Document:

EXHIBIT 4.5 - OMNIBUS AMENDMENT

 EXHIBIT 4.5

 OMNIBUS AMENDMENT

 

 
 
  
   This Omnibus Amendment (this "Amendment") is
   entered into as of January _9_, 2007 by and among PLATINUM INTELLECTUAL
   PROPERTY, L.P., a Texas limited partnership (the "Company"), PLATINUM
   RESEARCH ORGANIZATION, L.P., a Texas limited partnership (the "Parent"),
   SEATTLE CITY EMPLOYEES' RETIRMENT SYSTEM, a single-employer defined-benefit
   public employee retirement system (the "Purchaser"), NEWLIGHT CAPITAL,
   LLC, a New York limited liability company ("Newlight"), and, for
   limited purposes, JPMORGAN CHASE BANK N.A. (the "Disbursement Agent")
   and Platinum Research Organization, Inc. (f/k/a NorthTech Corporation), a
   company organized and existing under the laws of Nevada ("PRO Inc.").

   
   RECITALS:

   
          A. The Company, the
   Parent and the Purchaser are each a party to that certain Senior Secured Note
   Purchase Agreement dated as of December 3, 2004, (the "Purchase Agreement")
   (unless otherwise defined, all terms used herein with their initial letter
   capitalized shall have the meaning given such terms in the Purchase Agreement
   including, to the extent applicable, after giving effect to this Amendment),
   and in connection therewith, the Company delivered that certain Senior
   Secured Note of Platinum Intellectual Property, L.P. dated December 3, 2004
   (the "Note") to the Purchaser in the principal amount of $6,000,000.

         B. On October 26, 2006,
   Parent entered into that certain Contribution Agreement (the "Contribution
   Agreement") among (i) PRO, Inc., , (ii) each of Parent, Lubrication
   Partners, a joint venture ("GP Transferor") and sole shareholder of
   Platinum IP Management, Inc., a company organized and existing under the laws
   of Texas and the general partner of Parent ("PRO GP"), each person
   holding a limited partnership interest in Parent (each, a "Limited Partner")
   (each Limited Partner and GP Transferor, a "PRO Transferor" and
   collectively, the "PRO Transferors"), by and through John T. (Cork)
   Jaeger as the representative of all PRO Transferors, and (iii) Steve Drayton
   as the representative of all individuals who invest in PRO Inc. (other than
   the PRO Transferors) (the "Investors") and who have agreed to be bound
   by the terms of the Contribution Agreement and have appointed Steve Drayton
   as their representative for purposes of the Contribution Agreement, in each
   case pursuant to a subscription agreement, whereby, among other things, (A)
   GP Transferor has agreed to contribute all of the capital stock of PRO GP to
   PRO Inc., (B) the Limited Partners agreed to contribute all of the
   outstanding limited partner partnership interests of Parent to PRO Inc., (C)
   the Investors agreed to contribute cash to PRO Inc., and (D) certain warrant
   holders agreed to exercise warrants in PRO Inc. into shares of capital stock,
   and in each case PRO Inc. agreed to issue shares of capital stock in PRO Inc.
   to the PRO Transferors, the Investors and the warrant holders in exchange for
   their respective contributions, all in a transaction intended to qualify
   under Section 351 of the Code, all on the terms and conditions set forth
   therein.

         C. As a condition to the consummation of
   the transactions contemplated by the Contribution Agreement, Parent is
   required to amend certain provisions of the Purchase Agreement and the other
   Note Purchase Documents to, among other things, (i) extend the maturity date
   of the Note, (ii) restructure the participation payments, (iii) modify the
   approval 

   

 

  

 

1

 
  
    

   rights of the Annual Budget and annual increases in
   compensation of management to require consent of the Board of Directors of
   PRO Inc., including its independent directors, (iv) provide a prepayment
   right of the Obligations at any time at no premium and without penalty, and
   (v) terminate the Lock-Box Agreement and any requirement to maintain a
   lock-box agreement, in all cases, on the terms and conditions as set forth in
   this Amendment.

          D. The Purchaser has
   agreed to amend the Purchase Agreement and the other Note Purchase Documents
   as set forth in this Amendment.

   
   AGREEMENT:

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

 

        Section 1. Amendments to Purchase Agreement.
   In reliance on the representations, warranties, covenants and agreements
   contained in this Amendment, and subject to the satisfaction of the condition
   precedent set forth in Section 5, the Purchase Agreement is amended,
   effective as of the Closing Date (as defined in the Contribution Agreement),
   in the manner provided in this Section 1. 

