Document:

Unassociated Document

    INVESTMENT
MANAGEMENT AGREEMENT

     

    INVESTMENT MANAGEMENT
AGREEMENT (this “Agreement”) entered into as of January 20, 2010 (the
“Effective
Date”), by and between STILLWATER CAPITAL PARTNERS,
INC., a corporation organized under the laws of the State of New York
(the “Investment
Manager”), having a place of business at 41 Madison Avenue, 29th Floor,
New York, New York 10010; GEROVA FINANCIAL GROUP, LTD.
(formerly, Asia Special
Situation Acquisition Corp.), a Cayman Islands company (the “Company”) having its
registered office at c/o M&C Corporate Services Limited, P.O. Box 309GT,
Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands;
and the other parties signatory hereto (collectively, with the Investment
Manager and the Company, the “Parties.”

     

    WHEREAS, Stillwater Asset Backed Holdings LP,
an indirect subsidiary of the Company, and a party signatory
hereto, is the surviving entity in a merger transaction, and owns all of the
assets subject to all of the liabilities (which shall also include participating
interests owned by individual investors) of Stillwater Asset Backed Fund,
LP, a Delaware limited partnership (“Stillwater AB Fund Delaware
I.”); and Stillwater
Asset Backed Fund II, LP, a Delaware limited partnership (“Stillwater AB Fund Delaware
II” and together with Stillwater AB Fund Delaware I, the “Stillwater Delaware Lending
Funds”); and

     

    WHEREAS, Gerova AB Holdings, Ltd., one
of the indirect subsidiaries of the Company and who is party signatory hereto,
has purchased certain assets from, among other parties, Stillwater Asset Backed Offshore
Fund, Ltd., a Cayman Islands exempted company (“Stillwater ABOF
Cayman”); Stillwater
Asset Backed Fund SPV, a Cayman Islands exempted company (“Stillwater ABF SPV”);
SABF II Onshore SPV, a
Cayman Islands exempted company (“Stillwater ABF II SPV
and together with Stillwater ABOF Cayman and Stillwater ABF SPV, the “Stillwater Cayman Lending
Funds”);

     

    WHEREAS, Stillwater Market Neutral Holdings
LP, an
indirect subsidiary of the Company, and a party signatory
hereto, is the surviving entity in a merger transaction, and owns all of the
assets subject to all of the liabilities of Stillwater Market Neutral Fund
LP, a Delaware limited partnership (“Stillwater MNF I -
Delaware”); Stillwater
Market Neutral Fund II LP, a Delaware limited partnership (“Stillwater MNF
II-Delaware”); and Stillwater Matrix Fund LP, a
Delaware limited partnership (“Stillwater Matrix
Delaware”, and with Stillwater MNF I-Delaware and Stillwater MNFII -
Delaware, the “Stillwater Delaware Fund of
Funds”);

     

    WHEREAS, Gerova MN Holdings
Ltd., one of the indirect subsidiaries of the Company and who is party
signatory hereto, has purchased certain assets from Stillwater Market Neutral Fund
Ltd., a Cayman Islands exempted company (“Stillwater Cayman Fund of
Funds”);

     

    WHEREAS, a subsidiary of the
Company has acquired, through a merger transaction, all of the assets subject to
all of the liabilities (which shall also include participating interests owned
by individual investors) of Stillwater Real Estate Partners,
LP, a Delaware limited partnership (“Stillwater Real Estate
Partners”), and a party signatory hereto, and

     

    WHEREAS, the Company has
acquired, through a merger transaction, all of the assets subject to all of the
liabilities of Stillwater WPB
Venture Partners I, LP, a Delaware limited partnership (“Stillwater WPB I”), a
party signatory hereto, and Stillwater WPB Venture Partners II,
LP, a Delaware limited liability company (“Stillwater WPB II”
and together with Stillwater WPB I and Stillwater Real Estate Partners, LP,
collectively, the “Stillwater Delaware Real
Estate Funds”); and

     

    WHEREAS, as a result of the
above-referenced asset purchases and mergers and pursuant to the terms and
conditions set forth in the various agreements and plans of merger and asset
purchase agreements with the Investment Manager and its Affiliates (the “Stillwater Purchase
Agreements”), the Company now has title and dominion over all of the
assets and properties (collectively, the “Stillwater Assets”)
owned or used by each of the Stillwater Cayman Lending Funds, Stillwater
Delaware Lending Funds, Stillwater Real Estate Funds, Stillwater Cayman Fund of
Funds and Stillwater Delaware Fund of Funds (collectively, the “Stillwater Funds”)
and all liabilities associated with such Stillwater Funds;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WHEREAS, the Investment
Manager wishes to manage and invest the Stillwater Assets under the direction
and supervision of the Board of Directors of the Company all in accordance with
the terms and conditions set forth herein; and

     

    WHEREAS, the Investment
Manager and the Company desire to establish the duties and responsibilities of
the Investment Manager and the compensation to be paid to the Investment Manager
in connection with the management of the Stillwater Funds and Stillwater Assets
of the Company, all subject to and in accordance with the terms and conditions
contained herein.

     

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

     

    1.           Definitions.                                Unless
otherwise expressly defined in this Agreement, when used herein, all capitalized
terms shall have the same meaning as such terms are defined in the Stillwater
Purchase Agreements.

     

    2.           Appointment;
Term and Termination.

     

    (a)           Appointment.  The
Company hereby retains the Investment Manager to provide investment management
services with respect to the Investment Account Assets (as that term is defined
in Section 3(a)
below), all in accordance with and subject to the terms and conditions of this
Agreement.  Subject at all times to the terms and conditions of this
Agreement, the Company appoints the Investment Manager as the agent and
attorney-in-fact to invest and reinvest the Investment Account Assets in
accordance with the terms hereof (the “Appointment”).  The
Appointment of the Investment Manager is subject at all times to the provisions
of this Agreement, including the provisions of Section 2(c) and
Section 2(d) below.

     

    (b)           Performance of
Duties.  The Investment Manager hereby accepts such Appointment
and agrees to use its best efforts and all of the investment skills and
abilities of its shareholders, officers, directors and employees, throughout the
Term of this Agreement (as hereinafter defined) to provide such investment
management services to the Surviving Entities or Buyers of the Stillwater Funds,
all as provided for in this Agreement.  The Investment Manager and its
stockholders, officers, directors, employees and agents shall discharge their
duties and exercise their powers hereunder solely in the interest of the Company
(except to the extent that any conflicts of interest are disclosed and consented
to by the Company) and with the care, skill, prudence and diligence that, under
the circumstances then prevailing, a prudent person acting in a like capacity
and familiar with such matter would use.

     

    (c)           Term.  Subject
at all times to earlier termination as provided herein, the Appointment of the
Investment Manager under this Agreement shall be for a period that shall
commence on the Effective Date and shall terminate on March 31, 2013, unless
this Agreement is subject to automatic renewal and extension as provided in
Section 16, below.  Such period, and any renewal thereof, is
hereinafter referred to as the “Term” of this
Agreement.

     

    (d)           Partial
Termination.  In the event that at the end one of the three (3)
fiscal years ending December 31, 2010, December 31, 2011 or December 31, 2012,
the Net Asset Value of any one or more of the Surviving Entities or Buyers of
any one or more former Stillwater Fund or Stillwater Funds that were included as
Constituent Entities or Stillwater Parties in each of the Stillwater Purchase
Agreements (each the “Acquisition Agreement
Fund(s)”) and for which Merger Consideration or Consideration was paid by
the Company, shall be less than
sixty-two and one-half percent (62.5%) of the aggregate Appraised NAV (as
defined below) of such Acquisition Agreement Fund(s) that were merged with or
whose assets were acquired by the relevant Surviving Entity or Buyer as at the
end of the fiscal year immediately preceding the fiscal year in question, then
and in such event, the Company may, upon ninety (90) days prior written notice
to the Investment Manager terminate its Appointment as Investment Manager of the
Surviving Entity or Buyer of such former Acquisition Agreement Fund(s), and the
Investment Manager shall no longer be entitled to receive the fees contemplated
by Section 8 below with respect to any such Surviving Entity or Buyer. For the
avoidance of doubt, the Net Asset Value change for purposes of this Section 2(d)
shall be measured on a group by group basis based on the performance of the
relevant group of Stillwater Funds merged with or acquired by the relevant
Surviving Entity or Buyer, as the case may be, as described in the recitals
above.

    
      
         

      

      
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    (e)           Termination.  This
Agreement may be terminated by the Company (or modified as provided below) at
any time prior to the expiration of its Term for any of the reasons set forth
below.

     

    (i)           In
the event that:

     

    (A)           the
full-time employment of either Jack Doueck or Richard Rudy with the Investment
Manager shall terminate for any reason, including such Person’s resignation,
death or disability (to be defined as the inability to provide continuous
services to the Investment Manager for six months or more), the Company shall
have the right (but not the obligation) to appoint another Person satisfactory
to the Company to serve on the board of directors of the Investment Manager and
to assume the duties of either Doueck or Rudy, as applicable; or

     

    (B)           the
full-time employment of both Jack
Doueck or Richard Rudy with the Investment Manager shall terminate (as set forth
in clause (A) above), the Company shall have the right (but not the obligation)
to immediately, and without further notice, terminate this Agreement in its
entirety.

