Document:

EXHIBIT 10.1

     

    EXHIBIT
      10.1

     

    MARKETING,
      SALES and DISTRIBUTION AGREEMENT

     

    Between
      

     

    LABORATORIES
      DOLIAGE and CORONADO INDUSTRIES

     

    

    

    THIS
      AGREEMENT made and entered into this 21st day of April 2006 (hereinafter
      referred to as “Effective Date”), by and between, Coronado Industries, Inc.
      having its headquarters at 16857 E. Saguaro Blvd., Fountain Hills, Arizona
      85268, its subsidiaries, affiliates and partners (hereinafter Coronado
      Industries referred to as “CI”), and Laboratoires DOLIAGE having a place of
      business located at 81 rue de Verdun, 92150 Suresnes, France, (hereinafter
      referred to as “DOLIAGE”).

     

    WITNESSETH

     

    WHEREAS,
      CI is
      engaged in the distribution and sale of a patented Pneumatic Trabeculoplasty
      (PNT) device as described on Schedule A (hereinafter called the
“Products”).

     

    WHEREAS
      DOLIAGE
      is engaged in the business of marketing, selling and distributing ophthalmic
      products within France (hereinafter referred to as “TERRITORY”). 

     

    WHEREAS
      DOLIAGE
      has expressed an interest in marketing, selling and distributing CI’s Pneumatic
      Trabeculoplasty device (hereinafter referred to as “PNT”) which is composed of
      CI’s proprietary PNT vacuum controller and CI’s patented PNT fixation ring
      (hereinafter referred to as “PRODUCTS”)

     

    NOW
      THEREFORE in
      consideration of the mutual covenants herein contained, and other good and
      valuable consideration, it is mutually agreed as follows:

    
       

      
        	1.	
                APPOINTMENT
                  AND ACCEPTANCE

              

      

       

      
        	
              	1.1.	
                CI
                  hereby appoints DOLIAGE as CI’s exclusive partner in the Territory.
                  Exclusive partner in this Section 1.1 shall mean (i) that CI grants
                  DOLIAGE the exclusive right to promote, market, sell and distribute
                  the
                  Products in the Territory under CI’s Brand name(s) and Trademark(s) and
                  that (ii) that CI shall not appoint any other party than DOLIAGE
                  to
                  promote, market, sell and distribute the Products in the
                  Territory

              

      

       

      
        	
              	1.2.	
                CI
                  hereby grants DOLIAGE rights, without the right to sublicense,
                  to use CI’s
                  patents, listed in Schedule A within the Territory for the sole
                  purposes
                  of carrying out DOLIAGE's obligations under this AGREEMENT. DOLIAGE
                  agrees
                  to exercise these rights only as are necessary to meet its obligations
                  to
                  promote, market, sell or distribute the Products in the Territory
                  under
                  this Agreement. DOLIAGE agrees not use these rights to promote,
                  market,
                  sell or distribute competitive product(s) within the Territory.
                  CI agrees
                  not to grant rights under the patents listed in Schedule A which
                  would
                  allow a competitor to promote, market, sell or distribute a competing
                  medical device for the treatment of primary open angle glaucoma
                  or ocular
                  hypertension within the Territory. Passive sales by other distributors
                  within the Territory and sales on part of the customers of CI shall
                  not be
                  restricted by this provision

              

      

      ____________

      
        Confidential
          treatment has been requested with respect to certain portions of this
          exhibit. Omitted
          portions have been filed separately with the Securities and Exchange
          Commission.  This exhibit omits the information subject to the
          confidentiality request. Omissions are designated as [ * ].

         

      

      
        
          
          

        

        
          1/17

          
            

          

        

        
          
          

        

         

      

      
        	
              	1.3.	
                DOLIAGE
                  accepts such appointment and agrees to use its commercially reasonable
                  efforts to promote, develop and increase sales of the Products
                  within the
                  Territory. Without limiting the generality of the foregoing, DOLIAGE
                  shall:

              

      

       

      
        	
              	1.3.1.	
                develop
                  and distribute to the best advantage of the Products such literature
                  and
                  other advertising material as may be agreed to by CI and will not
                  use or
                  release any advertising or promotional materials (including, without
                  limitation, labels, packages, circulars, and advertisements) without
                  the
                  prior approval of CI. The consent of CI shall not be unreasonably
                  withheld.

              

      

       

      
        	
              	1.3.2.	
                solicit
                  prospective purchasers who may specify or utilize the
                  Products;

              

      

       

      
        	
              	1.3.3.	
                shall
                  not promote or sell any other product or other product lines which
                  are a
                  medical device indicated in the non-surgical treatment of primary
                  open
                  angle glaucoma or ocular hypertension.

              

      

       

      
        	
              	1.3.4.	
                take
                  no action which might impair the goodwill or reputation of CI or
                  any of
                  its affiliated companies or of the
                  Products;

              

      

       

      
        	
              	1.3.5.	
                refrain
                  from making quotations or writing letters under the name of CI
                  or any of
                  its affiliates. The name of CI or its subsidiaries shall not appear
                  on
                  stationery used by DOLIAGE, except as a marginal note showing for
                  example
                  “Distributor for Coronado
                  Industries”;

              

      

       

      
        	
              	1.3.6.	
                interface
                  with customers and potential customers on behalf of CI for inquiries
                  with
                  respect to the Products and use of the
                  Products;

              

      

       

      
        	
              	1.3.7.	
                not
                  make claims with respect to indications for the Products that are
                  not
                  approved by the appropriate Health Authority or other appropriate
                  regulatory body;

              

      

       

      
        	
              	1.3.8.	
                purchase
                  sufficient quantities of the Products from CI so as to be able
                  to maintain
                  an adequate supply for resale of the
                  Products;

              

      

       

      
        	
              	1.3.9.	
                comply
                  with all applicable European and French laws and regulations with
                  regard
                  to the promotion, marketing, sale and distribution of the Products,
                  including any reporting requirements in regards to complaints or
                  incidents;

              

      

       

      
        	
              	1.4.	
                promptly
                  report to CI, or its European representative which is
                  currently

                 

                
                      Donowa
                    Consulting Srl

                      Piazza
                    Albania 10

                      00153
                    Rome, Italy

                   

                  all
                    complaints, incidents or problems it receives relating to the
                    Products;

                

              

      

       

      
        	
              	1.5.	
                follow
                  all CI marketing and promotion
                  policies.

              

      

       

      
        	
              	1.6.	
                handle
                  and store all Products in accordance with French and European laws
                  and the
                  labeling and instructions for the
                  Products.

              

      

      
        
           

        

        
          
            
            

          

          
            2/17

            
              

            

          

          
            
            

          

           

        

      

      
        	
              	1.7.	
                CI
                  agrees to support DOLIAGE in the promotion, marketing, sale, distribution
                  and/or application for reimbursement of the Products in the Territory
                  and
                  the technical training for the employees of DOLIAGE. CI may decide,
                  at its
                  sole discretion, whether such support is possible for and available
                  within
                  CI.

              

      

       

      
        	2.	
                SUPPLY
                  PRICE

              

      

       

      
        	
              	2.1.	
                The
                  Supply Price of the Products to DOLIAGE shall be as outlined
                  below;

              

      

       

      
        	
              	2.1.1.	
                PNT
                  controllers at [ * ] per controller for the first two
                  years of the AGREEMENT. For years three (3) and four (4) the price
                  will be
                  [ * ] per controller. For year five (5) until the
                  end of
                  the original AGREEMENT the costs will be [ * ] per
                  controller.

              

      

       

      
        	
              	2.1.2.	
                [
                  * ] per box of 100 rings. Each ring is individually packaged
                  in a
                  sterile sachet with current
                  labeling.

              

      

       

      
        	
              	2.2.	
                CI
                  will arrange for shipment of the Products from CI’s manufacturing facility
                  to DOLIAGE’ warehouse in France. The cost of shipping the Products from
                  CI’s distribution facility to DOLIAGE’s central receiving facility in
                  France will be the responsibility of
                  CI.

              

      

       

      
        	
              	2.3.	
                Payment
                  under Clause 2.11 and 2.22 shall be Net 45 days upon delivery of
                  goods to
                  DOLIAGES’ facility. 

              

      

       

      
        	
              	2.4.	
                The
                  above Supply Prices reflect the current PNT controller and PNT
                  ring design
                  and manufacturing processes. In the event the United States Food
                  and Drug
                  Administration (USFDA) or any other competent governmental health
                  authority (HA) requires modifications to the PNT controller and/or
                  the PNT
                  ring in order to allow continuing sale within the Territory which
                  would
                  lead to an increase in the manufacturing costs to CI of more than
                  [ * ], then CI would supply proper documentation
                  supporting this increase, and the Parties agree to negotiate a
                  new Supply
                  Price. If DOLIAGE was to challenge the price increase under this
                  clause,
                  DOLIAGE could have an auditor give an independent confirmation.
                  If the
                  auditor found the increase was greater than or equal to [ *
                  ] then DOLIAGE would accept the increase and pay for the
                  audit.
                  If the increase was less than [ * ] then the price would
                  remain where it was and CI would pay for the audit.
                  

