Company agrees to diligently carry out
        the
        terms outlined in the Equity Line for delivery of any such shares. In the
        event
        the Company is not diligently fulfilling its obligation to direct funds owed
        to
        the Holder from Puts to the Investor, as reasonably determined by the Holder,
        the Holder may, after giving the Company two (2) business days advance notice
        to
        cure the same, elect to increase the Face Amount of the Note by 2.5% each
        day,
        compounded daily, in additional to and on top of additional remedies available
        to the Holder under this Note. 

       

      Section
        4.3 Conversion Privilege 

       

      (a)
        The Holder shall have the right to convert the Convertible Debenture into
        shares
        of Common Stock at any time following the Convertible Closing Date and before
        the close of business on the Convertible Maturity Date. The number of shares
        of
        Common Stock issuable upon the conversion of the Convertible Debenture shall
        be
        determined pursuant to Section 4.4, but the number of shares issuable shall
        be
        rounded up to the nearest whole share. 

       

      (b)
        The Holder may convert the Convertible Debenture in whole or in part, at
        any
        time and from time to time. 

       

      (c)
        In the event all or any portion of the Convertible Debenture remains outstanding
        on the Convertible Maturity Date (the "Debenture Residual Amount"), the
        unconverted portion of such Convertible Debenture will automatically be
        converted into shares of Common Stock on such date in the manner set forth
        in
        Section 4.4. 

       

      Section
        4.4 Conversion Procedure. 

       

      (a)
        The Holder may elect to convert the Residual Amount in whole or in part any
        time
        and from time to time following the Convertible Closing Date. Such conversion
        shall be effectuated by providing the Company, or its attorney, with that
        portion of the Convertible Debenture to be converted together with a facsimile
        or electronic mail of the signed notice of conversion (the "Notice of
        Conversion"). The date on which the Notice of Conversion is effective
        (“Conversion Date”) shall be deemed to be the date on which the Holder has
        delivered to the Company a facsimile or electronically mailed the Notice
        of
        Conversion. The Holder
        can elect to either reissue the Convertible Debenture, or continually convert
        the existing Debenture. Any Notice of Conversion faxed or electronically
        mailed
        by the Holder to the Company on a particular day shall be deemed to have
        been
        received no later than the previous business day (receipt being via a
        confirmation of the time such facsimile or electronic mail to the Company
        is
        received). 

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (b)
        Common
        Stock to be Issued. Upon
        the
        conversion of any Convertible Debentures by the Holder, the Company shall
        instruct its transfer agent to issue stock certificates without restrictive
        legends or stop transfer instructions, if, at that time, the aforementioned
        registration statement described in Section 4.2 has been declared effective
        (or
        with proper restrictive legends if the registration statement has not as
        yet
        been declared effective), in specified denominations representing the number
        of
        shares of Common Stock issuable upon such conversion. In the event that the
        Debenture is deemed saleable under Rule 144 of the Securities Exchange Act
        of
        1933, the Company shall, upon a Notice of Conversion, instruct the transfer
        agent to issue free trading certificates without restrictive legends, subject
        to
        other applicable securities laws. The Company is responsible to for all costs
        associated with the issuance of the shares, including but not limited to
        the
        opinion letter, FedEx of the certificates and any other costs that arise.
        The
        Company shall act as registrar of the Shares of Common Stock to be issued
        and
        shall maintain an appropriate ledger containing the necessary information
        with
        respect to each Convertible Debenture. The Company warrants that no instructions
        have been given or will be given to the transfer agent which limit, or otherwise
        prevent resale and that the Common Stock shall otherwise be freely resold,
        except as may be set forth herein or subject to applicable law. 

       

      (c)
        Conversion
        Rate.
        The
        Holder is entitled to convert the Debenture Residual Amount, plus accrued
        interest and penalties, anytime following the Convertible Closing Date, at
        the
        lesser of either (i) seventy-five percent (75%) of the lowest closing bid
        price
        during the fifteen (15) trading days immediately preceding the Notice of
        Conversion, or (ii) 100% of the lowest bid price for the twenty (20) trading
        days immediately preceding the Convertible Closing Date (“ Conversion Price”).
        No fractional shares or scrip representing fractions of shares will be issued
        on
        conversion, but the number of shares issuable shall be rounded up to the
        nearest
        whole share. 

