Document:

Exhibit
      10.14

     

    RIGHT
      OF FIRST REFUSAL AND

     

    CORPORATE
      OPPORTUNITIES AGREEMENT

     

    This
      Right of First Refusal and Corporate Opportunities Agreement (this “Agreement”)
      is made as of ___________, 2007 by and between Hambrecht Asia Acquisition Corp.,
      a Cayman Islands company (the “Company”) and ___________ (the “Granting
      Company”) in connection with the Company’s proposed initial public offering (the
“IPO”) of units in the United States pursuant to a registration statement on
      Form F-1 (as amended, the “Registration Statement”), filed by the Company with
      the Securities and Exchange Commission.

     

    WHEREAS,
      the Company and the Granting Company share certain officers and directors;
      and

     

    WHEREAS,
      each of the Company and the Granting Company may be seeking business
      opportunities in the People’s Republic of China, and the parties desire to enter
      into this Agreement to clarify the business opportunities for which each party
      shall have the right of first refusal.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements as set forth
      herein, and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties hereto agree as
      follows:

     

    1.    Right
      of First Refusal.

     

    a. Grant
      of Right.
      For the
      term specified in Section 2 hereof, the Granting Company agrees to grant to
      the
      Company (i) in its certificate of incorporation or equivalent document or (ii)
      by action of its board of directors and/or shareholders, as applicable, a right
      of first refusal to any corporate opportunities belonging to it that concern
      a
      Business Combination (as defined herein). Decisions by the Company to release
      the Granting Company to pursue any corporate opportunity concerning a Business
      Combination will be made by a majority of the Company’s disinterested
      directors.

     

    b. Scope
      of Right
      . As
      used herein, the term “Business Combination” shall
      mean an acquisition by the Company, by merger, stock exchange, asset
      acquisition, reorganization or similar business combination, or control through
      contractual arrangements, of an operating business or businesses in the People’s
      Republic of China
      (each a
“Target”). Notwithstanding the above, the term “Business Combination” shall not
      include any company with respect to which the Granting Company has initiated
      any
      contacts or entered into any discussions, formal or informal, or negotiations
      regarding a company being acquired by the Granting Company prior to the
      consummation of the Company’s IPO.

     

    c. General.
      Any
      directors, officers or employees of the Granting Company that shall become
      aware
      of a corporate opportunity relating to a Target shall provide written notice
      of
      the opportunity to the Company within five (5) business days of its
      identification of the corporate opportunity. The Granting Company further agrees
      that it will not enter into any agreement to purchase or invest in a Target
      until the Company has had a reasonable period of time to determine whether
      or
      not to pursue the opportunity.

     

    2.    Term.
      This
      Agreement shall become effective upon execution and shall remain in effect
      for a
      period expiring upon the earlier of: (i) the consummation by the Company of
      a
      Business Combination or (ii) the Company’s dissolution and liquidation, each in
      the circumstances and in the manner described in the Registration Statement
      (the
“Term”).

     

    3.    Notices.
      All
      notices or communications hereunder shall be in writing, addressed as
      follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    To
      the
      Company:

     

    Hambrecht
      Asia Acquisition Corp.

    13/F
      Tower 2

    New
      World
      Tower

    18
      Queens
      Road Central

    Hong
      Kong

    Attn:
      John Wang, Chief Executive Officer

     

    with
      a
      copy to:

     

    Mitchell
      Nussbaum

    Loeb
      & Loeb LLP

    345
      Park
      Avenue

    New
      York,
      New York 10154

     

    If
      to the
      Granting Company

     

    [contact
      information]

     

    with
      a
      copy to:

     

    [contact
      information]

     

    4.    Headings.
      The
      headings contained herein are for the sole purpose of convenience of reference,
      and shall not in any way limit or affect the meaning or interpretation of any
      of
      the terms or provisions of this Agreement.

     

    5.    Severability.
      If any
      provision of this Agreement shall be declared to be invalid or unenforceable,
      in
      whole or in part, such invalidity or unenforceability shall not affect the
      remaining provisions hereof, which shall remain in full force and
      effect.

     

    6.    Amendment.
      This
      Agreement may only be amended by a written instrument executed by each of the
      parties hereto. Notwithstanding the foregoing, this Agreement may not be amended
      to provide for its termination prior to the expiration of the Term without
      the
      approval of the affirmative vote of a majority of the Company’s outstanding
      Common Stock.

     

    7.    Entire
      Agreement.
      This
      Agreement (together with the other agreements and documents being delivered
      pursuant to or in connection with this Agreement) constitute the entire
      agreement of the parties hereto with respect to the subject matter hereof and
      thereof, and supersede all prior agreements and understandings of the parties,
      oral and written, with respect to the subject matter hereof.

     

    8.    Governing
      Law, Venue, etc.

     

    a. This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of New York, without giving effect to the conflict of laws
      principles thereof. The parties: (i) agree that any legal suit, action or
      proceeding arising out of or relating to this agreement and/or the transactions
      contemplated hereby shall be instituted exclusively in New York Supreme Court,
      County of New York, or in the United States District Court for the Southern
      District of New York, (ii) waive any objection which such party may have now
      or
      hereafter to the venue of any such suit, action or proceeding and (iii)
      irrevocably and exclusively consent to the jurisdiction of the New York Supreme
      Court, County of New York, and the United States District Court for the Southern
      District of New York in any such suit, action or proceeding arising out of
      this
      Agreement.

    
       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

    

    b. The
      parties further agree to accept and acknowledge service of any and all process
      which may be served in any such suit, action or proceeding in the New York
      Supreme Court, County of New York, or in the United States District Court for
      the Southern District of New York and agrees service of process upon the Company
      mailed by certified mail to the Company’s address shall be deemed in every
      respect effective service of process upon the Company in any such suit, action
      or proceeding, and service of process upon mailed by certified mail to the
      Granting Company addresses shall be deemed in every respect effective service
      process upon the parties, in any such suit, action or proceeding arising out
      of
      this Agreement.

     

    c. THE
      PARTIES HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED
      UPON, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS
      CONTEMPLATED BY THIS AGREEMENT.

     

    9.    Execution
      in Counterparts.
      This
      Agreement may be executed in one or more counterparts, and by the different
      parties hereto in separate counterparts, each of which shall be deemed to be
      an
      original, but all of which taken together shall constitute one and the same
      agreement, and shall become effective when one or more counterparts has been
      signed by each of the parties hereto and delivered to each of the other parties
      hereto. Delivery of a signed counterpart of this Agreement by fax or email/.pdf
      transmission shall constitute valid and sufficient delivery
      thereof.

     

    10.    Waiver,
      etc.
      The
      failure of any of the parties hereto to at any time enforce any of the
      provisions of this Agreement shall not be deemed or construed to be a waiver
      of
      any such provision, nor to in any way effect the validity of this Agreement
      or
      any provision hereof or the right of any of the parties hereto to thereafter
      enforce each and every provision of this Agreement. No waiver of any breach,
      non-compliance or non-fulfillment of any of the provisions of this Agreement
      shall be effective unless set forth in a written instrument executed by the
      party or parties against whom or which enforcement of such waiver is sought;
      and
      no waiver of any such breach, non-compliance or non-fulfillment shall be
      construed or deemed to be a waiver of any other or subsequent breach,
      non-compliance or non-fulfillment.

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      first specified above.

    
      	 	 	 
	 	HAMBRECHT
              ASIA
              ACQUISITION CORP.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

    
      	 	 	 
	 	[NAME]
	 	 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      
        
        

      

      
        3SUBSCRIPTION
      AND STANDBY COMMITMENT AGREEMENT

     

    This
      Subscription and Standby Commitment Agreement (this “Agreement”),
      dated
      as of September [__], 2007, is entered into by and among MangoSoft, Inc., a
      Nevada corporation (the “Company”),
      and
      the persons listed on Schedule
      A
      hereto
      (collectively, the “Purchasers,”
and
      individually, a “Purchaser”).

     

    PRELIMINARY
      STATEMENTS

     

    A. The
      Company proposes to consummate a rights offering (the “Rights
      Offering”)
      pursuant to which the Company will extend to each holder of record of shares
      of
      its common stock, par value $0.001 per share (the “Common
      Stock”),
      as of
      the close of business on [_________ __], 2007 (the “Record
      Date”)
      (such
      holders of record, which include the Purchasers, being herein referred to as
      the
“Offerees”),
      [___]
      of a right, for each share of Common Stock held by such Offeree as of the Record
      Date, to purchase one share of Common Stock at a purchase price of $.50 per
      share, for an aggregate purchase price of $1,200,000. Each Offeree who elects
      to
      exercise such rights in full may also oversubscribe for additional shares of
      Common Stock at the same subscription price per share in an amount up to the
      greater of (a) 50% of the number of full rights received by such Offeree or
      (b)
      100 shares of Common Stock. 