              

      

       

      
        	
              	2.5.	
                All
                  Supply Prices quoted shall be understood as excluding VAT at the
                  statutory
                  tax rate or custom duties, to the extent payable. All taxes and
                  duties due
                  on the Products are the responsibility of DOLIAGE.
                  

              

      

       

      
        	
              	2.6.	
                DOLIAGE
                  will not sell materials which are provided to them free of
                  charge.

              

      

       

      
        	
              	2.7.	
                DOLIAGE
                  may return goods, including vacuum units which may require service,
                  to CI
                  only in accordance with CI’s returned goods policy. Used PNT rings cannot
                  be returned to CI. In general CI’s returned goods policy allows for the
                  return of goods which are received damaged (Section 16 below) from
                  CI.
                  Such damaged goods may be returned to CI at CI’s expense. CI will provide
                  shipping instructions for such returns. All other returned goods
                  will be
                  at the cost of DOLIAGE and such costs may be charged against the
                  PPL
                  (Section 5.2.2.2).

              

      

      
        
          
            ____________

            
              * 
                Confidential treatment has been requested with respect to certain portions
                of this exhibit. Omitted
                portions have been filed separately with the Securities and Exchange
                Commission.  This exhibit omits the information subject to the
                confidentiality request. Omissions are designated as [ * ].

            

          

          
            
              
              

            

            
              3/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	
              	2.8.	
                CI
                  will warrant the controller for a period of [ * ].
                  DOLIAGE will coordinate return of equipment under warranty, as
                  per the
                  instructions of CI, for repair or replacement. The costs of shipping
                  the
                  equipment under warranty from DOLIAGE’s facility to CI’s facility will be
                  the responsibility of CI.

              

      

       

      
        	
              	2.9.	
                CI
                  will attempt to repair equipment, which is out of warranty, at
                  the request
                  of DOLIAGE. DOLIAGE will be responsible for return shipping of
                  the out of
                  warranty equipment to CI. CI will provide a cost estimate for the
                  repair
                  and will only proceed if agreed to by DOLIAGE. The cost of shipping
                  repaired equipment back to DOLIAGE will be born by DOLIAGE and
                  all costs
                  incurred by DOLIAGE, which are not reimbursed by DOLIAGE’s customers,
                  associated with repair of out of warranty equipment can be charged
                  against
                  the PPL 

              

      

       

      
        	
              	2.10.	
                CI
                  will be responsible for the production of the Products, including
                  sourcing
                  of raw materials, CI guarantees that all Products shipped to DOLIAGE
                  will
                  be free from defects and in compliance with relevant regulatory
                  and
                  governmental requirements, including compliance with the requirements
                  of
                  an EU 2a device classification and applicable cGMP Rules and will
                  have
                  sufficient expiry dating to allow for distribution through normal
                  distribution channels. 

              

      

       

      
        	3.	
                SALES
                  OF PRODUCT OUTSIDE OF
                  TERRITORY

              

      

       

      
        	
              	3.1.	
                DOLIAGE
                  shall not actively sell the PRODUCTS in territories or to customers
                  groups
                  which (i) CI allocated exclusively to a third party or (ii) CI
                  reserves
                  for itself or for a company affiliated with CI.

              

      

       

      
        	
              	3.2.	
                Passive
                  sales outside the TERRITORY and sales on part of the customers
                  of DOLIAGE
                  shall not be restricted by this
                  provision.

              

      

       

      
        	4.	
                PROFIT
                  and LOSS CALCULATIONS

              

      

       

      
        	
              	4.1.	
                A
                  separate PRODUCT Profit and Loss statement (herein referred to
                  as the
                  “PPL”) will be established and maintained under this AGREEMENT. All
                  charges against and income credited to the PPL will be in line
                  with the
                  following guidelines. In the event that a specific charge or income
                  item
                  is not addressed below the PARTIES will discuss, in good faith,
                  how to
                  incorporate the specific item so that it is consistent and in the
                  spirit
                  of the guidelines outlined below.

              

      

       

      
        	
              	4.1.1.	
                [
                  * ] in support of the PRODUCTS within the TERRITORY will
                  be born
                  by DOLIAGE and included in the PPL.

              

      

       

      
        	
              	4.1.2.	
                [
                  * ] will be credited towards the
                  PPL.

              

      

       

      
        	
              	4.1.3.	
                DOLIAGE
                  will use best efforts to maximize the profits from sales of the
                  PRODUCTS
                  which is credited to the PPL

              

      

       

      
        	
              	4.1.4.	
                DOLIAGE
                  will not purposely offer discounts on PRODUCTS within the TERRITORY
                  in
                  order to increase sales or achieve acceptance of other products
                  which
                  DOLIAGE or one of its partners sell without the written approval
                  of CI. In
                  such situations the PARTIES will agree to what additional compensation
                  will be credited to CI or the PPL in consideration of the discounts
                  that
                  were offered on the PRODUCTS within the
                  TERRITORY.

              

      

      
        
          
            ____________

            
              * 
                Confidential treatment has been requested with respect to certain portions
                of this exhibit. Omitted
                portions have been filed separately with the Securities and Exchange
                Commission.  This exhibit omits the information subject to the
                confidentiality request. Omissions are designated as [ * ].

            

          

          
            
              
              

            

            
              4/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	
              	4.1.5.	
                CI
                  will share the cost of a clinical trial [ * ], up to a
                  maximum contribution of [ * ] per year during the
                  first two years of the contract for a total contribution not to
                  exceed
                  [ * ]. Payment will be made at the end of each calendar
                  year upon receipt of an invoice with sufficient detail to explain
                  the
                  actual costs incurred in performing the trial. Any payments made
                  by CI to
                  DOLIAGE in support of the clinical trial will be accounted for
                  in the
                  P&L and accounted for in the calculation of any profit sharing (for
                  example as income or an expense offset in the collaboration) so
                  as to
                  avoid an inappropriate charge against the calculation of the profit
                  sharing. The actual schedule of the clinical trial being beyond
                  DOLIAGE’s
                  control, any delay encountered while undertaking the trial will
                  be
                  reported by DOLIAGE to CI in order to extend accordingly the two
                  years
                  time frame originally planned for CI participation to the cost.
                  

              

      

       

      
        	
              	4.2.	
                The
                  PARTIES shall agree on the marketing plan and develop a mutually
                  agreed
                  upon budget for marketing activities related to the PRODUCTS
                  

              

      

       

      
        	
              	4.2.1.	
                DOLIAGE
                  will be responsible for all marketing costs for the PRODUCTS within
                  the
                  TERRITORY.

              

      

       

      
        	
              	4.2.2.	
                All
                  external costs [ * ] can be charged against the PPL at
                  full costs

              

      

       

      
        	
              	4.2.3.	
                [
                  * ]

              

      

       

      
        	
              	4.3.	
                DOLIAGE
                  will build and maintain a sales organization commensurate with
                  the sales
                  potential of the Products in the Territory and employ sales personnel
                  trained with sufficient product knowledge to sell the Products
                  adequately
                  within the Territory;

              

      

       

      
        	
              	4.3.1.	
                [
                  * ]

              

      

       

      
        	
              	4.3.2.	
                [
                  * ]

              

      

       

      
        	
              	4.4.	
                [
                  * ]

              

      

      
        
           

        

      

      
        	
              	4.5.	
                [
                  * ]

              

      

      
        
          
            ____________

            
              * 
                Confidential treatment has been requested with respect to certain portions
                of this exhibit. Omitted
                portions have been filed separately with the Securities and Exchange
                Commission.  This exhibit omits the information subject to the
                confidentiality request. Omissions are designated as [ * ].

            

          

          
            
              
              

            

            
              5/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	5.	
                PROFIT
                  SHARING

              

      

       

      
        	
              	5.1.	
                Revenue
                  sharing shall be based on a profit sharing model as outlined
                  below.

              

      

       

      
        	
              	5.2.	
                Profit/loss
                  from the sales of PRODUCTS will be calculated as
                  follows;

              

      

       

      
        	
              	5.2.1.	
                [
                  * ]

              

      

       

      
        	
              	5.2.1.1.	
                [
                  * ] 

              

      

       

      
        	
              	5.2.1.2.	
                [
                  * ]

              

      

       

      
        	
              	5.2.2.	
                [
                  * ]

              

      

       

      
        	
              	5.2.2.1.	
                [
                  * ]

              

      

      
        	
              	5.2.2.2.	
                [
                  * ]

              

      

      
        	
              	5.2.2.3.	
                [
                  * ]

              

      

      
        	
              	5.2.2.4.	
                [
                  * ]

              

      

      
        	
              	5.2.2.5.	
                [
                  * ]

              

      

      
        	
              	5.2.2.6.	
                [
                  * ]

              

      

      
        	
              	5.2.2.7.	
                [
                  * ]

              

      

      
        	
              	5.2.2.8.	
                [
                  * ]

              

      

       

      
        	
              	5.2.3.	
                [
                  * ] 

              

      

       

      
        	
              	5.3.	
                [
                  * ]

              

      

       

      
        	
              	5.4.	
                [
                  * ]

              

      

       

      
        	
              	5.5.	
                [
                  * ]

              

      

       

      
        	
              	5.6.	
                The
                  budget year for the PPL will coincide with DOLIAGE’s budget year, which
                  currently runs from October 1st
                  to
                  September 30th.