       

      (d)
        Nothing contained in the Convertible Debenture shall be deemed to establish
        or
        require the Company to pay interest to the Holder at a rate in excess of
        the
        maximum rate permitted by applicable law. In the event that the rate of interest
        required to be paid exceeds the maximum rate permitted by governing law,
        the
        rate of interest required to be paid thereunder shall be automatically reduced
        to the maximum rate permitted under the governing law and such excess shall
        be
        returned with reasonable promptness by the Holder to the Company. In the
        event
        this Section 4.4(d) applies, the Parties agree that the terms of this Note
        shall
        remain in full force and effect except as is necessary to make the interest
        rate
        comply with applicable law. 

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (e)
        It
        shall be the Company’s responsibility to take all necessary actions and to bear
        all such costs to issue the Common Stock as provided herein, including the
        responsibility and cost for delivery of an opinion letter to the transfer
        agent,
        if so required. The Holder
        shall be treated as a shareholder of record on the date the Company is required
        to issue the Common Stock to the Holder. If prior to the issuance of stock
        certificates, the Holder designates another person as the entity in the name
        of
        which the stock certificates requesting the Convertible Debenture are to
        be
        issued, the Holder shall provide to the Company evidence that either no tax
        shall be due and payable as a result of such transfer or that the applicable
        tax
        has been paid by the Holder or such person. If the Holder converts any part
        of
        the Convertible Debentures, or will be, the Company shall issue to the Holder
        a
        new Convertible Debenture equal to the unconverted amount, immediately upon
        request by the Holder. 

       

      (f)
        Within three (3) business days after receipt of the documentation referred
        to in
        this Section, the Company shall deliver a certificate, for the number of
        shares
        of Common Stock issuable upon the conversion. In the event the Company does
        not
        make delivery of the Common Stock as instructed by Holder within three (3)
        business days after the Conversion Date, the Company shall pay to the Holder
        an
        additional five percent (5%) per day in cash of the full dollar value of
        the
        Debenture Residual Amount then remaining after conversion, compounded daily.
        

       

      (g)
        The
        Company shall at all times reserve (or make alternative written arrangements
        for
        reservation or contribution of shares) and have available all Common Stock
        necessary to meet conversion of the Convertible Debentures by the Holder
        of the
        entire amount of Convertible Debentures then outstanding. If, at any time,
        the
        Holder submits a Notice of Conversion and the Company does not have sufficient
        authorized but unissued shares of Common Stock (or alternative shares of
        Common
        Stock as may be contributed by stockholders of the Company) available to
        effect,
        in full, a conversion of the Convertible Debentures (a “Conversion Default,” the
        date of such default being referred to herein as the “Conversion Default Date”),
        the Company shall issue to the Holder all of the shares of Common Stock which
        are available. Any Convertible Debentures, or any portion thereof, which
        cannot
        be converted due to the Company's lack of sufficient authorized common stock
        (the “Unconverted Debentures”), may be deemed null and void upon written notice
        sent by the Holder to the Company. The Company shall provide notice of such
        Conversion Default (“Notice of Conversion Default”) to the Holder, by facsimile,
        within one (1) business days of such default. 

       

      (h)
        The
        Company agrees to pay the Holder payments for a Conversion Default (“Conversion
        Default Payments”) in the amount of (N/365) multiplied by .24 multiplied by the
        initial issuance price of the outstanding or tendered but not converted
        Convertible Debentures held by the Holder where N = the number of days from
        the
        Conversion Default Date to the date (the “Authorization Date”) that the Company
        authorizes a sufficient number of shares of Common Stock to effect conversion
        of
        all remaining Convertible Debentures. The Company shall send notice
        (“Authorization Notice”) to the Holder that additional shares of Common Stock
        have been authorized, the Authorization Date, and the amount of Holder’s accrued
        Conversion Default Payments. The accrued Conversion Default shall be paid
        in
        cash or shall be convertible into Common Stock at the conversion rate set
        forth
        in the first sentence of this paragraph, upon written notice sent by the
        Holder
        to the Company, which Conversion Default shall be payable as follows: (i)
        in the
        event the Holder elects to take such payment in cash, cash payment shall
        be made
        to the Holder within five (5) business days, or (ii) in the event Holder
        elects
        to take such payment in stock, the Holder may convert at the conversion
        rate set forth in the first sentence of this paragraph until the expiration
        of
        the conversion period. 