     

    B. The
      Purchasers hold for their own account, directly and through banks, brokers
      and
      other nominees, in aggregate, 2,210,150 shares of Common Stock and accordingly,
      will be extended rights in the Rights Offering to purchase for their own account
      up to an aggregate of [____] shares of Common Stock. 

     

    C. To
      assure
      the sale of all of the shares of Common Stock in the Rights Offering, the
      Purchasers desire, concurrently with the consummation of the Rights Offering,
      to
      (i) exercise in full their basic subscription privileges and (ii) subscribe
      for
      and purchase the difference between 2,400,000 shares of Common Stock and the
      number of shares of Common Stock subscribed for and purchased pursuant to the
      Rights Offering, all as more particularly set forth herein.

     

    STATEMENT
      OF AGREEMENT

     

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

     

    1. Basic
      Commitment. Subject
      to the terms and conditions hereof, each of the Purchasers agrees to exercise
      in
      full its basic subscription privileges to purchase shares of Common Stock in
      the
      Rights Offering (the “Basic
      Shares”)
      at the
      Offering Price (the “Basic
      Commitment”).
      As
      used herein, “Offering
      Price”
shall
      mean the per share purchase price for shares of Common Stock offered in the
      Rights Offering.

     

    2. Standby
      Commitment.

     

    (a) Each
      of
      the Purchasers agrees that, to the extent that 2,400,000 shares of Common Stock
      are not subscribed for and purchased in the Rights Offering, and subject to
      the
      terms and conditions hereof, it will purchase from the Company for cash at
      the
      Offering Price the number of shares of Common Stock (the “Standby
      Shares”
and
      together with the Basic Shares, the “Shares”)
      equal
      to its Pro Rata Portion (as defined below) of the difference between 2,400,000
      shares of Common Stock and the aggregate number of shares of Common Stock
      subscribed for and purchased in the Rights Offering (the “Standby
      Commitment”
and
      together with the Basic Commitment, the “Commitment”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) To
      the
      extent that any Purchaser defaults (a “Defaulting
      Purchaser”)
      in the
      performance of its Standby Commitment hereunder, each other Purchaser shall
      have
      the right to purchase from the Company, in such Purchaser’s sole discretion and
      subject to the terms and conditions hereof, for cash at the Offering Price
      an
      amount of shares of Common Stock up to its Non-Defaulting Pro Rata Portion
      (as
      defined below) of all the shares of Common Stock that such Defaulting Purchaser
      would have been obligated to purchase pursuant to its Standby Commitment
      hereunder but did not purchase (the “Defaulted
      Shares”).
      The
      Company shall provide written notice to the non-Defaulting Purchasers of the
      amount of Defaulted Shares within 2 business days following the failure of
      the
      Defaulting Purchaser to purchase the Defaulted Shares pursuant to the terms
      and
      conditions hereof. Each Purchaser shall have the right to purchase up to its
      Non-Defaulting Pro Rata Portion of such Defaulted Shares at the Offering Price
      by providing written notice to the Company within 2 business days of receipt
      of
      notice of Defaulted Shares by the Company specifying the number of Defaulted
      Shares it elects to purchase pursuant to this Section 2(b). The closing of
      any
      such sale to a non-Defaulting Purchaser shall occur two business days after
      the
      Company’s receipt of such notice from such non-Defaulting Purchaser.

     

    (c) As
      used
      in a provision herein, a Purchaser’s “Pro
      Rata Portion”
shall
      mean the percentage of the Standby Shares set forth opposite each Purchaser’s
      name in Schedule
      A
      hereto.
      As used in a provision herein, a Purchaser’s “Non-Defaulting
      Pro Rata Portion”
shall
      mean the quotient determined by dividing the Pro Rata Portion of such
      Non-Defaulting Investor by the aggregate Pro Rata Portions owned by all
      Non-Defaulting Investors electing to exercise their Default Purchase Right.
      In
      each case, the number of shares of Common Stock constituting a Purchaser’s Pro
      Rata Portion shall be rounded to the nearest whole share and shall otherwise
      be
      equitably adjusted for fractional shares such that the total number of shares
      to
      be issued by the Company pursuant to the Rights Offering and the Standby
      Commitment, assuming full performance of the Standby Commitment by the
      Purchasers, is 2,400,000. 

     

    (d) Subject
      to the terms and conditions set forth in this Agreement, and as described above,
      the Company agrees to transfer and sell to the Purchasers, and the Purchasers
      agree to purchase (on a several but not joint basis) from the Company, the
      Shares.

     

    (e) Without
      the prior written consent of the Purchasers, the per share purchase price for
      all shares of Common Stock offered and sold in the Rights Offering, including
      all Standby Shares offered and sold to the Purchasers, shall not exceed $.50
      and
      the aggregate gross purchase price for all shares of Common Stock offered and
      sold in the Rights Offering, including all Shares offered and sold to the
      Purchasers, shall not exceed $1,200,000. 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (f) As
      soon
      as practicable following the expiration of the exercise period of the Rights
      Offering (as the same may be extended) and promptly following its determination
      of the number of shares of Common Stock validly subscribed for in accordance
      with the terms of the Rights Offering, the Company shall notify the Purchasers
      in writing of the number of Standby Shares, if any, to be purchased by the
      Purchasers pursuant to the Standby Commitment.

     

    (g) The
      Company will pay all of its expenses associated with the Rights Offering,
      including, without limitation, filing and printing fees, fees and expenses
      of
      any subscription and information agents, its counsel and accounting fees and
      expenses, costs associated with clearing the Shares for sale under applicable
      state securities laws and listing fees.

     

    (h) All
      Shares will be delivered with any and all issue, stamp, transfer, sales and
      use,
      or similar taxes or duties payable in connection with such delivery duly paid
      by
      the Company.

     

    3. Closing;
      Payment of Purchase Price and Fees.

     

    (a) The
      delivery of and payment for the Standby Shares, if any, shall take place at
      the
      offices of Zuckerman Gore & Brandeis, LLP, 875 Third Avenue, New York, New
      York 10022 on the second business day following the satisfaction and/or waiver
      of all of the conditions set forth herein (other than such conditions by their
      nature to be satisfied at consummation) or at such other place and time as
      is
      mutually agreed to in writing by the parties hereto (the “Closing”
and
      such date, the “Closing
      Date”).
      

     

    (b) On
      the
      Closing Date the Company shall deliver to each Purchaser the
      following:

     

    (i) stock
      certificates representing the Standby Shares purchased by such Purchaser
      hereunder, in the denominations and registered in the name of such Purchaser
      or,
      subject to the restrictions set forth herein, such other affiliates of such
      Purchaser, as designated in writing by such Purchaser not later than five (5)
      business days prior to the Closing Date;

     

    (ii) a
      certificate, dated as of the Closing Date, executed by an officer of the Company
      certifying as to the fulfillment of the closing conditions specified in Sections
      9(a)(i) and 9(a)(ii); 

     

    (iii) a
      certificate, dated as of the Closing Date, and signed by a secretary or
      assistant secretary of the Company as to (x) the Company’s organizational
      documents and (y) resolutions of the board of directors (or committee thereof)
      authorizing the execution and delivery of this Agreement and the consummation
      and performance of the transactions contemplated hereby; 

     

    (iv) a
      written
      opinion of the Company’s counsel, dated as of the Closing Date, addressed to the
      Purchasers in a form reasonably acceptable to the Purchasers as to the matters
      set forth in Exhibit
      A
      hereto;
      and

     

    (v) such
      other written instruments or documentation as may be reasonably necessary or
      appropriate in order to document the satisfaction or waiver of the applicable
      closing conditions set forth in Section 9 and as reasonably requested by the
      Purchasers. 

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (c) On
      the
      Closing Date each of the Purchasers shall deliver to the Company the
      following:

     

    (i) such
      Purchaser’s purchase price for the Standby Shares by wire transfer of
      immediately available funds to an account designated by the Company;

     

    (ii) a
      certificate, dated as of the Closing Date, executed by an officer of the
      Purchaser certifying as to the fulfillment of the closing conditions specified
      in Section 9(b)(i) and 9(b)(ii); and

     

    (iii) such
      other written instruments or documentation as may be reasonably necessary or
      appropriate in order to document the satisfaction or waiver of the applicable
      closing conditions set forth in Section 9 and as reasonably requested by the
      Company.