   
           1.1  Amendment to
    Definitions of "Note Purchase Document" and "Obligations".
    The definitions of "Note Purchase Document" and "Obligations" contained in
    Section 1 of the Purchase Agreement are amended and restated to read in
    their entirety as follows:

   

  

  "Note Purchase Document" means each of this
      Agreement, the Omnibus Amendment, the Note, the Security Agreement, the
      Collateral Assignment, the Assignment and License Agreement, the Escrow
      Agreement, the Service Agreement, the recordation form cover sheet with
      respect to the PTO and each UCC-1 financing statement referred to in
      Section 3."

     
    
   
  
  
   
    
     
      "Obligations" means, except as
      otherwise provided in this definition, all obligations, Indebtedness and
      liabilities, joint, several, matured, unmatured, contingent, absolute, of
      whatever nature, now or hereafter owing by the Company to the Purchaser,
      including, but not limited to, all Indebtedness of the Company under this
      Agreement and the other Note Purchase Documents (whether for principal,
      interest, fees, costs, expenses, Participation Payments set forth in
      Section 8.01 of this Agreement or other amounts). The phrase "aggregate
      outstanding balance of the Obligations" means, as of any date, the sum of
      the aggregate outstanding principal balance of the Note and all interest
      accrued but not paid to such date plus any unpaid Participation Payments,
      whether or not such Participation Payments have accrued. For purposes of (i)
      the first priority security interest granted to Purchaser under the
      Security 

     

    

   

  

 

 

 

2

     
       

      Agreement and (ii) the obligations of the Company and
      the Parent under Sections 5 and 6 of this Agreement only, Purchaser's
      rights to the Participation Payments shall not be considered an Obligation
      of the Company."

     

    

   
  
 

 
                           
  1.2   Amendment to Section 6.04 of the Purchase Agreement.
  Section 6.04 of the Purchase Agreement is amended and restated to read in its
  entirety as  

                               
  follows: 

  
   
    
     
      "Section 6.04 Annual Budget. Incur expenditures
      in excess of, or change or otherwise modify, the Annual Budget without the
      prior approval of the Board of Directors of PRO, Inc., including each of
      its Independent Directors." 

     

    

   

  

  
                          
   1.3   Amendment to Section 6.07. Section 6.07
  of the Purchase Agreement is amended and restated to read in its entirety as
  follows: 

  
   
    
     
      "Section 6.07 Compensation. Other than in
      connection with ordinary course compensation increases for the purpose of
      employee retention and/or the hiring of new employees for the purpose of
      commercialization of the Company's Intellectual Property Rights, increase
      the compensation payable to any of the Parent's employees, directors or
      officers, or modify the terms and conditions under which such Persons are
      compensated in such manner as to render likely or certain an increase in
      his or her compensation, unless such increases and modifications are in
      compliance with the current Annual Budget or are otherwise approved by the
      Board of Directors of PRO Inc., including each of its Independent
      Directors."

     

    

   

  

  
                           
  1.4   Amendment to Section 8.01. Section 8.01
  of the Purchase Agreement is amended and restated to read in its entirety as
  follows: 

  
   
    
     
      "Section 8.01 Participation Payment. As
      additional consideration and inducement for the Purchaser to purchase the
      Note from the Company hereunder, the Company agrees, that it shall pay to
      the Purchaser quarterly participation payments (the "Participation
      Payments") in an amount equal to the greater of (i) five percent (5%)
      of Gross Revenues for such respective quarter or (ii) twenty percent (20%)
      of Consolidated Net Income for such respective quarter, until such time as
      the Purchaser has been paid an aggregate of Six Million Dollars
      ($6,000,000) in Participation Payments. Nothing in this Section 8.01 shall
      alter the obligation of the Company or the Parent to receive the prior
      written agreement of Purchaser before entering into any transaction
      identified in Sections 6.03 or 6.08 of this Agreement."

     

    

   

  

                            
  1.5   Addition of New Defined Terms. The following defined
  terms shall be added to Section 1 of the Purchase Agreement:

  
  
   
    
              "Consolidated Net
     Income" means Gross Revenues less total expenses

    

   

  

 

 

 

3

 
   

      "Gross Revenues" means all revenues recognized
      by PRO Inc. on a consolidated basis under U.S. generally accepted
      accounting principles.

