Document:

EX-10.4

January 20, 2010

[Name]

c/o ADVENTRX Pharmaceuticals, Inc.

6725 Mesa Ridge Road, Suite 100

San Diego, CA 92121

Dear [name]:

I am pleased to inform you that the Compensation Committee of the Board of Directors of
ADVENTRX Pharmaceuticals, Inc. (the “Company”) has modified the stock option granted to you on July
21, 2009, to purchase 1,700,000 shares of common stock of the Company at an exercise price of $0.13
per share (the “Option”), as set forth herein. This modification provides for acceleration of
the vesting and exercisability of the Option in the event of your “involuntary termination.”

The first sentence of Section 6(e) of the Incentive Stock Option Grant Agreement
evidencing the Option (the “Agreement”) is amended and restated to read in its entirety as follows:

“In the event that the Grantee ceases to provide Services as an Employee by reason
of an Involuntary Termination, unless the Option has earlier terminated, the Option
shall, immediately prior to such Involuntary Termination, vest and become
exercisable with respect to 25% of the total number of Shares subject to this Option
(or 425,000 Shares), and the Option may be exercised, in accordance with paragraph
(a) of Section 5, to the extent vested as of such Involuntary Termination (for
clarity, after taking into account the foregoing acceleration provision of this
paragraph (e)), provided such exercise occurs by the close of business on the last
calendar day of the 12th full calendar month following the date of such Involuntary
Termination.”

This letter hereby modifies and revises the Agreement and the Option to incorporate the
changes as described in this letter. Except as expressly provided for in this letter, the
Agreement and the Option will remain unchanged and in full force and effect. The term “Agreement”
as used in the Agreement and all other instruments and agreements executed thereunder, shall for
all purposes refer to the Agreement as further amended by this letter. The Agreement as amended by
this letter constitutes the entire agreement between you and the Company with respect to the
subject matter thereof and supersedes in all respects all prior oral or written proposals,
negotiations, conversations, discussions and agreements between you and the Company concerning the
subject matter thereof.

Please countersign this letter to acknowledge your receipt of this letter and your agreement
to and understanding of the modification to the Option and the Agreement as set forth herein.

Very truly yours,

ADVENTRX Pharmaceuticals, Inc.

By:

	 	 	 	[Name], [Title]

ACKNOWLEDGED:

By:

[Name]exhibit10-1.htm

    Exhibit
10.1

    

    AGREEMENT
AND PLAN OF MERGER

    

    

    THIS AGREEMENT AND PLAN OF
MERGER is made as of the 17 day of January, 2010

    

    AMONG:

    

    WOOZYFLY, INC., a corporation
formed pursuant to the laws of the State of Nevada and located at 244 Fifth
Avenue, Suite 1878, New York, New York 10001

     

    
      (“Woozyfly”)

       

    

    AND:

     

    STW ACQUISITION, INC., a body
corporate formed pursuant to the laws of the State of Nevada and a wholly owned
subsidiary of Woozyfly

    

    (the
"Acquirer")

    

    AND:

    

    STW RESOURCES, INC., a body
corporate formed pursuant to the laws of the State of Nevada and having an
office for business located at 619 W. Texas Ave., Suite 126, Midland, TX
79701

    

    ("STW
Resources")

    

    AND:

    

    The
shareholders of STW Resources as set forth on Exhibit A

    

    (collectively
the “STW Resources Shareholders”)

    

    
      	
               
      

            	
              WHEREAS:

            

    

    

    A.              STW
Resources is a Nevada corporation engaged in the business of providing water
reclamation services;

    

    B.              The
STW Resources Shareholders own 14,092,788 STW Resources Shares, which constitute
53% of the presently issued and outstanding STW Resources Shares;

    

    C.              Woozyfly
is a reporting company whose common stock is quoted on the OTC Bulletin Board
under the symbol WZYFQ;

    

    D.              Woozyfly
has filed for Chapter 11 bankruptcy protection (the “Bankruptcy”) in the United
States Bankruptcy Court for the Southern District of New York (the
“Court”);

    

    E.              Woozyfly
has requested that the Court approve a plan pursuant to which Woozyfly, through
the Acquirer, acquire STW Resources and allow Woozyfly to exit
bankruptcy;

    

    F.              The
respective Boards of Directors of Woozyfly, STW Resources and the Acquirer,
subject to the approval of the Court, deem it advisable and in the best
interests of Woozyfly, STW Resources and the Acquirer that STW Resources merge
with and into the Acquirer (the "Merger") pursuant to this Agreement and the
Certificate of Merger, and the applicable provisions of the laws of the State of
Nevada; and

    

    G.           It
is intended that the Merger shall qualify for United States federal income tax
purposes as a reorganization within the meaning of Section 368 of the Internal
Revenue Code of 1986, as amended.

    

    NOW THEREFORE THIS AGREEMENT
WITNESSETH THAT in consideration of the premises and the mutual
covenants, agreements, representations and warranties contained herein, and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto hereby agree as follows:

    

    

    ARTICLE
1

    DEFINITIONS
AND INTERPRETATION

    

    Definitions

    

    1.1 In this
Agreement the following terms will have the following meanings:

    

    
      	
              (a)  

            	
              “Acquisition Shares”
      means the 26,543,075 Woozyfly Common Shares to be issued to the
      shareholders of STW Resources at Closing pursuant to the terms of the
      Merger;

            

    

    

    
      	
              (b)  

            	
              “Agreement” means this
      agreement and plan of merger among Woozyfly, the Acquirer, STW Resources,
      and the STW Resources Shareholders;

            

    

    

    
      	
              (c)  

            	
              “Closing” means the
      completion, on the Closing Date, of the transactions contemplated hereby
      in accordance with Article 9
hereof;

            

    

    

    
      	
              (d)  

            	
              “Closing Date” means the
      day on which all conditions precedent to the completion of the transaction
      as contemplated hereby have been satisfied or
  waived;

            

    

    

    
      	
              (e)  

            	
              “Effective Time” means
      the date of the filing of an appropriate Certificate of Merger in the form
      required by the State of Nevada, which certificate shall provide that the
      Merger shall become effective upon such
filing;

            

    

    

    
      	
              (f)  

            	
              “Merger” means the
      merger, at the Effective Time, of STW Resources and the Acquirer pursuant
      to this Agreement and Plan of
Merger;

            

    

    

    
      	
              (g)  

            	
              “Merger Consideration”
      means the Acquisition Shares;

            

    

    

    
      	
              (h)  

            	
              “Place of Closing” means
      the Law Offices of Stephen M. Fleming PLLC, 49 Front Street, Suite #206,
      Rockville Centre, New York 11570, or such other place as Woozyfly and STW
      Resources may mutually agree upon;

            

    

    

    
      	
              (i)  

            	
              “State Corporation Law”
      means the general corporation law of the State of
  Nevada;

            

    

    

    
      	
              (j)  

            	
              “STW Resources
      Debentures” means the convertible debentures on Schedule “C” to be
      cancelled upon receipt of the WoozyFly
  Debentures;

            

    

    

    
      	
              (k)  

            	
              “STW Resources Options”
      means the stock options and the common stock purchase warrants on Schedule
      “D” to be cancelled upon receipt of the Woozy Fly
  Options;

            

    

    

    
      	
              (l)  

            	
              “STW Resources Accounts Payable
      and Liabilities” means all accounts payable and liabilities of STW
      Resources, due and owing or otherwise constituting a binding obligation of
      STW Resources as set forth in the STW Resources Financial
      Statements;

            

    

    

    
      	
              (m)  

            	
              “STW Resources Accounts
      Receivable” means all accounts receivable and other debts owing to
      STW Resources, as of September 30, 2009 as set forth in the STW Resources
      Financial Statements;

            

    

    

    
      	
              (n)  

            	
              “STW Resources Assets“
      means the undertaking and all the property and assets of the STW Resources
      Business of every kind and description wheresoever situated including,
      without limitation, STW Resources Equipment, STW Resources Inventory, STW
      Resources Material Contracts, STW Resources Accounts Receivable, STW
      Resources Cash, STW Resources Intangible Assets and STW Resources
      Goodwill, and all credit cards, charge cards and banking cards issued to
      STW Resources;

            

    

    

    
      	
              (o)  

            	
              “STW Resources Bank
      Accounts” means all of the bank accounts, lock boxes and safety
      deposit boxes of STW Resources or relating to the STW Resources Business a
      list which has previously been provided to
  Woozyfly;

            

    

    

    
      	
              (p)  

            	
              “STW Resources Business”
      means all aspects of the business conducted by STW
    Resources;

            

    

    

    
      	
              (q)  

            	
              “STW Resources Cash”
      means all cash on hand or on deposit to the credit of STW Resources on the
      Closing Date;

            

    

    

    
      	
              (r)  

            	
              “STW Resources Debt to Related
      Parties” means the debts owed by STW Resources and its subsidiaries
      to the STW Resources Shareholders or to any family member thereof, or to
      any affiliate, director or officer of STW Resources or the STW Resources
      Shareholders as described in the STW Resources Financial
      Statements;

            

    

    

    
      	
              (s)  

            	
              “STW Resources Equipment”
      means all machinery, equipment, furniture, and furnishings used in the STW
      Resources Business as set forth in the STW Resources Financial
      Statements;

            

    

    

    
      	
              (t)  

            	
              “STW Resources Financial
      Statements” means collectively, the audited consolidated financial
      statements of STW Resources for the period from inception (January 28,
      2008) through December 31, 2008 together with the auditors' reports
      thereon, a true copy of which is attached as Schedule “B” hereto as well
      as the unaudited financial statements for the period ending September 30,
      2009, a true copy of which is attached as Schedule “B”
    hereto;

            

    

    

    
      	
              (u)  

            	
              “STW Resources Goodwill”
      means the goodwill of the STW Resources Business together with the
      exclusive right of Woozyfly to represent itself as carrying on the STW
      Resources Business in succession of STW Resources subject to the terms
      hereof, and the right to use any words indicating that the STW Resources
      Business is so carried on including the right to use the name "STW
      Resources” or “STW Global" or any variation thereof as part of the name of
      or in connection with the STW Resources Business or any part thereof
      carried on or to be carried on by STW Resources, the right to all
      corporate, operating and trade names associated with the STW Resources
      Business, or any variations of such names as part of or in connection with
      the STW Resources Business, all telephone listings and telephone
      advertising contracts, all lists of customers, books and records and other
      information relating to the STW Resources Business, all necessary licenses
      and authorizations and any other rights used in connection with the STW
      Resources Business;

            

    

    

    
      	
              (v)  

            	
              “STW Resources Insurance
      Policies” means the public liability insurance and insurance
      against loss or damage to STW Resources Assets and the STW Resources
      Business, which have been previously provided to
  Woozyfly;

            

    

    

    
      	
              (w)  

            	
              “STW Resources Intangible
      Assets” means all of the intangible assets of STW Resources,
      including, without limitation, STW Resources Goodwill, all trademarks,
      logos, copyrights, designs, and other intellectual and industrial property
      of STW Resources and its subsidiaries as set forth in the STW Resources
      Financial Statements;

            

    

    

    
      	
              (x)  

            	
              “STW Resources Inventory”
      means all inventory and supplies of the STW Resources Business as of
      September 30, 2009 as set forth in the STW Resources Financial
      Statements;

            

    

    

    
      	
              (y)  

            	
              “STW Resources Material
      Contracts” means the burden and benefit of and the right, title and
      interest of STW Resources in, to and under all trade and non-trade
      contracts, engagements or commitments, whether written or oral, to which
      STW Resources is entitled in connection with the STW Resources Business
      whereunder STW Resources is obligated to pay or entitled to receive the
      sum of $20,000 or more including, without limitation, any pension plans,
      profit sharing plans, bonus plans, loan agreements, security agreements,
      indemnities and guarantees, any agreements with employees, lessees,
      licensees, managers, accountants, suppliers, agents, distributors,
      officers, directors, attorneys or others which cannot be terminated
      without liability on not more than one month's notice, and those contracts
      described in the STW Resources Financial Statements;
  and

            

    

    

    
      	
              (z)  

            	
              “STW Resources Shares”
      means all of the issued and outstanding shares of STW Resources' equity
      stock.