     

    (ii)           In
the event that any of the Investment Manager or its Affiliates
shall:

     

    (A)           be
the subject of a consent decree or injunction by the Securities and Exchange
Commission that imposes sanctions on the Investment Manager, which in the
reasonable judgment of the Company could result in the Investment Manager’s
inability to perform its obligations under this Agreement on behalf of any of
the Included Entities; or

     

    (B)           breach
any material term or condition of this Agreement which breach shall not be cured
by the Investment Manager or its Affiliates within thirty (30) days following of
written notice of such breach by the Company (specifying therein the nature of
such breach), or

     

    (C)           commit
any act of omission or commission constituting gross negligence, willful
malfeasance or breach of its or their fiduciary duty of due care and loyalty to
the Included Entities, the Investment Account Assets or the
Company;

     

    (D)           be
convicted or indicted for any felony, or

     

    (E)           breach
any of the covenants set forth in Section 9(c) of this Agreement, then, upon the
occurrence of any of the foregoing events (a “For Cause Termination Event”), in
addition to any other remedy available to it or its Subsidiaries at law or in
equity, the Company may, upon ten (10) Business Days notice, terminate this
Agreement and the Appointment of the Investment Manger hereunder;
or

    
      
         

      

      
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    (F)           any
accrued and unpaid management fees or incentive fees payable  to the
Investment Manager (collectively, the “Accrued Stillwater Fund
Fees”) by the Included Entities (as defined below) shall survive any full
or partial termination hereunder.  The Accrued Stillwater Fund Fees as
of the Effective Date are set forth in Exhibit C annexed hereto.

     

    3.           Investment
Account Assets; Allocation of Net Proceeds.

     

    (a)           As
used in this Agreement, the term “Investment Account
Assets” shall mean and include

     

    (i)           the
Stillwater Assets held by the Surviving Entities or Buyers of the Acquisition
Agreement Funds as the same shall exist on the Effective Date, together with all
additions thereto or substitutions thereof as the result of the reinvestment of
any Net Proceeds thereof in accordance with Section 3(c)(iii) below, and less
any withdrawals of Stillwater Assets by any one or more of the Surviving
Entities or Buyers pursuant to Sections 3(c)(i) and 3(c)(ii) below;
and

     

    (ii)           any
other cash, assets or investments that the Company, in the exercise of its sole
and absolute discretion, may elect to place under the supervision of the
Investment Manager from time to time during the Term of this
Agreement.

     

    The
Investment Account Assets shall include all assets owned or held by the Included
Entities (as defined below) (except any such entities within the scope of clause
(a)(ii) of this Section 3(a) which the Company has elected to have managed by
the Investment Manager (the “Optional
Funds”)).  Such Included Entities (other than the Optional
Funds) shall not hold or own any other assets which are not managed by the
Investment Manager pursuant to the terms of this Agreement. No withdrawal of
Investment Account Assets by the Included Entities (other than the Optional
Funds) shall be permitted except pursuant to clauses (i) and (ii) of Section
3(c) below.

     

    (b)           As
used herein, the term “Net Proceeds” shall
mean:

     

    (i)           the
amount received in cash by any one or more Surviving Entity or Buyer of an
Acquisition Agreement Fund or other direct or indirect Subsidiary of the Company
holding cash or investments that the Company has elected, in the exercise of its
sole discretion, to place under the supervision of the Investment Manager
(collectively, with all of the Surviving Entities or Buyers of the Acquisition
Agreement Funds, the “Included Entities”)
from either (A) the sale or liquidation of investments or the repayment of loans
of, or in connection with the ownership of, any or all of such Investment
Account Assets, or (B) capital contributed to any one or more of such Included
Entities by or through the Company, as contemplated by Section 10 of this
Agreement, or otherwise:
less

     

    (ii)           all
costs, expenses, commissions and fees (including the Management Fee) payable to
the Investment Manager or any third party in connection with any one or more
sale or liquidation of such Investment Account Assets or the raising of capital
by the Company that is contributed to such Included Entities, as contemplated by
Section 10 of this Agreement or otherwise.

     

    (c)           All
Net Proceeds received or to be received by any one or more of the Included
Entities, shall be applied as follows:

    
      
         

      

      
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    (i)           the
first eight percent (8%) of such Net Proceeds shall be distributed to the
Company or to any one or more of its Subsidiaries, as directed by the Board of
Directors of the Company, to be used as the Board of Directors of the Company
shall determine in the exercise of its sole discretion;

     

    (ii)           the
next forty-eight percent (48%) of such Net Proceeds shall be distributed, as
follows:

     

    (A)           forty-one
and two-thirds percent (41-2/3%) of such 48% of Net Proceeds shall be allocated
and distributed to the Investment Manager until such time as all accrued and
unpaid Accrued Stillwater Fund Fees shall have been paid in full;
and

     

    (B)           fifty-eight
and one-third percent (58-1/3%) balance of such 48% of Net Proceeds shall be
allocated and distributed to the Company or any existing or newly created
Subsidiary of the Company to be used to purchase other assets, make acquisitions
of assets or businesses and for working capital, all as shall be determined by
the Board of Directors of the Company, in the exercise of its sole discretion;
and

     

    (iii)           subject
at all times to the provisions of Section 3(g) below, the remaining balance of
such Net Proceeds shall be reinvested as shall be determined by the Investment
Manager and subject to the Investment Guidelines and the reasonable approval of
the Investment Committee.

     

    (d)           For
the avoidance of doubt, if there are $10,000,000 of Net Proceeds available for
distribution:

     

    (i)           the
first $800,000 shall be distributed to the Company as per Section 3(c)(i)
above;

     

    (ii)           the
next $4,800,000 shall be distributed (i) $2,000,000 to the Investment Manager to
reduce Accrued Stillwater Funds Incentive Fees, (ii) $2,800,000 to the Company
to be used for the purposes set forth in clause (B) of Section 3(c)(ii)
above, and

     

    (iii)           the
balance shall be distributed in accordance with Section 3(c)(iii)
above.

     

    (e)           At
such time as all Accrued Stillwater Incentive Fees shall have been paid in full,
Net Proceeds shall be allocated and distributed, as follows:

     

    (i)           the
first eight percent (8%) of such Net Proceeds shall be distributed to the
Company or to any one or more of its Subsidiaries, as directed by the Board of
Directors of the Company, to be used as the Board of Directors of the Company
shall determine in the exercise of its sole discretion;

     

    (ii)           the
next twenty percent (20%) of such Net Proceeds shall be allocated and
distributed to the Company or any existing or newly created Subsidiary of the
Company to be used to purchase other assets, make acquisitions of assets or
business and for working capital, all as shall be determined by the Board of
Directors of the Company, in the exercise of its sole discretion;
and

     

    (iii)           subject
at all times to the provisions of Section 3(g) below, the remaining seventy-two
percent (72%) of such Net Proceeds shall be reinvested as shall be determined by
the Investment Manager and subject to the Investment Guidelines and the
reasonable approval of the Investment Committee.

     

    (f)           In
the event and to the extent that the Investment Manager or Investment Committee
recommends that Net Proceeds should not be distributed as provided in this
Section 3, but rather should be deployed to maintain or secure the value of
existing
assets or investments of the Included Entities (as opposed to additional or
follow-on assets or investments), if and to the extent that,
notwithstanding such recommendation, the Company elects to take the distribution
of its allocable portion of such Net Proceeds, then and in such event, any
measurable losses incurred by the Included Entities resulting therefrom shall
not be included in either (i) reducing the Incentive Fee payable pursuant to
Section 8(b) of
this Agreement, or (ii) determining the Cumulative IRR referred to in Section 16 of this
Agreement.  Notwithstanding the foregoing, nothing contained herein or
elsewhere in this Agreement shall preclude the Company from demanding and
receiving its proportionate share of all Net Proceeds available for distribution
from Included Entities.

    
      
         

      

      
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    (g)           Notwithstanding
anything to the contrary, express or implied, contained in this Agreement,
without the prior written consent or approval of the Company (which approval or
consent may be given or withheld at the sole discretion of the Company), no Net
Proceeds shall be allocated to or invested by the Investment Manager in any one
or more Included Entities that own Investment Account Assets which invest in
hedge funds or were former Stillwater Cayman Fund of Funds or Stillwater
Delaware Fund of Funds. It is the express mutual intention of the Company and
the Investment Manager that all available Net Proceeds will be allocated to
Included Entities that make asset backed or secured loan investments of a nature
similar to the investment activities formerly conducted by the Stillwater
Delaware Lending Funds and the Stillwater Cayman Lending Funds, or other forms
of secured loans included in the Investment Guidelines set forth
below.