     

    4. Satisfaction
      of the Commitment.
      The
      Purchasers may, in their sole discretion, satisfy the Commitment directly and/or
      indirectly through one or more of their respective affiliates, separate accounts
      within their control, or investment funds under their or their respective
      affiliates’ management; provided,
      however,
      any
      such non-Purchaser entities shall be required to make the representations,
      warranties and covenants set forth in Section
      6
      to the
      Company and that the Purchasers shall remain liable under this Agreement as
      set
      forth herein.

     

    5. Representations
      and Warranties of the Company.

     

    (a) The
      Company represents and warrants to the Purchasers as of the date hereof and
      the
      Closing as follows:

     

    (i) Organization;
      Authority; Qualification.
      The
      Company is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of Nevada. The Company (A) has full
      corporate power and authority to own and operate its properties and assets
      and
      to conduct and carry on its business as it is now being conducted and operated,
      and (B) is duly qualified to do business and is in good standing, and is duly
      licensed, authorized or qualified to transact or conduct business, in each
      jurisdiction in which the ownership or lease of real property or the conduct
      of
      its business requires it to be so licensed, authorized or qualified. True and
      complete copies of the Company’s Articles of Incorporation (the “Articles
      of Incorporation”)
      and
      its bylaws currently in effect have been delivered to the Purchasers.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (ii) Corporate
      Authority, Authorization; Binding Obligation.
      The
      Company has full power and authority to execute and deliver this Agreement,
      to
      perform its obligations hereunder and to consummate the Rights Offering and
      the
      transactions contemplated by this Agreement. All corporate action on the part
      of
      the Company, its officers and its stockholders necessary for the authorization,
      execution, delivery and performance of this Agreement, the consummation of
      the
      Rights Offering, the authorization, issuance and delivery of the Shares to
      the
      Purchasers and the performance of all of the Company’s obligations under this
      Agreement has been or will be taken prior to Closing. This Agreement has been
      duly and validly executed and delivered by the Company, and constitutes the
      legal, valid and binding obligation of the Company, enforceable against the
      Company in accordance with its terms, except as enforceability may be limited
      by
      applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
      and subject to general principals of equity (regardless of whether such
      enforceability is considered in a proceeding in equity or law). 

     

    (iii) Ownership
      of and Title to Shares; Exemption from Registration.

     

    (A) The
      Shares to be purchased by the Purchasers hereunder, when issued, sold and
      delivered in accordance with the terms of this Agreement for the consideration
      expressed herein, will be duly authorized, validly issued, fully paid and
      non-assessable shares of the capital stock of the Company, free of personal
      liability. Upon consummation of the purchase of the Shares in accordance with
      the terms of this Agreement, the Purchasers will own and acquire title to the
      Shares (free and clear of any and all proxies, voting trusts, shareholder
      agreements, pledges, liens, claims, charges, security interests, options,
      restrictions on transfer or other legal or equitable encumbrance of any nature
      whatsoever (other than the restrictions on transfer due to securities laws
      or as
      otherwise as provided for in this Agreement),

     

    (B) The
      Company represents and warrants that the offer and sale of the Shares to the
      Purchasers in accordance with the terms and provisions of this Agreement is
      being effected in accordance with the Securities Act of 1933 (as amended and
      restated from time to time, the “Securities
      Act”)
      and
      applicable state securities laws pursuant to (I) a private placement exemption
      to the registration provisions of the Securities Act pursuant to Section 4(2)
      of
      the Securities Act (and Rule 506 of Regulation D promulgated under the
      Securities Act), and (II) a similar exemption to the registration provisions
      of
      applicable state securities laws. Neither the Company nor anyone acting on
      its
      behalf has taken or hereafter will take any action that would cause the loss
      of
      such exemptions. 

     

    (iv) Capitalization.
      

     

    (A) The
      authorized capital stock of the Company consists of (A) 3,703,704 shares of
      Common Stock, of which 3,413,038 shares are issued and outstanding and (B)
      5,000,000 shares of Series B Convertible Preferred Stock, $0.001 par value
      per
      share (the “Series
      B Preferred Stock”),
      of
      which 20,000 shares are issued and outstanding. All of the issued and
      outstanding shares of Common Stock and Series B Preferred Stock have been duly
      authorized and validly issued and are fully paid and nonassessable and were
      issued in compliance with all applicable state and federal laws concerning
      the
      issuance of securities. 

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (B) Except
      for the Series B Preferred Stock and the options and warrants set forth on
      Schedule
      5(a)(iv)
      hereto,
      (I) no subscription, warrant, option, convertible security or other right
      (contingent or otherwise) to purchase or acquire any securities from the Company
      is authorized or outstanding, (II) there is not any commitment of the Company
      to
      issue any subscription, warrant, option, convertible security or other such
      right or to issue or distribute to the holders of any securities of the Company
      any evidences of indebtedness or any assets of the Company, (III) the Company
      has no obligation (contingent or otherwise) to purchase, redeem or otherwise
      acquire any of its securities or to pay any dividend or make any other
      distribution in respect thereof, (IV) no person or entity is entitled to any
      preemptive or similar right with respect to the issuance of any securities
      of
      the Company, and (V) no person or entity has any rights to require the
      registration of any securities of the Company under the Securities Act.

     

    (v) Noncontravention;
      Consents.
      The
      execution and delivery of this Agreement by the Company does not, and the Rights
      Offering and the consummation of the transactions contemplated hereby and
      thereby will not, violate any material provision of law and will not conflict
      with, or result in a breach of any of the terms of, or constitute a default
      under, the Articles of Incorporation, the bylaws of the Company or any material
      agreement, instrument or other restriction to which the Company is a party
      or by
      which the Company or any of its properties or assets is bound. No
      consent, approval or authorization of, or declaration, registration or filing
      with, any person, entity or governmental authority on the part of the Company
      is
      required for the valid execution, delivery and performance of this Agreement
      or
      the valid consummation of the Rights Offering or of the transactions
      contemplated hereby and thereby, except for (A) the filing with the Secretary
      of
      State of the State of Nevada of an amendment to the Articles of Incorporation
      to
      increase the Company’s authorized capital by fifteen million (15,000,000) shares
      of Common Stock, (B) the filing of all necessary amendments to the registration
      statement on Form S-3, filed with the Securities & Exchange Commission (the
“SEC”)
      on
      July 3, 2007 (including all amendments and exhibits related thereto, the
“Registration
      Statement”),
      including all prospectuses related thereto and (C) such consents, approvals,
      authorizations, declarations, registrations or filings (y) as may be required
      under the Nasdaq National Market (“Nasdaq”)
      rules
      and regulation in order to consummate the Rights Offering or (z) as may be
      required under state securities or blue sky laws in connection with the purchase
      of Shares by any of the Purchasers, which filings, in the case of clauses (A)
      through (C) above, have been or will be filed in a timely manner.

     

    (vi) No
      Conflicts, Violations or Defaults.
      The
      Company is not in conflict with, or in default or violation of, any law, order
      or agreement applicable to the Company or by which any property or asset of
      the
      Company is bound or affected, except for such conflicts, defaults or violations
      that are not, individually or in the aggregate, reasonably expected to have
      (A)
      any material adverse effect on the business, condition (financial or otherwise)
      or results of operations of the Company or its subsidiaries, taken as a whole
      or
      (B) any material adverse effect on the ability of the Company to consummate
      the
      transactions contemplated by this Agreement (any of the foregoing being a
“Material
      Adverse Effect”).

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (vii) Registration
      Rights.
      Except
      for the registration rights granted to the Subscribers (as defined below) in
      the
      Purchase Agreement, dated as of January 10, 2007 (the “Purchase
      Agreement”),
      by
      and between the Company and the persons listed on Schedule A thereto (the
“Subscribers”),
      the
      Company has not granted or agreed to grant any registration rights, including
      piggyback rights, to any person or entity. 