              

      

       

      
        	
              	5.7.	
                DOLIAGE
                  will submit the final detailed PPL for the prior budget year, from
                  which
                  the profit/loss will be calculated, by October 31st
                  of
                  the current budget year. For example, the final detailed PPL for
                  the
                  budget year October 1, 2006 to September 30, 2007 will be submitted
                  to CI
                  by October 31, 2007. CI will have the right to review the detailed
                  PPL and
                  if they disagree with specific aspects of PPL can request that
                  they be
                  adjusted. For the budget period from contract initiation until
                  September
                  30, 2006 the PPL will be prepared and agreed to by May 30,
                  2006.

              

      

      
        
          
            ____________

            
              * 
                Confidential treatment has been requested with respect to certain portions
                of this exhibit. Omitted
                portions have been filed separately with the Securities and Exchange
                Commission.  This exhibit omits the information subject to the
                confidentiality request. Omissions are designated as [ * ].

            

          

          
            
              
              

            

            
              6/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	
              	5.8.	
                In
                  the event that the PARTIES cannot agreed on whether a specific
                  charge or
                  income item should be included on the PPL, the PARTIES will have
                  an
                  independent auditor, acceptable to both PARTIES with such acceptance
                  not
                  to be unreasonably withheld, review the PPL and render a decision
                  on
                  whether the charge is valid. The PARTIES will share the costs of
                  the
                  audit

              

      

       

      
        	
              	5.9.	
                CI
                  can request once a year that an independent auditor, acceptable
                  to both
                  PARTIES with such acceptance not to be unreasonably withheld, review
                  the
                  entire PPL and all supporting documentation to verify that the
                  PPL was
                  prepared in compliance with this AGREEMENT. If it is found that
                  additional
                  monies are owed CI as a result of the audit then DOLIAGE will pay
                  the
                  additional funds. If the amount of the additional monies owed CI
                  is
                  greater than 10% of the monies originally calculated in the PPL
                  the costs
                  of the external auditor will be borne by DOLIAGE otherwise the
                  costs of
                  the external auditor will be the responsibility of CI. DOLIAGE
                  will
                  provide its own resources for such audit at no cost. Reasonable
                  advance
                  notice should be given by CI of its intention to perform such an
                  audit,
                  and reasonable usage of DOLIAGE resources will be made, so as not
                  to
                  affect DOLIAGE’s operation. 

              

      

       

      
        	
              	5.10.	
                The
                  PARTIES will use best efforts to finalize and close the PPL for
                  the prior
                  budget year by December 1st
                  of
                  the current budget year. For example, the PPL for the period October
                  1st,
                  2006, to September 30th, 2007 should be finalized and closed by
                  December
                  1st,
                  2007. 

              

      

       

      
        	
              	5.11.	
                [
                  * ]

              

      

       

      
        	6.	
                BUDGETS

              

      

       

      
        	
              	6.1.	
                DOLIAGE
                  will prepare a budget in line with the Sales and Marketing plan
                  agreed to
                  by the PARTIES. The PARTIES must mutually agree and approve each
                  annual
                  budget by December 31st
                  of
                  the prior year. For example the annual budget for the period October
                  1st
                  2006 to September 30th
                  2007 should be approved by December 31st,
                  2006.

              

      

       

      
        	
              	6.2.	
                If
                  the PARTIES do not agree on the budget submitted by DOLIAGE the
                  PARTIES
                  will discuss in good faith such differences and utilize best efforts
                  to
                  reach agreement on the annual
                  budget.

              

      

       

      
        	7.	
                FORECASTING

              

      

       

      
        	
              	7.1.	
                On
                  the first day of each calendar quarter, DOLIAGE shall provide CI
                  with a
                  written rolling forecast of the requirement for the Products, per
                  month,
                  for the then current calendar quarter and the next 3 (three) calendar
                  quarters. The forecast for the then current calendar quarter shall
                  be
                  binding, for the remaining calendar quarter’s non-binding.
                  

              

      

       

      
        	
              	7.2.	
                At
                  least three (3) months in advance of the requested delivery date
                  of the
                  Products, DOLIAGE shall submit to CI a written purchase order for
                  the
                  desired quantities of the Products (hereinafter referred to as
“Purchase
                  Order”). All Purchase Order shall be firm and binding upon the Parties
                  and
                  shall bear the exact quantity ordered and the agreed upon delivery
                  date.

              

      

      
        
          
            
              
                ____________

                
                  * 
                    Confidential treatment has been requested with respect to certain portions
                    of this exhibit. Omitted
                    portions have been filed separately with the Securities and Exchange
                    Commission.  This exhibit omits the information subject to the
                    confidentiality request. Omissions are designated as [ * ].

                

              

            

          

          
            
              
              

            

            
              7/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	8.	
                RELATIONSHIP
                  OF THE PARTIES

              

      

       

      DOLIAGE
        shall be an independent contractor of CI. This Agreement does not create
        any
        employer-employee, agency, joint venture or partnership relationship between
        CI
        and DOLIAGE. DOLIAGE is not authorized or empowered to act as agent for CI
        for
        any purpose, except those specifically outlined in this AGREEMENT, and shall
        not
        on behalf of CI either enter into any contract, undertaking, or agreement
        of any
        kind whatever, or make any promise, warranty, or representation with respect
        to
        the Products other than those published by CI in the advertising and sales
        promotional material provided to DOLIAGE

       

      
        	9.	
                NOTICES

              

      

       

      Any
        notices will be sent via facsimile and by a recognized express mail
        carrier:

       

      
        	If to DOLIAGE:	Laboratories DOLIAGE 
	 	81 rue de Verdun, 
	 	92150 Suresnes, 
	 	France 
	 	Facsimile: (33) 1 41 38 29
                55 
	 	Attention: CEO 
	 	 
	If to CI: 	Coronado Industries 
	 	16857 Saguaro Blvd 
	 	Fountain Hills, Arizona
                85268 
	 	USA
	 	Attention: CEO
	 	CC: Director
                of Operations
	 	Facsimile +1 480 837
                6870

      

       

      or
        to
        such other address as either Party may hereafter designate by notice to the
        other Party. The date of giving of any such notice shall be on the date received
        from an express mail carrier.

       

      
        	10.	
                FORCE
                  MAJEURE

              

      

       

      Neither
        Party hereto will be liable to the other for its failure to perform hereunder
        due to act of God, accident, fire, flood, storm, riot, sabotage, explosion,
        strike, labor disturbance, national defense requirement, governmental law,
        ordinance, rule or regulation, whether valid or invalid, inability to obtain
        electricity or other type of energy, raw materials, labor, equipment or
        transportation, or any other contingency beyond its reasonable control which
        would make performance commercially impracticable. In the event of a shortage
        of
        Products, CI reserves the right to allocate its inventory of Products as
        it may
        determine in its sole discretion. Either Party may terminate this Agreement
        by
        giving notice in writing to the other Party should an event of force majeure
        continue for more than 6 (six) months.

      
        
          
             

          

          
            
              
              

            

            
              8/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	11.	
                TRADEMARKS
                  AND PATENTS

              

      

       

      
        	
              	11.1.	
                CI
                  will be responsible for registering and maintaining all applicable
                  Patents
                  within the Territory as listed in Schedule B (hereinafter referred
                  to as
                  “Patents”) relating to the Products in the Territory at CI’s
                  costs.

              

      

       

      
        	
              	11.2.	
                By
                  virtue of the Agreement and DOLIAGE’s performance hereunder, DOLIAGE shall
                  acquire no interest in CI trademarks or corporate names, label
                  designs or
                  other identifying marks used to distinguish CI’s Products. Except for
                  undertaking such activities as are directly related to promoting
                  the sale
                  of the Product under this Agreement, DOLIAGE shall not make use
                  of the
                  name CI, or make use of any trademark or trade name which in the
                  judgment
                  of CI is confusingly similar thereto without the written consent
                  of
                  CI.

              

      

       

      
        	
              	11.3.	
                The
                  Parties will use their best efforts to discover any infringement
                  of any
                  Patent, Trademark or corporate name of Coronado Industries and
                  will
                  promptly notify each other of any such infringement or wrongful
                  use. Any
                  Proprietary Information provided shall be and remain the property
                  of CI,
                  and CI will impose any conditions with respect thereto which it
                  deems
                  reasonably necessary to preserve the confidential nature thereof.
                  DOLIAGE
                  will retain all Proprietary Information in strict confidence as
                  trade
                  secrets of CI and will not disclose, or permit any employee or
                  agent of
                  DOLIAGE to disclose, any Proprietary Information to anyone without
                  the
                  prior written approval of CI, provided, however, that such disclosure
                  may
                  be made to any employee of DOLIAGE who has a reasonable need for
                  access
                  thereto. For the purpose of this Agreement, the term “Proprietary
                  Information” shall mean all formulae, processes, and other information
                  relating to the distribution, sale, and use of any Product which
                  has been
                  or may hereafter be furnished to DOLIAGE and which would not be
                  available
                  to the general public otherwise than through violation of this
                  Agreement.