     

    4.           Investment
Guidelines and Objectives.  The Investment
Manager shall cause the Included Entities and the Investment Account Assets to
be invested in accordance with the investment objectives of the Surviving
Entities or Buyers of the Stillwater Funds as described on Exhibit
A annexed hereto and made a part hereof (the “Investment
Guidelines”); provided,
that such Investment Guidelines may be modified, amended or restated in
accordance with and based upon the policies and guidelines that may be adopted
from time to time by the Investment Committee and the Board of Directors of the
Company.

     

    5.           Custody
of Assets.

     

    (a)           The
Investment Account Assets consisting of (i) loan participations and similar
instruments, (ii) interests in private investment funds and (iii) direct or
indirect real estate and related assets shall be held by the Investment Manager,
who shall serve as the custodian of such Investment Account Assets, in an
account determined by the Investment Manager and approved by the
Company.  Other types of Investment Account Assets, at the discretion
of the Company, will be held by one or more custodians and/or sub-custodians
appointed by the Company (the “Custodian”), in one
or more accounts (the “Investment Account”).
Subject at all times to its right to terminate the Appointment of the Investment
Manager hereunder, in whole or in part, the Company shall cause the Custodian to
accept instructions from the Investment Manager to execute transactions for the
Investment Account and to provide the Investment Manager and a representative
designated by the Company with daily and monthly reports concerning the status
of the Investment Account and such other information relating to the Investment
Account or the Investment Account Assets as the Investment Manager or the
Company may from time to time request.

     

    (b)           The
Company shall pay its share of all fees and expenses of the Custodian relating
to the Investment Account Assets.  All transactions will be
consummated by payment to or delivery by, the Custodian, of all cash or
securities due to or from the Investment Account.  The Investment
Manager shall at no time have custody or physical control of any of the
Investment Account Assets.  The Investment Manager shall instruct all
brokers or dealers executing orders on behalf of the Investment Account to
forward to the Custodian and the Company copies of all brokerage confirmations
promptly after execution of transactions.  Upon giving instructions to
the Custodian, the Investment Manager shall have no responsibility or liability
with respect to custodial arrangements or the acts, omissions or other conduct
of the Custodian.

    
      
         

      

      
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    6.           Authority
of the Investment Manager; Certain Limitations and Major
Decisions.

     

    (a)           Authority of Investment
Manager.  Subject at all times to the provisions of this
Agreement, the Investment Manager shall have sole, complete and full power and
authority to invest and reinvest all of the Investment Account Assets in such
securities or other instruments as the Investment Manager, in its sole and
absolute discretion, shall consider to be in the best interest of the Company,
provided such investments are consistent with the Investment Guidelines, as the
same may be amended, modified or restated as provided herein.  In
connection therewith, the Investment Manager shall have sole, complete and full
power and authority to: (i) issue orders for the Investment Account to a
broker-dealer or loan servicer; (ii) instruct the Custodian to exercise or
abstain from exercising any option, privilege or right held in the Investment
Account; (iii) monitor the correct collection of income on the Investment
Account by the Custodian; and (iv) take any other action with respect to
securities or other property in the Investment Account as needed to serve the
best interest of the Company and to adhere to the Investment
Guidelines.  The Investment Manager shall be free to sell securities
or other instruments in the Investment Account regardless of the length of time
they have been held.  The Investment Manager shall further be free to
make investment changes regardless of the resulting rate of portfolio turnover,
when it, in its sole discretion, shall determine that such changes will promote
the investment objective of the Investment Account.  The Investment
Manager shall be authorized to represent the Included Entities in all dealings
with loan servicers and originators in connection with loan investments and
related activities, as described in the Investment Guidelines.

     

    (b)           Investment
Committee.  From and after the Closing Date and for a period
through and including March 31, 2013, the Investment Manager shall establish a
three (3) Person investment committee, which shall provide general advice and
guidance to the Investment Manager in making investment decisions on behalf of
the Included Entities (the “Investment
Committee”).  Richard Rudy and Jack Doueck shall be two of the
members of the Investment Committee, and a Person designated by the Company
shall be the third member.  In the event of the death or other inability of
either Rudy or Doueck to serve on the Investment Committee, the Investment
Manager shall have the right to designate the replacement for such departing
member, provided that such replacement shall be approved by the Company, which
approval shall not be unreasonably withheld or delayed.

     

    (c)           Major
Decisions.  Notwithstanding anything to the contrary, express
or implied, any of the following actions or transaction (each a “Major Decision”)
shall not be consummated by the Investment Manager or any general partner of any
Included Entity which is Affiliated with the Investment Manager, by or on behalf
of any such Included Entity or any Investment Account Assets of such Included
Entity, unless and until the Investment Manager or such general partner receives
the affirmative vote or consent of either the Company or the Company’s designee
on the Investment Committee of the Investment Manager:

     

    (i)           any
change in control of the Investment Manager such that Richard Rudy and Jack
Doueck together, with their respective trusts, no longer control the Investment
Manager, except that changes made for estate planning purposes shall not violate
this provision;

     

    (ii)           any
material and unilateral amendment or modification to, or restatement of, this
Management Agreement or the Organizational Documents of the Included
Entities;

     

    (iii)           the
sale or issuance of any additional equity of in any of the Included Entities; it
being understood that, except as provided in Section 9(c) below, nothing shall
prevent the Investment Manager from raising assets for new or other Stillwater
products, projects, investment funds or ventures;

    
      
         

      

      
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    (iv)           the
incurrence of outstanding indebtedness by any one or more Included Entity in an
amount exceeding 50% of the Net Asset Value of such Included Entity at the time
of the inception of such leverage;

     

    (v)           the
acquisition by any Included Entity of the securities or assets of any other
Person outside of the ordinary course of business (excluding any acquisitions of
assets or securities permitted under the Investment Guidelines);

     

    (vi)           the
taking of any steps to wind-up, dissolve or terminate the existence of any of
the Included Entities still in existence, or the commencement of any voluntary
Insolvency Event in relation to any of such Included Entities or the Investment
Manager;

     

    (vii)           the
amalgamation, merger, reorganization or consolidation of any Included Entity or
the sale, lease, assignment, lending, giving, licensing, transfer or otherwise
disposing of all or substantially all of the assets of any Included Entity or
any Subsidiary thereof;

     

    (viii)           engaging
or terminating the services of the independent accountants engaged to prepare
financial statements for the Included Entities or audit the financial statements
of any of the Included Entities;

     

    (ix)           entering
into a transaction with a related party or a Subsidiary which results in a
personal benefit to the Investment Manager or any of its Affiliates and which is
not in the ordinary course of business of the Included Entity or specified in
this Agreement; or

     

    (x)           any
material increase (not in accordance with the terms herein) in the aggregate
compensation or other remuneration payable by any Included Entity to the
Investment Manager or any of its Affiliates, including any general partner of an
Included Entity.

     

    (d)           Work-Out
Advisor.  In the event that any asset backed loan shall in the
view of the Company representative on the Investment Committee of the Investment
Manager, have materially deteriorated in value or a material default by the
borrower which is not likely to be cured has occurred or is imminent (any such
loan, an “Impaired
Asset”), the Company shall have the right, but not the obligation, to
engage the services of a work-out specialist or advisor on behalf of the
relevant Included Entity; the costs and expenses of which Person(s) shall be
borne by the relevant Included Entity.  The engagement of such
work-out specialist or advisor shall be subject to the approval of the
Investment Manager; which approval shall not be unreasonably withheld or
delayed.  For so long as any such asset backed loan shall be
classified as an Impaired Asset, any loss or gain in respect of such loan shall
not be included in the Net Asset Value calculations for purposes of determining
the Incentive Fee payable to the Investment Manager under Section 8(b) below or
for purposes of determining the Cumulative IRR under Section 16
below.

     

    7.           Valuation
of Investment Account Assets.  The Investment Account Assets
and the Net Asset Values of the Included Entities shall be valued quarterly by a
recognized valuation professional or valuation firm (the “Asset Appraiser”),
and shall be valued on a quarterly basis as at the end of each calendar quarter
ending March 31st, June
30th,
September 30th, and
December 31st, or (if
the Company’s fiscal year end is other than December 31st) such
other fiscal quarter of the Company as shall be determined by the Board of
Directors of the Company (each, a “Fiscal Quarter”) in
accordance with the criteria set forth in Exhibit B hereto.  Such
valuations shall be used to determine the Management Fee and Incentive Fee
payable to the Investment Manager pursuant to Section 8 hereof.  The
Cost of the Asset Appraiser shall be borne by the Company.

    
      
         

      

      
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    8.           Fees
Payable to Investment Manager.

     

    (a)           Management
Fee.  During the Term of this Agreement, the Company will cause
the Included Entities to pay the Investment Manager an annual fixed fee (the
“Management
Fee”) equal to one percent (1.0%) of the aggregate Net Asset Value of all
of the Included Entities, as shall be determined at the beginning of each Fiscal
Quarter by the Appraiser in accordance with the criteria set forth on Schedule B
annexed hereto or such other criteria as shall be acceptable to the Company (the
“Appraised
NAV”).  Such Management Fee shall be non-refundable and payable
quarterly not later than the beginning of the following  Fiscal
Quarter, at the rate of one quarter of one percent (0.25%) of the Appraised NAV
of the Included Entities for the immediately preceding Fiscal
Quarter.  The Investment Manager may, in its sole and absolute
discretion, waive or reduce its Management Fee.