            

    

    

    
      	
              (aa)  

            	
              “Surviving Company” means
      the Acquirer following the merger with STW
  Resources.

            

    

    

    
      	
              (bb)  

            	
              “Woozyfly Accounts Payable and
      Liabilities” means all accounts payable and liabilities of
      Woozyfly, on a consolidated basis, due and owing or otherwise constituting
      a binding obligation of Woozyfly and its subsidiaries as in the Woozyfly
      Financial Statements;

            

    

    

    
      	
              (cc)  

            	
              “Woozyfly Accounts
      Receivable” means all accounts receivable and other debts owing to
      Woozyfly, on a consolidated basis, as of September 30, 2009 as set forth
      in the Woozyfly Financial
Statements;

            

    

    

    
      	
              (dd)  

            	
              “Woozyfly Assets” means
      the undertaking and all the property and assets of the Woozyfly Business
      of every kind and description wheresoever situated including, without
      limitation, Woozyfly Equipment, Woozyfly Inventory, Woozyfly Material
      Contracts, Woozyfly Accounts Receivable, Woozyfly Cash, Woozyfly
      Intangible Assets and Woozyfly Goodwill, and all credit cards, charge
      cards and banking cards issued to
Woozyfly;

            

    

    

    
      	
              (ee)  

            	
              “Woozyfly Bank Accounts”
      means all of the bank accounts, lock boxes and safety deposit boxes of
      Woozyfly and its subsidiaries or relating to the Woozyfly Business as set
      forth in the Woozyfly Financial
Statements;

            

    

    

    
      	
              (ff)  

            	
              “Woozyfly Business” means
      all aspects of any business conducted by Woozyfly and its
      subsidiaries;

            

    

    

    
      	
              (gg)  

            	
              “Woozyfly Cash” means
      all cash on hand or on deposit to the credit of WOOZYFLY and its
      subsidiaries on the Closing Date;

            

    

    

    
      	
              (hh)  

            	
              “Woozyfly Common Shares”
      means the shares of common stock in the capital of
    Woozyfly;

            

    

    

    
      	
              (ii)  

            	
              “Woozyfly Debentures”
      means the convertible debentures on Schedule “C” to be issued to the
      holders of the STW Debentures upon
closing;

            

    

    

    
      	
              (jj)  

            	
              “Woozyfly Equipment”
      means all machinery, equipment, furniture, and furnishings used in the
      Woozyfly Business, including, without limitation, the items more
      particularly described in the Woozyfly Financial
    Statements;

            

    

    

    
      	
              (kk)  

            	
              “Woozyfly Financial
      Statements” means the financial statements contained within
      Woozyfly’s Form 10-K for the year ended December 31, 2008 as filed with
      the Securities and Exchange Commission on April 15, 2009 and Woozyfly’s
      Form 10-Q for the quarter ended September 30, 2009 as filed with the
      Securities and Exchange Commission on October 29, 2009, copies of which
      are attached hereto as Schedule
“A”;

            

    

    

    
      	
              (ll)  

            	
              “Woozyfly Goodwill” means
      the goodwill of the Woozyfly Business including the right to all
      corporate, operating and trade names associated with the Woozyfly
      Business, or any variations of such names as part of or in connection with
      the Woozyfly Business, all books and records and other information
      relating to the Woozyfly Business, all necessary licenses and
      authorizations and any other rights used in connection with the Woozyfly
      Business;

            

    

    

    
      	
              (mm)  

            	
              Intentionally
      left blank;

            

    

    

    
      	
              (nn)  

            	
              “Woozyfly Intangible
      Assets" means all of the intangible assets of Woozyfly and its
      subsidiaries, including, without limitation, Woozyfly Goodwill, all
      trademarks, logos, copyrights, designs, and other intellectual and
      industrial property of Woozyfly and its
  subsidiaries;

            

    

    

    
      	
              (oo)  

            	
              “Woozyfly Inventory”
      means all inventory and supplies of the Woozyfly  Business as of
      September 30, 2009, as set forth in as contained in the Woozyfly Financial
      Statements;

            

    

    

    
      	
              (pp)  

            	
              “Woozyfly Material
      Contracts” means the burden and benefit of and the right, title and
      interest of Woozyfly and its subsidiaries in, to and under all trade and
      non-trade contracts, engagements or commitments, whether written or oral,
      to which Woozyfly or its subsidiaries are entitled whereunder Woozyfly or
      its subsidiaries are obligated to pay or entitled to receive the sum of
      $20,000 or more including, without limitation, any pension plans, profit
      sharing plans, bonus plans, loan agreements, security agreements,
      indemnities and guarantees, any agreements with employees, lessees,
      licensees, managers, accountants, suppliers, agents, distributors,
      officers, directors, attorneys or others which cannot be terminated
      without liability on not more than one month's notice, and those contracts
      described  in the Woozyfly Financial Statements;
    and

            

    

    

    
      	
              (qq)  

            	
              “Woozyfly Options” means
      the stock options and the common stock purchase warrants on Schedule “D”
      to be issued to the holders of the STW Resources Options upon
      closing.

            

    

    

    Any other
terms defined within the text of this Agreement will have the meanings so
ascribed to them.

    

    Captions
and Section Numbers

    

    1.2           The
headings and section references in this Agreement are for convenience of
reference only and do not form a part of this Agreement and are not intended to
interpret, define or limit the scope, extent or intent of this Agreement or any
provision thereof.

    

    Section
References and Schedules

    

    1.3           Any
reference to a particular “Article”, “section”, “paragraph”, “clause” or other
subdivision is to the particular Article, section, clause or other subdivision
of this Agreement and any reference to a Schedule by letter will mean the
appropriate Schedule attached to this Agreement and by such reference the
appropriate Schedule is incorporated into and made part of this
Agreement.  The Schedules to this Agreement are as
follows:

    

    

    Information
concerning Woozyfly

    

    
      	
              Schedule
      “A”

            	
              Woozyfly
      Financial Statements

            

    

    

    Information
concerning STW Resources

    

    
      	
              Schedule
      “B”

            	
              STW
      Resources Financial Statements

            

    

    

    

    Severability
of Clauses

    

    1.4              If
any part of this Agreement is declared or held to be invalid for any reason,
such invalidity will not affect the validity of the remainder which will
continue in full force and effect and be construed as if this Agreement had been
executed without the invalid portion, and it is hereby declared the intention of
the parties that this Agreement would have been executed without reference to
any portion which may, for any reason, be hereafter declared or held to be
invalid.

    

    ARTICLE
2

    THE
MERGER

    

    The
Merger

    

    2.1              At
Closing, STW Resources shall be merged with and into the Acquirer pursuant to
this Agreement and Plan of Merger and the separate corporate existence of STW
Resources shall cease and the Acquirer, as it exists from and after the Closing,
shall be the Surviving Company.

    

    Effect
of the Merger

    

    2.2              The
Merger shall have the effect provided therefor by the State Corporation Law.
Without limiting the generality of the foregoing, and subject thereto, at
Closing (i) all the rights, privileges, immunities, powers and franchises, of a
public as well as of a private nature, and all property, real, personal and
mixed, and all debts due on whatever account, including without limitation
subscriptions to shares, and all other causes in action, and all and every other
interest of or belonging to or due to STW Resources or the Acquirer, as a group,
subject to the terms hereof, shall be taken and deemed to be transferred to, and
vested in, the Surviving Company without further act or deed; and all property,
rights and privileges, immunities, powers and franchises and all and every other
interest shall be thereafter as effectually the property of the Surviving
Company, as they were of STW Resources and the Acquirer, as a group, and (ii)
all debts, liabilities, duties and obligations of STW Resources and the
Acquirer, as a group, subject to the terms hereof, shall become the debts,
liabilities and duties of the Surviving Company and the Surviving Company shall
thenceforth be responsible and liable for all debts, liabilities, duties and
obligations of STW Resources and the Acquirer, as a group, and neither the
rights of creditors nor any liens upon the property of STW Resources or the
Acquirer, as a group, shall be impaired by the Merger, and may be enforced
against the Surviving Company.

    

    Certificate
of Incorporation; Bylaws; Directors and Officers

    

    2.3              The
Certificate of Incorporation of the Surviving Company from and after the Closing
shall be the Certificate of Incorporation of the Acquirer until thereafter
amended in accordance with the provisions therein and as provided by the
applicable provisions of the State Corporation Law.  The Bylaws of the
Surviving Company from and after the Closing shall be the Bylaws of the Acquirer
as in effect immediately prior to the Closing, continuing until thereafter
amended in accordance with their terms, the Certificate of Incorporation of the
Surviving Company and as provided by the State Corporation Law.  The
Directors of the Acquirer at the Effective Time shall continue to be the
Directors of the Acquirer.

    

    Conversion
of Securities

    

    2.4              At
the Effective Time, by virtue of the Merger and without any action on the part
of the Acquirer, STW Resources or the STW Resources Shareholders or any other
shareholder of STW Resources, the shares of capital stock of each of STW
Resources and the Acquirer shall be converted as follows:

    

    
      	
              (a)  

            	
              Capital Stock of the
      Acquirer. Each issued and outstanding share of the Acquirer's
      capital stock shall continue to be issued and outstanding.  Each
      stock certificate of the Acquirer evidencing ownership of any such shares
      shall continue to evidence ownership of such shares of capital stock of
      the Acquirer.