              

      

       

      
        	
              	11.4.	
                CI
                  shall use its best efforts so that DOLIAGE will not incur any claim
                  of
                  patent infringement as a result of distribution of the Products
                  within the
                  Territory under this Agreement. If such claims arise, and are attributable
                  to the actions of DOLIAGE allowed under this Agreement, CI will
                  at its own
                  costs use reasonable efforts to interfere and resolve the issue.
                  DOLIAGE
                  will notify CI immediately of any claims of patent infringement.
                  Any
                  liability for damages from an infringement as a direct result of
                  the sale
                  of the Products by DOLIAGE under the terms of this Agreement, will
                  be the
                  responsibility of CI. DOLIAGE will cooperate fully with CI to resolve
                  and/or defend against any claim of infringement under this
                  Agreement.

              

      

       

      
        	
              	11.5.	
                If
                  DOLIAGE is aware of a patent infringement on its territory, DOLIAGE
                  will
                  inform CI, and CI will at its own cost take any action to protect
                  the
                  patent rights.

              

      

       

      
        	
              	11.6.	
                Upon
                  the expiration or prior termination of this Agreement, DOLIAGE
                  will
                  exercise all necessary precautions to safeguard the secrecy of
                  Proprietary
                  Information and to prevent the unauthorized disclosure thereof,
                  DOLIAGE
                  will consult CI as to the procedures established by it for this
                  purpose
                  and will from time to time, if requested by CI, advise CI of the
                  procedures which it then has in effect.

              

      

       

      
        	12.	
                REGISTRATIONS
                  AND HEALTH AUTHORITY
                  INTERACTIONS

              

      

       

      
        	
              	12.1.	
                CI,
                  with the assistance of DOLIAGE, will be responsible for all interactions
                  with the relevant Health Authorities (HA’s), including but not limited to
                  the Type 2a device classification filling of the Product and any
                  maintenance of the Type 2a filling with the relevant
                  authorities.

              

      

      
        
          
             

          

          
            
              
              

            

            
              9/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	
              	12.2.	
                DOLIAGE
                  will bear the costs associated with any additional registration(s)
                  with or
                  applications to the relevant Health Authority(s) within in the
                  Territory
                  which are required to sell the
                  Products.

              

      

       

      
        	
              	12.3.	
                DOLIAGE,
                  as reasonably requested by CI, will assist, provide expertise and
                  interact
                  as required in dealing with the relevant HA’s in the
                  Territory.

              

      

       

      
        	
              	12.4.	
                CI
                  and DOLIAGE agree that a Type 2a device classification is required
                  to
                  allow the sale of the Products in the Territory. CI agrees to supply
                  DOLIAGE with Products meeting this classification and will not
                  knowingly
                  or negligently ship Products which does not meet this
                  classification.

              

      

       

      
        	13.	
                CLINICAL
                  TRIAL

              

      

       

      
        	
              	13.1.	
                DOLIAGE
                  will be allowed to perform, in collaboration with CI, clinical
                  trials in
                  order to enhance the marketability of the PRODUCTS within the
                  TERRITORY

              

      

       

      
        	
              	13.2.	
                The
                  clinical trials will involve up to 2/4 centers and approximately
                  100
                  patients.

              

      

       

      
        	
              	13.3.	
                The
                  protocols for the clinical trials will be approved by both Parties
                  and
                  respective Ethical Committees prior to initiation of the
                  study.

              

      

       

      
        	
              	13.4.	
                The
                  costs of performing the clinical trial will be born by DOLIAGE.
                  CI will
                  reimburse DOLIAGE as outlined Section 4.1.5
                  above

              

      

       

      
        	
              	13.5.	
                DOLIAGE
                  will have in place confidentiality agreements with all clinicians
                  involved
                  with the clinical trial. DOLIAGE will do its best to prevent any
                  non-agreed dissemination regarding the clinical trial or its results
                  without the prior consent of CI.

              

      

       

      
        	
              	13.6.	
                All
                  information developed as part of the clinical trial will be considered
                  as
                  Confidential Information (as defined below under Section 14) and
                  cannot be
                  used for any other purpose by DOLIAGE other than to promote the
                  Products
                  in a way which is beneficial for the Product. In the event the
                  AGREEMENT
                  is terminated then all information collected under this Agreement,
                  including the information gathered as part of the clinical trial
                  will
                  become the property of CI. DOLIAGE also acknowledges that it will
                  not use
                  any of the information obtained under this Agreement, including
                  information obtained as part of the clinical trial, to promote
                  another
                  device which would compete with the
                  PRODUCTS.

              

      

       

      
        	14.	
                TERM
                  AND TERMINATON

              

      

       

      
        	
              	14.1.	
                The
                  term of this Agreement shall be for a period of eight (8) years
                  from the
                  Effective Date of this Agreement (hereinafter referred to as “Initial
                  Term”). Following the Initial Term outlined above, this Agreement will
be
                  automatically renewable on an annual basis, unless either Party
                  notifies
                  the other 6 months prior to expiration of the Initial Term, or
                  each annual
                  extension, of their intention not to
                  renew.

              

      

      
        
          
             

          

          
            
              
              

            

            
              10/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	
              	14.2.	
                If
                  DOLIAGE’s cumulative losses, which will be calculated as their costs
                  directly associated with the AGREEMENT less any monies from the
                  envisioned
                  profit share, over the first two years of the AGREEMENT exceed
                  150,000
                  Euros DOLIAGE will have an option to request a renegotiation of
                  the
                  AGREEMENT and if CORONADO declines to terminate the
                  AGREEMENT

              

      

       

      
        	
              	14.3.	
                CI
                  shall have the option to terminate, upon ninety (90) days’ written notice,
                  if ownership or control (for example. greater than 50.01 % of the
                  shares)
                  of DOLIAGE is transferred to a third party, which is considered
                  by CI to
                  be detrimental for CI’s interests. Either Party may terminate this
                  Agreement if the other Party is adjudged bankrupt, files or has
                  filed
                  against it any petition under any bankruptcy or insolvency law,
                  has a
                  receiver appointed for its business or property, or makes a general
                  assignment for the benefit of its
                  creditors.

              

      

       

      
        	
              	14.4.	
                DOLIAGE
                  hereby accords CI upon termination or expiration of this Agreement
                  an
                  option to repurchase from DOLIAGE all or any part of DOLIAGE’ inventory of
                  that Products, which DOLIAGE will not need in order to fulfill
                  its
                  delivery commitments towards its customers for commitments which
                  can be
                  documented were made prior to termination of expiration of this
                  Agreement
                  (hereinafter referred to as “Inventory Products”), at the price paid
                  therefore by DOLIAGE (hereinafter referred to as “Repurchase Price”),
                  pursuant to the following
                  procedures:

              

      

       

      
        	
              	14.4.1.	
                Within
                  five (5) days after the effective date of termination, DOLIAGE
                  shall
                  submit to CI a written schedule reflecting all Inventory Products
                  then
                  owned by or in DOLIAGE’ possession. Said schedule shall identify each
                  Inventory Product and shall indicate the quantity thereof on
                  hand.

              

      

       

      
        	
              	14.4.2.	
                Within
                  ten (10) days after the receipt of such schedule by CI, CI shall
                  have the
                  right to inspect the inventory reflected on such
                  schedule.

              

      

       

      
        	
              	14.4.3.	
                Within
                  five (5) days after completion of CI’s inspection of said inventory, CI
                  shall give written notice of its election to repurchase all or
                  any part of
                  the Inventory Products.

              

      

       

      
        	
              	14.4.4.	
                Upon
                  receipt of said notice of repurchase, DOLIAGE shall forthwith deliver
                  such
                  Inventory Products as may be specified therein to a carrier designated
                  by
                  CI and at the costs of CI. Payment of the Repurchase Price as hereinabove
                  provided shall be made by CI to DOLIAGE within five (5) days after
                  the
                  delivery of said Products to
                  carrier.

              

      

       

      
        	
              	14.5.	
                Upon
                  termination or expiration of this Agreement, DOLIAGE shall immediately
                  cease to represent itself as an authorized distributor of CI with
                  respect
                  to the Products. 

              

      

       

      
        	
              	14.6.	
                CI
                  can elect, but will have no obligation, to provide additional product
                  in
                  order to allow DOLIAGE’ to fulfill commitments towards its customers
                  following termination or expiration of this
                  Agreement.

              

      

       

      
        	
              	14.7.	
                The
                  termination or expiration of this Agreement shall not release either
                  Party
                  from the obligation to pay any sum that may be owing to the other
                  Party or
                  operate to discharge any liability that had been incurred by either
                  Party
                  prior to any such termination.