      
      "Independent Director" means either (i) a director who
      is "independent" within the meaning of the listing standards of a national
      securities exchange, including the New York Stock Exchange and the Nasdaq
      National Market or (ii) a director whom the Board of Directors of PRO Inc.
      has made a good faith determination is independent according to applicable
      law and best corporate practices." 

      
      "Omnibus Amendment" means that certain Omnibus
      Amendment entered into as of January ___, 2007 by and among the Company,
      the Parent, the Purchaser, Newlight, the Disbursement Agent and PRO,
      Inc.."

      
      

      
      "PRO, Inc." means Platinum Research
      Organization, Inc. (f/k/a North Tech Corporation) a company organized and
      existing under the laws of Nevada and the parent of the Parent."

      

     
    
   
  
                              
  1.6    Addition of New Section 11.11. The
  following shall be added as Section 11.11 of the Purchase Agreement:

  
  
      "Section 11.11 PRO, Inc. All references in the
      Note Purchase Documents to (i) the affirmative covenants, negative
      covenants, agreements and obligations (including indemnification
      obligations) of Parent and (ii) activities occurring after December 3,
      2004 applicable or related to Parent (e.g. preparation of the Annual
      Budget of Parent) shall be understood to be references to, and shall apply
      equally to and be binding on, PRO, Inc. Without limitation and by way of
      example, the covenant of Parent in Section 6.06 of this Purchase Agreement
      to "not purchase, redeem, retire or otherwise acquire for value its
      partnership interests now or hereafter outstanding" shall also be deemed
      to constitute a covenant of PRO, Inc. to not purchase, redeem, retire or
      otherwise acquire for value its capital stock now or hereafter
      outstanding.

     

     

    
   
  
  
   
    Section 2. Amendments to Note. In reliance on the
    representations, warranties, covenants and agreements contained in this
    Amendment, and subject to the satisfaction of the condition precedent set
    forth in Section 5, the Note is amended, effective as of the Closing
    Date (as defined in the Contribution Agreement), in the manner provided in
    this Section 2. 

    
     2.1   Amendment to Definition of "Maturity Date".
     The definition of "Maturity Date" contained in Paragraph (2) of the Note is
     amended and restated to read in its entirety as follows:

     "Maturity Date" means the earlier of (i) the fourth
         anniversary of the Closing Date (as defined in the Contribution
         Agreement) or (ii) February 28, 2011; provided; however, if such date
         is not a Business Day, such date shall be the immediately succeeding
         Business Day.

        
       
      
     
     2.2   Amendment to Paragraph (3). Paragraph (3) of
     the Note is 

     
       

       

     

    

   

  

 

4

 
  
   
    
     
      
        

       amended to add a new subparagraph (c) that shall read in its entirety
       as follows: 

               "(c)
       Notwithstanding anything contained in this Note to the contrary, this
       Note may be prepaid in full or part at any time and from time to time
       without notice and without the payment of any premium, fee or penalty.
       All prepayments shall be credited first to unpaid interest on, and
       thereafter to unpaid principal of, this Note."

      

     

     2.3   Amendment to Subparagraph (4)(d). Subparagraph
     4(d) of the Note is amended and restated to read in its entirety as
     follows:: 

     
      "(d) The Company or Parent shall fail to perform or
      observe any other material term, covenant or agreement contained in any
      Note Purchase Document, which failure to observe or perform such
      applicable term, covenant or agreement shall remain unremedied for
      a period of thirty (30) days after notice thereof to the Company by the
      Purchaser and/or Newlight, on behalf of the Purchaser;"

     

     

     2.4   Amendment to Paragraph (5)(a). Paragraph
     (5)(a) of the Note is amended and restated to read in its entirety as
     follows:

     
     
      "(a) Notwithstanding any other term or condition of
      this Note, upon the occurrence of any Event of Default described in
      Section 4 hereof and at the declaration of the Purchaser, the unpaid
      principal amount of this Note and all accrued interest outstanding on this
      Note and all other Obligations (other than the Participation Payments)
      shall automatically become immediately due and payable by the Company, in
      immediately available funds, with all additional interest from time to
      time accrued thereon and without presentation, demand, or protest or other
      requirements of any kind (including, without limitation, valuation and
      appraisement, diligence, presentment, notice of intent to demand or
      accelerate and notice of acceleration), all of which are hereby expressly
      waived by the Company."

     

     

        
       
      
     
    

    Section 3.   Amendments to Service Agreement. In
    reliance on the representations, warranties, covenants and agreements
    contained in this Amendment, and subject to the satisfaction of the
    condition precedent set forth in Section 5, the Service Agreement is
    amended, effective as of the Closing Date (as defined in the Contribution
    Agreement), in the manner provided in this Section 3. 