     

    (b)           Incentive
Fee.

     

    (i)           Subject
to recovery of the Loss Carryforward amount pursuant to Section 8(b)(ii) below,
in consideration for its services the Investment Manager shall also receive an
incentive fee (the “Incentive Fee”) at
the close of each fiscal quarter equal to 20% of each Included Entity’s
quarterly New Appreciation (as defined below) as of the close of such quarter.
“Appreciation”
is the increase in the Net Asset Value of each Included Entity from the prior
quarter end.  For purposes of calculating the Incentive Fee,
Appreciation is reduced by all fees and expenses, including the Management Fee,
but not by the Incentive Fee. “New Appreciation” is
the amount of cumulative Appreciation in excess of the high water mark or Loss
Carryforward provision (as described in Section Section 8(b)(ii)
below).  All Incentive Fees paid to the Investment Manager are
non-refundable, notwithstanding any losses incurred in subsequent
periods.  The quarterly or other period of time over which Incentive
Fees are charged is referred to as the “Incentive Fee
Period.”  The Investment Manager shall waive any Incentive Fee
for the fiscal year ending December 31, 2010, and, accordingly, the first
Incentive Fee hereunder shall be payable to the Investment Manager as of March
31, 2011 with respect to any New Appreciation for the prior quarter ending on
such date.

     

    (ii)           In
any Incentive Fee Period in which an Included Entity has a decrease in Net Asset
Value, the Incentive Fee in the succeeding Incentive Fee Period(s) shall be
calculated on the net increase in Net Asset Value for such Included Entity for
each such succeeding Incentive Fee Period(s) reduced by an amount equal to the
decrease in Net Asset Value in the preceding Incentive Fee Period(s) for such
Included Entity (“Loss
Carryforward”) until the aggregate reductions equal the Loss Carryforward
amount.  In the event, however, that an Included Entity withdraws
Investment Account Assets at a time in which such Included Entity has a Loss
Carryforward, the amount of such Loss Carryforward at such withdrawal date
applicable to such Included Entity shall be reduced by a percentage equal to one
hundred percent (100%) multiplied by a fraction, the numerator of which is the
amount to be withdrawn by the Included Entity, and the denominator of which is
the Net Asset Value of such Included Entity immediately prior to the
withdrawal.  No Loss Carryforward amount shall accrue with respect to
the fiscal year ending December 31, 2010.

     

    (iii)           Notwithstanding
the foregoing structure for payment of Incentive Fees, upon request of the
Investment Manager, the Company and the Included Entities shall use their best
efforts to replicate the foregoing performance based compensation provisions in
any domestic Included Entity organized as a limited partnership or limited
liability company in the form of a net profit allocation to the Investment
Manager or its affiliate allocable by such fund in order to benefit from any
favorable tax treatment which may be afforded to the Investment Manager or its
affiliate as a result of such structure.  In the event of any such
replication, such performance based compensation shall be payable under the
relevant Included Entity governing documents and no Incentive Fee shall be
payable hereunder with respect to such Included Entity.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    9.           Other
Activities; Co-Investment Rights.

     

    (a)           Other Investment Management
Services.  Subject at all times to the provisions of Section
9(b) below and the performance of its duties and obligations under this
Agreement as well as the fiduciary obligations of the Investment Manager and its
Affiliates to the Company (in their capacities as Investment Manager and a
member of the Board of Directors of the Company), the Investment Manager and its
stockholders, officers, directors, affiliates, employees and agents may
originate or sponsor other investment funds (both domestic or foreign) or
investment accounts for others, provide advisory services to or manage such
investment funds or investment accounts and, except as set forth in Section 9(b)
below, nothing in this Agreement shall in any way be deemed to restrict the
right of the Investment Manager or such other persons to perform investment
management or other services for any other person or entity.  Except
as set forth in Section 9(b) below, nothing in this Agreement shall limit or
restrict the Investment Manager or its stockholders, officers, directors,
affiliates, employees or agents (or their family members) from buying, selling
or trading in any securities for its or their own account or the account of
others.

     

    (b)           Right to
Co-Invest.  Notwithstanding the provisions of Section 9(a)
above but subject to the Company’s compliance with its capital raising
undertaking set forth in Section 10 below, each of the Investment Manager and
its Affiliates who are party signatories to this Agreement do hereby covenant
and agree that, in the event and to the extent that either the Investment
Manager, or any of its Affiliates, including, Jack Doueck or Richard Rudy or any
of their Affiliates, shall establish, manage or operate any entity, fund,
investment program or other investment strategy (whether domestic or foreign)
that is engaged in (i) making asset backed loans of any type or description,
(ii) investing in or development of real estate or real estate assets, (iii)
investing in other hedge funds, or (iv) making any other investments expressly
included in the Investment Guidelines attached hereto (individually, a “Similar Entity” and
collectively, “Similar
Entities”), the Company shall have a right (the “Co-Investment Right”)
to invest in and own (directly or through any Affiliate) up to fifty-one percent
(51%) of the share capital or partnership interests in any such Similar Entity,
which investment(s) shall be on terms and conditions no less favorable to the
Company than the terms offered to any other Person investing in such Similar
Entity.  The Co-Investment Right shall be exercisable by the Company
on each date on which the Similar Entity is closing on the acceptance of new
subscriptions (in a minimum aggregate amount of $5 million or
more).  The Investment Manager shall notify the Company of such
investment opportunity (with appropriate detail) and the availability of the
Co-Investment Right, and the Company shall be obligated to decide whether or not
it shall exercise such Co-Investment Right (in whole or in part) within 30 days
after receiving such notice from the Investment Manager.  Assets
raised and invested pursuant to Section 10 may not be used by the Company in its
exercise of its Co-Investment Rights  under this Section
9(b).

     

    (c)           The
parties hereto acknowledge and agree that a violation of the covenant and
agreement would cause irreparable harm to the Company and its Subsidiaries,
including the Included Entities.  Accordingly, to the extent that any
such violation does not result from compliance with any legal or regulatory
requirements applicable to such Similar Entity, each of the parties hereto do
hereby agree that, in addition to any remedies available to them at law, the
Company or the affected Included Entity(s) may seek and obtain injunctive or
other equitable relief from any court of competent jurisdiction to prevent or
enjoin any actual or alleged violation of the covenants and agreement contained
in this Section 9(c).

     

    (d)           Notwithstanding
the foregoing, the parties agree that the Company’s right of co-investment set
forth in Section 9(b) above, shall not be
available to the Company if and at such time as the Company is unable to
directly or indirectly provide additional ABL Fund financing in the amounts and
at the time(s) contemplated by Section 10
below.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    10.           Additional
ABL Fund Financing.

     

    (a)           The
Company covenants and agrees that promptly following the closing of the
transactions contemplated by the Stillwater Purchase Agreements, pursuant to the
methods outlined in the Stillwater Agreement, the Company will undertake to
raise not less than $200.0 million over a period to two years (at the rate of
approximately $25.0 million per calendar quarter, commencing with the quarter
ending June 30, 2010) for investment in (i) Included Entities that make asset
backed or secured loan investments, (ii)  additional domestic or
offshore asset backed loan funds (“ABL Funds”) or (iii)
other investments to be managed by the Investment Manager as Included Entities
pursuant to the terms and conditions of this Agreement.  Unless the
Investment Manager directs otherwise, there will be at least a three-year lock
up period on the Company’s capital in such additional ABL Funds.

     

    (b)           Any
such additional entities deemed to be Included Entities pursuant to this Section
10 shall automatically be deemed to be parties to this Agreement and shall
execute such documentation as may be reasonably requested by the Investment
Manager.  In addition, any private investment funds referred to in the
letter agreement between the Investment Manager and the Company dated December
18, 2009 that were not included as Stillwater Funds in the Stillwater Purchase
Agreements and whose assets are subsequently acquired by the Company or its
Subsidiaries after the date hereof, shall also automatically be deemed to be
Included Entities and parties to this Agreement and shall execute such
documentation as may be reasonably requested by the Investment
Manager

     

    11.           Costs and
Expenses.

     

    (a)           In
consideration for the Management Fee and the Incentive Fee, the Investment
Manager shall be responsible for the payment of all of its own operating and
overhead type expenses which it incurs in connection with the provision of the
services described herein.  These expenses include all expenses
incurred by the Investment Manager in providing for its normal operating
overhead, including, but not limited to, the cost of providing relevant support
and administrative services (e.g., employee compensation and benefits, rent,
office equipment, insurance, utilities, telephone, secretarial and bookkeeping
services, etc.), but not including any Company operating expenses.