              

      

      
        
          
             

          

          
            
              
              

            

            
              11/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	
              	14.8.	
                Failure
                  by a Party to comply with any of its material obligations contained
                  in
                  this Agreement, including payment term obligations, shall entitle
                  the
                  non-defaulting Party to give to the defaulting Party written notice
                  specifying the nature of the default and requiring the defaulting
                  Party to
                  make good such default. If such default is not cured within sixty
                  (60)
                  days after the receipt of such notice (or, if such default is not
                  capable
                  of being cured within such sixty (60) day period, within such amount
                  of
                  time as may be reasonably necessary to cure such breach, as long
                  as the
                  Defaulting Party is making diligent efforts to do so, except in
                  the case
                  of payment default, as to which the defaulting Party shall have
                  only a
                  sixty (60) day cure period), the non-defaulting Party shall be
                  entitled
                  immediately to terminate this Agreement by giving written notice
                  to the
                  defaulting Party. The right of a Party to terminate this Agreement,
                  as
                  hereinafter provided, shall not be affected in any way by its waiver
                  or
                  failure to take action with respect to any previous
                  default.

              

      

       

      
        	
              	14.9.	
                The
                  Parties may agree in writing, signed by both Parties, to terminate
                  this
                  Agreement in its entirety. In such an event, the Parties shall
                  agree to
                  the effects of such termination at that
                  time.

              

      

       

      
        	
              	14.10.	
                If
                  the PARTIES cannot agree on the annual budget as outlined under
                  Clause 6
                  by November 15th
                  of
                  the prior year then either PARTY may elect to terminate this
                  AGREEMENT.

              

      

       

      
        	
              	14.11.	
                In
                  the event this AGREEMENT is terminated under clause 14.10 above
                  then
                  Clauses 14.4, 14.4.1, 14.4.2, 14.4.3, 14.4.4, 14.4.5, 14.5, 14.6
                  and 14.7
                  will apply.

              

      

       

      
        	15.	
                CONFIDENTIALITY

              

      

       

      A
        separate Confidentiality Agreement has been previously executed by the PARTIES
        and is incorporated by reference into this AGREEMENT

       

      
        	16.	
                ASSIGNMENT

              

      

       

      
        	
              	16.1.	
                This
                  Agreement shall be binding upon the successors and assignees of
                  CI and
                  DOLIAGE. 

              

      

       

      
        	
              	16.2.	
                Either
                  Party may assign this Agreement to a wholly owned subsidiary or
                  other
                  entity in which the transferring Party has a majority share and
                  operational control. In case of such an assignment, the assigning
                  party
                  will remain jointly and severally liable for all of its obligations
                  under
                  this Agreement.

              

      

       

      
        	
              	16.3.	
                This
                  Agreement shall not be assignable by either Party to an independent
                  third
                  party, without the prior written consent of the other Party, such
                  consent
                  not to be unreasonably withheld.

              

      

       

      
        	17.	
                INDEMNIFICATION
                  / DEFECTS OF THE PRODUCTS

              

      

       

      
        	
              	17.1.	
                CI
                  will indemnify, defend and hold harmless DOLIAGE from any and all
                  liability, loss, or damage DOLIAGE may suffer as a result of claims,
                  demands, costs, or judgment against it arising from product liabilities
                  of
                  any kind under any jurisdiction provided that such product liability
                  is
                  not based on DOLIAGE’ negligence in storing, maintaining, labeling,
                  promoting or selling the Products or otherwise failing to comply
                  with
                  applicable laws and regulations and the terms of this Agreement.
                  In the
                  latter case, DOLIAGE will indemnify, defend and hold harmless CI
                  from any
                  and all liability, loss or damage CI may suffer as a result of
                  such
                  claims, demands, costs or judgments against it.

              

      

      
        
          
             

          

          
            
              
              

            

            
              12/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	
              	17.2.	
                For
                  the duration of this Agreement, each Party will maintain, at each
                  Party’s
                  own expense, insurance coverage from a reputable insurance carrier
                  in the
                  amount of a minimum of USD $1.0 million per incidence. Upon request
                  of a
                  Party, the other Party shall submit a copy of the respective certificate
                  of insurance. 

              

      

       

      
        	
              	17.3.	
                DOLIAGE
                  shall inspect the delivered Products immediately following delivery
                  by CI
                  insofar it is practicable in the orderly course of business and
                  notify
                  apparent defects to CI within 14 days after their discovery. All
                  other
                  defects, such as hidden defects, will be notified by DOLIAGE within
                  14
                  days after their discovery. 

              

      

       

      
        	
              	17.4.	
                If
                  (i) the Products delivered by CI are agreed by the Parties to be
                  defective
                  and/or (ii) if it turns out and the Parties agree that the Products
                  were
                  damaged prior to receipt by DOLIAGE and/or (iii) the Parties agree
                  that
                  the Products do not have the agreed upon quality, DOLIAGE shall
                  have the
                  right to request defect-free goods as replacement. In the event
                  that CI
                  cannot deliver within 45 days following notification by DOLIAGE
                  and
                  agreement between the Parties that the Products are defective as
                  described
                  under (i) - (iii) above DOLIAGE will have the right to cancel the
                  respective individual orders involving the above goods and receive
                  a
                  refund of any monies paid to CI. Removal and return deliveries
                  of
                  defective Products shall be effected at CI ́s costs and
                  risk.

              

      

       

      
        	18.	
                MISCELLANEOUS

              

      

       

      
        	
              	18.1.	
                The
                  provisions of this Agreement shall be construed and the performance
                  thereof governed in accordance with the laws of the State of New
                  York,
                  USA.

              

      

       

      
        	
              	18.2.	
                All
                  sub-distributors selected by DOLIAGE must be pre-approved by CI.
                  The
                  consent of CI shall not be unreasonably withheld. In the event
                  that
                  DOLIAGE becomes aware that a sub-distributor is in violation of
                  any part
                  of this Agreement DOLIAGE will immediately inform CI and will take
                  all
                  necessary actions to ensure compliance with this Agreement by the
                  sub-distributor.

              

      

       

      
        	
              	18.3.	
                The
                  article headings in this Agreement are inserted for convenience
                  only and
                  shall not be deemed to be part of this Agreement or considered
                  in
                  construing this Agreement.

              

      

       

      
        	
              	18.4.	
                This
                  Agreement constitutes the entire understanding between the Parties
                  and
                  supersedes any previous written or oral agreements or understandings
                  between the Parties.

              

      

       

      
        	
              	18.5.	
                No
                  modification to or waiver of the terms or conditions hereof shall
                  be
                  binding upon either Party unless approved in writing by an authorized
                  representative and no modification can be made by the acknowledgment
                  of
                  acceptance or by the use of purchase order forms containing other
                  or
                  different terms or conditions.

              

      

       

      
        	
              	18.6.	
                This
                  Agreement may be executed in one or more counterparts, each of
                  which shall
                  be deemed an original but all of which shall constitute one and
                  the same
                  instrument.

              

      

      
        
          
             

          

          
            
              
              

            

            
              13/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	
              	18.7.	
                Should
                  the effects of this Agreement resulting from future unforeseen
                  events and
                  developments lead to an unjust hardship for either Party and which
                  hardship does not correspond with the intention of the Parties
                  in good
                  faith, the Parties shall without delay enter into negotiations
                  to see in
                  what way the conditions of the Agreement can be modified to suit
                  altered
                  circumstances.

              

      

      
        
           

        

      

      
        	
              	18.8.	
                Neither
                  the general terms of sale and delivery of CI nor the general terms
                  of
                  purchase of DOLIAGE shall apply to this Agreement or the individual
                  transactions concluded on its basis. This shall also apply if either
                  Party
                  refers to its general terms and conditions when concluding an individual
                  transaction.

              

      

       

      
        	
              	18.9.	
                All
                  disputes arising out of or in connection with this Agreement shall
                  first
                  be attempted to be settled between the Parties on a good faith
                  basis. If
                  the Parties are unable to resolve the dispute within 60 (sixty)
                  days from
                  the receipt by one Party of the other Party’s written notice asking for
                  such amicable settlement discussions, then such dispute shall be
                  finally
                  settled by arbitration in accordance with the International Chamber
                  of
                  Commerce (ICC) Rules of Arbitration by three arbitrators, appointed
                  in
                  accordance with said rules. The place of arbitration shall be New
                  York
                  City, New York, USA. The proceedings shall be conducted and all
                  documentation shall be presented in
                  English.

              

      

      
        
          
             

          

          
            
              
              

            

            
              14/17

              
                

              

            

            
              
              

            

             

          

        

      

      
        	19.	
                SCHEDULES

              

      

       

      
        	
              	19.1.	
                Schedule
                  A:   Products

              

      

      
        	
              	19.2.	
                Schedule
                  B:    Patent

              

      

       

      IN
        WITNESS THEREOF,
        the
        Parties have executed this Agreement as of the day and year first written
        above.