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      (i)
        The
        Company acknowledges that its failure to maintain a sufficient number of
        authorized but unissued shares of Common Stock to effect in full a conversion
        of
        the Convertible Debentures in full will cause the Holder to suffer irreparable
        harm, and that the actual damages to the Holder will be difficult to ascertain.
        Accordingly, the parties agree that it is appropriate to include in this
        Agreement a provision for liquidated damages. The Parties acknowledge and
        agree
        that the liquidated damages provision set forth in this section represents
        the
        parties’ good faith effort to quantify such damages and, as such, agree that the
        form and amount of such liquidated damages are reasonable, and under the
        circumstances, do not constitute a penalty. The payment of liquidated damages
        shall not relieve the Company from its obligations to deliver the Common
        Stock
        pursuant to the terms of this Convertible Debenture. 

       

      (j)
        If,
        by the third (3rd) business day after the Conversion Date, any portion of
        the
        shares of the Convertible Debentures have not been delivered to the Holder
        and
        the Holder purchases, in an open market transaction or otherwise, shares
        of
        Common Stock (the "Covering Shares") necessary to make delivery of shares
        which
        would had been delivered if the full amount of the shares to be converted
        had
        been delivered to the Holder, then the Company shall pay to the Holder, in
        addition to any other amounts due to Holder pursuant to this Convertible
        Debenture, and not in lieu thereof, the Buy-In Adjustment Amount (as defined
        below). The "Buy In Adjustment Amount" is the amount equal to the excess,
        if
        any, of (x) the Holder's total purchase price (including brokerage commissions,
        if any) for the Covering Shares minus (y) the net proceeds (after brokerage
        commissions, if any) received by the Holder from the sale of the Sold Shares.
        The Company shall pay the Buy-In Adjustment Amount to the Holder in immediately
        available funds within five (5) business days of written demand by the Holder.
        By way of illustration and not in limitation of the foregoing, if the Holder
        purchases shares of Common Stock having a total purchase price (including
        brokerage commissions) of $11,000 to cover a Buy-In with respect to shares
        of
        Common Stock it sold for net proceeds of $10,000, the Buy-In Adjustment Amount
        which the Company will be required to pay to the Holder will be $1,000.

      

      Article
        5       Additional
        Financing and Registration Statements 

       

      Section
        5.1 The Company will not enter into any additional financing agreements whether
        for debt or equity, without prior expressed written consent from the Holder.
        The
        Company shall be permitted to complete a financing using restricted stock,
        with
        no registration rights, and sellable only under Rule 144 of the 1933 Securities
        Act, as amended. Any monies raised under the financing described herein shall
        be
        included in the calculation of the Threshold Amount as outlined in Section
        1.4

       

      Section
        5.2 The Company agrees that it shall not file any registration statement
        which
        includes any of its Common Stock, including those on Form S-8, until such
        time
        as the Note is paid off in full ("Lock-Up Period") or without the prior written
        consent of the Holder. 

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      Section
        5.3 If, at any time, while this Note is outstanding, the Company issues or
        agrees to issue to any entity or person ("Third Party") for any reason
        whatsoever, any common stock or securities convertible into or exercisable
        for
        shares of common stock (or modify any such terms in effect prior to the
        execution of this Note) (a "Third Party Financing"), at terms deemed by the
        Holder to be more favorable to the Third Party, then the Company grants to
        the
        Holder the right, at the Holder's election, to modify the terms of this Note
        to
        match or conform to the more favorable term or terms of the Third Party
        Financing. The rights of the Holder in this Section 5.3 are in addition to
        all
        other rights the Holder has pursuant to this Note and the Security Agreement
        between the Holder and the Company. 