     

    (viii) Financial
      Statements.
      The
      Company has previously provided to the Purchasers the audited balance sheet
      and
      statements of operations and changes in stockholders’ equity and cash flows of
      the Company as of and for the year ended December 31, 2006 (the “Audited
      Financial Statements”)
      and
      the unaudited balance sheet and the unaudited statements of operations and
      changes in stockholders’ equity and cash flows of the Company as of and for the
      six-month period ended June 30, 2007 (the “Unaudited
      Financial Statements,”
and
      together with the Audited Financial Statements, the “Financial
      Statements”).
      The
      Financial Statements (A) comply as to form in all material respects with
      applicable accounting requirements and published rules and regulations of the
      SEC with respect thereto; (B) have been prepared in accordance with United
      States generally accepted accounting principles (“GAAP”)
      applied on a consistent basis throughout the periods covered thereby (subject,
      in the case of the Unaudited Financial Statements, to normal recurring year-end
      adjustments and the absence of all required footnotes thereto); and (C) fairly
      present in all material respects the financial condition, results of operations
      and cash flows of the Company as of the respective dates thereof and for the
      periods referred to therein. The Company has no liabilities or obligations
      of
      any nature (whether accrued, absolute, contingent or otherwise), except for
      liabilities and obligations reflected on the Unaudited Financial Statements
      or
      that were incurred after June 30, 2007 in the ordinary course of business
      consistent with past practice, which individually or in the aggregate are not
      reasonably expected to be material.

     

    (ix) Ordinary
      Course.
      Since
      December 31, 2006, the Company has conducted its business only in the ordinary
      course consistent with past practice, and there has not been:

     

    (A) any
      event, occurrence or development of a state or circumstances which has had
      or is
      reasonably expected to have a Material Adverse Effect;

     

    (B) any
      material damage, destruction or loss to any material asset or property owned
      by
      the Company, whether or not covered by insurance;

     

    (C) any
      declaration, setting aside or payment of any dividend or other distribution
      (whether in cash, stock or property) with respect to any of the Company’s
      capital stock (other than in accordance with its terms) or any repurchase,
      redemption or other acquisition by the Company of any outstanding shares of
      capital stock or other securities of the Company;

     

    (D) any
      change in accounting methods, principles or practices by the Company, except
      for
      changes resulting from changes in GAAP; or

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (E) any
      agreement, commitment, arrangement or undertaking by the Company to perform
      any
      action described in clauses (A) through (D).

     

    (x) Permitted
      Offering.
      The
      acquisition of Shares by any Purchaser pursuant to this Agreement shall not
      be
      deemed to be a “Distribution Date” pursuant to that certain rights agreement by
      and between the Company and Interwest Transfer Co. (the “Rights
      Agent”),
      dated
      as of March 14, 2003, as amended by Amendment No. 1 between the Company and
      the
      Rights Agent, dated as of July 14, 2003 (the “Rights
      Agreement”).

     

    (xi)  No
      Broker’s Fees.
      No
      broker, investment banker, financial advisor or other person, is entitled to
      any
      broker’s, finder’s, financial advisor’s or other similar fee or commission in
      connection with the transactions contemplated by this Agreement based upon
      arrangements made by or on behalf of the Company.

     

    (xii) No
      Untrue Statements or Omissions.
      No
      representation or warranty of the Company contained in this Agreement, and
      no
      statement relating to the Company contained in any other document, certificate
      or other instrument delivered or to be delivered by or on behalf of the Company
      pursuant to this Agreement or the Rights Offering, contains or will contain
      any
      untrue statement of a material fact or omits or will omit to state any material
      fact necessary, in light of the circumstances under which it was or will be
      made, in order to make the statements herein or therein not
      misleading.

     

    6. Representations,
      Warranties and Covenants of Purchasers.

     

    (a) Each
      Purchaser severally, and not jointly, represents and warrants to the Company
      as
      of the date hereof and the Closing as follows:

     

    (i) Organization;
      Good Standing.
      Such
      Purchaser (if it is a legal entity) is duly organized, validly existing, and
      in
      good standing under the laws of the state of its organization.

     

    (ii) Authority;
      Enforceability.
      Such
      Purchaser (if it is a legal entity) is duly authorized to enter into this
      Agreement and to perform its obligations hereunder. Upon the execution and
      delivery of this Agreement by such Purchaser, this Agreement shall be
      enforceable against such Purchaser in accordance with its terms, except as
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or similar laws and subject to general principals
      of
      equity (regardless whether such enforceability is pursued at law or in equity).
      

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (iii) Investment
      Intent.
      Such
      Purchaser is a limited partnership and represents and warrants that the Shares
      being purchased are being purchased or acquired solely for such Purchaser’s own
      account, for investment purposes only and not with a view towards the
      distribution or resale thereof to others. Such Purchaser acknowledges and
      understands that the Shares have not been registered under the Securities Act
      by
      reason of a claimed exemption under the provisions of the Securities Act which
      depends, in large part, upon such Purchaser’s representations as to investment
      intention, investor status and related and other matters set forth herein.
      Such
      Purchaser understands that, in the view of the SEC, among other things, a
      purchase with a present intent to distribute or resell would represent a
      purchase and acquisition with an intent inconsistent with its representation
      to
      the Company, and the SEC might regard such a transfer as a deferred sale for
      which the registration exemption is not available. Such Purchaser agrees and
      consents to the placement of a legend on the certificate(s) representing the
      Shares purchased and acquired hereunder, stating that such Shares have not
      been
      registered under the Securities Act or applicable state securities laws. Such
      legend shall be removed promptly following such time as a registration statement
      under the Securities Act covering any such Shares is declared effective by
      the
      SEC. 

     

    (iv) Certain
      Risks.
      Such
      Purchaser is fully aware that (A) the Shares represent equity securities in
      a
      corporate entity that has an accumulated deficit; (B) no return on investment,
      whether through distributions, appreciation, transferability or otherwise,
      and
      no performance by, through or of the Company, has been promised, assured,
      represented or warranted by the Company, or by any director, officer, employee,
      agent or representative thereof; (C) while the Common Stock is presently quoted
      and traded on the Over-the-Counter Bulletin Board, the Shares subscribed for
      and
      purchased under this Agreement have not been registered under applicable federal
      or state securities laws, and thus may not be sold, conveyed, assigned or
      transferred unless registered under such laws or unless an exemption from
      registration is available under such laws, as more fully described below; (D)
      there can be no assurances that the Company’s Common Stock will continue to be
      quoted, traded or listed for trading or quotation on the OTCBB or on any other
      organized market or quotation system; and (E) that the purchase of the Common
      Stock is a speculative investment, involving a degree of risk, and is suitable
      only for a person or entity of adequate financial means who has no need for
      liquidity in this investment in that, among other things, (x) such person or
      entity may not be able to liquidate their investment in the event of an
      emergency or otherwise, (y) transferability is limited, and (z) in the event
      of
      a dissolution or otherwise, such person or entity could sustain a complete
      loss
      of their entire investment. 

     

    (v) Sophisticated
      Investor.
      (i)
      Such Purchaser has adequate means of providing for such Purchaser’s current
      financial needs and possible contingencies and has no need for liquidity of
      such
      Purchaser’s investment in the Shares; (ii) such Purchaser is able to bear the
      economic risks inherent in an investment in the Shares and that an important
      consideration bearing on its ability to bear the economic risk of the purchase
      of the Shares is whether such Purchaser can afford a complete loss of such
      Purchaser’s investment in the Shares and such Purchaser represents and warrants
      that such Purchaser can afford such a complete loss; and (iii) such Purchaser
      has such knowledge and experience in business, financial, investment and banking
      matters (including, but not limited to investments in restricted, non-listed
      and
      non-registered securities) that such Purchaser is capable of evaluating the
      merits, risks and advisability of an investment in the Shares. 

     

    (vi) QIB.
      Such
      Purchaser is a “Qualified Institutional Buyer” within the meaning of Rule
      144A(a)(1)(i), (ii), (iii), (iv) or (vi) under the Securities Act.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    (vii) Documents,
      Information and Access.
      (A)
      Such Purchaser’s decision to purchase the Shares is not based on any
      promotional, marketing or sales materials, and (B) such Purchaser and its
      representatives have been afforded, prior to purchase thereof, the opportunity
      to ask questions of, and to receive answers from, the Company and its
      management, and has had access to all documents and information which such
      Purchaser deems material to an investment decision with respect to the purchase
      of the Shares hereunder. Such Purchaser acknowledges and understands that the
      Company is a public reporting company, that annual, quarterly and other reports
      are, from time to time, filed by the Company with the SEC under the Securities
      Exchange Act of 1934, and that such Purchaser can obtain a copy of any such
      reports, without charge, from certain public information offices maintained
      by
      the SEC, from the internet at www.sec.gov or from the Company. The foregoing,
      however, does not limit or modify the representations and warranties of the
      Company in Section 5(a) of this Agreement or the right of a Purchaser to rely
      thereon. 