            

    

    

    
      	
              (b)  

            	
              Conversion of STW
      Resources Shares. Each STW Resources Share that is issued and
      outstanding at the Effective Time shall automatically be cancelled and
      extinguished and converted, without any action on the part of the holder
      thereof, into the right to receive at the time and in the amounts
      described in this Agreement an amount of Woozyfly Common Shares equal to
      26,543,075 divided by the number of STW Resources Shares outstanding
      immediately prior to Closing. All such STW Resources Shares, when so
      converted, shall no longer be outstanding and shall automatically be
      cancelled and retired and shall cease to exist, and each holder of a
      certificate representing any such shares shall cease to have any rights
      with respect thereto, except the right to receive the Acquisition Shares
      paid in consideration therefor upon the surrender of such certificate in
      accordance with this Agreement.

            

    

    

    
      	
              (c)  

            	
              Conversion of STW
      Resources Securities. The STW Resources Debentures and STW
      Resources Options that are issued and outstanding at the Effective Time
      shall be cancelled and extinguished and converted, without any action upon
      the holder thereof and the holders thereof shall receive Woozyfly
      Debentures and Woozyfly Options as provided in this
      Agreement.  All such STW Resources Debentures and STW Resources
      Options, when so converted, shall no longer be outstanding and shall
      automatically be cancelled and retired and shall cease to exist, and each
      holder of a STW Resources Debentures and STW Resources Options shall cease
      to have any rights with respect thereto, except the right to receive the
      Woozyfly Debentures and Woozyfly Options paid in consideration therefor
      upon the surrender of such STW Resources Debentures and STW Resources
      Options in accordance with this
Agreement.

            

    

    

    Adherence
with Applicable Securities Laws

    

    2.5           The
STW Resources Shareholders agree that they are acquiring a pro rata amount of
the Acquisition Shares for investment purposes and will not offer, sell or
otherwise transfer, pledge or hypothecate any of the Acquisition Shares issued
to them (other than pursuant to an effective Registration Statement under the
Securities Act of 1933,
as amended) directly or indirectly unless:

    

    
      	
              (a)  

            	
              the
      sale is to Woozyfly;

            

    

    

    
      	
              (b)  

            	
              the
      sale is made pursuant to the exemption from registration under the Securities Act of 1933,as
      amended, provided by Rule 144 thereunder;
  or

            

    

    

    
      	
              (c)  

            	
              the
      Acquisition Shares are sold in a transaction that does not require
      registration under the Securities Act of 1933, as
      amended, or any applicable United States state laws and regulations
      governing the offer and sale of securities, and the vendor has furnished
      to Woozyfly an opinion of counsel to that effect or such other written
      opinion as may be reasonably required by
  Woozyfly.

            

    

    

    The STW Resources Shareholders
acknowledge that the certificates representing the Acquisition Shares shall bear
the following legend:

    

    NO SALE,
OFFER TO SELL, OR TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL
BE MADE UNLESS A REGISTRATION STATEMENT UNDER THE FEDERAL SECURITIES ACT OF
1933, AS AMENDED, IN RESPECT OF SUCH SHARES IS THEN IN EFFECT OR AN EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF SAID ACT IS THEN IN FACT APPLICABLE TO
SAID SHARES.

    

    

    ARTICLE
3

    REPRESENTATIONS
AND WARRANTIES

    OF
WOOZYFLY

    

    Representations
and Warranties

    

    3.1              Woozyfly
represents and warrants in all material respects to STW Resources, with the
intent that STW Resources will rely thereon in entering into this Agreement and
in approving and completing the transactions contemplated hereby, that upon
exiting the Bankruptcy and prior to the Merger:

    

    Woozyfly
- Corporate Status and Capacity

    

    
      	
              (a)  

            	
              Incorporation.
      Woozyfly is a corporation duly incorporated and validly subsisting under
      the laws of the State of Nevada, and is in good standing with the office
      of the Secretary of State for the State of
  Nevada;

            

    

    

    
      	
              (b)  

            	
              Carrying on
      Business. Woozyfly has filed the Bankruptcy with the Court and
      presently does not have operations.  The nature of the Woozyfly
      Business does not require Woozyfly to register or otherwise be qualified
      to carry on business in any other
jurisdictions;

            

    

    

    
      	
              (c)  

            	
              Corporate
      Capacity. Woozyfly has the corporate power, capacity and authority
      to own the Woozyfly Assets and to enter into and complete this
      Agreement;

            

    

    

    
      	
              (d)  

            	
              Reporting Status;
      Listing. Woozyfly is required to file current reports with the
      Securities and Exchange Commission pursuant to section 12(g) of the
      Securities Exchange Act of 1934, the Woozyfly Common Shares are quoted on
      the OTC Bulletin Board, and all reports required to be filed by Woozyfly
      with the Securities and Exchange Commission have been timely
      filed;

            

    

    

    Acquirer
- Corporate Status and Capacity

    

    
      	
              (e)  

            	
              Incorporation.
      The Acquirer is a corporation duly incorporated and validly subsisting
      under the laws of the State of Nevada, and is in good standing with the
      office of the Secretary of State for the State of
  Nevada;

            

    

    

    
      	
              (f)  

            	
              Corporate
      Capacity. The Acquirer has the corporate power, capacity and
      authority to enter into and complete this
  Agreement;

            

    

    

    
      	
               
      

            	
              Woozyfly
      - Capitalization

            

    

    

    
      	
              (g)  

            	
              Authorized
      Capital. The authorized capital of Woozyfly consists of 100,000,000
      Woozyfly Common Shares, $0.001 par value, of which 4,400,000 Woozyfly
      Common Shares will be issued and outstanding upon exiting the Bankruptcy
      and prior to the Merger and 10,000,000 preferred stock, $0.001 par value,
      of which zero will be issued and outstanding upon exiting the Bankruptcy
      and prior to the Merger;

            

    

    

    
      	
              (h)  

            	
              No Option. No
      person, firm or corporation has any agreement or option or any right
      capable of becoming an agreement or option for the acquisition of Woozyfly
      Common Shares or for the purchase, subscription or issuance of any of the
      unissued shares in the capital of Woozyfly upon exiting the Bankruptcy and
      prior to the Merger;

            

    

    

    
      	
              (i)  

            	
              Capacity.
      Woozyfly has the full right, power and authority to enter into this
      Agreement on the terms and conditions contained
  herein;

            

    

    

    Acquirer
Capitalization

    

    
      	
              (j)  

            	
              Authorized
      Capital. The authorized capital of the Acquirer consists of 200
      shares of common stock, $0.0001 par value, of which one share of common
      stock is presently issued and
outstanding;

            

    

    

    
      	
              (k)  

            	
              No Option. No
      person, firm or corporation has any agreement or option or any right
      capable of becoming an agreement or option for the acquisition of any
      common or preferred shares in Acquirer or for the purchase, subscription
      or issuance of any of the unissued shares in the capital of
      Acquirer;

            

    

    

    
      	
              (l)  

            	
              Capacity. The
      Acquirer has the full right, power and authority to enter into this
      Agreement on the terms and conditions contained
  herein;

            

    

    

    
      	
               
      

            	
              Woozyfly
      - Records and Financial Statements

            

    

    

    
      	
              (m)  

            	
              Charter
      Documents. The charter documents of Woozyfly and the Acquirer have
      not been altered since the incorporation of each, respectively, except as
      filed in the record books of Woozyfly or the Acquirer, as the case may
      be;

            

    

    

    
      	
              (n)  

            	
              Corporate Minute
      Books. The corporate minute books of Woozyfly and its subsidiaries
      are complete and each of the minutes contained therein accurately reflect
      the actions that were taken at a duly called and held meeting or by
      consent without a meeting. All actions by Woozyfly and its subsidiaries
      which required director or shareholder approval are reflected on the
      corporate minute books of Woozyfly and its subsidiaries. Woozyfly and its
      subsidiaries are not in violation or breach of, or in default with respect
      to, any term of their respective Certificates of Incorporation (or other
      charter documents) or by-laws.

            

    

    

    
      	
              (o)  

            	
              Woozyfly Financial
      Statements. The Woozyfly Financial Statements present fairly, in
      all material respects, the assets and liabilities (whether accrued,
      absolute, contingent or otherwise) of Woozyfly, on a consolidated basis,
      as of the respective dates thereof, and the sales and earnings of the
      Woozyfly Business during the periods covered thereby, in all material
      respects and have been prepared in substantial accordance with generally
      accepted accounting principles consistently
  applied;

            

    

    

    
      	
              (p)  

            	
              Woozyfly Accounts
      Payable and Liabilities. There are no material liabilities,
      contingent or otherwise, of Woozyfly or its subsidiaries which are not
      disclosed in the Woozyfly Financial Statements except those incurred in
      the ordinary course of business since the date of the Woozyfly Financial
      Statements, and neither Woozyfly nor its subsidiaries have guaranteed or
      agreed to guarantee any debt, liability or other obligation of any person,
      firm or corporation. Without limiting the generality of the foregoing, all
      accounts payable and liabilities of Woozyfly and its subsidiaries as of
      September 31, 2009 are set forth in the Woozyfly Financial
      Statements;

            

    

    

    
      	
              (q)  

            	
              Woozyfly Accounts
      Receivable. All the Woozyfly Accounts Receivable result from bona
      fide business transactions and services actually rendered without, to the
      knowledge and belief of Woozyfly, any claim by the obligor for set-off or
      counterclaim;

            

    

    

    
      	
              (r)  

            	
              No Debt to Related
      Parties. Except as set forth in the Woozyfly Financial Statements,
      neither Woozyfly nor its subsidiaries are, and on Closing will not be,
      materially indebted to any affiliate, director or officer of Woozyfly
      except accounts payable on account of bona fide business transactions of
      Woozyfly incurred in normal course of the Woozyfly Business, including
      employment agreements, none of which are more than 30 days in
      arrears;

            

    

    

    
      	
              (s)  

            	
              No Related Party Debt
      to Woozyfly. Upon exiting the Bankruptcy and prior to the Merger,
      no director or officer or affiliate of Woozyfly will be indebted to or
      under any financial obligation to Woozyfly or its subsidiaries on any
      account whatsoever, except for advances on account of travel and other
      expenses not exceeding $5,000 in
total;

            

    

    

    
      	
              (t)  

            	
              No Dividends.
      No dividends or other distributions on any shares in the capital of
      Woozyfly have been made, declared or authorized since the date of Woozyfly
      Financial Statements;

            

    

    

    
      	
              (u)  

            	
              No Payments. No
      payments of any kind have been made or authorized since the date of the
      Woozyfly Financial Statements to or on behalf of officers, directors,
      shareholders or employees of Woozyfly or its subsidiaries or under any
      management agreements with Woozyfly or its subsidiaries, except payments
      made in the ordinary course of business and at the regular rates of salary
      or other remuneration payable to
them;