       

      Section
        5.4 During the period of time that this Note is in force, the Company's shall
        use it's commercially reasonable best efforts, for its officers, insiders,
        affiliates or other related parties shall refrain from selling any Stock,
        with
        the exception of private transactions. 

       

      Violation
        of any Section under this Article 5 will result in an Event of Default and
        the
        Holder may elect to take the action or actions outlined in Article 4.

       

      Article
        6       Notice.
        

       

      Section
        6.1 Any notices, consents, waivers or other communications required or permitted
        to be given under the terms of this Note must be in writing and will be deemed
        to have been delivered (i) upon delivery, when delivered personally; (ii)
        upon
        receipt, when sent by facsimile (provided a confirmation of transmission
        is
        mechanically or electronically generated and kept on file by the sending
        party);
        or (iii) one (1) day after deposit with a nationally recognized overnight
        delivery service, so long as it is properly addressed. The addresses and
        facsimile numbers for such communications shall be: 

       

      If
        to the
        Company: 

       

      Joel
        Sens

      Seawright
        Holdings 

      600
        Cameron St 

      Alexandria,
        VA 22314 

      Telephone:
        703-340-1629 

      Facsimile:
        703-576-9888 

       

      With
        copy
        to: 

       

      If
        to the
        Holder: 

       

      Dutchess
        Capital Management, LLC 

      Douglas
        Leighton 

      50
        Commonwealth Ave, Suite 2 

      Boston,
        MA 02116 

      (617)
        301-4700 

      (617)
        249-0947 

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      
 

      Section
        6.2 The Parties are required to provide each other with five (5) business
        days
        prior notice to the other party of any change in address, phone number or
        facsimile number. 

       

      Article
        7      
        Time 

       

      Where
        this Note authorizes or requires the payment of money or the performance
        of a
        condition or obligation on a Saturday or Sunday or a holiday on which the
        United
        States Stock Markets (“US Markets”) are closed (“Holiday”), such payment shall
        be made or condition or obligation performed on the last business day preceding
        such Saturday, Sunday or Holiday. A “business day” shall mean a day on which the
        US Markets are open for a full day or half day of trading. 

       

      Article
        8       No
        Assignment. 

       

      This
        Note
        and the obligations hereunder shall not be assigned, except as otherwise
        provided herein. 

       

      Article
        9       Rules
        of
        Construction. 

       

      In
        this
        Note, unless the context otherwise requires, words in the singular number
        include the plural, and in the plural include the singular, and words of
        the
        masculine gender include the feminine and the neuter, and when the tense
        so
        indicates, words of the neuter gender may refer to any gender. The numbers
        and
        titles of sections contained in the Note are inserted for convenience of
        reference only, and they neither form a part of this Note nor are they to
        be
        used in the construction or interpretation hereof. Wherever, in this Note,
        a
        determination of the Company is required or allowed, such determination shall
        be
        made by a majority of the Board of Directors of the Company and, if it is
        made
        in good faith, it shall be conclusive and binding upon the Company.

       

      Article
        10      
        Governing Law 

       

      The
        validity, terms, performance and enforcement of this Note shall be governed
        and
        construed by the provisions hereof and in accordance with the laws of the
        Commonwealth of Massachusetts applicable to agreements that are negotiated,
        executed, delivered and performed solely in the Commonwealth of Massachusetts.
        

       

      Article
        11       Disputes
        Subject to Arbitration 

       

      The
        parties to this Note will submit all disputes arising under it to arbitration
        in
        Boston, Massachusetts before a single arbitrator of the American Arbitration
        Association (“AAA”). The arbitrator shall be selected by application of the
        rules of the AAA, or by mutual agreement of the parties, except that such
        arbitrator shall be an attorney admitted to practice law in the Commonwealth
        of
        Massachusetts. No party to this agreement will challenge the jurisdiction
        or
        venue provisions as provided in this section. Nothing in this section shall
        limit the Holder's right to obtain an injunction for a breach of this Agreement
        from a court of law. 

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      Article
        12       Conditions
        to Closing 

       

      The
        Company shall have delivered the proper Collateral to the Holder before Closing
        of this Note. 