       

      
        	CORONADO
                INDUSTRIES, Inc. 	 	Laboratories
                DOLIAGE
	 	 	 
	By:   	/s/ 	 	By:  
                	/s/ 
	 	
                

              	 	 	
                

              
	 	Name
Title	 	 	Name
Title

      

      
 

       

      

        
          
            
            

          

          
            15/17

            
              

            

          

          
            
            

          

        

      SCHEDULE
        A

       

       

      
        	Products 	 	 
	 	 	PNT Vacuum Controller - Model
                1000
	 	 	 
	 	 	PNT Sterilized/Single Use/Disposable
                Ring -
                pre-sterilized polypropylene 3-port PNT ring. One (1) sterilized
                ring per
                sealed Tyvek® pouch. 100 rings per carton

      

       

       

      

        
          
            
            

          

          
            16/17

            
              

            

          

          
            
            

          

        

      SCHEDULE
        B

       

      

      
         

        
          	Patents 	 	 
	 	 	Patent Number 0790803 ‘Open Angle Glaucoma
                  Treatment Apparatus’ issued February 19,
                  2003

        

         

         

      

      
        
           

          
            
              
              

            

            
              17/17Exhibit
4.11

WARRANT AGREEMENT 

This Warrant Agreement (the
“Agreement”), made and entered into as of April 12, 2007, by and between
SECURITY WITH ADVANCED TECHNOLOGY, INC. (f/k/a A4S Security, Inc.), a Colorado corporation
(the “Company”), and CORPORATE STOCK TRANSFER, INC., a Colorado corporation, as
Warrant Agent (the “Warrant Agent”). 

WITNESSETH THAT: 

WHEREAS, pursuant to a private
placement of its securities, the Company will offer up to $6.0 million in securities
consisting of (i) three warrants to purchase shares of Common Stock, no par value, of
the Company (“Common Stock”) and (ii) up to $6.0 million of Convertible
Promissory Notes (“Notes”). Included in the three warrants being issued
is one warrant to purchase one share of Common Stock at $9.00 per share (referred to
herein as the “Warrant”). 

WHEREAS, the Company desires the
Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act,
in connection with the issuance, registration, transfer, exchange and redemption of the
Warrants, the issuance of Warrant Certificates, the exercise of the Warrants, and the
rights of the holders thereof. 

NOW THEREFORE, in consideration of
the premises and the mutual agreements hereinafter set forth and for the purposes of
defining the terms and provisions of the Warrants and the certificates representing the
Warrants (the “Warrant Certificates”) and the respective rights and obligations
thereunder of the Company, the Registered Holders and the Warrant Agent, the parties
hereto agree as follows: 

SECTION 1. DEFINITIONS. 

As used herein, the following terms
shall have the following meanings, unless the context shall otherwise require: 

     1.1.    
          “Corporate Office” shall mean the office of the Warrant Agent (or its
          successor) at which at any particular time its principal business shall be
          administered, which office is located at the date hereof at 3200 Cherry Creek
          Drive, Suite 430, Denver, Colorado 80209. 

     1.2.    
          “Exercise Date” shall mean the date on which the Warrant Agent shall
          have received both (a) the Warrant Certificate representing a Warrant, with the
          exercise form thereon duly executed by the Registered Holder thereof or its
          attorney duly authorized in writing, and (b) payment in case, or by official
          bank or certified check made payable to the Company, of an amount in lawful
          money of the United States of America equal to the applicable Purchase Price. 

     1.3.    
          “Initial Warrant Exercise Date” shall mean the date of issuance. 

     1.4.    
          “Purchase Price” shall mean the purchase price to be paid upon
          exercise of each Warrant in accordance with the terms hereof, which price shall
          be equal to $9.00 per common share subject to adjustment from time to time
          pursuant to the provisions of Section 8 hereof. 

     1.5.    
          “Registered Holder” shall mean the person in whose name any
          certificate representing Warrants shall be registered on the books maintained by
          the Warrant Agent pursuant to Section 6. 

     1.6.    
          “Transfer Agent” shall mean Corporate Stock Transfer, Inc., as the
          Company’s transfer agent, or its authorized successor, as such. 

     1.7.    
          “Warrant Expiration Date” shall mean 5:00 p.m., Denver, Colorado time,
          on July 18, 2010; provided that if such date shall in the State of Colorado be a
          holiday or a day on which banks are authorized to close, then 5:00 p.m., Denver,
          Colorado time, on the next following day which in the State of Colorado is not a
          holiday or a day on which banks are authorized to close. Upon notice to the
          Registered Holders, the Company shall have the right to extend the warrant
          expiration date of the Warrants. 

SECTION 2. WARRANTS AND ISSUANCE OF
WARRANT CERTIFICATES. 

     2.1.    
          A Warrant shall initially entitle the Registered Holder of the Warrant
          Certificate representing such Warrant to purchase one share of Common Stock upon
          the exercise thereof, in accordance with the terms hereof; subject to
          modification and adjustment as provided in Section 8. 

     2.2.    
          Upon execution of this Agreement, the Company shall furnish the Warrant Agent
          with a sufficient quantity of blank Warrant Certificates and from time to time
          will renew such supply upon the reasonable request of the Warrant Agent. Such
          blank Warrant Certificates shall be properly signed by the Company authorized by
          law and in accordance with the Company’s by-laws to sign such Warrant
          Certificates. Upon written order of the Company signed by its President and by
          another duly authorized officer, the Warrant Certificates shall be manually
          countersigned by the Warrant Agent and shall not be valid for any purpose unless
          so countersigned, issued and delivered by the Warrant Agent pursuant to this
          Agreement. 

     2.3.    
          From time to time, up to the Warrant Expiration Date, the Transfer Agent shall
          countersign and deliver stock certificates in required whole number
          denominations representing an aggregate of 1,666,666 shares of Common Stock,
          subject to adjustment as described herein, upon the exercise of the Warrants in
          accordance with this Agreement. 

     2.4.    
          From time to time, up to the applicable Warrant Expiration Date, the Warrant
          Agent shall countersign and deliver Warrant Certificates in required whole
          number denominations to the persons entitled thereto in connection with any
          transfer or exchange permitted under this Agreement; provided that no Warrant
          Certificates shall be issued except 

     (a)    
          those initially issued hereunder; 

     (b)    
          those issued on or after the Initial Warrant Exercise Date, upon the exercise of
          fewer than all Warrants represented by the respective Warrant Certificate, to
          evidence any unexercised Warrants held by the exercising Registered Holder; 

     (c)    
          those issued upon any transfer or exchange pursuant to Section 6; 

     (d)    
          those issued in replacement of lost, stolen, destroyed or mutilated Warrant
          Certificates pursuant to Section 7; and 

     (e)    
          at the option of the Company, in such form as may be approved by its Board of
          Directors, to reflect any adjustment or change in the Purchase Price, or the
          number of shares of Common Stock purchasable upon exercise of the Warrants. 

SECTION 3. FORM AND EXECUTION OF
WARRANT CERTIFICATES. 

     3.1.    
          The Warrant Certificates shall be substantially in the form annexed hereto as
          Exhibit A (the provisions of which are hereby incorporated herein) and may have
          such letters, numbers or other marks of identification or designation and such
          legends, summaries or endorsements printed, lithographed or engraved thereon as
          the Company may deem appropriate and as are not inconsistent with the provisions
          of this Agreement, or as may be required to comply with any law or with any rule
          or regulation made pursuant thereto or with any rule or regulation of any stock
          exchange on which the Warrants may be listed, or to conform to usage. The
          Warrant Certificates shall be dated the date of issuance thereof (whether upon
          initial issuance, transfer, exchange or in lieu of mutilated, lost, stolen or
          destroyed Warrant Certificates) and issued in registered form. Warrants shall be
          numbered serially with the letter W. 

     3.2.    
          Warrant Certificates shall be properly signed on behalf of the Company by
          officers of the Company authorized by law and in accordance with the
          Company’s by-laws to sign such Warrant Certificates. Warrant Certificates
          shall be manually countersigned by the Warrant Agent and shall not be valid for
          any purpose unless so countersigned. In case any officer of the Company who
          shall have signed any of the Warrant Certificates shall cease to be such officer
          of the Company before the date of issuance of the Warrant Certificates or before
          countersignature by the Warrant Agent, such Warrant Certificate may be issued
          and delivered with the same force and effect as though the person who signed
          such Warrant Certificates had not ceased to be such officer of the Company.
          After countersignature by the Warrant Agent, Warrant Certificates shall be
          delivered by the Warrant Agent to the Registered Holder without further action
          by the Company, except as otherwise provided by Section 4 hereof. 

SECTION 4. EXERCISE AND REDEMPTION 

     4.1.    
          Each Warrant may be exercised by the Registered Holder thereof at any time on or
          after the Initial Exercise Date, but not after the Warrant Expiration Date, upon
          the terms and subject to the conditions set forth herein and in the Warrant
          Certificate. A Warrant shall be deemed to have been exercised immediately prior
          to the close of business on the Exercise Date and the person entitled to receive
          the Common Stock deliverable upon such exercise shall be treated for all
          purposes as the holder upon exercise thereof as of the close of business on the
          Exercise Date. As soon as practicable on or after the Exercise Date, the Warrant
          Agent shall deposit the proceeds received from the exercise of a Warrant and
          shall notify the Company in writing, by mail or by telecopy of the exercise of
          the Warrants. Promptly following, and in any event within three (3) days after
          the date of such notice from the Warrant Agent, the Warrant Agent, on behalf of
          the Company, shall cause to be issued and delivered by the Transfer Agent, to
          the person or persons entitled to receive the same, a certificate or
          certificates for the securities deliverable upon such exercise, (plus a Warrant
          Certificate for any remaining unexercised Warrants of the Registered Holder)
          unless within 24 hours of the receipt of the notice, the Company shall instruct
          the Warrant Agent by telecopy to refrain from causing such issuance of Warrant
          Certificates pending clearance of checks received in payment of the Purchase
          Price pursuant to such Warrants. Upon the exercise of any Warrant and clearance
          of the funds received, the Warrant Agent shall promptly remit the payment
          received for the Warrant to the Company or as the Company may direct in writing. 