     

    (viii) No
      Registration, Review or Approval.
      Such
      Purchaser acknowledges and understands that the limited private offering and
      sale of the Shares pursuant to this Agreement has not been reviewed or approved
      by the SEC or by any state securities commission, authority or agency, and
      is
      not registered under the Securities Act or under the securities or “blue sky”
laws, rules or regulations of any state. Such Purchaser acknowledges,
      understands and agrees that the Shares are being offered and sold hereunder
      pursuant to (A) a private placement exemption to the registration provisions
      of
      the Securities Act pursuant to Section 4(2) of the Securities Act (and Rule
      506
      of Regulation D promulgated under the Securities Act), and (B) a similar
      exemption to the registration provisions of applicable state securities laws.
      

     

    (ix) Transfer
      Restrictions.
      Such
      Purchaser will not transfer any Shares purchased under this Agreement unless
      such Shares are registered under the Securities Act and under any applicable
      state securities or “blue sky” laws (collectively, the “Securities
      Laws”),
      or
      unless an exemption is available under such Securities Laws, and that the
      Company may, if it chooses, where an exemption from registration is claimed
      by
      such Purchaser, condition any transfer of the Shares out of such Purchaser’s
      name on an opinion of counsel reasonably satisfactory to the Company, to the
      effect that the proposed transfer does not require registration under the
      Securities Act. 

     

    (x) Reliance.
      Such
      Purchaser understands, acknowledges and appreciates that the Company is relying
      upon all of the representations, warranties, covenants, understandings,
      acknowledgements and agreements contained in this Agreement in determining
      whether to accept this subscription and to sell and issue the Shares to such
      Purchaser. 

     

    (xi) No
      General Solicitation.
      Such
      Purchaser shall not, and shall not permit any of its directors, officers,
      employees, affiliates and agents to, engage in any activity in connection with
      its purchase of Shares that constitutes a “general solicitation” or would
      otherwise cause the Company to fail to satisfy the manner of offering
      limitations set forth in Rule 502(c) under the Securities Act in connection
      with
      the Rights Offering.

     

    (xii) Accuracy
      of Representations and Warranties.
      All of
      the representations, warranties, understandings and acknowledgements that such
      Purchaser has made herein are true and correct in all material respects as
      of
      the date of execution hereof, and that such Purchaser will perform and comply
      fully in all material respects with all covenants and agreements set forth
      herein, and such Purchaser covenants and agrees that until the Closing, such
      Purchaser shall inform the Company as promptly as reasonably practicable in
      writing of any changes in any of the representations or warranties provided
      or
      contained herein. 

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    7. Covenants
      of the Company.

     

    (a) The
      Company agrees that:

     

    (i) The
      Company shall conduct the Rights Offering and the transactions contemplated
      hereby in compliance with the Securities Act and all other applicable local,
      state or federal securities laws.

     

    (ii) The
      Company shall reimburse the Purchasers, up to the amount of $50,000, for all
      documented and reasonable out-of-pocket expenses of the Purchasers related
      to
      the Rights Offering and the transactions contemplated hereby, including without
      limitation reasonable fees and expenses of Stroock & Stroock & Lavan
      LLP, upon the earlier of the consummation of the Rights Offering or the
      termination of this Agreement, so long as none of the Purchasers shall be in
      material breach of its obligations under this Agreement at the time of such
      termination.

     

    (iii) The
      Company shall furnish the Purchasers with such information regarding itself
      and
      its subsidiaries as the Purchasers may reasonably request.

     

    8. Covenants
      of both the Company and the Purchasers.

     

    (a) The
      Company and each of the Purchasers agrees that:

     

    (i) It
      will
      use reasonable best efforts to take, or cause to be taken, all actions, and
      to
      do, or cause to be done, and to assist and cooperate with the other parties
      in
      doing, all things reasonably necessary, proper or advisable to consummate and
      make effective, in the most expeditious manner practicable, the transactions
      contemplated hereby.

     

    (ii) It
      will
      promptly deliver to the other parties hereto written notice of any matter,
      event
      or development that is or could (A) render any representation or warranty made
      by it herein inaccurate or incomplete in any respect or (B) constitute or result
      in a breach by it of, or a failure by it to comply with, any covenant
      herein.

     

    (iii) It
      will
      consult with each other party before issuing, and provide each other party
      the
      opportunity to review and comment upon, any press release or other public
      statements with respect to the transactions contemplated by this Agreement,
      and
      shall not issue any such press release or make any such public statement prior
      to such consultation, except as may be required by applicable law or court
      process.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    9. Conditions
      to Closing.

     

    (a) The
      obligation of each of the Purchasers to purchase the Shares and consummate
      the
      transactions contemplated herein shall be subject to the satisfaction (or waiver
      by such Purchaser) on or prior to the Closing of each of the following
      conditions:

     

    (i) The
      representations and warranties of the Company contained in Section 5(a) that
      are
      qualified as to materiality shall be true and correct in all respects on and
      as
      of the date hereof and as of the Closing, with the same force and effect as
      though made on and as of such date, except to the extent that any representation
      or warranty is made as of a specified date, in which case such representation
      or
      warranty shall be true and correct as of such specified date, and the
      representations and warranties that are not so qualified shall be true and
      correct in all material respects on and as of the date hereof and as of the
      Closing, with the same force and effect as though made on and as of such date,
      except to the extent that any representation or warranty is made as of a
      specified date, in which case such representation or warranty shall be true
      and
      correct in all material respects as of such specified date;

     

    (ii) The
      Company shall have performed or complied with, in all material respects, its
      covenants required to be performed or complied with under this Agreement through
      the Closing;

     

    (iii)  No
      provision of any applicable law or regulation and no judgment, injunction,
      order, decree or other legal restraint shall have been enacted, adopted or
      issued that prohibits or threatens to prohibit the consummation of the Rights
      Offering or the transactions contemplated hereby; 

     

    (iv) The
      Company shall have delivered to Purchasers all of the certificates, opinions,
      instruments and documents required to be delivered by the Company to the
      Purchasers pursuant to Section 3(b) hereof;

     

    (v) The
      Company shall have filed with the Secretary of State of the State of Nevada
      an
      amendment to the Articles of Incorporation to increase the Company’s authorized
      capital by fifteen million (15,000,000) shares of Common Stock;

     

    (vi) The
      Company shall have included in the Registration Statement by way of an amendment
      thereto (the “Amendment
      to Registration Statement”)
      (I)
      all shares of Common Stock purchased by the Purchasers pursuant to the Purchase
      Agreement and (II) all Shares purchased by the Purchasers pursuant to this
      Agreement, and the Amendment to Registration Statement shall have become
      effective. The Company shall have paid all expenses related to the Registration
      Statement, the Amendment to Registration Statement and the Rights Offering,
      including, without limitation, filing and printing fees, fees and expenses
      of
      any subscription and information agents, its counsel and accounting fees and
      expenses, costs associated with clearing the Shares for sale under applicable
      state securities laws and listing fees;

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    (vii) The
      Company shall have: (I) provided the Purchasers with a reasonable opportunity
      to
      review the Amendment to Registration Statement, and shall have duly considered
      in good faith any comments of the Purchasers and their respective counsel;
      (II)
      advised the Purchasers promptly of the time when the Amendment to Registration
      Statement became effective or any prospectus or prospectus supplement was filed
      and shall have furnished the Purchasers with copies thereof; and (III) advised
      the Purchasers promptly after it received notice of any comments or inquiries
      by
      the SEC (and furnished the Purchasers with copies of any correspondence related
      thereto), of the issuance by the SEC of any stop order or of any order
      preventing the use of the Registration Statement, of the initiation or
      threatening of any proceeding for any such purpose, or of any request by the
      SEC
      for the amending or supplementing of the Registration Statement or for
      additional information, and in each such case, shall have provided the
      Purchasers with a reasonable opportunity to review any such comments, inquiries,
      requests or other communications from the SEC and to review any amendment or
      supplement to the Registration Statement before any filing with the SEC, and
      shall have duly considered in good faith any comments consistent with this
      Agreement and any other reasonable comments of the Purchasers and their
      respective counsel and (IV) there shall be no stop order or any order preventing
      or suspending the use of the Registration Statement or suspending the
      qualification of any Shares for sale in any jurisdiction;

     

    (viii) Since
      the
      date of this Agreement, there shall not have occurred any changes or events
      that, individually or in the aggregate, would reasonably be expected to result
      in a Material Adverse Effect; and

     

    (ix) The
      Company shall have amended the Rights Agreement to provide that (A) any
      Purchaser who by virtue of the transactions contemplated by this Agreement
      (including but not limited to the Rights Offering) would otherwise be deemed
      to
      be an “Acquiring Person” (as that term is defined in the Rights Agreement) shall
      instead be deemed to have the same status as a “Grandfathered Stockholder” under
      the Rights Agreement as such definition is amended in accordance with the
      immediately following subclause (B), and (B) the definition of “Grandfathered
      Stockholder” as currently set forth in the Rights Agreement shall be amended to
      eliminate the remainder of the definition after the phrase “(ii) and any
      Permitted Transferee...” by putting a period at the end of such
      phrase.