     

    (b)           The
Included Entities shall bear all costs and expenses incurred in connection with
effecting transactions involving Investment Account Assets.  In
particular, the Company and the Included Entities shall pay or reimburse the
Investment Manager for (i) all operating expenses of the Included Entities such
as Management Fees, tax preparation fees, governmental fees and taxes,
insurance, all fees and expenses associated with the Asset Appraiser, market
data services and communications systems, and ongoing custodial, legal,
accounting, auditing, bookkeeping, consulting and other professional fees and
expenses; (ii) research, due diligence and investment costs and expenses (e.g.,
expenses associated with making or maintaining any loan assets or with any
interests in real estate or other investment funds, as well as any expenses
related to brokerage commissions, short sales, and clearing and settlement
charges); (iii) all fees to protect or preserve any investment held by the
Included Entity or to enforce its rights under any loan or other asset, as
determined in good faith by the Investment Manager; and (iv) all fees and other
expenses incurred in connection with any litigation involving the Included
Entity and the amount of any judgments or settlements paid in connection
therewith.

     

    12.           Proxies.  The Investment
Manager shall not be required to take any action or render any advice with
respect to the voting of proxies solicited by or with respect to the issuers of
securities in which the Investment Account Assets may be invested from time to
time.  In the event that the Investment Manager receives any such
proxies, it shall promptly forward them to the Company for voting
purposes.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    13.           Company
Representations.  The Company
represents and warrants to the Investment Manager that (i) the Company has the
authority to appoint the Investment Manager to manage the Included Entities held
in the Investment Account, and (ii) the Company and the Included Entities have
received a copy of Part II of the Investment Manager’s Form ADV or another
document containing at least the information required by Part II of the
Adviser’s Form ADV at least forty-eight (48) hours prior to entering into this
Agreement or at the time this Agreement was executed.  If the Company
and the Included Entities have not received a copy of Part II of the Investment
Manager’s Form ADV at least forty eight (48) hours prior to executing this
Agreement, the Company and the Included Entities shall have five (5) days from
the time of executing this Agreement to terminate this Agreement without
penalty.

     

    14.           Exculpation
and Indemnification.

     

    (a)           Except
as otherwise provided in this Agreement, the Investment Manager shall not be
liable to the Company, any Included Entities or their shareholders for any
action or inaction in connection with the business of the Company or the
Included Entities unless such action or inaction is adjudged to constitute gross
negligence, willful malfeasance, willful misconduct or otherwise in violation of
the covenants and agreements of the Investment Manager and its Affiliates
contained herein.  It shall be conclusively presumed and established
that the Investment Manager acted in good faith and in accordance with this
Agreement if any action is taken, or not taken, by it on the advice of legal
counsel or other independent outside consultants or
agents.  Notwithstanding any other provision of this Agreement to the
contrary, the Company will indemnify and hold harmless the Investment Manager
and its stockholders, officers, directors, employees, agents and their
respective affiliates (collectively, “Indemnified Persons”) from and
against any loss or expense suffered or sustained by an Indemnified Person
resulting from the performance or non-performance of the Investment Manager’s
duties under this Agreement, including without limitation any judgment,
settlement, reasonable attorneys’ fees and other costs or expenses incurred in
connection with the defense of any actual or threatened action or proceeding,
provided that such indemnity will not extend to conduct by an Indemnified Person
that is adjudged to constitute gross negligence, willful malfeasance, willful
misconduct, or otherwise violate the covenants and agreements of the Investment
Manager and its Affiliates contained herein.

     

    (b)           The
Investment Manager shall be entitled to receive, upon application therefor,
advances from the Included Entities to cover the costs of defending any pending,
threatened or completed claim, action, suit or proceeding against it for Claims
in connection with which it would be entitled to indemnification under this
Section 14, provided, that such advances shall be repaid to the Included
Entities (with interest thereon at an annual rate equal to the Money Market Rate
(as defined below)) if the Investment Manager is found to be guilty of gross
negligence willful malfeasance, willful misconduct, or otherwise in violation of
the covenants and agreements of the Investment Manager and its Affiliates
contained herein, which precludes indemnification hereunder.  For the
purposes of this Section 14, “Money Market Rate”
shall mean a money market rate of interest as determined in good faith by the
Investment Manager from time to time by referencing recognized financial
publications like the Wall Street Journal or financial service providers like
Bloomberg or Reuters

     

    15.           Confidentiality.  The
Investment Manager and its stockholders, officers, directors, employees and
agents shall regard as confidential all information concerning the affairs of
the Company and the Included Entities, but shall be permitted to disclose to
third parties the fact that the Investment Manager is performing investment
management activities on behalf of the Included Entities.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    16.           Renewal
of Term.  On the date of each expiration of the Agreement,
commencing January 1, 2013, the Cumulative IRR shall be calculated as
follows:  The Cumulative IRR shall be the internal annual rate of
return calculated from December 31, 2009 to the date of expiration of this
Agreement, for all the Included Entities, based on the change in Appraised NAV
as at December 31, 2009, using such Appraised NAV as at December 31, 2009 as the
starting value, and the Audited Net Asset Value as at the relevant expiration
date as the ending value.

     

    This
Agreement shall be automatically renewed:

     

    (a)           for
a subsequent one-year period if the Cumulative IRR at the relevant expiration
date is equal to or greater than 7%;

     

    (b)           for
a subsequent two-year period if the Cumulative IRR at the relevant expiration
date is equal to or greater than 8%; and

     

    (c)           for
a subsequent three-year period if the Cumulative IRR at the relevant expiration
date is equal to or greater than 9%.

     

    17.           Termination
of Prior Agreements.  Stillwater acknowledges and agrees that,
as of the Effective Date, the terms and conditions of any and all prior
management, services or other similar agreements between Stillwater or any of
its affiliates, on the one hand, and any of the Stillwater Funds, on the other
hand (the “Prior
Management Agreements”), are hereby terminated and shall be of no further
force or effect.

     

    18.           Non-Assignment.  Except as
provided herein, neither the Investment Manager nor the Company shall assign
this Agreement or any of its rights or obligations hereunder without the prior
written consent of the other.  An assignment includes any direct or
indirect transfer or hypothecation of this Agreement by either the Investment
Manager or the Company; provided, that the Company shall have the absolute right
to assign this Agreement to any successor in interest to the Company or any
Included Entity, whether as a result of the sale of all or a majority of the
securities or assets of such Person or the merger, consolidation, tender offer,
or similar transaction involving the Company or such Included
Entity(s).

     

    19.           Entire
Agreement.  This Agreement
constitutes the entire agreement between the parties concerning the subject
matter hereof and supersedes all prior agreements and understandings, oral or
written, between them regarding such subject matter, including the Prior
Management Agreements.

     

    20.           Amendments
and Waivers.  This Agreement
may only be amended by a writing signed by both the Investment Manager and the
Company.  The Investment Manager and the Company may by written
consent waive, either prospectively or retrospectively, and either for a
specified period or indefinitely, the operation or effect of any provision of
this Agreement.  No waiver of any right by any party hereto shall be
construed as a waiver of the same or any other right at any other
time.

     

    21.           Notices. Except as otherwise
expressly provided in this Agreement, whenever any notice is required or
permitted to be given under any provision of this Agreement, such notice shall
be in writing, shall be signed by or on behalf of the party giving the notice
and shall be mailed by first class mail or sent by a professional recognized
courier service to the other party at the address set forth above or to such
other address as a party may from time to time specify to the other party by
such notice hereunder.  Any such notice shall be deemed duly given
when delivered at such address.

     

    22.           Governing
Law.  THE DOMESTIC LAW, WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES, OF THE STATE OF NEW YORK WILL GOVERN ALL QUESTIONS CONCERNING THE
CONSTRUCTION, VALIDITY AND INTERPRETATION OF THIS AGREEMENT AND THE PERFORMANCE
OF THE OBLIGATIONS IMPOSED BY THIS AGREEMENT.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    23.           Jurisdiction.  Each
of the parties submits to the exclusive jurisdiction of any state or federal
court sitting in New York, New York, in any action or proceeding arising out of
or relating to this Agreement and agrees that all claims in respect of the
action or proceeding may be heard and determined in any such court. Each party
also agrees not to bring any action or proceeding arising out of or relating to
this Agreement in any other court.  Each of the parties waives any
defense of inconvenient forum to the maintenance of any action or proceeding so
brought and waives any bond, surety or other security that might be required of
any other party with respect to any such action or proceeding.  The
parties agree that any of them may file a copy of this paragraph with any court
as written evidence of the knowing, voluntary and bargained agreement between
the parties irrevocably to waive any objections to venue or to convenience of
forum.  Nothing in this Section 22 will affect the right of any party
to serve legal process in any other manner permitted by law or in
equity.

     

    24.           Waiver of
Jury Trial.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY
CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED
AND DIFFICULT ISSUES, AND THEREFORE IT IRREVOCABLY AND UNCONDITIONALLY WAIVES
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT.  EACH PARTY CERTIFIES AND ACKNOWLEDGES
THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) IT UNDERSTANDS
AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER, (III) IT MAKES SUCH WAIVER
VOLUNTARILY AND (IV) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS SECTION
23.