    
     3.1    Amendment to Section 2(a)(i). Section
     2(a)(i) of the Service Agreement is amended and restated to delete
     subsections (B), (C), and (D), which subsections shall read in their
     entirety as follows:

     

 

                 
         B     Intentionally Omitted;

        
       
      
     
     
	Intentionally Omitted;

         
        
       
      
     
                                                         
     D    Intentionally Omitted;"

    

   

  

 

 

5

 
  
   
    
      

     3.2    Amendment to Sections 2(c)(i) and 4.
     Section 2(c)(i) and Section 4 of the Service Agreement is amended and
     restated to delete any and all references to "from the Lock-Box Account" or
     ", from the Lock-Box Account".

     
    

    Section 4   Termination of Lock-Box Agreement. In
    reliance on the representations, warranties, covenants and agreements
    contained in this Amendment, and subject to the satisfaction of the
    condition precedent set forth in Section 5, the Lock-Box Agreement is
    terminated as of the Closing Date (as defined in the Contribution Agreement)
    and shall be of no further force or effect as of the Closing Date, and any
    obligation of the Company to maintain a lock-box or similar type of account
    as set forth in any Note Purchase Document is void and shall be of no
    further force or effect as of the Closing Date. 

    Section 5   Condition Precedent. The
    effectiveness of the amendments and or termination of the respective Note
    Purchase Documents set forth in Sections 1 through 4 of this
    Amendment are conditioned upon the closing of the transactions contemplated
    by the Contribution Agreement, including but not limit to the sale by PRO
    Inc. of equity securities to the Investors for aggregate cash consideration
    of not less than $4,500,000. Other than the amendment to the Contribution
    Agreement dated December 15, 2006, to the extent the Contribution Agreement
    is further amended without the consent of Purchaser, the condition precedent
    set forth in this Section shall not be satisfied. 

    Section 6   Miscellaneous. 

    

         6.1   
    Reaffirmation of Note. Any and all of the terms and provisions of
    the Purchase Agreement, the Note and the other Note Purchase   

         Documents shall, except as
    amended and modified hereby, remain in full force and effect. 

    
     6.2   Legal Expenses. In addition to and not in
     replacement of any obligations to pay fees and expenses set forth in the
     Note Purchase Documents, Parent and PRO Inc. jointly and severally agree to
     pay on demand all reasonable fees and expenses of counsel to the Purchaser
     incurred by Purchaser in connection with (i) the preparation, negotiation,
     execution, delivery, performance and administration of this Amendment and
     the Note Purchase Documents (beginning with all fees and expenses related
     to this Amendment), and (ii) any requested waivers, amendments or consents
     to any of the Note Purchase Documents. 

     6.3   Counterparts. This Amendment may be
     executed in counterparts, and all parties need not execute the same
     counterpart. 

     6.4   Complete Agreement. THIS AMENDMENT, THE
     NOTE AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE
     PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS
     OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
     BETWEEN OR AMONG THE PARTIES.

     [Signature pages to follow]

    

   

  

 

 

6

 
  
    

   IN WITNESS WHEREOF, the parties hereto have caused this
   Amendment to be duly executed on the date and year first above written.

   
    

    COMPANY:

             PLATINUM INTELLECTUAL PROPERTY, L.P.

             
             By: Platinum Intellectual Property GP, Inc.

             Its: General Partner 

             

                /s/ John T. "Cork" Jaeger, Jr.

             By: ______________________

             Name: John T. "Cork" Jaeger, Jr.

             Its: Chief Executive Officer

            
           
          
         
        
       
      
     
    
   
    

    

              
             
            
           
          
         
        
       
      
     
    
    
                                                                                             
    PARENT:

    

    
             PLATINUM RESEARCH ORGANIZATION, L.P.

            
           
          
         
        
       
      
     
    
   
   

                                                                                                      
   By: Platinum IP Management, Inc.

                                                                                                   
   Its: General Partner

   

                                                                                                          
   /s/ John T. "Cork" Jaeger, Jr.

                                                                                                    
   By:__________________________

                                                                                                       
   Name: John T. (Cork) Jaeger, Jr.