     

    (b) The
      obligation of the Company to issue and sell the Shares and consummate the
      transactions contemplated herein shall be subject to the satisfaction (or waiver
      by the Company) on or prior to the Closing of each of the following
      conditions:

     

    (i) The
      representations and warranties of the Purchasers contained in Section 6(a)
      that
      are qualified as to materiality shall be true and correct in all respects on
      and
      as of the date hereof and as of the Closing, with the same force and effect
      as
      though made on and as of such date, except to the extent that any representation
      or warranty is made as of a specified date, in which case such representation
      or
      warranty shall be true and correct as of such specified date, and the
      representations and warranties that are not so qualified shall be true and
      correct in all material respects on and as of the date hereof as of the Closing,
      with the same force and effect as though made on and as of such date, except
      to
      the extent that any representation or warranty is made as of a specified date,
      in which case such representation or warranty shall be true and correct in
      all
      material respects as of such specified date; 

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    (ii) The
      Purchasers shall have performed or complied with, in all material respects,
      their covenants required to be performed or complied with under this Agreement
      through the Closing; provided,
      however,
      that if
      any such failure of this condition to be satisfied is satisfied by any other
      Purchaser purchasing the Shares as described in Section 2(b), then this
      condition shall be deemed satisfied; and

     

    (iii) No
      provision of any applicable law or regulation and no judgment, injunction,
      order, decree or other legal restraint shall have been enacted, adopted or
      issued that prohibits or threatens to prohibit the consummation of the Rights
      Offering or the transactions contemplated hereby.

     

    10. Termination.

     

    (a) This
      Agreement may be terminated at any time by mutual written consent of the Company
      and the Purchasers.

     

    (b) The
      Company shall be entitled to terminate this Agreement by giving written notice
      thereof to the Purchasers in the event that (i) any Purchaser materially
      breaches this Agreement and such breach cannot be cured or, if curable, shall
      continue unremedied for a period of 10 days following receipt of written notice
      thereof from the Company; provided,
      that if
      any such breach is cured by any other Purchaser purchasing the Shares as
      described in Section 2(a), then such breach shall be deemed cured or (ii) the
      Rights Offering shall not have been consummated on or before December 31, 2007,
      other than such failure resulting from any breach by the Company of its
      obligations hereunder.

     

    (c) Each
      Purchaser shall be entitled to terminate this Agreement by giving written notice
      thereof to the Company in the event that (i) the Company materially breaches
      this Agreement and such breach cannot be cured or, if curable, shall continue
      unremedied for a period of 10 days following receipt of notice thereof from
      the
      Purchasers, (ii) satisfaction of the conditions set forth in Section
      9(a)(i)-(ix)
      becomes
      impossible, or (iii) the Rights Offering shall not have been consummated on
      or
      before December 31, 2007, other than due to the any failure resulting from
      any
      breach by Purchasers of their obligations hereunder.

     

    (d) Each
      of
      the events set forth in subsection (b) above may be waived by the written
      agreement of the Company, in its sole and absolute discretion.

     

    (e) Each
      of
      the events set forth in subsection (c) above may be waived by the written
      agreement of all of the Purchasers not then in material breach of their
      respective obligations under this Agreement, in their sole and absolute
      discretion.

     

    (f) Upon
      termination of this Agreement under Section 10(b) or 10(c), this Agreement
      shall
      terminate upon delivery of such notice as described in Section 10(b) or 10(c),
      and no party hereto shall have any continuing liability or obligation hereunder;
      provided,
      however,
      that
      (i) nothing
      contained herein shall release any party hereto from liability for any breach
      or
      non-performance of their respective obligations hereunder prior to the date
      of
      such termination and (ii) nothing contained herein shall release the Company
      from its liability to pay the Purchasers the expense reimbursement pursuant
      to
Section
      7(a)(ii).

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    11. Indemnification.

     

    (a) Indemnification
      Generally.
      Whether
      or
      not the Rights Offering is consummated or this Agreement or the Commitment
      is
      terminated, the Company (in such capacity, the “Indemnifying Party”)
      shall indemnify and hold harmless the Purchasers, their respective affiliates
      and their respective officers, directors, employees, agents and controlling
      persons (each an “Indemnified Person”) from and against any and all
      losses, claims, damages, liabilities and reasonable expenses, joint or several,
      to which any such Indemnified Person may become subject arising out of or in
      connection with any claim, challenge, litigation, investigation or proceeding
      with respect to this Agreement, the Rights Offering, the Commitment, the
      Registration Statement and any prospectus related thereto or the transactions
      contemplated thereby or thereby, including, without limitation, distribution
      of
      rights, purchase and sale of Basic Shares in the Rights Offering and purchase
      and sale of Standby Shares pursuant to the Standby Commitment, or any breach
      of
      the Company of this Agreement, regardless of whether any of such Indemnified
      Persons is a party thereto, and to reimburse such Indemnified Persons for any
      reasonable legal or other reasonable out-of-pocket expenses as they are incurred
      in connection with investigating, responding to or defending any of the
      foregoing, provided that the foregoing indemnification will not, as to any
      Indemnified Person, apply to losses, claims, damages, liabilities or expenses
      to
      the extent that they are finally judicially determined to have resulted from
      (i)
      any breach of this Agreement by such Indemnified Person, (ii) bad faith, gross
      negligence or willful misconduct on the part of such Indemnified Person or
      (iii)
      statements or omissions in the Registration Statement or any prospectus related
      thereto or any amendment or supplement thereto made in reliance upon or in
      conformity with information relating to the Purchasers furnished to the Company
      in writing by or on behalf of the Purchasers expressly for use in the
      Registration Statement or any prospectus related thereto or any amendment or
      supplement thereto. If for any reason the foregoing indemnification is
      unavailable to any Indemnified Person or insufficient to hold it harmless,
      then
      the Indemnifying Party shall contribute to the amount paid or payable by such
      Indemnified Person as a result of such loss, claim, damage, liability or expense
      in such proportion as is appropriate to reflect not only the relative benefits
      received by the Indemnifying Party on the one hand and such Indemnified Person
      on the other hand but also the relative fault of the Indemnifying Party, on
      the
      one hand, and such Indemnified Person, on the other hand, as well as any
      relevant equitable considerations. The indemnity, reimbursement and contribution
      obligations of the Indemnifying Party under this Section 11 shall be in addition
      to any liability that the Indemnifying Party may otherwise have to an
      Indemnified Person and shall be binding upon and inure to the benefit of any
      successors, assigns, heirs and personal representatives of the Indemnifying
      Party and any Indemnified Person.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    (b) Certain
      Procedures. Promptly after receipt by an Indemnified Person of notice of the
      commencement of any claim, litigation, investigation or proceeding relating
      to
      this Agreement, the Registration Statement or any prospectus related thereto
      or
      any of the transactions contemplated thereby (“Proceedings”), such
      Indemnified Person will, if a claim is to be made hereunder against the
      Indemnifying Party in respect thereof, notify the Indemnifying Party in writing
      of the commencement thereof; provided that (i) the omission so to notify the
      Indemnifying Party will not relieve it from any liability that it may have
      hereunder except to the extent it has been materially prejudiced by such failure
      and (ii) the omission so to notify the Indemnifying Party will not relieve
      it
      from any liability that it may have to an Indemnified Person otherwise than
      on
      account of this Section 11. In case any such Proceedings are brought against
      any
      Indemnified Person and it notifies the Indemnifying Party of the commencement
      thereof, the Indemnifying Party will be entitled to participate therein, and,
      to
      the extent that it may elect by written notice delivered to such Indemnified
      Person, to assume the defense thereof, with counsel reasonably satisfactory
      to
      such Indemnified Person, provided that if the defendants in any such Proceedings
      include both such Indemnified Person and the Indemnifying Party and such
      Indemnified Person shall have concluded that there may be legal defenses
      available to it that are different from or additional to those available to
      the
      Indemnifying Party, such Indemnified Person shall have the right to select
      separate counsel to assert such legal defenses and to otherwise participate
      in
      the defense of such Proceedings on behalf of such Indemnified Person. Upon
      receipt of notice from the Indemnifying Party to such Indemnified Person of
      its
      election so to assume the defense of such Proceedings and approval by such
      Indemnified Person of counsel, the Indemnifying Party shall not be liable to
      such Indemnified Person for expenses incurred by such Indemnified Person in
      connection with the defense thereof (other than reasonable costs of
      investigation) unless (i) such Indemnified Person shall have employed separate
      counsel in connection with the assertion of legal defenses in accordance with
      the proviso to the next preceding sentence (it being understood, however, that
      the Indemnifying Party shall not be liable for the expenses of more than one
      separate counsel, approved by Investors, representing the Indemnified Persons
      who are parties to such Proceedings), (ii) the Indemnifying Party shall not
      have
      employed counsel reasonably satisfactory to such Indemnified Person to represent
      such Indemnified Person within a reasonable time after notice of commencement
      of
      the Proceedings or (iii) the Indemnifying Party shall have authorized in writing
      the employment of counsel for such Indemnified Person.