     4.2.    
          The Company reserves the right to call the Warrants, at any time after July 18,
          2008 and prior to their exercise, with a notice of call in writing to the
          Registered Holders, giving 30 days’ notice of such call at any time after
          the Warrant becomes exercisable if the last sale price of the Common Stock has
          been at least $13.50 per share on each of 30 consecutive trading days prior to
          the date on which notice of such call is given. The call price of the Warrants
          is to be $.10 per Warrant. Any Warrant either not exercised, or tendered back to
          the Company by the end of the date specified in the notice of call, shall be
          canceled on the books of the Company and have no further value except for the
          $.10 call price. 

SECTION 5. RESERVATION OF SHARES;
LISTING; PAYMENT OF TAXES; ETC. 

     5.1.    
          The Company’s Articles of Incorporation authorize the issuance of
          30,000,000 shares of Common Stock. The Company covenants that it will at all
          times reserve and keep available out of its authorized Common Stock, solely for
          the purpose of issue upon exercise of Warrants, such number of shares of Common
          Stock as shall be issuable upon the exercise of all outstanding Warrants. The
          Company covenants that all shares of Common Stock which shall be issuable upon
          exercise of the Warrants shall, at the time of delivery, be duly and validly
          issued, fully paid, nonassessable and free from all taxes, liens and charges
          with respect to the issue thereof (other than those which the Company shall
          promptly pay or discharge). 

     5.2.    
          Warrants may not be exercised by, or shares of Common Stock issued to, any
          Registered Holder in any state in which such exercise would be unlawful. The
          Warrant Agent will not have any duty or responsibility for determining if the
          registration would be unlawful. 

     5.3.    
          The Company shall pay all documentary, stamp or similar taxes and other
          governmental charges that may be imposed with respect to the issuance of
          Warrants, or the issuance, or delivery of any shares upon exercise of the
          Warrants; provided, however, that if the shares of Common Stock are to be
          delivered in a name other than the name of the Registered Holder of the Warrant
          Certificate representing any Warrant being exercised, then no such delivery
          shall be made unless the person requesting the same has paid to the Warrant
          Agent the amount of transfer taxes or charges incident thereto, if any. 

     5.4.    
          The Warrant Agent is hereby irrevocably authorized to requisition the
          Company’s Transfer Agent from time to time for certificates representing
          shares of Common Stock required upon exercise of the Warrants, and the Company
          will authorize the Transfer Agent to comply with all such proper requisitions.
          The Company will file with the Warrant Agent a statement setting forth the name
          and address of the Transfer Agent of the Company for shares of Common Stock
          issuable upon exercise of the Warrants. 

SECTION 6. EXCHANGE AND REGISTRATION
OF TRANSFER. 

     6.1.    
          Warrant Certificates may be exchanged for other Warrant Certificates
          representing an equal aggregate number of Warrants of the same class or may be
          transferred in whole or in part. Warrant Certificates to be exchanged shall be
          surrendered to the Warrant Agent at the Corporate Office, and upon satisfaction
          of the terms and provisions hereof, the Company shall execute and the Warrant
          Agent shall countersign, issue and deliver in exchange therefore the Warrant
          Certificate or Certificates which the Registered Holder making the exchange
          shall be entitled to receive. 

     6.2.    
          The Warrant Agent shall keep at the Corporate Office books in which, subject to
          such reasonable regulations as it may prescribe, it shall register Warrant
          Certificates and the transfer thereof in accordance with its regular practice.
          Upon due presentment for registration or transfer of any Warrant Certificate at
          such office, the Company shall execute and the Warrant Agent shall issue and
          deliver to the transferee or transferees a new Warrant Certificate or
          Certificates representing an equal aggregate number of Warrants of the same
          class. 

     6.3.    
          With respect to all Warrant Certificates presented for registration or transfer,
          or for exchange or exercise, the Warrant Agent shall from time to time register
          the transfer, exchange or exercise of any outstanding Warrant Certificate upon
          records maintained by the Warrant Agent for such purpose upon surrender of such
          Warrant Certificate to the Warrant Agent, accompanied by appropriate instruments
          of transfer in form satisfactory to the Company and the Warrant Agent and duly
          executed by the Registered Holder or a duly authorized attorney. 

     6.4.    
          A service charge may be imposed by the Warrant Agent for registration or
          transfer or for exchange of Warrant Certificates. In addition, the Company may
          require payment by such holder of a sum sufficient to cover any tax or other
          governmental charge that may be imposed in connection therewith. 

     6.5.    
          All Warrant Certificates surrendered for exercise or for exchange in case of
          mutilated Warrant Certificates shall be promptly canceled by the Warrant Agent
          and thereafter retained by the Warrant Agent until termination of this Agreement
          or resignation as Warrant Agent, or, disposed of or destroyed, at the direction
          of the Company, within the retention guidelines prescribed by any Federal, State
          or banking regulatory authority. 

     6.6.    
          Prior to due presentment for registration or transfer thereof, the Company and
          the Warrant Agent may deem and treat the Registered Holder of any Warrant
          Certificate as the absolute owner thereof and of each Warrant represented
          thereby (notwithstanding any notations of ownership or writing thereon made by
          anyone other than a duly authorized officer of the Company or the Warrant Agent)
          for all purposes and shall not be affected by any notice to the contrary. 

SECTION 7. LOSS OR MUTILATION. 

     7.1.    
          Upon receipt by the Company and the Warrant Agent of evidence satisfactory to
          them of the ownership of and loss, theft, destruction or mutilation of any
          Warrant Certificate and (in case of loss, theft or destruction) of indemnity
          satisfactory to them, and (in the case of mutilation) upon surrender and
          cancellation thereof the Company shall execute and the Warrant Agent shall (in
          the absence of notice to the Company and/or Warrant Agent that the Warrant
          Certificate has been acquired by a bona fide purchaser) countersign and deliver
          to the Registered Holder in lieu thereof a new Warrant Certificate of like tenor
          representing an equal aggregate number of Warrants of that same class.
          Applicants for a substitute Warrant Certificate shall comply with such other
          reasonable regulations and pay such other reasonable charges as the Warrant
          Agent may prescribe. 

SECTION 8. ADJUSTMENT OF EXERCISE
PRICE AND NUMBER OF SHARES OF COMMON STOCK OR WARRANTS. 

     8.1.    
          The Company may elect, upon any adjustment of the Purchase Price hereunder, to
          adjust the number of Warrants of each or any class outstanding, in lieu of the
          adjustment in the number of shares of Common Stock purchasable upon the exercise
          of each Warrant as hereinabove provided, so that each Warrant outstanding after
          such adjustment shall represent the right to purchase one share of Common Stock.
          Each Warrant held of record prior to such adjustment of the number of Warrants
          of each or any class shall become that number of Warrants (calculated to the
          nearest tenth) determined by multiplying the number one by a fraction, the
          numerator of which shall be the Purchase Price in effect immediately prior to
          stock adjustment and the denominator of which shall be the Purchase Price in
          effect immediately after such adjustment. Upon each adjustment of the number of
          Warrants pursuant to this Section 8.1, the Company shall, as promptly as
          practicable, cause to be distributed to each Registered Holder of Warrant
          Certificates on the date of such adjustment Warrant Certificates evidencing,
          subject to Section 9 hereof, the number of additional Warrants of each class to
          which such Registered Holder shall be entitled as a result of such adjustment
          or, at the option of the Company, cause to be distributed to such Registered
          Holder in substitution and replacement for the Warrant Certificates held by it
          prior to the date of adjustment (and upon surrender thereof, if required by the
          Company) new Warrant Certificates evidencing the number of Warrants of each
          class to which such Registered Holder shall be entitled after such adjustment. 

     8.2.    
          In case of any reclassification, capital reorganization or other change of
          outstanding shares of Common Stock, or in case of any consolidation or merger of
          the Company with or into another corporation (other than a consolidation or
          merger in which the Company is the continuing corporation and which does not
          result in any reclassification, capital reorganization or other change of
          outstanding shares of Common Stock), or in case of any sale or conveyance to
          another corporation of the property of the Company as, or substantially as, an
          entirety (other than a sale/leaseback, mortgage or other financing transaction),
          the Company shall cause effective provision to be made so that each holder of a
          Warrant then outstanding shall have the right thereafter, by exercising such
          Warrant, to purchase the kind and number of shares of stock or other securities
          or property (including cash) receivable upon such reclassification, capital
          reorganization or other change, consolidation, merger, sale or conveyance by a
          holder of the number of shares of Common Stock that might have been purchased
          upon exercise of such Warrant immediately prior to such reclassification,
          capital reorganization or other change, consolidation, merger, sale or
          conveyance. Any such provision shall include provision for adjustments that
          shall be as nearly equivalent as may be practicable to the adjustments provided
          for in this Section 8.2. The foregoing provisions shall similarly apply to
          successive reclassifications, capital reorganizations and other changes of
          outstanding shares of Common Stock and to successive consolidations, mergers,
          sales or conveyances. 