                                                                                                    
   Title: Chief Executive Officer

   

   

   

   

 

   
                                                                                                         
   PURCHASER:

   

                                                                                               
    SEATTLE CITY EMPLOYEES' RETIREMENT 

                                                                                            
    SYSTEMS

    

                                                                                      
             /s/ Mel Robertson

    

                                                                                            
    By:_________________________________

                                                                                            
    Name: Mel Robertson

                                                                                            
    Title: Chief Investment Officer

    

    

    

    

    

                                                                                             
    NEWLIGHT CAPITAL, LLC

                                                                                                 
      /s/ Joe Agiato

    
                                                                                                  
    By:_________________________________

                                                                                              
    Name: Joe Agiato 

                                                                                              
    Title: President

   
    

   

   [Signature page]

              
             
            
           
          
         
        
       
      
     
    
   
  

   

  
  

         
        
       
      
     
    
   
  
 

7

 
  
                              
          

                              
          For purposes of Section 4 only:

          
          

          
                              
          JPMorgan Chase Bank

                    
          as Disbursement Agent

                               
   

          
          

         
        
       
      
     
    
   
                                                                                             
   By:__________________________________

                                                                                                 
   Saverio A. Lunetta

                                                                                                 
   Vice President

    

           

          
                              
          For purposes of Section 1.6 only:

          
          

          
                              
          PLATINUM RESEARCH ORGANIZATION, INC.

          

                         
           /s/ Cecelia Pineda

         
        
       
      
     
    
   
          
                                                                                             
   By:__________________________________

                                                                                          
   Name: Cecelia Pineda

                                                                                          
   Title: President and Chief Executive Officer 

    

           
          
         
        
       
      
     
    
   
  
  

  

  

  [Signature page]

 

 

8Exhibit 10.1

    
      
        CONFIDENTIAL

        SETTLEMENT
          AND GENERAL RELEASE AGREEMENT

        

        This
          Settlement and General Release Agreement ("AGREEMENT") is entered into
          by and
          between CLIFFORD L. STRAND ("STRAND"), SECURED DIVERSIFIED INVESTMENT,
          LTD.
          ("SDP') and JAN WALLACE ("WALLACE") referred to jointly as the "PARTIES"
          as of
          the date this AGREEMENT is signed, with reference to the following
          terms:

        

        RECITALS

        

        A.  On
          or
          about January 13, 2006, Alliance Title Company filed an lnterpleader lawsuit
          Case Number 06CC02129 in the Orange County Superior Court, Department C11
          against STRAND, WILLIAM S. BIDDLE ("BIDDLE"), GERNOT TROLF
          ("TROLF"), NATIONWIDE COMMERICAL BROKERS ("NATIONWIDE"),
          SDI and
          others and as result, deposited with the Court the funds in the amount
          of
          $267,000.00.

        

        On
          or
          about January 20, 2006, STRAND, BIDDLE, TROLF and NATIONWIDE filed a separate
          lawsuit Case Number 06CC02350 in the Orange County Superior Court, Department
          C11 against SDI and one of its officers WALLACE along with others for Fraud
          and
          Misrepresentation, Negligent Misrepresentation, Breach of Contract,
          Breach of the Covenant of Good Faith and Fair Dealing, Conversion,
          Commons
          Counts,
          Money had and received and Declaratory Relief. On or about March 15, 2006
          SDI
          filed a cross-complaint against the Plaintiffs along with others for Breach
          of
          Contract, Breach of Fiduciary Duty, Negligent Supervision, Civil Conspiracy,
          Intentional Interference with Economic Relations; Negligent Interference
          with
          Economic Relations; Breach of Oral Agreement, Breach of Employment Contract;
          Breach of Directors/Officers' Fiduciary Duty; Fraud and Intentional
          Misrepresentation and Declaratory Relief.

        

        B.  On
          or
          about March 10, 2006, STRAND BIDDLE, TROLF along with another shareholder,
          filed
          a lawsuit against SDI for declaratory relief under Corporation Code Section
          2115, Case Number 06CC03959, filed
          in the
          Orange County Superior
          Court, Department C11. Both litigations shall be referred to as the
          "ACTIONS".

        

        C.  STRAND
          filed a complaint with the Securities and Exchange Commission of the United
          States of America ("SEC") in regard to his objections to the June 2, 2006
          SDI
          shareholder meeting which he has not taken nor does he intend to any further
          action on.

        

        D.  On
          or
          about September 19, 2006 DIDDLE, TROLF and NATIONWIDE
          entered into a settlement agreement with SDI and WALLACE which is
          incorporated herein by reference. In addition BIDDLE, TROLF and NATIONWIDE
          dismissed, with prejudice, their claims in the ACTIONS against SDI and
          WALLACE.
          SDI and WALLACE dismissed, with prejudice, their claims in the ACTIONS
          against
          BIDDLE, TROLF and NATIONWIDE.