     

    (c) Limitations.
      The Indemnifying Party shall not be liable for any settlement of any Proceedings
      effected without its written consent (which consent shall not be unreasonably
      withheld). If any settlement of any Proceeding is consummated with the written
      consent of the Indemnifying Party or if there is a final judgment for the
      plaintiff in any such Proceedings, the Indemnifying Party agrees to indemnify
      and hold harmless each Indemnified Person from and against any and all losses,
      claims, damages, liabilities and expenses by reason of such settlement or
      judgment in accordance with, and subject to the limitations of, the provisions
      of this Section 11. Notwithstanding anything in this Section 11 to the contrary,
      if at any time an Indemnified Person shall have requested the Indemnifying
      Party
      to reimburse such Indemnified Person for legal or other expenses in connection
      with investigating, responding to or defending any Proceedings as contemplated
      by this Section 11, the Indemnifying Party shall be liable for any settlement
      of
      any Proceedings effected without its written consent if (i) such settlement
      is
      entered into more than 60 days after receipt by the Indemnifying Party of such
      request for reimbursement and (ii) the Indemnifying Party shall not have
      reimbursed such Indemnified Person in accordance with such request prior to
      the
      date of such settlement. The Indemnifying Party shall not, without the prior
      written consent of an Indemnified Person (which consent shall not be
      unreasonably withheld), effect any settlement of any pending or threatened
      Proceedings in respect of which indemnity has been sought hereunder by such
      Indemnified Person unless (a) such settlement includes an unconditional release
      of such Indemnified Person in form and substance satisfactory to such
      Indemnified Person from all liability on the claims that are the subject matter
      of such Proceedings and (b) does not include any statement as to or any
      admission of fault, culpability or a failure to act by or on behalf of any
      Indemnified Person.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    12. Amendments.
      This
      Agreement may not be modified, amended or supplemented except in a writing
      signed by the parties hereto.

     

    13. Governing
      Law.
      THIS
      AGREEMENT, THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT,
      AND
      ANY CLAIM OR CONTROVERSY DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF
      THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER
      BASED
      ON CONTRACT, TORT, OR ANY OTHER LEGAL THEORY), INCLUDING ALL MATTERS OF
      CONSTRUCTION, VALIDITY AND PERFORMANCE, SHALL IN ALL RESPECTS BE GOVERNED BY
      AND
      INTERPRETED, CONSTRUED AND DETERMINED IN ACCORDANCE WITH, THE INTERNAL LAWS
      OF
      THE STATE OF NEW YORK (WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION THAT
      WOULD REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER
      JURISDICTION).

     

    14. Jurisdiction:
      BY ITS
      EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HEREBY IRREVOCABLY
      AND UNCONDITIONALLY SUBMITS TO AND ACCEPTS THE EXCLUSIVE JURISDICTION OF THE
      UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK LOCATED
      IN
      THE BOROUGH OF MANHATTAN OR THE COURTS OF THE STATE OF NEW YORK LOCATED IN
      THE
      COUNTY OF NEW YORK FOR ANY ACTION, SUIT, OR PROCEEDING ARISING OUT OF OR BASED
      UPON THIS AGREEMENT OR ANY MATTER RELATING TO IT, AND WAIVES ANY OBJECTION
      THAT
      SUCH PARTY MAY HAVE TO THE LAYING OF VENUE IN ANY SUCH COURT OR THAT SUCH COURT
      IS AN INCONVENIENT FORUM OR DOES NOT HAVE PERSONAL JURISDICTION OVER SUCH
      PARTY.

     

    15. Waiver
      of Trial by Jury.
      THE
      PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT
      PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT THEY MAY HAVE TO TRIAL BY JURY
      OF
      ANY CLAIM OR CAUSE OF ACTION, OR IN ANY LEGAL PROCEEDING, DIRECTLY OR INDIRECTLY
      BASED UPON OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
      BY
      THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER LEGAL THEORY).
      EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT, OR ATTORNEY OF ANOTHER
      PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
      NOT,
      IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
      ACKNOWLEDGES THAT IT AND EACH OTHER PARTY HAS BEEN INDUCED TO ENTER INTO THIS
      AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
      THIS
      SECTION.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    16. Specific
      Performance.
      It is
      understood and agreed by the Company and the Purchasers that money damages
      would
      not be a sufficient remedy for any breach of this Agreement by any party hereto
      and each non-breaching party shall be entitled to specific performance and
      injunctive or other equitable relief as a remedy of any such breach, including,
      without limitation, an order of a bankruptcy court requiring any party to comply
      promptly with any of its obligations hereunder.

     

    17. Headings.
      The
      headings of the Sections, paragraphs and subsections of this Agreement are
      inserted for convenience only and shall not affect the interpretation
      hereof.

     

    18. Successors
      and Assigns.
      This
      Agreement is intended to bind and inure to the benefit of the parties hereto
      and
      their respective successors, assigns, heirs, executors, administrators and
      representatives. Except as set forth herein, the Company shall not assign its
      rights, duties or obligations under this Agreement without the prior written
      consent of the Purchasers. Each Purchaser shall have the right to assign its
      Commitment in the manner contemplated by Section 4 hereof, provided
      that no
      such assignment shall effect such Purchaser’s obligations under this Agreement.

     

    19. No
      Third-Party Beneficiaries.
      Except
      for the provisions of Section 11 (which shall be for the benefit of the
      Indemnified Persons), this Agreement shall be solely for the benefit of the
      parties hereto and no other person or entity shall be a third party beneficiary
      hereof.

     

    20. Prior
      Negotiations; Entire Agreement.
      This
      Agreement constitutes the entire agreement of the parties and supersedes all
      prior negotiations with respect to the subject matter hereof, except that the
      parties hereto acknowledge that any confidentiality agreements heretofore
      executed among the parties shall continue in full force and effect.

     

    21. Expenses.
      Except
      as otherwise provided in Section
      7(a)(ii),
      all
      costs and expenses incurred in connection with this Agreement shall be paid
      by
      the party incurring such cost or expense.

     

    22. Counterparts.
      This
      Agreement may be executed in any number of counterparts by the parties on
      different counterparts signature pages, all of which taken together shall
      constitute one and the same agreement. Any of the parties may execute this
      Agreement by signing any such counterparts, and each such counterpart, including
      a facsimile counterpart, shall for all purposes be deemed to be an
      original.

     

    23. Severability.
      The
      illegality, invalidity, or unenforceability of any provision of this Agreement
      under the law of any jurisdiction shall not affect its legality, validity or
      enforceability under the law of any other jurisdiction nor the legality,
      validity or enforceability of any other provision.

     

    24. Notices.
      All
      notices and other communications under this Agreement shall be in writing,
      sent
      contemporaneously to all of the parties hereto, and deemed given when delivered
      by hand or by facsimile during standard business hours (from 8:00 a.m. to 6:00
      p.m.) at the place of receipt at the addresses and facsimile numbers set forth
      below, with a copy to each person identified thereon.

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

    
      	
              If
                to the Company, to:

            
	 
	
              Mr.
                Dale Vincent

            
	
              Chief
                Executive Officer

            
	
              MangoSoft,
                Inc.

            
	
              12
                Technology Way

            
	
              Nashua,
                NH 03060

              Fax:
                (508) 871-7380 

            
	 
	
              with
                a copy to :

            
	 
	
              Clifford
                A. Brandeis, Esq.