     

    25.           Construction.  The
parties and their respective counsel have participated jointly in the
negotiation and drafting of this Agreement.  In addition, each of the
parties acknowledges that it is sophisticated and has been advised by
experienced counsel and, to the extent it deemed necessary, other advisors in
connection with the negotiation and drafting of this Agreement.  In
the event an ambiguity or question of intent or interpretation arises, this
Agreement will be construed as if drafted jointly by the parties and no
presumption or burden of proof will arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this
Agreement.  The parties intend that each representation, warranty and
agreement contained in this Agreement will have independent
significance.  If any party has breached any representation, warranty
or agreement in any respect, the fact that there exists another representation,
warranty or agreement relating to the same subject matter (regardless of the
relative levels of specificity) that the party has not breached will not detract
from or mitigate the fact that the party is in breach of the first
representation, warranty or agreement.  Any reference to any Law will
be deemed to refer to all rules and regulations promulgated thereunder, unless
the context requires otherwise.  The headings preceding the text of
articles and sections included in this Agreement and the headings to the
schedules and exhibits are for convenience only and are not be deemed part of
this Agreement or given effect in interpreting this
Agreement.  References to sections, articles, schedules or exhibits
are to the sections, articles, schedules and exhibits contained in, referred to
or attached to this Agreement, unless otherwise specified.  The word
“including” means “including without limitation.”  A statement that an
action has not occurred in the past means that it is also not presently
occurring. When any party may take any permissive action, including the granting
of a consent, the waiver of any provision of this Agreement or otherwise,
whether to take such action is in its sole and absolute
discretion.  The use of the masculine, feminine or neuter gender or
the singular or plural form of words will not limit any provisions of this
Agreement.  A statement that an item is listed, disclosed or described
means that it is correctly listed, disclosed or described, and a statement that
a copy of an item has been delivered means a true and correct copy of the item
has been delivered.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    26.           Counterparts.  This Agreement
may be executed in any number of counterparts which together shall constitute
one and the same instrument.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, each of
the parties has caused this Agreement to be executed on its behalf by its duly
authorized representative, as of the date first above written.

    

    

    
      
        	
                GEROVA
      FINANCIAL GROUP, LTD.

              	 
      	
                STILLWATER
      CAPITAL PARTNERS, INC.

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/ Marshall Manley

              	 
      	
                By:

              	
                /s/ Jack Doueck

              
	 
      	
                Name:  Marshall
      Manley

              	 
      	 
      	
                Name:
      Jack Doueck

              
	 
      	
                Title:    Chief
      Executive Officer

              	 
      	 
      	
                Title:   Principal

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                STILLWATER
      ASSET BACKED HOLDINGS LP

              	 
      	
                GEROVA
      AB HOLDINGS LTD.

              
	 
      	 
      	 
      	 
      	 
      
	
                By:
      ASSAC General Partner, Inc., General Partner

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/ Gary T. Hirst

              	 
      	
                By:

              	
                /s/ Gary T. Hirst

              
	 
      	
                Gary
      T. Hirst, President

              	 
      	 
      	
                Gary
      T. Hirst, President

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                STILLWATER
      MARKET NEUTRAL HOLDINGS LP

              	 
      	
                GEROVA
      MN HOLDINGS LTD.

              
	 
      	 
      	 
      	 
      	 
      
	
                By:
      ASSAC General Partner, Inc., General Partner

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/ Gary T. Hirst

              	 
      	
                By:

              	
                /s/ Gary T. Hirst

              
	 
      	
                Gary
      T. Hirst, President

              	 
      	 
      	
                Gary
      T. Hirst, President

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                STILLWATER
      REAL ESTATE HOLDINGS LP

              	 
      	
                STILLWATER
      WPB VENTURE HOLDINGS LP

              
	 
      	 
      	 
      	 
      	 
      
	
                By:
      ASSAC General Partner, Inc., General Partner

              	 
      	
                By:
      ASSAC General Partner, Inc., General Partner

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/ Gary T. Hirst

              	 
      	
                By:

              	
                /s/ Gary T. Hirst

              
	 
      	
                Gary
      T. Hirst, President

              	 
      	 
      	
                Gary
      T. Hirst, President

              

      

    

    
      
         

      

      
        16ex10-1.htm

    Exhibit 10.1

    
 

    OMNIMMUNE
HOLDINGS, INC.

     

    SUBSCRIPTION
AGREEMENT

    
 

    Omnimmune
Holdings, Inc.

    4600 Post
Oak Place, Suite 352

    Houston,
TX 77027

    Attn:
Harris A. Lichtenstein, CEO

     

    Gentlemen:

     

    1. Subscription.

     

    1.1 Offering.  The
undersigned understands that Omnimmune Holdings, Inc., a corporation organized
under the laws of the State of Delaware (the “Company”), is offering to sell to
accredited investors (the “Offering”) up to $500,000 principal amount of
unsecured convertible promissory notes in the form annexed hereto as Exhibit A
(the “Notes”), which Notes are convertible into shares of common stock, par
value $.0001 per share (the “Common Stock”), of the Company at a conversion
price equal to $.01 per share of Common Stock, subject to adjustment as set
forth in the Notes. The purchase price of the Notes shall be equal to their
principal amount.  The undersigned understands that the Offering is
part of a recapitalization of the Company as described in the term sheet annexed
hereto as Exhibit B (the “Term Sheet”).

     

    1.2 Manner of
Subscription.  The undersigned (the “Subscriber”) hereby
subscribes for and agrees to purchase Notes for an aggregate purchase price of
$________ on the terms and conditions described herein.  The
undersigned hereby delivers (which delivery may be by facsimile transmission) to
the Company an executed copy of this Subscription Agreement and an executed copy
of the Purchaser Questionnaire.  Upon execution and delivery of this
Subscription Agreement by the Company, the undersigned hereby agrees to wire
immediately to the Company, in accordance with the wire instructions annexed
hereto as Exhibit C, the amount indicated above.  Upon the Closing,
the Company agrees to deliver to the undersigned a Note or Notes in the
aggregate principal amount of the subscription.

     

    1.3 Closing.  The
undersigned acknowledges and agrees that the closing of this Offering is
conditioned upon the receipt and acceptance by the Company of subscriptions for
a minimum of $200,000 principal amount of Notes. The Company may hold a closing
(the “Closing”) after it has received one or more subscriptions aggregating at
least such minimum principal amount of Notes to accept such subscriptions.
Thereafter the Company may from time to time at any time through February 28,
2010, or later if the Company determines to extend the Offering in its sole
discretion,  hold additional Closings to accept additional
subscriptions for Notes having a maximum aggregate subscription price of
$500,000. Upon acceptance of subscriptions and delivery of the applicable Notes
to the Subscriber, use of the funds by the Company shall be unrestricted unless
otherwise provided herein.

    The
Company shall promptly notify the Subscriber of the acceptance of his or her
subscription and/or termination of the Offering.  If this subscription
is rejected, this Subscription Agreement shall have no force or
effect.

     

    1.4  Subscribers’ Legal
Fees.  The Company agrees to pay legal fees in the amount of
$7,500 to Andrew J. Levinson, as counsel to the Subscribers in the Offering,
payable at the first Closing, and additional legal fees of $7,500 to Mr.
Levinson if the Company receives subscriptions for $500,000.

     

    2. Representations, Warranties
and Covenants of the Subscriber.

     

    2.1 Purchaser
Questionnaire.  The Subscriber represents and warrants to the
Company that the statements set forth on the Subscriber’s Purchaser
Questionnaire are true, correct and complete.

     

    2.2 Representations and
Warranties. The Subscriber, by signing this Subscription Agreement,
represents and warrants to the Company that:

     

    (a) All Notes
purchased by him are being acquired by him for his own account (or for accounts
for which he has sole investment discretion) for investment, without any
intention of selling, further distributing, or otherwise disposing of the Notes
or the  shares of Common Stock into which they are convertible (such
shares of Common Stock being referred to herein as the “Underlying
Securities”).

     

    (b) Subscriber
has been advised that none of the Notes or any of the Underlying Securities are
registered under the federal Securities Act of 1933, as amended (the “33 Act”),
or any state securities laws.  The Subscriber understands that the
offering and sale of the Notes is intended to be exempt from registration under
the 33 Act by virtue of Section 4(2) thereof or the provisions of Regulation D
promulgated thereunder, based, in part, upon the representations, warranties and
agreements of the Subscriber contained in this Subscription Agreement and the
Purchaser Questionnaire.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) The
Subscriber must bear the substantial economic risks of the investment in the
Notes indefinitely because none of the Notes or Underlying Securities may be
sold, hypothecated or otherwise disposed of unless subsequently registered under
the 33 Act and applicable state securities laws or an exemption from such
registration is available.  The Subscriber understands that legends
shall be placed on the Underlying Securities to the effect that they have not
been registered under the 33 Act or applicable state securities laws and
appropriate notations thereof will be made in the Company’s books.