       

      Article
        13      
        Closing Costs 

       

      The
        Company agrees to pay for related expenses associated with the proposed
        transaction of $15,000. This amount shall cover, but is not limited to, the
        following: due diligence expenses, UCC-1 filing fees, document creation
        expenses, closing costs, and transaction administration expenses. All such
        structuring and administration expenses shall be deducted from the first
        closing. 

       

      Article
        14      
        Indemnification 

       

      In
        consideration of the Holder's execution and delivery of this Agreement and
        the
        acquisition and funding by the Holder of this Note and in addition to all
        of the
        Company's other obligations under the documents contemplated hereby, the
        Company
        shall defend, protect, indemnify and hold harmless the Holder and all of
        its
        shareholders, officers, directors, employees, counsel, and direct or indirect
        investors and any of the foregoing person's agents or other representatives
        (including, without limitation, those retained in connection with the
        transactions contemplated by this Agreement) (collectively, the "Indemnities")
        from and against any and all actions, causes of action, suits, claims, losses,
        costs, penalties, fees, liabilities and damages, and expenses in connection
        therewith (irrespective of whether any such Indemnitee is a party to the
        action
        for which indemnification hereunder is sought), and including, without
        limitation, reasonable attorneys' fees and disbursements (the “Indemnified
        Liabilities"), incurred by any Indemnitee as a result of, or arising out
        of, or
        relating to (i) any misrepresentation or breach of any representation or
        warranty made by the Company in the Note, or any other certificate, instrument
        or document contemplated hereby or thereby (ii) any breach of any covenant,
        agreement or obligation of the Company contained in the Note or any other
        certificate, instrument or document contemplated hereby or thereby, except
        insofar as any such misrepresentation, breach or any untrue statement, alleged
        untrue statement, omission or alleged omission is made in reliance upon and
        in
        conformity with written information furnished to the Company by, or on behalf
        of, the Holder or is based on illegal trading of the Common Stock by the
        Holder.
        To the extent that the foregoing undertaking by the Company may be unenforceable
        for any reason, the Company shall make the maximum contribution to the payment
        and satisfaction of each of the Indemnified Liabilities that is permissible
        under applicable law. The indemnity provisions contained herein shall be
        in
        addition to any cause of action or similar rights the Holder may have, and
        any
        liabilities the Holder may be subject to. 

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      Article
        15       Incentive
        Shares 

       

      In
        the
        event the Company has not paid the Face Amount of the Note in full on September
        18, 2007, the Company shall issue forty thousand (40,000) shares of
        unregistered, restricted Common Stock to the Holder as an incentive for the
        investment (“Incentive Shares”). The Incentive Shares shall be issued and
        delivered within two (2) days to the Holder. The Company's failure to issue
        the
        Incentive Shares constitutes an Event of Default and the Holder may elect
        to
        enforce the remedies outlined in Article 4. The Company's obligation to provide
        the Holder with the Incentive Shares, as set forth herein, shall survive
        the
        operation of the Agreement and any default on this obligation shall provide
        the
        Holder with all rights, remedies and default provisions set forth in this
        Note,
        or otherwise available by law. It shall be the Company’s responsibility to take
        all necessary actions and to bear all such costs to issue the Common Stock
        as
        provided herein, including the responsibility and cost for delivery of an
        opinion letter to the transfer agent, if so required. 

       

      Article
        16       Use
        of
        Proceeds 

       

      The
        Company shall use the funds for general corporate purposes. 

      Article
        17       Waiver
        

       

      The
        Holder's delay or failure at any time or times hereafter to require strict
        performance by Company of any obligations, undertakings, agreements or covenants
        shall not waive, affect, or diminish any right of the Holder under this Note
        to
        demand strict compliance and performance herewith. Any waiver by the Holder
        of
        any Event of Default shall not waive or affect any other Event of Default,
        whether such Event of Default is prior or subsequent thereto and whether
        of the
        same or a different type. None of the undertakings, agreements and covenants
        of
        the Company contained in this Note, and no Event of Default, shall be deemed
        to
        have been waived by the Holder, nor may this Note be amended, changed or
        modified, unless such waiver, amendment, change or modification is evidenced
        by
        a separate instrument in writing specifying such waiver, amendment, change
        or
        modification and signed by the Holder. 