        

        E.  The
          parties expressly acknowledge that they have no personal 

        
          
            
            

          

          
             

            
              

            

          

          
            
            

          

        

        knowledge
          of any liability, fraud or wrongdoing on the part of any other party, its
          agents, officers, directors, stockholders, employees, successors, assigns,
          insurers and attorneys with respect to any claims in the ACTIONS, or with
          respect to any other matters relating to it. No provision hereof or of
          any
          related document shall be construed as an admission or concession of liability
          or fraud or of any wrongdoing or of any preexisting liability. However,
          in order
          to fully and
          forever
          resolve these matters, and with the understanding that this AGREEMENT does
          not
          constitute an admission by any party of any wrongdoing or of any lack of
          merit
          relating to any claims referred to herein, STRAND, SDI, and WALLACE enter
          into
          this AGREEMENT.

        

        AGREEMENT

        

        1.  In
          consideration for the promises set forth herein, the PARTIES agree as
          follows:

        

        	a.  	
                The
                  PARTIES agree that (1) upon execution by STRAND and his attorney
                  of this
                  AGREEMENT, (2) upon execution of a stipulation and order of disbursement
                  and requests for dismissal with prejudice in the above ACTIONS
                  attached
                  hereto as Exhibit A and incorporated herein by reference, and (3)
                  upon
                  execution by STRAND Irrevocable Proxy attached hereto as Exhibit
                  B and
                  incorporated herein by reference, The PARTIES shall file with the
                  Orange
                  County Superior Court a stipulation and order of disbursement as
                  follows
                  and for the benefit of: $80,000 to STRAND and the remainder to
                  SDI; in
                  addition the PARTIES shall also
                  file
                  the requests for dismissal. The payments shall be in one lump sum
                  with no
                  payroll or other taxes deducted.

              

        

        	b.  	
                SDI
                  makes no
                  representations
                  or warranties regarding the tax effect of the settlement proceeds
                  as
                  directed by this AGREEMENT. Further, STRAND agrees to defend and/or
                  indemnify SDI with respect to any liability created by STRAND'S
                  payment or
                  non-payment of taxes with respect to the settlement
                  sum.

              

        

        2.  STRAND,
          as the first party, and SDI and WALLACE as
          a
          second
          party, on their own behalf
          and on behalf of their respective dependents, successors, heirs, executors,
          administrators and assigns, and each of them, hereby fully and forever
          releases
          and discharges each other, and any parent companies, any subsidiaries,
          any
          predecessors in interest, any successors in interest, any companies associated
          as a result of an asset purchase or any affiliated companies or organizations,
          as well as their agents, officers, directors, stockholders, employees,
          successors, assigns, insurers and attorneys, and each of them, of and from
          any
          and all claims, rights, actions, causes of action, obligations, debts,
          interest,
          damages, charges, losses, debts, penalties, forfeitures, liabilities, costs,
          attorneys' fees, and demands of any nature, whether in law or in equity,
          arising
          out of or relating to any acts or omissions that took place prior to the
          date of
          this AGREEMENT, including without limitation, any matters relating in any
          way to
          the ACTIONS and/or any matters relating to or contained in or which could
          have
          been contained in the ACTIONS and/or any claims under other Federal or
          State
          statute, law
          or
          regulation.

        

        3.  It
          is the
          intention of the PARTIES hereto that this AGREEMENT shall be effective
          as a full
          and final accord and satisfaction and release of each and every released
          matter,
          including all unknown and/or unsuspected claims. Accordingly,
          the

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        PARTIES
          hereby waive and relinquish any and all rights or benefits that any party
          may
          have under the provisions of Section 1542 of the California Civil Code,
          which
          reads as follows:

        

        "A
          general release does not extend to claims which the creditor does not know
          or
          suspect to exist in
          its
          favor

        at
          the
          time of executing the release, which if known by him must have materially
          affected his settlement with the debtor."