     

    (d) The
Subscriber understands that neither the Securities and Exchange Commission nor
any state securities commission has approved the Notes or passed upon or
endorsed the merits of this Offering or confirmed the accuracy or determined the
adequacy of any information provided by the Company to the
Subscriber.

     

    (e) In
evaluating the suitability of an investment in the Company, the Subscriber has
not relied upon any representation or other information (oral or written) other
than as stated herein, in the Company’s public filings with the Securities and
Exchange Commission filed prior to the date of this Subscription (the “Public
Filings”), or as contained in documents or answers to questions furnished to the
Subscriber by the Company.

     

    (f) The
Subscriber is aware that an investment in the Notes involves a high degree of
risk and has asked such questions and reviewed such documents as the Subscriber
deems necessary for evaluating such risk.  Subscriber acknowledges
having reviewed the Public Filings and is aware of the disclosures contained
therein, including those considered material.

     

    (g) The
Subscriber will, prior to any attempted sale, transfer, assignment, gift or
other disposition (each, a “Transfer”) of Notes or of Underlying Securities,
give written notice to the Company expressing its desire to effect such Transfer
and describing in detail the proposed Transfer, provided, however, that no such
notice shall be required for a Transfer of Notes or Underlying Securities if
there is a registration statement under the 33 Act in effect with respect to
such securities or if the Transfer is being effected pursuant to Rule 144 under
the 33 Act.  Upon receiving such notice, the Company shall present
copies thereof to counsel for the Company to evaluate said Transfer pursuant to
the 33 Act and the Securities Exchange Act of 1934, as then in force (the “34
Act”), or any similar statute, and applicable state securities
law.  Unless such counsel advises the Company that such Transfer could
reasonably be deemed to violate the 33 Act or the 34 Act, the Company shall
promptly cause such Transfer to be processed and shall promptly obtain any legal
opinion reasonably required in connection with such Transfer.

     

    (h) The
Subscriber does not presently have any reason to anticipate any change in his
economic circumstances or any other particular occasion or event which would
cause it to sell any of the Notes or Underlying Securities.

     

    (i) The
Subscriber is fully aware that in agreeing to sell and issue such Notes to it
and in entering this Subscription Agreement, the Company is relying upon the
truth and accuracy of the representations and warranties of the Subscriber made
herein.

     

    (j) The
Subscriber is experienced in investing in non-listed and non-registered
securities, specifically early stage companies engaged in biotech or related
businesses.  The Subscriber has been granted the opportunity to ask
questions of, and receive answers from, the Company concerning the terms and
conditions of this Offering and the Company and to obtain such additional
information as it deems necessary to verify the accuracy of the information
contained in the offering materials or which otherwise may be desired to make an
informed investment decision.

     

    (k) The
Subscriber acknowledges having read and understood the Term Sheet, including the
dilutive effect its implementation will have on the Company’s capital structure
as a result of the lowering of the conversion price on certain previously issued
notes and the prospective anti-dilution protection being offered to the
Company’s management and certain angel investors, all as described in the Term
Sheet.

     

     
 3. Representations, Warranties
and Covenants of the Company.

     

       
3.1           Organization and
Existence. The Company is a corporation duly organized, validly
existing and in good standing under the law of the State of
Delaware.

     

    3.2           Corporate
Power.  The Company (i) has all requisite corporate power and
authority to own, lease and operate its properties and carry on its business as
now being conducted and (ii) is duly qualified and in good standing to do
business in each jurisdiction in which the nature of its business or the nature
or location of its assets require such qualification and where the failure to be
so qualified and in good standing would have a Material Adverse Effect on the
Company. For purposes of this Agreement, “Material Adverse Effect” means, with
respect to the Company, a materially adverse effect on the business, results of
operations, financial condition, properties, assets or prospects of the
Company.

     

    3.3           Due Authorization;
Enforceability.  The Company has all necessary corporate power
and authority to enter into this Subscription Agreement and to consummate the
transactions contemplated hereby. The execution and delivery of this
Subscription Agreement by the Company and the performance by the Company of its
obligations hereunder have been duly authorized and approved by all requisite
corporate action and no other corporate proceedings on the part of the Company
are necessary to authorize this Subscription Agreement or for the Company to
consummate the transactions contemplated hereby. This Subscription Agreement has
been duly executed and delivered by duly authorized officers of the Company and
constitutes a valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms.

     

    3.4           Consents.  No
consent, approval, order or authorization of, or registration, declaration or
filing with, any court, administrative agency or commission or other
governmental authority or instrumentality (each of the foregoing being a
“Governmental Entity”), is required with respect to the Company in connection
with the execution and delivery of this Subscription Agreement by the Company or
the consummation by the Company of the transactions contemplated
hereby.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.5           No
Breach.  Neither the execution and delivery of this
Subscription Agreement by the Company, nor the consummation by the Company of
the transactions contemplated hereby, will (i) conflict with or result in a
breach of any of the terms or provisions of the Company’s Certificate of
Incorporation or By-Laws, (ii) violate any statute or administrative regulation,
or any order, writ, injunction, judgment or decree of any court or governmental
authority or any arbitration award to which the Company is a party or by which
the Company or any of its properties or assets are bound, or (iii) violate,
conflict with, breach, constitute a default (or an event which, with notice or
lapse of time or both would constitute a default) under, or result in the
termination of, or accelerate the performance required by, or result in the
creation of any lien or other encumbrance upon any of the properties or assets
of the Company under, any note, bond, mortgage, indenture, deed of trust,
license, lease, agreement or other instrument or obligation to which the Company
is a party or to which it or any of its properties or assets are subject except
in the case of clauses (ii) or (iii) for violations, conflicts, breaches,
defaults, terminations, accelerations or creations of liens or other
encumbrances that do not and will not, individually or in the aggregate, (x)
have a Material Adverse Effect on the Company or (y) materially impair the
ability of the Company to perform its obligations under this Subscription
Agreement and the Notes.  Notwithstanding the foregoing, the
Subscriber acknowledges and understands that, unless and until there is an
increase in the authorized share capital of the Company, the number of shares of
Common Stock into which the all outstanding options, warrants and convertible
securities would be convertible upon consummation of the transactions
contemplated by the Offering and the Term Sheet would substantially exceed the
total number of currently authorized shares of the
Company.  Accordingly, pending an increase in authorized share
capital, there may not be sufficient authorized shares available for issuance
upon receipt by the Company of a request for conversion of the
Notes.   Subscriber agrees and acknowledges that the right to
convert shall be subject to the availability of a sufficient number of
authorized and unissued shares of Commons Stock of the Company  to
accommodate the conversion as measured at the time a request for conversion is
made.   

     

    3.6           Capitalization of the
Company.  Except as set forth above, the Company has one class
of stock authorized, consisting of 50 million shares of Common
Stock.  Without giving effect to the Offering or the transactions
contemplated by the Term Sheet, the Company has outstanding 8,914,921 shares of
Common Stock.  Without giving effect to the transactions contemplated
by the Term Sheet, there are outstanding options, warrants and convertible
securities entitling the holders to purchase or acquire upon conversion
11,737,491 shares of Common Stock of the Company.  Except as set forth
above and in the Term Sheet, the Company has no outstanding Common Stock or any
options, warrants or rights of any kind to purchase any shares of the capital
stock of the Company and no outstanding securities convertible into or
exercisable for shares of capital stock of the Company and has no outstanding
commitment to issue any such options, warrants, rights, or convertible or
exercisable securities.

     

    3.7           Liabilities.  The
Company does not have any liabilities or obligations of any nature (whether
accrued, absolute, contingent or otherwise) (“Liabilities”) other than (i)
Liabilities which were incurred in the ordinary course of business and (ii)
Liabilities disclosed in the Company’s Public Filings.

     

    3.8           Legal
Proceedings. There is no litigation or proceeding, in law or in
equity, and there are no proceedings or governmental investigations before any
commission, authority, agency or other administrative authority, pending or, to
the Company’s knowledge, threatened against the Company with respect to or
affecting the Company’s operations, business or financial
condition.    Notwithstanding the foregoing, the Subscriber
acknowledges the existence of the threatened litigation with Ohio State
University, and the potential consequences thereof, as disclosed in the Public
Filings.

     

    3.9           No
Judgments.  The Company is not a party to, or bound by, any
judgment, writ, injunction, decree, order or arbitration award (or agreement
entered into in any administrative, judicial or arbitration proceeding with any
Governmental Entity) with respect to or affecting the properties, assets,
personnel or business activities of the Company.

     

    3.10          Intellectual
Property.   The Company and its Subsidiaries own, license
or otherwise have the right to use all intellectual property, including without
limitation, all patents, copyrights, trademarks, trade names, trade secrets and
rights in respect of the foregoing, adequate for the conduct of the Company’s
business substantially as now conducted and proposed to be conducted without any
known conflict with any rights of others.  To the knowledge of the
Company, the Company has not interfered with, infringed upon, misappropriated or
otherwise come into conflict with any intellectual property rights of third
parties, nor has the Company received any charge, complaint, claim, demand or
notice alleging any such interference, infringement, misappropriation or
violation (including any claim that the Company must license or refrain from
using any intellectual property rights of any third party).  To the
knowledge of the Company, no third party has interfered with, infringed upon,
misappropriated or otherwise come into conflict with any intellectual property
rights of the Company.