       

      Article
        18       Senior
        Obligation 

       

      The
        Company shall cause this Note to be senior in right of payment to all other
        current or future debt of the Company. The Company warrants that it has taken
        all necessary steps to subordinate its other obligations to the rights of
        the
        Holder in this Note. 

       

      Article
        19       Transactions
        With Affiliates 

       

      The
        Company shall not, and shall cause each of its Subsidiaries to not enter
        into,
        amend, modify or supplement, or permit any Subsidiary to enter into, amend,
        modify or supplement, any agreement, transaction, commitment or arrangement
        with
        any of its or any Subsidiary's officers, directors, persons who were officers
        or
        directors at any time during the previous two years, shareholders who
        beneficially own five percent (5%) or more of the Common Stock, or affiliates
        or
        with any individual related by blood, marriage or adoption to any such
        individual or with any entity in which any such entity or individual owns
        a five
        percent (5%) or more beneficial interest (each a “Related Party”) during the
        Lock Up Period. 

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      Article
        20       Equity
        Line Obligations 

       

      The
        Company shall immediately prepare and file a registration statement for the
        registration of shares under the Equity Line within forty-five (45) days
        from
        the Issuance Date of this Note for the maximum amount allowed under Rule
        415.
        The Company shall respond to any and all SEC comments or correspondence,
        whether
        written or oral, direct or indirect, formal or informal ("Comments"), within
        ten
        (10) business days of receipt by the Company of such Comments. The Company
        shall
        cause the Registration Statement relating to the Registrable Securities to
        become effective no later than a) ninety (90) days from the Issuance Date
        or b)
        two (2)
        business days after notice from the SEC that the Registration Statement has
        been
        cleared of all comments. Failure to do any action outlined in this Article
        will
        result in an Event of Default and the Holder may seek to take actions as
        outlined in Article 4. 

       

      Article
        21      
        Security 

       

      The
        Holder shall have full right to exercise the Security Agreement between the
        Company and the Holder of this date (“Security Agreement”) and the Secured
        Continuing Unconditional Guaranty between Joel Patrick Sens and the Holder
        of
        this date (“Guaranty”). 

       

      Article
        22      
        Miscellaneous 

       

      Section
        22.1 This Note may be executed in two or more counterparts, all of which
        taken
        together shall constitute one instrument. Execution and delivery of this
        Note by
        exchange of facsimile copies bearing the facsimile signature of a party shall
        constitute a valid and binding execution and delivery of this Note by such
        party. Such facsimile copies shall constitute enforceable original documents.
        

       