            
	
              Zuckerman
                Gore & Brandeis, LLP

            
	
              875
                Third Avenue

            
	
              New
                York, NY 10022

              Fax:
                (212) 223-6433

            
	 
	
              If
                to any Purchaser, to the address for such Purchaser

              set
                forth on Schedule
                A
                hereto, with copies

              simultaneously
                by like means to:

            
	 
	
              Southpaw
                Asset Management LP

            
	
              4
                Greenwich Office Park

            
	
              First
                Floor

            
	
              Greenwich,
                CT 06831

            
	
              Attention:
                Kevin M. Wyman

              Fax:
                (203) 862-6201

            
	 
	
              in
                each case, with a copy to:

            
	 
	
              Stroock
                & Stroock & Lavan LLP 

            
	
              180
                Maiden Lane 

            
	
              New
                York, New York 10038

            
	
              Attention:
                Brett Lawrence

              Fax:
                (212) 806-5600

            

    

     

    25. Survival.
      All
      representations, warranties and covenants and other provisions made by the
      parties hereto shall be considered to have been relied upon by the parties
      and
      shall (i) survive the execution, delivery and performance of this Agreement,
      and
      (ii) in the case of any termination of this Agreement, shall cease to apply
      except as set forth in Section 10(f) hereof.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    26. Interpretation.

     

    (a) This
      Agreement includes the Schedules and any documents attached as exhibits to
      this
      Agreement.

     

    (b) The
      Schedules may supplement, change, or supersede other provisions of this
      Agreement. If there is any inconsistency between the provisions of the Schedules
      and the other provisions of this Agreement, the Schedules will
      prevail.

     

    (c) Terms
      used in the singular or the plural include the plural and the singular,
      respectively; “includes” and “including” are not limiting; and “or” is not
      exclusive.

     

    (d) Section,
      Schedule, and other headings and captions are included solely for convenience
      of
      reference and are not intended to affect the interpretation of any provisions
      of
      this Agreement.

     

    (e) This
      Agreement shall be deemed to have been jointly drafted, and no provision of
      it
      shall be interpreted or construed for or against any Party because such Party
      purportedly prepared or requested such provision, any other provision, or this
      Agreement as a whole.

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Subscription and Standby
      Commitment Agreement to be executed as of the date first written
      above.

    

    
      	MANGOSOFT,
              INC.
	 	 
	By 	
               

            
	Name: 	
               

            
	Title: 	
               

            

    

    

    [Signature
      Page to Subscription and Standby Commitment Agreement]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have caused this Subscription and Standby
      Commitment Agreement to be executed as of the date first written
      above.

     

    
      PURCHASERS:

      SELIG
        ZISES 

    

     

    
      	By: 	
               

            
	Name:  Selig
              Zises

    

     

    [Signature
      Page to Subscription and Standby Commitment Agreement]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Subscription and Standby
      Commitment Agreement to be executed as of the date first written
      above.

     

    
      JAY
        ZISES 

    

     

    
      	
              By:  

            	
               

            
	Name:  Jay
              Zises

    

     

    [Signature
      Page to Subscription and Standby Commitment Agreement]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have caused this Subscription and Standby
      Commitment Agreement to be executed as of the date first written
      above.

     

    
      	
              SOUTHPAW
                CREDIT OPPORTUNITY 

              MASTER
                FUND LP 

            
	 	 
	By: 	
               

            
	Name: 	 
	Title: 	 

    

     

    [Signature
      Page to Subscription and Standby Commitment Agreement]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

    

    Schedule
      of Purchasers

     

    
      	
              Name
                and Address

            	
              Pro
                Rata Portion

            
	 	 
	
              Selig
                Zises

              988
                Fifth Avenue, 9th Floor

              New
                York, NY 10021

            	
              48.485%

            
	 	 
	
              Jay
                Zises

              965
                Fifth Avenue

              Apt.
                10-B

              New
                York, NY 10021

            	
              18.182%

            
	 	 
	
              Southpaw
                Credit Opportunity Master Fund LP

              4
                Greenwich Office Park

              First
                Floor

              Greenwich,
                CT 06831

            	
              33.333%

            
	 	 
	
              Total:

            	
              100%

            

    

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      5(a)(iv)

    

    
      	
              Shares
                of Common Stock Reserved for 

              Issuance
                Pursuant to Options

            	
              [296,287]1 

            
	 	 
	
              Issued
                and Outstanding Options

            	
              [179,652]3

            

    

     

    
      Rights
        issued pursuant to the Rights Agreement, dated as of March 14, 2003 by and
        between the Company and Interwest Transfer Co., Inc.

    

     

    
      

    

    1
      [From the Purchase Agreement. To be updated by the Company.]

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    Opinion
      of Counsel

    

    
      	 	
              1.

            	
              The
                Company is a corporation validly existing and in good standing under
                the
                laws of the State of Nevada and has all requisite corporate power
                and
                authority to own, lease and operate its properties and to carry on
                its
                business as now being conducted.

            

    

     

    
      	 	
              2.

            	
              The
                Shares to be issued pursuant to the Agreement have been duly authorized
                and, when issued as contemplated by the Agreement, will be validly
                issued,
                fully paid and nonassessable and free of preemptive rights pursuant
                to law
                or in the Company’s Articles of
                Incorporation.

            

    

     

    
      	 	
              3.

            	
              The
                Company has the requisite corporate power and authority to execute
                and
                deliver the Agreement and all requisite power, authority and financial
                ability to perform its obligations thereunder, and to consummate
                the
                transactions contemplated thereby. The Rights Offering, the execution
                and
                delivery of the Agreement and the consummation and performance by
                the
                Company of the transactions contemplated by the Rights Offering and
                the
                Agreement have been duly authorized by all requisite corporate action.
                The
                Agreement has been duly and validly executed and delivered by the
                Company
                and (assuming the due authorization, execution and delivery thereof
                by the
                Purchasers) constitutes the valid and binding obligation of the Company,
                enforceable against it in accordance with its terms, except as the
                enforceability of which may otherwise be limited by bankruptcy,
                insolvency, fraudulent conveyance, reorganization, moratorium and
                other
                similar laws affecting the enforcement of creditors’ rights generally,
                public policy and general equitable
                principles.

            

    

     

    
      	 	
              4.

            	
              The
                execution and delivery of the Agreement by the Company does not,
                and the
                Rights Offering and the consummation of the transactions contemplated
                hereby and thereby will not, (i) violate any material provision of
                law and
                will not (ii) conflict with, or result in a breach of any of the
                terms of,
                or constitute a default under, the Articles of Incorporation, the
                bylaws
                of the Company or any material agreement, instrument or other restriction
                to which the Company is a party or by which the Company or any of
                its
                properties or assets is bound or (iii) result in the creation of
                any lien
                on any property or asset of the Company or any of its
                subsidiaries.

            

    

     

    
      	 	
              5.

            	
              Assuming
                that the representations of the Purchasers contained in the Agreement
                are
                true, correct and complete and assuming compliance by the Purchasers
                with
                their covenants set forth in the Agreement, it is not necessary in
                connection with the offer, sale and delivery of the Shares to the
                Purchasers to register the Common Stock under the Securities Act
                of 1933,
                as amended, or under the securities or blue sky laws in any applicable
                state.

            

    

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              6.

            	
              No
                consent, approval or authorization of, or declaration, registration
                or
                filing with, any person, entity or governmental authority on the
                part of
                the Company is required for the valid execution, delivery and performance
                of the Agreement or the valid consummation of the Rights Offering
                or of
                the transactions contemplated by the Rights Offering and the Agreement,
                except for (A) the filing with the Secretary of State of the State
                of
                Nevada of an amendment to the Articles of Incorporation to increase
                the
                Company’s authorized capital by fifteen million (15,000,000) shares of
                Common Stock, (B) the filing of all necessary amendments to the
                registration statement on Form S-3, filed with the Securities &
                Exchange Commission on July 3, 2007, including all prospectuses related
                thereto and (C) such consents, approvals, authorizations, declarations,
                registrations or filings (y) as may be required under the Nasdaq
                National
                Market rules and regulation in order to consummate the Rights Offering
                or
                (z) as may be required under state securities or blue sky laws in
                connection with the purchase of Shares by any of the Purchasers,
                which
                filings, in the case of clauses (A) through (C) above, have been
                or will
                be filed in a timely manner.

            

    

     

    
      
        
        

      

      
        B-4

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