            

    

    

    
      	
              (v)  

            	
              No Pension
      Plans. There are no pension, profit sharing, group insurance or
      similar plans or other deferred compensation plans affecting Woozyfly or
      its subsidiaries;

            

    

    

    
      	
              (w)  

            	
              No Adverse
      Events. Except as set forth in its reports as filed with the
      Securities and Exchange Commission (the “34 Act Reports”), since the date
      of the Woozyfly Financial
Statements

            

    

    

    
      	
              (i)  

            	
              there
      has not been any material adverse change in the financial position or
      condition of Woozyfly, its subsidiaries, its liabilities or the Woozyfly
      Assets or any damage, loss or other change in circumstances materially
      affecting Woozyfly, the Woozyfly Business or the Woozyfly Assets or
      Woozyfly’ right to carry on the Woozyfly Business, other than changes in
      the ordinary course of business,

            

    

    

    
      	
              (ii)  

            	
              there
      has not been any damage, destruction, loss or other event (whether or not
      covered by insurance) materially and adversely affecting Woozyfly, its
      subsidiaries, the Woozyfly Business or the Woozyfly
  Assets,

            

    

    

    
      	
              (iii)  

            	
              there
      has not been any material increase in the compensation payable or to
      become payable by Woozyfly to any of Woozyfly’ officers, employees or
      agents or any bonus, payment or arrangement made to or with any of
      them,

            

    

    

    
      	
              (iv)  

            	
              the
      Woozyfly Business has been and continues to be carried on in the ordinary
      course,

            

    

    

    
      	
              (v)  

            	
              Woozyfly
      has not waived or surrendered any right of material
  value,

            

    

    

    
      	
              (vi)  

            	
              Neither
      Woozyfly nor its subsidiaries have discharged or satisfied or paid any
      lien or encumbrance or obligation or liability other than current
      liabilities in the ordinary course of business,
  and

            

    

    

    
      	
              (vii)  

            	
              no
      capital expenditures in excess of $10,000 individually or $30,000 in total
      have been authorized or made.

            

    

    

    Woozyfly
- Income Tax Matters

    

    
      	
              (x)  

            	
              Tax Returns.
      All tax returns and reports of Woozyfly and its subsidiaries required by
      law to be filed have been filed and are true, complete and correct, and
      any taxes payable in accordance with any return filed by Woozyfly and its
      subsidiaries or in accordance with any notice of assessment or
      reassessment issued by any taxing authority have been so
    paid;

            

    

    

    
      	
              (y)  

            	
              Current Taxes.
      Adequate provisions have been made for taxes payable for the current
      period for which tax returns are not yet required to be filed and there
      are no agreements, waivers, or other arrangements providing for an
      extension of time with respect to the filing of any tax return by, or
      payment of, any tax, governmental charge or deficiency by Woozyfly or its
      subsidiaries.  Woozyfly is not aware of any contingent tax
      liabilities or any grounds which would prompt a reassessment including
      aggressive treatment of income and expenses in filing earlier tax
      returns;

            

    

    

    Woozyfly
- Applicable Laws and Legal Matters

    

    
      	
              (z)  

            	
              Licenses.
      Woozyfly and its subsidiaries hold all licenses and permits as may be
      requisite for carrying on the Woozyfly Business in the manner in which it
      has heretofore been carried on, which licenses and permits have been
      maintained and continue to be in good standing except where the failure to
      obtain or maintain such licenses or permits would not have a material
      adverse effect on the Woozyfly
Business;

            

    

    

    
      	
              (aa)  

            	
              Applicable
      Laws. Neither Woozyfly nor its subsidiaries have been charged with
      or received notice of breach of any laws, ordinances, statutes,
      regulations, by-laws, orders or decrees to which they are subject or which
      apply to them the violation of which would have a material adverse effect
      on the Woozyfly Business, and to Woozyfly’s knowledge, neither Woozyfly
      nor its subsidiaries are in breach of any laws, ordinances, statutes,
      regulations, bylaws, orders or decrees the contravention of which would
      result in a material adverse impact on the Woozyfly
    Business;

            

    

    

    
      	
              (bb)  

            	
              Pending or Threatened
      Litigation. Except as set forth on Schedule 3.1(bb), there is no
      material litigation or administrative or governmental proceeding pending
      or threatened against or relating to Woozyfly, its subsidiaries, the
      Woozyfly Business, or any of the Woozyfly Assets nor does Woozyfly have
      any knowledge of any deliberate act or omission of Woozyfly or its
      subsidiaries that would form any material basis for any such action or
      proceeding;

            

    

    

    
      	
              (cc)  

            	
              No Bankruptcy.
      Except for the Bankruptcy, neither Woozyfly nor its subsidiaries have made
      any voluntary assignment or proposal under applicable laws relating to
      insolvency and bankruptcy and no bankruptcy petition has been filed or
      presented against Woozyfly or its subsidiaries and no order has been made
      or a resolution passed for the winding-up, dissolution or liquidation of
      Woozyfly or its subsidiaries;

            

    

    

    
      	
              (dd)  

            	
              Labor Matters.
      Neither Woozyfly nor its subsidiaries are party to any collective
      agreement relating to the Woozyfly Business with any labor union or other
      association of employees and no part of the Woozyfly Business has been
      certified as a unit appropriate for collective bargaining or, to the
      knowledge of Woozyfly, has made any attempt in that
  regard;

            

    

    

    
      	
              (ee)  

            	
              Finder's Fees.
      Neither Woozyfly nor its subsidiaries are party to any agreement which
      provides for the payment of finder's fees, brokerage fees, commissions or
      other fees or amounts which are or may become payable to any third party
      in connection with the execution and delivery of this Agreement and the
      transactions contemplated herein;

            

    

    

    Execution
and Performance of Agreement

    

    
      	
              (ff)  

            	
              Authorization and
      Enforceability. The execution and delivery of this Agreement, and
      the completion of the transactions contemplated hereby, have been duly and
      validly authorized by all necessary corporate action on the part of
      Woozyfly and the Acquirer;

            

    

    

    
      	
              (gg)  

            	
              No Violation or
      Breach. The execution and performance of this Agreement will
      not:

            

    

    

    
      	
              (i)  

            	
              violate
      the charter documents of Woozyfly or the Acquirer or result in any breach
      of, or default under, any loan agreement, mortgage, deed of trust, or any
      other agreement to which Woozyfly or its subsidiaries are
      party,

            

    

    

    
      	
              (ii)  

            	
              give
      any person any right to terminate or cancel any agreement including,
      without limitation, the Woozyfly Material Contracts, or any right or
      rights enjoyed by Woozyfly or its
subsidiaries,

            

    

    

    
      	
              (iii)  

            	
              result
      in any alteration of Woozyfly’s or its subsidiaries’ obligations under any
      agreement to which Woozyfly or its subsidiaries are party including,
      without limitation, the Woozyfly Material
  Contracts,

            

    

    

    
      	
              (iv)  

            	
              result
      in the creation or imposition of any lien, encumbrance or restriction of
      any nature whatsoever in favor of a third party upon or against the
      Woozyfly Assets,

            

    

    

    
      	
              (v)  

            	
              result
      in the imposition of any tax liability to Woozyfly or its subsidiaries
      relating to the Woozyfly Assets, or

            

    

    

    
      	
              (vi)  

            	
              violate
      any court order or decree to which either Woozyfly or its subsidiaries are
      subject;

            

    

    

    The
Woozyfly Assets - Ownership and Condition

    

    
      	
              (hh)  

            	
              Business
      Assets. The Woozyfly Assets comprise all of the property and assets
      of the Woozyfly Business, and no other person, firm or corporation owns
      any assets used by Woozyfly or its subsidiaries in operating the Woozyfly
      Business, whether under a lease, rental agreement or other arrangement,
      other than as disclosed in Schedules “A”
hereto;

            

    

    

    
      	
              (ii)  

            	
              Title. Woozyfly
      or its subsidiaries are the legal and beneficial owner of the Woozyfly
      Assets, free and clear of all mortgages, liens, charges, pledges, security
      interests, encumbrances or other claims whatsoever, save and except as
      disclosed in the Woozyfly Financial
Statements;

            

    

    

    
      	
              (jj)  

            	
              No Option. No
      person, firm or corporation has any agreement or option or a right capable
      of becoming an agreement for the purchase of any of the Woozyfly
      Assets;

            

    

    

    
      	
              (kk)  

            	
              No Default.
      Except as set forth on Schedule 3.1(kk), there has not been any default in
      any material obligation of Woozyfly or any other party to be performed
      under any of the Woozyfly Material Contracts, each of which is in good
      standing and in full force and effect and unamended, and Woozyfly is not
      aware of any default in the obligations of any other party to any of the
      Woozyfly Material Contracts;

            

    

    

    Woozyfly
Assets - Woozyfly Equipment

    

    
      	
              (ll)  

            	
              Woozyfly
      Equipment. The Woozyfly Equipment has been maintained in a manner
      consistent with that of a reasonably prudent owner and such equipment is
      in good working condition;

            

    

    

    

    Woozyfly
- Acquisition Shares

    

    
      	
              (mm)  

            	
              Acquisition
      Shares. The Acquisition Shares when delivered to the holders of STW
      Resources Shares pursuant to the Merger shall be validly issued and
      outstanding as fully paid and non-assessable shares and the Acquisition
      Shares shall be transferable upon the books of Woozyfly, in all cases
      subject to the provisions and restrictions of all applicable securities
      laws.

            

    

    

    Non-Merger
and Survival

    

    3.2           The
representations and warranties of Woozyfly contained herein will be true at and
as of Closing in all material respects as though such representations and
warranties were made as of such time.  Notwithstanding the completion
of the transactions contemplated hereby, the waiver of any condition contained
herein (unless such waiver expressly releases a party from any such
representation or warranty) or any investigation made by STW Resources or the
STW Resources Shareholders, the representations and warranties of Woozyfly shall
survive the Closing.

    

    Indemnity

    

    3.3           Woozyfly
agrees to indemnify and save harmless STW Resources and the STW Resources
Shareholders from and against any and all claims, demands, actions, suits,
proceedings, assessments, judgments, damages, costs, losses and expenses,
including any payment made in good faith in settlement of any claim (subject to
the right of Woozyfly to defend any such claim), resulting from the breach by it
of any representation or warranty made under this Agreement or from any
misrepresentation in or omission from any certificate or other instrument
furnished or to be furnished by Woozyfly to STW Resources or the STW Resources
Shareholders hereunder.