        

        In
          connection with this waiver, each party hereto acknowledges that facts
          in
          addition to or different from those presently known may later be discovered
          which relate to the subject matter of this AGREEMENT. The PARTIES also
          recognize
          the possibility that, in the future, damages that are not currently known
          may be
          suffered in relation to matters released in this AGREEMENT. Notwithstanding
          these possibilities, it is each party's intention to fully, finally and
          forever
          settle and release all released matters, disputes and differences, whether
          known
          or unknown, suspected or unsuspected, that have existed; now exist, or
          may
          exist. It is the intention of the PARTIES hereto that this AGREEMENT shall
          be
          effective as a full and final accord and satisfaction and release of each
          and
          every released matter, including all unknown and/or unsuspected claims.
          In
          connection with this waiver, each party hereto acknowledges that facts
          in
          addition to or different from those presently known may later be discovered
          which relate to the subject matter of this AGREEMENT. The PARTIES also
          recognize
          the possibility that, in the future, damages that are not currently known
          may be
          suffered in relation to matters released in this AGREEMENT. Notwithstanding
          these possibilities, it is each party's intention to fully, finally and
          forever
          settle and release all released matters, disputes and differences, whether
          known
          or unknown, suspected or unsuspected, that have existed; now exist, or
          may
          exist. Nothing in this AGREEMENT constitutes, or should or shall be deemed
          to
          constitute, any admission of any act, fact or liability, with respect to
          any
          matters released herein.

        

        4. STRAND
          represents that he does not desire reemployment by SDI as an officer or
          reelection as a director and hereby expressly waives any and all rights
          which he
may
          have
          had
          to such reemployment or to reinstatement with SDI. Further, STRAND agrees
          and
          promises that he will not at any time seek employment or reemployment with
          SDI
          and/or any other party or entity released herein as an officer or reelection
          as
          a director.

        

        5. The
          contents and the existence of this AGREEMENT, and the PARTIES' discussions
          pertaining to it, are and shall remain forever confidential, and neither
          party
          will
          communicate or allow communication in any manner (written, oral or otherwise)
          to
          anyone with respect thereto, except that this AGREEMENT may be disclosed
          as
          required to the PARTIES'
          attorneys, insurers, accountants and/or governmental authorities, or otherwise
          may be disclosed as compelled by law. If any party beaches any clause of
          the
          AGREEMENT other party may seek all rights and remedies under the law including
          but not limited to attorney's fees and costs.

        

        6. The
          PARTIES hereto, and each of them, shall forever refrain and forbear from
          commencing, instituting, or prosecuting any lawsuit, action or other proceedings
          against any of the other PARTIES related to the claims released herein.
          Such
          forbearance from commencing, instituting or prosecuting any lawsuit, action
          or
          other proceeding by one such party against the other shall include not
          only such
          other parties,

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        but
          their
          officers, directors, representatives, assigns, agents, attorneys, heirs,
          employees, partners and personal representatives as well, and such forbearance
          shall apply to any cause relating to, based upon or arising out of any
          and all
          claims, debts, liabilities, demands, obligations, costs, expenses, actions
          or
          causes of action, released and discharged hereunder, except those necessary
          to
          enforce the terms of this agreement.

        

        7. Each
          party agrees to bear its/her own costs, expenses and attorneys'
          fees incurred
          in connection with the ACTIONS and this AGREEMENT.

        

        8. Each
          party hereto expressly warrants and represents that they are fully authorized
          to
          enter into this AGREEMENT and each of its terms, and that they have not
          assigned
          to any other party or person any claims released herein.

        

        9. With
          the
          exception of the claims listed in the RECITALS above STRAND warrants that
          he has
          not filed any other lawsuits, charges, complaints, petitions, or other
          accusatory pleading against SDI and/or WALLACE with any governmental agency
          or
          in any court, on behalf of himself or any other entity he represents, based
          upon, arising out of or related in any way to any events occurring prior
          to the
          execution of this Agreement, including, without limiting the generality
          of the
          foregoing ACTIONS. STRAND further agrees that he will not hereafter file,
          cause
          to be filed, or otherwise voluntarily participate in the filing, investigation,
          and/or prosecution of any other charges, complaints, petitions or accusatory
          pleading brought by any other party in any court currently pending or not
          or
          with any governmental agency in which WALLACE and/or SDI, its officers,
          directors, shareholders, agents, attorneys or any parent companies, any
          subsidiaries, any predecessors in interest, any successors in interest,
          any
          companies associated as a result of an asset purchase or any affiliated
          companies or organizations is named as a party.