     

    3.12        
 Information
Concerning the Company.  The information filed by the Company
pursuant to Section 13 the Securities Exchange Act of 1934, as amended, did not,
as of the date of such filings, contain any untrue statement of material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances in which
made.

     

    3.13          Registration
Rights. The Company hereby grants piggyback registration rights to
the Subscriber on customary terms and subject to customary underwriter cut-back
provisions with respect  to any shares of Common Stock issuable upon
conversion of the Notes purchased by the Subscriber.

     

    4. Disclosure.

     

    This
Offering is limited to accredited investors in reliance upon exemptions
contained in the 33 Act and Regulation D promulgated thereunder and applicable
state securities laws.  Accordingly, the Company is offering the Notes
utilizing this Subscription Agreement rather than a formal private offering
memorandum.  The undersigned understands that this Subscription
Agreement, together with any additional information or documents provided by the
Company to the Subscriber, contains less information than would be included in a
formal private offering memorandum.  In making an investment decision
Subscribers must rely on their own examination of the Company, the information
in the Public Filings,  and the terms of the Offering, including the
risks involved.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5. Special
Acknowledgements.

     

    (i) NEW YORK
RESIDENTS

    THE
OFFERING LITERATURE USED IN CONNECTION WITH THE OFFERING HAS NOT BEEN FILED WITH
OR REVIEWED BY THE ATTORNEY GENERAL OF THE STATE OF NEW YORK PRIOR TO ITS
ISSUANCE AND USE. THE ATTORNEY GENERAL OF NEW YORK HAS NOT PASSED ON OR ENDORSED
THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS
UNLAWFUL.

     

    (ii) CALIFORNIA
RESIDENTS:

    THE SALE
OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS OFFERING HAS NOT BEEN QUALIFIED
WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE
ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE
OF SECURITIES IS EXEMPTED FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF
THE CALIFORNIA CORPORATIONS CODE.  THE RIGHTS OF ALL PARTIES TO THIS
OFFERING ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATIONS BEING OBTAINED,
UNLESS THE SALE IS SO EXEMPT.

     

    (iii) CONNECTICUT
RESIDENTS:

    THE
SECURITIES OFFERED HEREBY ARE OFFERED PURSUANT TO A CLAIM OF EXEMPTION AND HAVE
NOT BEEN REGISTERED UNDER SECTION 36-485 OF THE CONNECTICUT UNIFORM SECURITIES
ACT.  THE SECURITIES OFFERED HEREBY CANNOT, THEREFORE, BE RESOLD OR
TRANSFERRED UNLESS THEY ARE REGISTERED UNDER THE ACT OR UNLESS AN EXEMPTION FROM
REGISTRATION IS AVAILABLE.

     

    6.
 Indemnification
and Hold Harmless.

     

    (a)           If
the Subscriber breaches any of the agreements, representations or warranties
which the Subscriber has made in his or her Subscription Agreement, the
Subscriber shall indemnify and hold harmless the Company (and its employees,
agents, and affiliates) against any claim, liability, loss, damage or expense
(including attorneys’ fees and other costs of investigating and litigating
claims) caused, directly or indirectly, by the Subscriber’s breach, provided,
however, that the obligation to indemnify will be limited to the amounts, if
any, received by the Subscriber from the sale of the Notes or the Underlying
Securities.

     

    (b)           If
the Company breaches any of the agreements, representations or warranties which
the Company has made in this Subscription Agreement, the Company shall indemnify
and hold harmless the Subscriber ( and its employees, agents and affiliates)
against any claim, liability, loss, damage or expense (including attorneys’ fees
and other costs of investigating and litigating claims) caused, directly or
indirectly, by the Company’s breach.

     

    7. Confidentiality.

     

    Information
concerning the Company is highly confidential and has been provided by the
Company to potential Subscribers solely for use in connection with this
Offering.  This Subscription Agreement is personal to each offeree and
does not constitute an offer to any other person.  Each prospective
purchaser, by accepting delivery of this Subscription Agreement, agrees not to
disclose to anyone, other than his or her professional advisors, any information
concerning the Company, agrees to make no copies of this Subscription Agreement
or any information concerning the Company, and if the offeree does not purchase
any Notes, to return this Subscription Agreement and any other written
information concerning the Company to the Company at the above address upon the
Company’s request.

     

    8. Miscellaneous.

     

    8.1           Governing Law; Choice of
Forum.  This Subscription Agreement and the rights of the
parties hereunder shall be governed by and construed in accordance with the laws
of the State of New York applicable to agreements made and to be performed
entirely within New York.  The parties hereto, by their execution
hereof, (i) agree that any such legal suit, action or proceeding arising from or
related to this Subscription Agreement may be instituted in a state or federal
court located in the City and State of New York; (ii) waive any objection which
they may now or hereafter have to the laying of venue of any such suit, action
or proceeding in any such court; and (iii) irrevocably submit to the
jurisdiction of any such court in any such suit, action or
proceeding.

     

    8.2           Entire Agreement;
Waiver.  This Subscription Agreement constitutes the entire
agreement between the parties and supersedes any prior agreements or
understandings between them.  This Subscription Agreement may not be
modified in any manner unless in writing and signed by the party against whom
enforcement thereof is sought.  No waiver of any breach or condition
of this Subscription Agreement shall be deemed to be a waiver of any subsequent
breach or condition of a like or different nature.

     

    8.3           Binding
Effect.  This Subscription Agreement and all the terms and
provisions hereof shall be binding upon and shall inure to the benefit of the
parties hereto, and their respective successors and permitted assigns; provided
that, this Subscription Agreement may not be assigned by Subscriber without the
Company’s prior written consent.

     

    8.4           No Third Party
Beneficiaries.  The provisions of this Subscription Agreement
and of any other agreement between the Company and Subscriber are solely for the
benefit of the Company and Subscriber and may be changed, terminated or revoked
in writing at any time by mutual agreement between the Company and Subscriber
without notice or liability to any other person.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8.5           Further
Assurances.  Each of the parties hereto agrees to execute,
acknowledge, deliver, file, record and publish such further certificates,
instruments, agreements and other documents and to take all such further action
as may be required by law or as may be necessary or appropriate in order to
carry out the provisions of this Subscription Agreement.

     

    8.6           Section
Headings.  Section headings herein have been inserted for
reference only and shall not be deemed to limit or otherwise affect, in any
manner, or be deemed to interpret in whole or in part any of the terms or
provisions of this Subscription Agreement.

     

    8.7           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile prior to 5:30 p.m. (New York City time)
on a business day, (b) the next business day after the date of transmission, if
such notice or communication is delivered via facsimile on a day that is not a
business day or later than 5:30 p.m. (New York City time) on any business day,
(c) the business day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service, or (d) upon actual receipt by the party to
whom such notice is required to be given.  The address and facsimile
number for such notices and communications shall be, for the Company, as set
forth on the first page hereof (facsimile number (713) 622-8401) and, for the
Subscriber, as set forth on the signature page hereof.

     

    8.8           Execution.  This
Subscription Agreement may be executed in two or more counterparts, all of which
when taken together shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered
to the other party, it being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile signature page
were an original thereof.

    
 

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remainder of this page intentionally left blank.]

     

     

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXECUTION
PAGE

     

    

     

    IN
WITNESS HEREOF, the Subscriber has executed this Subscription
Agreement.

     

    SUBSCRIBER:

     

    Name
(Print)   ______________________

    

    
      	
              Address

            	 
      	 
      	 
      	 
      
	 
      	
              Street

            	
              City

            	
              State

            	
              Zip

            

    

    

    Facsimile
Number:  ___________________________

    Social
Security Number or Tax Identification
Number:___________________________

    Amount of
Notes subscribed for: $___________

     

     

     

    Date                                         ,
2010

     

     

    Entity Name if applicable:                           

                                                                                                    [                                                 ]

     

    Signature                                                                           

     

    Name (and
Title)                                                                           

     

    

     

    Acknowledged
and Accepted:

     

    OMNIMMUNE
HOLDINGS, INC.

     

    By:____________________________

    

    Be sure
to include:

    

    (1)  one
signed copy of this Subscription Agreement;

    (2)  one
signed copy of Purchaser Questionnaire.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
A

    

    

    FORM OF CONVERTIBLE
NOTE

    

    [Filed separately as
Exhibit 10.2]

    
 

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
B

    
 

    TERM
SHEET FOR DEBT FINANCING AND AGREED UPON RESTRUCTURING

     WITH
MARGIE CHASSMAN, EFFECTIVE AS OF JANUARY 20, 2010

    

    [Filed separately as
Exhibit 10.3]

     

     

     

     

    
 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
C

    

    

    OMNIMMUNE
HOLDINGS, INC. WIRE INSTRUCTIONS

    

    [Intentionally
Omitted]

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