    

    

    ARTICLE
4

    COVENANTS
OF WOOZYFLY

    

    Covenants

    

    4.1              Woozyfly
covenants and agrees with STW Resources that it will:

    

    
      	
              (a)  

            	
              Conduct of
      Business. Until the Closing, conduct its business diligently and in
      the ordinary course consistent with the manner in which it generally has
      been operated up to the date of execution of this
    Agreement;

            

    

    

    
      	
              (b)  

            	
              Preservation of
      Business.  Until the Closing, use its best efforts to
      preserve the Woozyfly Business and the Woozyfly Assets and, without
      limitation, preserve for STW Resources Woozyfly’s and its subsidiaries’
      relationships with any third party having business relations with
      them;

            

    

    

    
      	
              (c)  

            	
              Access. Until
      the Closing, give STW Resources, the STW Resources Shareholders, and their
      representatives full access to all of the properties, books, contracts,
      commitments and records of Woozyfly, and furnish to STW Resources, the STW
      Resources Shareholders and their representatives all such information as
      they may reasonably request;

            

    

    

    
      	
              (d)  

            	
              Procure
      Consents. Until the Closing, take all reasonable steps required to
      obtain, prior to Closing, any and all third party consents required to
      permit the Merger and to preserve and maintain the Woozyfly Assets
      notwithstanding the change in control of STW Resources arising from the
      Merger;

            

    

    

    Authorization

    

    4.2              Woozyfly
hereby agrees to authorize and direct any and all federal, state, municipal,
foreign and international governments and regulatory authorities having
jurisdiction respecting Woozyfly and its subsidiaries to release any and all
information in their possession respecting Woozyfly and its subsidiaries to STW
Resources. Woozyfly shall promptly execute and deliver to STW Resources any and
all consents to the release of information and specific authorizations which STW
Resources reasonably requires to gain access to any and all such
information.

    

    Survival

    

    4.3              The
covenants set forth in this Article shall survive the Closing for the benefit of
STW Resources and the STW Resources Shareholders.

    

    

    ARTICLE
5

    REPRESENTATIONS
AND WARRANTIES OF

    THE
STW RESOURCES SHAREHOLDERS

    

    Representations
and Warranties

    

    5.1              The
STW Resources Shareholders represent and warrants in all material respects to
Woozyfly, with the intent that it will rely thereon in entering into this
Agreement and in approving and completing the transactions contemplated hereby,
that:

    

    STW
Resources - Corporate Status and Capacity

    

    
      	
              (a)  

            	
              Incorporation.
      STW Resources is a corporation duly incorporated and validly subsisting
      under the laws of the State of Nevada, and is in good standing with the
      office of the Secretary of State for the State of
  Nevada;

            

    

    

    
      	
              (b)  

            	
              Carrying on
      Business. STW Resources carries on business primarily in the state
      of Texas and the state of Pennsylvania and does not carry on any material
      business activity in any other jurisdiction. STW Resources has an office
      in Houston, Texas and in no other locations. The nature of the STW
      Resources Business does not require STW Resources to register or otherwise
      be qualified to carry on business in any jurisdictions other than Texas
      and Pennsylvania;

            

    

    

    
      	
              (c)  

            	
              Corporate
      Capacity. STW Resources has the corporate power, capacity and
      authority to own STW Resources Assets, to carry on the Business of STW
      Resources and to enter into and complete this
  Agreement;

            

    

    

    STW
Resources - Capitalization

    

    
      	
              (d)  

            	
              Authorized
      Capital. The authorized capital of STW Resources consists of
      250,000,000 shares of common stock, $.00001 par value per share, and
      10,000,000 shares of preferred stock, $.00001 par value per
      share;

            

    

    

    
      	
              (e)  

            	
              Ownership of STW
      Resources Shares. The issued and outstanding share capital of STW
      Resources will on Closing consist of 26,543,075 common shares (being the
      STW Resources Shares), which shares on Closing shall be validly issued and
      outstanding as fully paid and non-assessable shares. The STW Resources
      Shareholders will be at Closing the registered and beneficial owners of
      ________ STW Resources Shares. The STW Resources Shares owned by the STW
      Resources Shareholders, as well as all other outstanding STW Resources
      Shares, will on Closing be free and clear of any and all liens, charges,
      pledges, encumbrances, restrictions on transfer and adverse claims
      whatsoever;

            

    

    

    
      	
              (f)  

            	
              No Option.
      Except as set forth in the STW Resources Financial Statements and on Schedule
      5.1(f), no person, firm or corporation has any agreement, option,
      warrant, preemptive right or any other right capable of becoming an
      agreement or option for the acquisition of STW Resources Shares held by
      the STW Resources Shareholders or for the purchase, subscription or
      issuance of any of the unissued shares in the capital of STW
      Resources;

            

    

    

    
      	
              (g)  

            	
              No
      Restrictions. There are no restrictions on the transfer, sale or
      other disposition of STW Resources Shares contained in the charter
      documents of STW Resources or under any
  agreement;

            

    

    

    STW
Resources - Records and Financial Statements

    

    
      	
              (h)  

            	
              Charter
      Documents. The charter documents of STW Resources have not been
      altered since its incorporation date, except as filed in the record books
      of STW Resources;

            

    

    

    
      	
              (i)  

            	
              Corporate Minute
      Books. The corporate minute books of STW Resources are complete and
      each of the minutes contained therein accurately reflect the actions that
      were taken at a duly called and held meeting or by consent without a
      meeting. All actions by STW Resources which required director or
      shareholder approval are reflected on the corporate minute books of STW
      Resources. STW Resources is not in violation or breach of, or in default
      with respect to, any term of its Certificates of Incorporation (or other
      charter documents) or by-laws.

            

    

    

    
      	
              (j)  

            	
              STW Resources
      Financial Statements. The STW Resources Financial Statements
      present fairly, in all material respects, the assets and liabilities
      (whether accrued, absolute, contingent or otherwise) of STW Resources, on
      consolidated basis, as of the respective dates thereof, and the sales and
      earnings of the STW Resources Business during the periods covered thereby,
      in all material respects, and have been prepared in accordance with
      generally accepted accounting principles consistently
    applied;

            

    

    

    
      	
              (k)  

            	
              STW Resources Accounts
      Payable and Liabilities. There are no material liabilities,
      contingent or otherwise, of STW Resources which are not disclosed in the
      STW Resources Financial Statements except those incurred in the ordinary
      course of business since the date of the said schedule and the STW
      Resources Financial Statements, and STW Resources has not guaranteed or
      agreed to guarantee any debt, liability or other obligation of any person,
      firm or corporation. Without limiting the generality of the foregoing, all
      accounts payable and liabilities of STW Resources as of September 30, 2009
      are described in the STW Resources Financial
  Statements;

            

    

    

    
      	
              (l)  

            	
              STW Resources Accounts
      Receivable. All STW Resources Accounts Receivable result from bona
      fide business transactions and services actually rendered without, to the
      knowledge and belief of STW Resources, any claim by the obligor for
      set-off or counterclaim;

            

    

    

    
      	
              (m)  

            	
              No Debt to Related
      Parties. Except as disclosed in the STW Resources Financial
      Statements, STW Resources is not, and on Closing will not be, materially
      indebted to the STW Resources Shareholders nor to any family member
      thereof, nor to any affiliate, director or officer of STW Resources or the
      STW Resources Shareholders except accounts payable on account of bona fide
      business transactions of STW Resources incurred in normal course of STW
      Resources Business, including employment agreements with the STW Resources
      Shareholders, none of which are more than 30 days in
    arrears;

            

    

    

    
      	
              (n)  

            	
              No Related Party Debt
      to STW Resources. Neither the STW Resources Shareholders nor any
      director, officer or affiliate of STW Resources are now indebted to or
      under any financial obligation to STW Resources on any account whatsoever,
      except for advances on account of travel and other expenses not exceeding
      $5,000 in total;

            

    

    

    
      	
              (o)  

            	
              No Dividends.
      No dividends or other distributions on any shares in the capital of STW
      Resources have been made, declared or authorized since the date of the STW
      Resources Financial Statements;

            

    

    

    
      	
              (p)  

            	
              No Payments. No
      payments of any kind have been made or authorized since the date of the
      STW Resources Financial Statements to or on behalf of the STW Resources
      Shareholders or to or on behalf of officers, directors, shareholders or
      employees of STW Resources or under any management agreements with STW
      Resources, except payments made in the ordinary course of business and at
      the regular rates of salary or other remuneration payable to
      them;

            

    

    

    
      	
              (q)  

            	
              No Pension
      Plans. Except as set forth on Schedule 5.1(q), there are no
      pension, profit sharing, group insurance or similar plans or other
      deferred compensation plans affecting STW Resources, except that with
      STW’s existing employees and two former employees have agreements in
      effect to defer 50% of said employees’ pay in exchange for paying 200% of
      the deferred pay amounts to said employees by means of a one-year
      corporate promissory note which the employees may convert, at their
      option, into shares of the Company’s common stock at $0.25 per share or
      await payment in cash;

            

    

    

    
      	
              (r)  

            	
              No Adverse
      Events. Except as set forth on Schedule
      5.1(r), since the date of the STW Resources Financial
      Statements:

            

    

    

    
      	
              (i)  

            	
              there
      has not been any material adverse change in the consolidated financial
      position or condition of STW Resources, its liabilities or the STW
      Resources Assets or any damage, loss or other change in circumstances
      materially affecting STW Resources, the STW Resources Business or the STW
      Resources Assets or STW Resources’ right to carry on the STW Resources
      Business, other than changes in the ordinary course of
      business,

            

    

    

    
      	
              (ii)  

            	
              there
      has not been any damage, destruction, loss or other event (whether or not
      covered by insurance) materially and adversely affecting STW Resources,
      the STW Resources Business or the STW Resources
  Assets,

            

    

    

    
      	
              (iii)  

            	
              there
      has not been any material increase in the compensation payable or to
      become payable by STW Resources to the STW Resources Shareholders or to
      any of STW Resources's officers, employees or agents or any bonus, payment
      or arrangement made to or with any of
them,

            

    

    

    
      	
              (iv)  

            	
              the
      STW Resources Business has been and continues to be carried on in the
      ordinary course,

            

    

    

    
      	
              (v)  

            	
              STW
      Resources has not waived or surrendered any right of material
      value,

            

    

    

    
      	
              (vi)  

            	
              STW
      Resources has not discharged or satisfied or paid any lien or encumbrance
      or obligation or liability other than current liabilities in the ordinary
      course of business, and

            

    

    

    
      	
              (vii)  

            	
              no
      capital expenditures in excess of $10,000 individually or $30,000 in total
      have been authorized or made;

            

    

    

    STW
Resources - Income Tax Matters

    

    
      	
              (s)  

            	
              Tax Returns.
      All tax returns and reports of STW Resources required by law to be filed
      have been filed and are true, complete and correct, and any taxes payable
      in accordance with any return filed by STW Resources or in accordance with
      any notice of assessment or reassessment issued by any taxing authority
      have been so paid;