        

        With
          the
          exception of the claims listed in the RECITALS above WALLACE and/or SDI
          warrant
          that they have not filed any other lawsuits, charges, complaints, petitions,
          or
          other accusatory pleading against STRAND with any governmental agency or
          in any
          court, on behalf of themselves or any other entity they represent, based
          upon,
          arising out of or related in any way to any events occurring prior to the
          execution of this Agreement, including, without limiting the generality
          of the
          foregoing ACTIONS. WALLACE and/or SDI further agrees that they will not
          hereafter the, cause to be filed, or otherwise voluntarily participate
          in the
          filing, investigation, and/or prosecution of' any other charges, complaints,
          petitions or accusatory pleading brought by any other party in any court
          currently pending or not or with any governmental agency in which STRAND
          is
          named as a party.

        

        10. This
          AGREEMENT contains the entire agreement between the PARTIES hereto with
          respect
          to all matters addressed herein, and fully supersedes any and all prior
          or
          contemporaneous agreements, understandings or representations, oral or
          written,
          implied or express, pertaining to the subject matter hereof. All prior
          and
          contemporaneous discussions and negotiations have been and are merged and
          integrated into, and are superseded by this Agreement. This AGREEMENT may
          only
          be subsequently modified by a writing signed by all PARTIES hereto.

        

        11. Each
          party agrees to do all things necessary to carry out and 

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        effectuate
          the terms of this AGREEMENT, and expressly promises not to do or fail to
          do
          anything, directly or indirectly, which will interfere with any other party's
          realization of the benefits hereof.

        

        12. This
          AGREEMENT, including the releases herein, shall be binding upon and inure
          to the
          benefit of each of the PARTIES to this AGREEMENT and to each of their successors
          in interest, including heirs and assigns.

        

        13. Each
          of
          the PARTIES hereto has been represented by counsel in the negotiating and
          drafting of this AGREEMENT. Accordingly, the rules of construction of contracts
          relating to resolution of ambiguities against the drafting PARTIES shall
          be
          inapplicable to this AGREEMENT.

        

        14. Any
          construction, interpretation and performance of this AGREEMENT shall be
          governed
          by the laws of the State of California, both substantive and procedural.
          Both
          PARTIES accede to the jurisdiction of the Orange County Superior Court
          for any
          actions to enforce, or for breach of, any term of this AGREEMENT.

        

        15. If
          for
          any reason any provision contained in this AGREEMENT is later deemed
          unenforceable, the remainder of this AGREEMENT shall nonetheless remain
          binding
          and enforceable on all
          PARTIES
          hereto.

        

        16. In
          the
          event of any action brought to enforce any provision of this AGREEMENT,
          or for
          breach of any provision of this AGREEMENT, the prevailing party therein
          shall be
          entitled to an award of their costs and reasonable attorneys' fees incurred
          therein, in addition to any other relief.

        

        17. This
          AGREEMENT may be executed in multiple originals or counterparts, each of
          which
          shall be deemed an original or the equivalent thereof.

        

        WHEREFORE,
          each party hereto, by the signatures below, certifies that this AGREEMENT
          has
          been read in its entirety, that any questions regarding the meaning or
          effect of
          any terms have been answered to their satisfaction, that each party enters
          into
          this AGREEMENT with the intent to be fully and forever bound by all of
          its
          terms, as of the date set forth opposite their signature below.

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	
                  Dated:
                    January 5, 2007

                	
                  /s/
                    Clifford Strand

                
	 	
                  Clifford
                    Strand

                
	 	 
	
                  APPROVED
                    AS TO FORM AND CONTENT:

                  LAW
                    OFFICES OF ROBERT COVIELLO

                   

                  /s/
                    Robert Coviello

                  ROBERT
                    COVIELLO

                  ATTORNEY
                    FOR CLIFFORD STRAND

                	 
	
                   

                   

                  Dated:
                    January 5, 2007

                	
                   

                   

                  By:
                    /s/
                    Jan Wallace

                
	 	
                  JAN
                    WALLACE

                  CEO

                  SECURED
                    DIVERSIFIED INVESTMENT,

                  LTD.

                
	 	 
	
                  Dated:
                    January 5, 2007

                   

                   

                  APPROVED
                    AS TO FORM AND CONTENTS:

                	
                  /s/
                    Jan Wallace

                  JAN
                    WALLACE

                   

                   

                
	
                   

                  By:
                    /s/ Claire C. Ambrosio

                  CLAIR
                    C. AMBROSIO

                  ATTORNEY
                    FOR SECURED

                  DIVERSIFIED
                    INVESTMENT, LTD.

                	 

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
          A

        

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

      

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

        
          
             

            EXHIBIT
              B

             

            
              
                
                

              

              
                15

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