      Section
        22.2 The Company warrants that the execution, delivery and performance of
        this
        Note by the Company and the consummation by the Company of the transactions
        contemplated hereby and thereby will not (i) result in a violation of the
        Articles of Incorporation, any Certificate of Designations, Preferences and
        Rights of any outstanding series of preferred stock of the Company or the
        By-laws or (ii) conflict with, or constitute a material default (or an event
        which with notice or lapse of time or both would become a material default)
        under, or give to others any rights of termination, amendment, acceleration
        or
        cancellation of, any material agreement, contract, indenture mortgage,
        indebtedness or instrument to which the Company or any of its Subsidiaries
        is a
        party, or result in a violation of any law, rule, regulation, order, judgment
        or
        decree, including United States federal and state securities laws and
        regulations and the rules and regulations of the principal securities exchange
        or trading market on which the Common Stock is traded or listed (the “Principal
        Market”), applicable to the Company or any of its Subsidiaries or by which any
        property or asset of the Company or any of its Subsidiaries is bound or
        affected. Neither the Company nor its Subsidiaries is in violation of any
        term
        of, or in default under, the Articles of Incorporation, any Certificate of
        Designations, Preferences and Rights of any outstanding series of preferred
        stock of the Company or the Bylaws or their organizational charter or by-laws,
        respectively, or any contract, agreement, mortgage, indebtedness, indenture,
        instrument, judgment, decree or order or any statute, rule or regulation
        applicable to the Company or its Subsidiaries, except for possible conflicts,
        defaults, terminations, amendments, accelerations, cancellations and violations
        that would not individually or in the aggregate have a Material Adverse Effect
        as defined below. The business of the Company and its Subsidiaries is not
        being
        conducted, and shall not be conducted, in violation of any law, statute,
        ordinance, rule, order or regulation of any governmental authority or agency,
        regulatory or self-regulatory agency, or court, except for possible violations
        the sanctions for which either individually or in the aggregate would not
        have a
        Material Adverse Effect. The Company is not required to obtain any consent,
        authorization, permit or order of, or make any filing or registration (except
        the filing of a registration statement) with, any court, governmental authority
        or agency, regulatory or self-regulatory agency or other third party in order
        for it to execute, deliver or perform any of its obligations under, or
        contemplated by, this Note in accordance with the terms hereof or thereof.
        All
        consents, authorizations, permits, orders, filings and registrations which
        the
        Company is required to obtain pursuant to the preceding sentence have been
        obtained or effected on or prior to the date hereof and are in full force
        and
        effect as of the date hereof. The Company and its Subsidiaries are unaware
        of
        any facts or circumstances which might give rise to any of the foregoing.
        The
        Company is not, and will not be, in violation of the listing requirements
        of the
        Principal Market as in effect on the date hereof and on each of the Closing
        Dates and is not aware of any facts which would lead to delisting of the
        Common
        Stock by the Principal Market. 

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      Section
        22.3 The Company and its “Subsidiaries” (which for purposes of this Note means
        any entity in which the Company, directly or indirectly, owns capital stock
        or
        holds an equity or similar interest) are corporations duly organized and
        validly
        existing in good standing under the laws of the respective jurisdictions
        of
        their incorporation, and have the requisite corporate power and authorization
        to
        own their properties and to carry on their business as now being conducted.
        Both
        the Company and its Subsidiaries are duly qualified to do business and are
        in
        good standing in every jurisdiction in which their ownership of property
        or the
        nature of the business conducted by them makes such qualification necessary,
        except to the extent that the failure to be so qualified or be in good standing
        would not have a Material Adverse Effect. As used in this Note, “Material
        Adverse Effect” means any material adverse effect on the business, properties,
        assets, operations, results of operations, financial condition or prospects
        of
        the Company and its Subsidiaries, if any, taken as a whole, or on the
        transactions contemplated hereby or by the agreements and instruments to
        be
        entered into in connection herewith, or on the authority or ability of the
        Company to perform its obligations under the Note. 

       

      Section
        22.4 Authorization; Enforcement; Compliance with Other Instruments. (i)
        The
        Company has the requisite corporate power and authority to enter into and
        perform its obligations under this Note, and to issue this Note and Incentive
        Shares in accordance with the terms hereof and thereof, (ii) the execution
        and
        delivery of this Note by the Company and the consummation by it of the
        transactions contemplated hereby and thereby, including without limitation
        the
        reservation for issuance and the issuance of the Incentive Shares pursuant
        to
        this Note, have been duly and validly authorized by the Company's Board of
        Directors and no further consent or authorization is required by the Company,
        its Board of Directors, or its shareholders, (iii) this Note has been duly
        and
        validly executed and delivered by the Company, and (iv) the Note constitutes
        the
        valid and binding obligations of the Company enforceable against the Company
        in
        accordance with their terms, except as such enforceability may be limited
        by
        general principles of equity or applicable bankruptcy, insolvency,
        reorganization, moratorium, liquidation or similar laws relating to, or
        affecting generally, the enforcement of creditors' rights and remedies.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      Section
        22.5 The execution and delivery of this Note shall not alter the prior written
        agreements between the Company and the Holder. This Note is the FINAL AGREEMENT
        between the Company and the Holder with respect to the terms and conditions
        set
        forth herein, and, the terms of this Note may not be contradicted by evidence
        of
        prior, contemporaneous, or subsequent oral agreements of the Parties. The
        execution and delivery of this Note is done in conjunction with the execution
        of
        the Security Agreement, as defined in Article 21. 