            

    

    

    
      	
              (t)  

            	
              Current Taxes.
      Adequate provisions have been made for taxes payable for the current
      period for which tax returns are not yet required to be filed and there
      are no agreements, waivers, or other arrangements providing for an
      extension of time with respect to the filing of any tax return by, or
      payment of, any tax, governmental charge or deficiency by STW Resources.
      STW Resources is not aware of any contingent tax liabilities or any
      grounds which would prompt a reassessment including aggressive treatment
      of income and expenses in filing earlier tax
  returns;

            

    

    

    
      	
               
      

            	
              STW
      Resources - Applicable Laws and Legal
Matters

            

    

    

    
      	
              (u)  

            	
              Licenses. STW
      Resources holds all licenses and permits as may be requisite for carrying
      on the STW Resources Business in the manner in which it has heretofore
      been carried on, which licenses and permits have been maintained and
      continue to be in good standing except where the failure to obtain or
      maintain such licenses or permits would not have a material adverse effect
      on the STW Resources Business;

            

    

    

    
      	
              (v)  

            	
              Applicable
      Laws. STW Resources has not been charged with or received notice of
      breach of any laws, ordinances, statutes, regulations, by-laws, orders or
      decrees to which it is subject or which applies to it the violation of
      which would have a material adverse effect on the STW Resources Business,
      and, to STW Resources’s knowledge, STW Resources is not in breach of any
      laws, ordinances, statutes, regulations, by-laws, orders or decrees the
      contravention of which would result in a material adverse impact on the
      STW Resources Business;

            

    

    

    
      	
              (w)  

            	
              Pending or Threatened
      Litigation. Except as set forth on Schedule 5.1(w), there is no
      material litigation or administrative or governmental proceeding pending
      or threatened against or relating to STW Resources, the STW Resources
      Business, or any of the STW Resources Assets, nor does STW Resources have
      any knowledge of any deliberate act or omission of STW Resources that
      would form any material basis for any such action or
      proceeding;

            

    

    

    
      	
              (x)  

            	
              No Bankruptcy.
      STW Resources has not made any voluntary assignment or proposal under
      applicable laws relating to insolvency and bankruptcy and no bankruptcy
      petition has been filed or presented against STW Resources and no order
      has been made or a resolution passed for the winding-up, dissolution or
      liquidation of STW Resources;

            

    

    

    
      	
              (y)  

            	
              Labor Matters.
      STW Resources is not a party to any collective agreement relating to the
      STW Resources Business with any labor union or other association of
      employees and no part of the STW Resources Business has been certified as
      a unit appropriate for collective bargaining or, to the knowledge of STW
      Resources, has made any attempt in that regard and STW Resources has no
      reason to believe that any current employees will leave STW Resources'
      employ as a result of this Merger.

            

    

    

    
      	
              (z)  

            	
              Finder's Fees.
      Except as set forth on Schedule 5.1(z), STW Resources is not a party to
      any agreement which provides for the payment of finder's fees, brokerage
      fees, commissions or other fees or amounts which are or may become payable
      to any third party in connection with the execution and delivery of this
      Agreement and the transactions contemplated
  herein;

            

    

    

    Execution
and Performance of Agreement

    

    
      	
              (aa)  

            	
              Authorization and
      Enforceability. The execution and delivery of this Agreement, and
      the completion of the transactions contemplated hereby, have been duly and
      validly authorized by all necessary corporate action on the part of STW
      Resources;

            

    

    

    
      	
              (bb)  

            	
              No Violation or
      Breach. The execution and performance of this Agreement will
      not

            

    

    

    
      	
              (i)  

            	
              violate
      the charter documents of STW Resources or result in any breach of, or
      default under, any loan agreement, mortgage, deed of trust, or any other
      agreement to which STW Resources is a
party,

            

    

    

    
      	
              (ii)  

            	
              give
      any person any right to terminate or cancel any agreement including,
      without limitation, STW Resources Material Contracts, or any right or
      rights enjoyed by STW Resources,

            

    

    

    
      	
              (iii)  

            	
              result
      in any alteration of STW Resources' obligations under any agreement to
      which STW Resources is a party including, without limitation, the STW
      Resources Material Contracts,

            

    

    

    
      	
              (iv)  

            	
              result
      in the creation or imposition of any lien, encumbrance or restriction of
      any nature whatsoever in favor of a third party upon or against the STW
      Resources Assets,

            

    

    

    
      	
              (v)  

            	
              result
      in the imposition of any tax liability to STW Resources relating to STW
      Resources Assets or the STW Resources Shares,
or

            

    

    

    
      	
              (vi)  

            	
              violate
      any court order or decree to which either STW Resources is
      subject;

            

    

    

    STW
Resources Assets - Ownership and Condition

    

    
      	
              (cc)  

            	
              Business
      Assets. The STW Resources Assets comprise all of the property and
      assets of the STW Resources Business, and neither the STW Resources
      Shareholders nor any other person, firm or corporation owns any assets
      used by STW Resources in operating the STW Resources Business, whether
      under a lease, rental agreement or other
  arrangement;

            

    

    

    
      	
              (dd)  

            	
              Title. STW
      Resources is the legal and beneficial owner of the STW Resources Assets,
      free and clear of all mortgages, liens, charges, pledges, security
      interests, encumbrances or other claims
  whatsoever;

            

    

    

    
      	
              (ee)  

            	
              No Option. No
      person, firm or corporation has any agreement or option or a right capable
      of becoming an agreement for the purchase of any of the STW Resources
      Assets;

            

    

    

    
      	
              (ff)  

            	
              STW Resources
      Insurance Policies. STW Resources maintains the public liability
      insurance and insurance against loss or damage to the STW Resources Assets
      and the STW Resources Business;

            

    

    

    
      	
              (gg)  

            	
              STW Resources Material
      Contracts. The STW Resources Material Contracts set forth in the
      STW Resources Financial Statements constitute all of the material
      contracts of STW Resources;

            

    

    

    
      	
              (hh)  

            	
              No Default.
      Except as set forth on Schedule 5.1(hh), there has not
      been any default in any material obligation of STW Resources or any other
      party to be performed under any of STW Resources Material Contracts, each
      of which is in good standing and in full force and effect and unamended,
      and STW Resources is not aware of any default in the obligations of any
      other party to any of the STW Resources Material
  Contracts;

            

    

    

    STW
Resources Assets - STW Resources Equipment

    

    
      	
              (ii)  

            	
              STW Resources
      Equipment. The STW Resources Equipment has been maintained in a
      manner consistent with that of a reasonably prudent owner and such
      equipment is in good working
condition;

            

    

    

    STW
Resources Assets - STW Resources Goodwill and Other Assets

    

    
      	
              (jj)  

            	
              STW Resources
      Goodwill. STW Resources carries on the STW Resources Business only
      under the name "STW Resources Incorporated" and variations thereof and
      under no other business or trade names. STW Resources does not have any
      knowledge of any infringement by STW Resources of any patent, trademark,
      copyright or trade secret;

            

    

    

    
      	
               
      

            	
              The
      Business of STW Resources

            

    

    

    
      	
              (kk)  

            	
              Maintenance of
      Business. Since the date of the STW Resources Financial Statements,
      the STW Resources Business has been carried on in the ordinary course and
      STW Resources has not entered into any material agreement or commitment
      except in the ordinary course; and

            

    

    

    
      	
              (ll)  

            	
              Subsidiaries.
      Except as set forth on Schedule 5.1(ll), STW Resources
      does not own any subsidiaries and does not otherwise own, directly or
      indirectly, any shares or interest in any other corporation, partnership,
      joint venture or firm and STW Resources does not own any subsidiary and
      does not otherwise own, directly or indirectly, any shares or interest in
      any other corporation, partnership, joint venture or
  firm.

            

    

    

    Non-Merger
and Survival

    

    5.2           The
representations and warranties of the STW Resources Shareholders contained
herein will be true at and as of Closing in all material respects as though such
representations and warranties were made as of such
time.  Notwithstanding the completion of the transactions contemplated
hereby, the waiver of any condition contained herein (unless such waiver
expressly releases a party from any such representation or warranty) or any
investigation made by Woozyfly, the representations and warranties of the STW
Resources Shareholders shall survive the Closing.

    

    Indemnity

    

    5.3           The
STW Resources Shareholders agrees to indemnify and save harmless Woozyfly from
and against any and all claims, demands, actions, suits, proceedings,
assessments, judgments, damages, costs, losses and expenses, including any
payment made in good faith in settlement of any claim (subject to the right of
the STW Resources Shareholders to defend any such claim), resulting from the
breach by any of them of any representation or warranty of such party made under
this Agreement or from any misrepresentation in or omission from any certificate
or other instrument furnished or to be furnished by the STW Resources
Shareholders to Woozyfly hereunder.

    

    

    ARTICLE
6

    COVENANTS
OF STW RESOURCES AND

    THE
STW RESOURCES SHAREHOLDERS

    

    Covenants

    

    6.1              STW
Resources and the STW Resources Shareholders covenant and agree with Woozyfly
that they will:

    

    
      	
              (a)  

            	
              Conduct of
      Business. Until the Closing, conduct the STW Resources Business
      diligently and in the ordinary course consistent with the manner in which
      the STW Resources Business generally has been operated up to the date of
      execution of this Agreement;

            

    

    

    
      	
              (b)  

            	
              Preservation of
      Business.  Until the Closing, use their best efforts to
      preserve the STW Resources Business and the STW Resources Assets and,
      without limitation, preserve for Woozyfly STW Resources’ relationships
      with their suppliers, customers and others having business relations with
      them;

            

    

    

    
      	
              (c)  

            	
              Access. Until
      the Closing, give Woozyfly and its representatives full access to all of
      the properties, books, contracts, commitments and records of STW Resources
      relating to STW Resources, the STW Resources Business and the STW
      Resources Assets, and furnish to Woozyfly and its representatives all such
      information as they may reasonably
request;

            

    

    

    
      	
              (d)  

            	
              Procure
      Consents. Until the Closing, take all reasonable steps required to
      obtain, prior to Closing, any and all third party consents required to
      permit the Merger and to preserve and maintain the STW Resources Assets,
      including the STW Resources Material Contracts, notwithstanding the change
      in control of STW Resources arising from the
  Merger;

            

    

    

    Authorization

    

    6.2              STW
Resources hereby agrees to authorize and direct any and all federal, state,
municipal, foreign and international governments and regulatory authorities
having jurisdiction respecting STW Resources to release any and all information
in their possession respecting STW Resources to Woozyfly.  STW
Resources shall promptly execute and deliver to Woozyfly any and all consents to
the release of information and specific authorizations which Woozyfly reasonably
require to gain access to any and all such information.

    

    Survival

    

    6.3              The
covenants set forth in this Article shall survive the Closing for the benefit of
Woozyfly.

    

    

    ARTICLE
7

    CONDITIONS
PRECEDENT

    

    Conditions
Precedent in favor of Woozyfly

    

    7.1              Woozyfly’s
obligations to carry out the transactions contemplated hereby are subject to the
fulfillment of each of the following conditions precedent on or before the
Closing:

    

    
      	
              (a)  

            	
              all
      documents or copies of documents required to be executed and delivered to
      Woozyfly hereunder will have been so executed and
    delivered;

            

    

    

    
      	
              (b)  

            	
              all
      of the terms, covenants and conditions of this Agreement to be complied
      with or performed by STW Resources or the STW Resources Shareholders at or
      prior to the Closing will have been complied with or
      performed;

            

    

    

    
      	
              (c)  

            	
              Woozyfly
      shall have completed its review and inspection of the books and records of
      STW Resources and shall be satisfied with same in all material
      respects;

            

    

    

    
      	
              (d)  

            	
              title
      to the STW Resources Shares held by the STW Resources Shareholders and to
      the STW Resources Assets will be free and clear of all mortgages, liens,
      charges, pledges, security interests, encumbrances or other claims
      whatsoever, save and except as disclosed
herein;

            

    

    

    
      	
              (e)  

            	
              the
      Certificate of Merger shall be executed by STW Resources in form
      acceptable for filing with the Nevada Secretary of
  State;

            

    

    

    
      	
              (f)  

            	
              subject
      to Article 8 hereof, there will not have
  occurred

            

    

    

    
      	
              (i)  

            	
              any
      material adverse change in the financial position or condition of STW
      Resources, its liabilities or the STW Resources Assets or any damage, loss
      or other change in circumstances materially and adversely affecting the
      STW Resources Business or the STW Resources Assets or STW Resources' right
      to carry on the STW Resources Business, other than changes in the ordinary
      course of business, none of which has been materially adverse,
      or

            

    

    

    
      	
              (ii)  

            	
              any
      damage, destruction, loss or other event, including changes to any laws or
      statutes applicable to STW Resources or the STW Resources Business
      (whether or not covered by insurance) materially and adversely affecting
      STW Resources, the STW Resources Business or the STW Resources Assets;
      and

            

    

    

    
      	
              (g)  

            	
              the
      transactions contemplated hereby shall have been approved by all other
      regulatory authorities having jurisdiction over the subject matter hereof,
      if any.

            

    

    

    

    Waiver
by Woozyfly

    

    7.2              The
conditions precedent set out in the preceding section are inserted for the
exclusive benefit of Woozyfly and any such condition may be waived in whole or
in part by Woozyfly at or prior to Closing by delivering to STW Resources a
written waiver to that effect signed by Woozyfly. In the event that the
conditions precedent set out in the preceding section are not satisfied on or
before the Closing, Woozyfly shall be released from all obligations under this
Agreement.

    

    Conditions
Precedent in Favor of STW Resources and the STW Resources
Shareholders

    

    7.3              The
obligation of STW Resources and the STW Resources Shareholders to carry out the
transactions contemplated hereby is subject to the fulfillment of each of the
following conditions precedent on or before the Closing:

    

    
      	
              (a)  

            	
              all
      documents or copies of documents required to be executed and delivered to
      STW Resources hereunder will have been so executed and
      delivered;

            

    

    

    
      	
              (b)  

            	
              all
      of the terms, covenants and conditions of this Agreement to be complied
      with or performed by Woozyfly at or prior to the Closing will have been
      complied with or performed;

            

    

    

    
      	
              (c)  

            	
              STW
      Resources shall have completed its review and inspection of the books and
      records of Woozyfly and its subsidiaries and shall be satisfied with same
      in all material respects;

            

    

    

    
      	
              (d)  

            	
              Woozyfly
      will have delivered the Acquisition Shares to be issued pursuant to the
      terms of the Merger to STW Resources at the Closing and the Acquisition
      Shares will be registered on the books of Woozyfly in the name of the
      holder of STW Resources Shares at the Effective
  Time;

            

    

    

    
      	
              (e)  

            	
              title
      to the Acquisition Shares will be free and clear of all mortgages, liens,
      charges, pledges, security interests, encumbrances or other claims
      whatsoever;

            

    

    

    
      	
              (f)  

            	
              the
      Certificate of Merger shall be executed by the Acquirer in form acceptable
      for filing with the Nevada Secretary of
State;

            

    

    

    
      	
              (g)  

            	
              subject
      to Article 8 hereof, there will not have
  occurred

            

    

    

    
      	
              (i)  

            	
              any
      material adverse change in the financial position or condition of
      Woozyfly, its subsidiaries, their liabilities or the Woozyfly Assets or
      any damage, loss or other change in circumstances materially and adversely
      affecting Woozyfly, the Woozyfly Business or the Woozyfly Assets or
      Woozyfly’s right to carry on the Woozyfly Business, other than changes in
      the ordinary course of business, none of which has been materially
      adverse, or

            

    

    

    
      	
              (ii)  

            	
              any
      damage, destruction, loss or other event, including changes to any laws or
      statutes applicable to Woozyfly or the Woozyfly Business (whether or not
      covered by insurance) materially and adversely affecting Woozyfly, its
      subsidiaries, the Woozyfly Business or the Woozyfly
  Assets;

            

    

    

    
      	
              (h)  

            	
              the
      transactions contemplated hereby shall have been approved by all other
      regulatory authorities having jurisdiction over the subject matter hereof,
      if any; and

            

    

    

    
      	
              (i)  

            	
              the
      Court shall approve the Merger and all parties entitled to vote on the
      matter shall have approved the
Merger.

            

    

    

    Waiver
by STW Resources and the STW Resources Shareholders

    

    7.4              The
conditions precedent set out in the preceding section are inserted for the
exclusive benefit of STW Resources and the STW Resources Shareholders and any
such condition may be waived in whole or in part by STW Resources or the STW
Resources Shareholders at or prior to the Closing by delivering to Woozyfly a
written waiver to that effect signed by STW Resources and the STW Resources
Shareholders. In the event that the conditions precedent set out in the
preceding section are not satisfied on or before the Closing STW Resources and
the STW Resources Shareholders shall be released from all obligations under this
Agreement.

    

    Nature
of Conditions Precedent

    

    7.5              The
conditions precedent set forth in this Article are conditions of completion of
the transactions contemplated by this Agreement and are not conditions precedent
to the existence of a binding agreement. Each party acknowledges receipt of the
sum of $1.00 and other good and valuable consideration as separate and distinct
consideration for agreeing to the conditions of precedent in favor of the other
party or parties set forth in this Article.

    

    Termination

    

    7.6              Notwithstanding
any provision herein to the contrary, if the Closing does not occur on or before
January 29, 2010, this Agreement will be at an end and will have no further
force or effect, unless otherwise agreed upon by the parties in
writing.

    

    Confidentiality

    

    7.7           Notwithstanding
any provision herein to the contrary, the parties hereto agree that the
existence and terms of this Agreement are confidential and that if this
Agreement is terminated pursuant to the preceding section the parties agree to
return to one another any and all financial, technical and business documents
delivered to the other party or parties in connection with the negotiation and
execution of this Agreement and shall keep the terms of this Agreement and all
information and documents received from STW Resources and Woozyfly and the
contents thereof confidential and not utilize nor reveal or release same,
provided, however, that Woozyfly will be required to issue news releases
regarding the execution and consummation of this Agreement and file a Current
Report on Form 8-K with the Securities and Exchange Commission and the US
Bankruptcy Court, US Trustee respecting the proposed Merger contemplated hereby
together with such other documents as are required to maintain the currency of
Woozyfly’s filings with the Securities and Exchange Commission.

    

    ARTICLE
8

    RISK

    

    Material
Change in the Business of STW Resources

    

    8.1              If
any material loss or damage to the STW Resources Business occurs prior to
Closing and such loss or damage, in Woozyfly's reasonable opinion, cannot be
substantially repaired or replaced within sixty (60) days, Woozyfly shall,
within two (2) days following any such loss or damage, by notice in writing to
STW Resources, at its option, either:

    

    
      	
              (a)  

            	
              terminate
      this Agreement, in which case no party will be under any further
      obligation to any other party; or

            

    

    

    
      	
              (b)  

            	
              elect
      to complete the Merger and the other transactions contemplated hereby, in
      which case the proceeds and the rights to receive the proceeds of all
      insurance covering such loss or damage will, as a condition precedent to
      Woozyfly's obligations to carry out the transactions contemplated hereby,
      be vested in STW Resources or otherwise adequately secured to the
      satisfaction of Woozyfly on or before the Closing
  Date.

            

    

    

    Material
Change in the Woozyfly Business

    

    8.2              If
any material loss or damage to the Woozyfly Business occurs prior to Closing and
such loss or damage, in STW Resources's reasonable opinion, cannot be
substantially repaired or replaced within sixty (60) days, STW Resources shall,
within two (2) days following any such loss or damage, by notice in writing to
Woozyfly, at its option, either:

    

    
      	
              (a)  

            	
              terminate
      this Agreement, in which case no party will be under any further
      obligation to any other party; or

            

    

    

    
      	
              (b)  

            	
              elect
      to complete the Merger and the other transactions contemplated hereby, in
      which case the proceeds and the rights to receive the proceeds of all
      insurance covering such loss or damage will, as a condition precedent to
      STW Resources's obligations to carry out the transactions contemplated
      hereby, be vested in Woozyfly or otherwise adequately secured to the
      satisfaction of STW Resources on or before the Closing
    Date.

            

    

    

    

    ARTICLE
9

    CLOSING

    

    Closing

    

    9.1              The
Merger and the other transactions contemplated by this Agreement will be closed
at the Place of Closing in accordance with the closing procedure set out in this
Article.

    

    Documents
to be Delivered by STW Resources

    

    9.2              On
or before the Closing, STW Resources and the STW Resources Shareholders will
deliver or cause to be delivered to Woozyfly:

    

    
      	
              (a)  

            	
              the
      original or certified copies of the charter documents of STW Resources and
      all corporate records documents and instruments of STW Resources, the
      corporate seal of STW Resources and all books and accounts of STW
      Resources;

            

    

    

    
      	
              (b)  

            	
              all
      reasonable consents or approvals required to be obtained by STW Resources
      for the purposes of completing the Merger and preserving and maintaining
      the interests of STW Resources under any and all STW Resources Material
      Contracts and in relation to STW Resources
  Assets;

            

    

    

    
      	
              (c)  

            	
              certified
      copies of such resolutions of the shareholder and director of STW
      Resources as are required to be passed to authorize the execution,
      delivery and implementation of this
Agreement;

            

    

    

    
      	
              (d)  

            	
              an
      acknowledgement from STW Resources and the STW Resources Shareholders of
      the satisfaction of the conditions precedent set forth in section 7.3
      hereof;

            

    

    

    
      	
              (e)  

            	
              the
      Certificate of Merger, duly executed by STW Resources;
  and

            

    

    

    
      	
              (f)  

            	
              such
      other documents as Woozyfly may reasonably require to give effect to the
      terms and intention of this
Agreement.