       

      Section
        22.6 There are no disagreements of any kind presently existing, or reasonably
        anticipated by the Company to arise, between the Company and the accountants,
        auditors and lawyers formerly or presently used by the Company, including
        but
        not limited to disputes or conflicts over payment owed to such accountants,
        auditors or lawyers. 

       

      Section
        22.7 All representations made by or relating to the Company of a historical
        nature and all undertakings described herein shall relate and refer to the
        Company, its predecessors, and the Subsidiaries. 

       

      Section
        22.8 The only officer, director, employee and consultant stock option or
        stock
        incentive plan currently in effect or contemplated by the Company has been
        submitted to the Holder or is described or within past filings with the United
        States Securities and Exchange Commission. The Company aggress not to initiate
        or institute any such plan or to issue stock options. 

       

      Section
        22.9 The Company acknowledges that its failure to timely meet any of its
        obligations hereunder, including, but without limitation, its obligations
        to
        make Payments, deliver shares and, as necessary, to register and maintain
        sufficient number of Shares, will cause the Holder to suffer irreparable
        harm
        and that the actual damage to the Holder will be difficult to ascertain.
        Accordingly, the parties agree that it is appropriate to include in this
        Note a
        provision for liquidated damages. The parties acknowledge and agree that
        the
        liquidated damages provision set forth in this section represents the parties’
good faith effort to quantify such damages and, as such, agree that the form
        and
        amount of such liquidated damages are reasonable and do not constitute a
        penalty. The payment of liquidated damages shall not relieve the Company
        from
        its obligations to deliver the Common Stock pursuant to the terms of this
        Note.

       

      Section
        22.10 In the event that any rules, regulations, interpretations or comments
        from
        the SEC or other governing body, hinder any operation of this Agreement or
        the
        underlying Transaction Documents dated September 12, 2005 the Parties hereby
        agree that those specific terms and conditions shall be negotiated on similar
        terms within five (5) business days, and shall not alter, diminish or affect
        any
        other rights, duties or covenants in this Note and that all terms and conditions
        will remain in full force and effect except as is necessary to make those
        specific terms and conditions comply with applicable rule, regulation,
        interpretation or Comment. Failure for the Company to agree to such new terms,
        shall constitute and Event of Default herein, as outlined in Article 4, and
        the
        Holder may elect to take actions as outlined in the Note. 

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      Article
        23       Acknowledgements
        of the Parties.
        

       

      Notwithstanding
        anything in this Debenture to the contrary, the parties hereto hereby
        acknowledge and agree to the following: (i) the Holder makes no representations
        or covenants that it will not engage in trading in the securities of the
        Company; (ii) the Company shall, by 

      8:30
        a.m.
        Boston Time on the trading day following the date hereof, file a current
        report
        on Form 8-K disclosing the material terms of the transactions contemplated
        hereby and in the other Transaction Documents; (iii) the Company has not
        and
        shall not provide material non-public information to the Holder unless prior
        thereto the Holder shall have executed a written agreement regarding the
        confidentiality and use of such information; and (iv) the Company understands
        and confirms that the Holder will be relying on the acknowledgements set
        forth
        in clauses (i) through 

      (iii)
        above if the Holder effects any transactions in the securities of the Company.
        

       

      *.*
        *

       

      [BALANCE
        OF PAGE LEFT BLANK INTENTIONALLY] 

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      Any
        misrepresentations shall be considered a breach of contract and an Event
        of
        Default under this Agreement and the Holder may seek to take actions as
        described under Article 4 of this Agreement. 

       

      IN
        WITNESS WHEREOF, the Company has duly executed this Note as of the date first
        written above. 

       

      SEAWRIGHT
        HOLDINGS, INC. 

       

      By
/s/
        Joel P. Sens                

      Name:
        Joel P. Sens 

      Title:
        Chief Executive Officer 

       

      DUTCHESS
        PRIVATE EQUITIES FUND, LTD. 

       

      By:
        /s/ Douglas H. Leighton            

      Name:
        Douglas H. Leighton 

      Title:
        Director 

       

      17

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