            

    

    

    

    Documents
to be Delivered by Woozyfly

    

    9.3              On
or before the Closing, Woozyfly shall deliver or cause to be delivered to STW
Resources and the STW Resources Shareholders:

    

    
      	
              (a)  

            	
              share
      certificates representing the Acquisition Shares duly registered in the
      names of the holders of shares of STW Resources Common
    Stock;

            

    

    

    
      	
              (b)  

            	
              certified
      copies of such resolutions of the directors of Woozyfly as are required to
      be passed to authorize the execution, delivery and implementation of this
      Agreement;

            

    

    

    
      	
              (c)  

            	
              a
      certified copy of a resolution of the directors of Woozyfly dated as of
      the Closing Date appointing the nominees of STW Resources as officers of
      STW Resources;

            

    

    

    
      	
              (d)  

            	
              an
      acknowledgement from Woozyfly of the satisfaction of the conditions
      precedent set forth in section 7.1
hereof;

            

    

    

    
      	
              (e)  

            	
              the
      Certificate of Merger, duly executed by the
  Acquirer;

            

    

    

    
      	
              (f)  

            	
              order
      of the Court approving the Merger and approval of all parties entitled to
      vote on the matter in the
Bankruptcy;

            

    

    

    
      	
              (g)  

            	
              such
      other documents as STW Resources may reasonably require to give effect to
      the terms and intention of this
Agreement.

            

    

    

    

    ARTICLE
10

    POST-CLOSING
MATTERS

    

    Forthwith after the Closing,
Woozyfly, STW Resources and the STW Resources Shareholders agree to use all
their best efforts to:

    

    
      	
              (a)  

            	
              file
      the Certificate of Merger with Secretary of State of the State of
      Nevada;

            

    

    

    
      	
              (b)  

            	
              issue
      a news release reporting the
Closing;

            

    

    

    
      	
              (c)  

            	
              file
      a Form 8-K with the Securities and Exchange Commission disclosing the
      terms of this Agreement and which includes audited financial statements of
      STW Resources as well as pro forma financial information of STW Resources
      and Woozyfly as required by Regulation SK as promulgated by the Securities
      and Exchange Commission; and

            

    

    

    
      	
              (d)  

            	
              file
      reports on Forms 13D and 3 with the Securities and Exchange Commission
      disclosing the acquisition of the Acquisition Shares by the STW Resources
      Shareholders as required.

            

    

    

    

    ARTICLE
11

    GENERAL
PROVISIONS

    

    Arbitration

    

    11.1           The
parties hereto shall attempt to resolve any dispute, controversy, difference or
claim arising out of or relating to this Agreement by negotiation in good
faith.  If such good negotiation fails to resolve such dispute,
controversy, difference or claim within fifteen (15) days after any party
delivers to any other party a notice of its intent to submit such matter to
arbitration, then any party to such dispute, controversy, difference or claim
may submit such matter to arbitration in the City of Las Vegas,
Nevada.

    

    Notice

    

    11.2              Any
notice required or permitted to be given by any party will be deemed to be given
when in writing and delivered to the address for notice of the intended
recipient by personal delivery, prepaid single certified or registered mail, or
telecopier. Any notice delivered by mail shall be deemed to have been received
on the fourth business day after and excluding the date of mailing, except in
the event of a disruption in regular postal service in which event such notice
shall be deemed to be delivered on the actual date of receipt. Any notice
delivered personally or by telecopier shall be deemed to have been received on
the actual date of delivery.

    

    Addresses
for Service

    

    11.3              The
address for service of notice of each of the parties hereto is as
follows:

    

    
      	
              (a)  

            	
              Woozyfly
      or the Acquirer:

            

    

    

    Woozyfly,
Inc.

    244 Fifth
Avenue, Suite 1878

    New York,
New York 10001

    Phone:  (949)
903-0468

    Telecopier:
949-258-5379

    

    

    
      	
              (b)  

            	
              STW
      Resources or the STW Resources
Shareholders

            

    

    

    STW
Resources, Inc.

    619 W.
Texas Ave., Suite 126,

    Midland,
TX 79701

    Phone:  (281)
905-2672

    Telecopier:
(281) 596-4591

    

    With a
copy to:

    

    Law
Offices of Stephen M. Fleming PLLC

    49 Front
Street, Suite 206

    Rockville
Centre, New York 11570

    Phone:  (516)
833-5034

    Telecopier:
(516) 977-1209

    

    Change
of Address

    

    11.4              Any
party may, by notice to the other parties change its address for notice to some
other address in North America and will so change its address for notice
whenever the existing address or notice ceases to be adequate for delivery by
hand. A post office box may not be used as an address for service.

    

    Further
Assurances

    

    11.5              Each
of the parties will execute and deliver such further and other documents and do
and perform such further and other acts as any other party may reasonably
require to carry out and give effect to the terms and intention of this
Agreement.

    

    Time
of the Essence

    

    11.6              Time
is expressly declared to be the essence of this Agreement.

    

    Entire
Agreement

    

    11.7              The
provisions contained herein constitute the entire agreement among STW Resources,
the STW Resources Shareholders, the Acquirer and Woozyfly respecting the subject
matter hereof and supersede all previous communications, representations and
agreements, whether verbal or written, among STW Resources, the STW Resources
Shareholders, the Acquirer and Woozyfly with respect to the subject matter
hereof.

    

    Enurement

    

    11.8              This
Agreement will enure to the benefit of and be binding upon the parties hereto
and their respective heirs, executors, administrators, successors and permitted
assigns.

    

    Assignment

    

    11.9              This
Agreement is not assignable without the prior written consent of the parties
hereto.

    

    Counterparts

    

    11.10              This
Agreement may be executed in counterparts, each of which when executed by any
party will be deemed to be an original and all of which counterparts will
together constitute one and the same Agreement. Delivery of executed copies of
this Agreement by telecopier will constitute proper delivery, provided that
originally executed counterparts are delivered to the parties within a
reasonable time thereafter.

    

    Applicable
Law

    

    11.11           This
Agreement is subject to the laws of the State of New York.

    

    

    

    [Remainder
of page intentionally left blank.]

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          -  -

          

          

          
            	 
      

          

          

        

      

    

    IN WITNESS WHEREOF the parties
have executed this Agreement effective as of the day and year first above
written.

    

    WOOZYFLY,
INC.

    

    

    By:__/s/ ERIC
STOPPENHAGEN                                                                           

    Eric
Stoppenhagen, Interim President

    

    

    STW
ACQUISITION, INC.

    

    

    By:__/s/ ERIC
STOPPENHAGEN__                                                                           

    Eric
Stoppenhagen, President

    

    

    STW
RESOURCES, INC.

    

    

    

    By:___/s/ STANLEY
WEINER__________                                                                           

    Stanley
Weiner, Chief Executive Officer

      and
President

    

    [STW
RESOURCES SHAREHOLDERS ARE LOCATED ON THE FOLLOWING PAGE]

    
      
         

      

      
         

        
          

        

      

      
         

        
          -  -

          

          

          
            	 
      

          

          

        

      

    

    

    

    STW
RESOURCES SHAREHOLDERS

    

    

    ___________________________________                                                                                     ___________________________________

    
      	
              Name:

            	 	
              Name:

            

    

    No. of
Shares
of                                                                           No.
of Shares of

    Common
Stock:                                                                           Common
Stock:

    

    

    ___________________________________                                                                                     ___________________________________

    
      	
              Name:

            	 	
              Name:

            

    

    No. of
Shares
of                                                                           No.
of Shares of

    Common
Stock:                                                                           Common
Stock:

    

    

    ___________________________________                                                                                     ___________________________________

    
      	
              Name:

            	 	
              Name:

            

    

    No. of
Shares
of                                                                           No.
of Shares of

    Common
Stock:                                                                           Common
Stock:

    

    

    ___________________________________                                                                                     ___________________________________

    
      	
              Name:

            	 	
              Name:

            

    

    No. of
Shares
of                                                                           No.
of Shares of

    Common
Stock:                                                                           Common
Stock:

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          -  -

          

          

          
            	 
      

          

          

        

      

    

    

    

    
      	
              Schedule
      “A”

            	
              Woozyfly
      Financial Statements

            

    

    

    
      	
              Schedule
      “B”

            	
              STW
      Resources Financial Statements

            

    

    

    
      	
               
      

            	
              TO
      BE DELIVERED UPON CLOSING

            

    

    

    
      	
              Schedule
      “C”

            	
              STW
      Resources Debentures and Woozyfly
Debentures

            

    

    

    
      	
               
      

            	
              TO
      BE DELIVERED UPON CLOSING

            

    

    

    
      	
              Schedule
      “D”

            	
              STW
      Resources Options/Warrants and Woozyfly
  Options/Warrants

            

    

    

    
      	
               
      

            	
              TO
      BE DELIVERED UPON CLOSING

            

    

    

    Schedule
3.1(bb) Pending or Threatened Litigation

    

    Schedule
3.1(kk) No Default

    

    Schedule
5.1(f) – STW Options

    

    Schedule
5.1(q) – No Pension Plans

    

    Schedule
5.1(r) – No Adverse Events

    

    Schedule
5.1(w) – Pending or Threatened Litigation

    

    Schedule
5.1(z) – Finder’s Fees

    

    Schedule
5.1(hh) - No Default

    

    Schedule 5.1 (ll)
Subsidiaries

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          -  -

          

          

          
            	 
      

          

          

        

      

    

    
      	
               
      

            	
              Exhibit
      A

            

    

    

    
      	
               
      

            	
              STW
      Resources Shareholders

            

    

    

    
      	
              Name
      of Shareholders

            	
              No.
      of Shares of STW

            
	
              Paul
      DiFrancesco

            	
              1,815,787

            
	
              Seth
      Leyton

            	
              550,000

            
	
              John
      Dillen

            	
              424,438

            
	
              Cody
      Corrubia

            	
              520,000

            
	
              Triumph
      Small Cap Fund Ltd.

            	
              1,500,000

            
	
              SEI
      Private Trust Co. FAO JM Smucker Co. Master Trust

            	
              582,500

            
	
              Levine
      Family Trust

            	
              424,438

            
	
              Stanley
      Weiner

            	
              7,932,500

            
	
              Coronado
      Capital Partners LP

            	
              343,125

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