     8.3.    
          After each adjustment of the Purchase Price pursuant to this Section 8, the
          Company will promptly prepare a certificate signed by the President and by the
          Secretary or an Assistant Secretary, of the Company setting forth: 

     (a)    
          the Purchase price as so adjusted, 

     (b)    
          the number of shares of Common Stock purchasable upon exercise of each Warrant
          after such adjustment, and, if the Company shall have elected to adjust the
          number of Warrants, the number of Warrants to which the Registered Holder of
          each Warrant shall then be entitled, and 

     (c)    
          a brief statement of facts accounting for such adjustment. The Company will
          promptly file such certificate with the Warrant Agent and cause a brief summary
          thereof to be sent by ordinary first class mail to each registered holder of
          Warrants at its last address as it shall appear on the registry books of the
          Warrant Agent. No failure to mail such notice nor any defect therein or in the
          mailing thereof shall affect the validity thereof except as to the Registered
          Holder to whom the Company failed to mail such notice, or except as to the
          Registered Holder whose notice was defective. The affidavit of an officer of the
          Warrant Agent or the Secretary or an Assistant Secretary of the Company that
          such notice has been mailed shall, in the absence of fraud, be prima facie
          evidence of the facts stated therein. 

     8.4.    
          As used in this Section 8, the term “Common Stock” shall mean and
          include the Company’s Common Stock authorized on the date of the original
          issue of the Warrants and shall also include any capital stock of any class of
          the Company thereafter authorized which shall not be limited to a fixed sum or
          percentage in respect of the rights of the holders thereof to participate in
          dividends and in the distribution of assets upon the voluntary liquidation,
          dissolution or winding up of the Company; provided, however, that the shares
          issuable upon exercise of the Warrants shall include only shares of such class
          designated in the Company’s Articles of Incorporation as Common Stock on
          the date of the original issue of the Warrants or (i), in the case of any
          reclassification, change, consolidation, merger, sale or conveyance of the
          character referred to in Section 8.2, hereof, the stock, securities or property
          provided for in such section or (ii), in the case of any reclassification or
          change in the outstanding shares of Common Stock issuable upon exercise of the
          Warrants as a result of a subdivision or combination or consisting of a change
          in par value, or from par value to no par value, or from no par value to par
          value, such shares of Common Stock as so reclassified or changed. 

     8.5.    
          Any determination as to whether an adjustment in the Purchase Price in effect
          hereunder is required pursuant to Section 8, or as to the amount of any such
          adjustment, if required, shall be binding upon the holders of the Warrants and
          the Company if made in good faith by the Board of Directors of the Company. 

     8.6.    
          The Warrant Agent assumes no responsibility for any determination under this
          Section and will act only in accordance with the written directions of the
          Company and its counsel. 

SECTION 9. FRACTIONAL WARRANTS AND
FRACTIONAL SHARES. 

     9.1.    
          If the number of shares of Common Stock purchasable upon the exercise of each
          Warrant is adjusted pursuant to Section 8 hereof, the Company shall nevertheless
          not be required to issue fractions of shares, upon exercise of the Warrants or
          otherwise, or to distribute certificates that evidence fractional shares. With
          respect to any fraction of a share called for upon any exercise hereof, the
          Company shall pay to the Holder an amount in cash equal to such fraction
          multiplied by the current market value of such fractional shares, determined as
          follows: 

     (a)    
          If the Common Stock is listed on a national securities exchange or admitted to
          unlisted trading privileges on such exchange or listed for trading on the Nasdaq
          Stock Market, the current value shall be the last reported sale price of the
          Common Stock on such exchange on the last business day prior to the date of
          exercise of this Warrant or if no such sale is made on such day, the average
          closing bid and asked prices for such day on such exchange; or 

     (b)    
          If the Common Stock is not listed or admitted to unlisted trading privileges,
          the current value shall be the mean of the last reported bid and asked prices
          reported by the National Quotation Bureau, Inc. on the last business day prior
          to the date of the exercise of this Warrant; or 

     (c)    
          If the Common Stock is not so listed or admitted to unlisted trading privileges
          and bid and asked prices are not so reported, the current value shall be an
          amount determined in such reasonable manner as may be prescribed by the Board of
          Directors of the Company. 

SECTION 10. WARRANT HOLDERS NOT
DEEMED STOCKHOLDERS. 

     10.1.    
          No Registered Holder shall, as such, be entitled to vote or to receive dividends
          or be deemed the holder of Common Stock that may at any time be issuable upon
          exercise of such Warrants for any purpose whatsoever, nor shall anything
          contained herein be construed to confer upon the Registered Holder, as such, any
          of the rights of a stockholder of the Company or any right to vote for the
          election of directors or upon any matter submitted to stockholders at any
          meeting thereof or to give or withhold consent to any corporate action (whether
          upon any recapitalization, issue or reclassification of stock, change of par
          value or change of stock to no par value, consolidation, merger or conveyance or
          otherwise), or to receive notice of meetings, or to receive dividends or
          subscription rights, until such Registered Holder shall have exercised such
          Warrants and been issued shares of Common Stock in accordance with the
          provisions hereof. 

SECTION 11. RIGHTS OF ACTION. 

     11.1.    
          All rights of action with respect to this Agreement are vested in the respective
          Registered Holders, and any Registered Holder, without consent of the Warrant
          Agent or of the holder of any other Warrant, may, in its own behalf and for its
          own benefit, enforce against the Company its right to exercise its Warrants for
          the purchase of shares of Common Stock in the manner provided in the Warrant
          Certificate and this Agreement. 

SECTION 12. AGREEMENT OF WARRANT
HOLDERS. 

     12.1.    
          Every Registered Holder, by its acceptance thereof, consents and agrees with the
          Company, the Warrant Agent and every other holder of a Warrant that: 

     (a)    
          The Warrants are transferable only on the registry books of the Warrant Agent by
          the Registered Holder thereof in person or by its attorney duly authorized in
          writing and only if the Warrant Certificates representing such Warrants are
          surrendered at the office of the Warrant Agent, duly endorsed or accompanied by
          a proper instrument of transfer satisfactory to the Warrant Agent and the
          Company in their sole discretion, together with payment of any applicable
          transfer taxes; and 

     (b)    
          The Company and the Warrant Agent may deem and treat the person in whose name
          the Warrant Certificate is registered as the holder and as the absolute, true
          and lawful owner of the Warrants represented thereby for all purposes, and
          neither the Company nor the Warrant Agent shall be affected by an notice of
          knowledge to the contrary, except as otherwise expressly provided in Section 6
          hereof. 

SECTION 13. CANCELLATION OF WARRANT
CERTIFICATES. 

     13.1.    
          If the Company shall purchase or acquire any Warrant or Warrants, the Warrant
          Certificate or Warrant Certificates evidencing the same shall thereupon be
          delivered to the Warrant Agent and canceled by it and retired. 

SECTION 14. CONCERNING THE WARRANT
AGENT. 

     14.1.    
          The Warrant Agent shall act hereunder as agent and in a ministerial capacity for
          the Company, and its duties shall be determined solely by the provisions hereof.
          The Warrant Agent shall not, by issuing and delivering Warrant Certificates or
          by any other act hereunder be deemed to make any representations as to the
          validity, value or authorization of the Warrant Certificates or the Warrants
          represented thereby or of any securities or other property delivered upon
          exercise of any Warrant or whether any stock issued upon exercise of any Warrant
          is fully paid and nonassessable. 

     14.2.    
          The Warrant Agent shall not at any time be under any duty or responsibility to
          any holder of Warrant Certificates to make or cause to be made any adjustment of
          the Purchase Price provided in this Agreement, or to determine whether any fact
          exists which may require any such adjustments, or with respect to the nature or
          extent of any such adjustment, when made, or with respect to the method employed
          in making the same. It shall not (i) be liable for any recital or statement of
          facts contained herein or for any action taken, suffered or omitted by it in
          reliance on any Warrant Certificate or other document or instrument believed by
          it in good faith to be genuine and to have been signed or presented by the
          proper party or parties, (ii) be responsible for any failure on the part of the
          Company to comply with any of its covenants and obligations contained in this
          Agreement or in any Warrant Certificate, or (iii) be liable for any act or
          omission in connection with this Agreement except for its own negligence or
          willful misconduct. 

     14.3.    
          The Warrant Agent may at any time consult with counsel satisfactory to it (who
          may be counsel for the Company) and shall incur no liability or responsibility
          for any action taken, suffered or omitted by it in good faith in accordance with
          the opinion or advice of such counsel. Any notice, statement, instruction,
          request, direction, order or demand of the Company shall be sufficiently
          evidenced by an instrument signed by the President, its Secretary, or Assistant
          Secretary (unless other evidence in respect thereof is herein specifically
          prescribed). The Warrant Agent shall not be liable for any action taken,
          suffered or omitted by it in accordance with such notice, statement,
          instruction, request, direction, order or demand believed by it to be genuine. 

     14.4.    
          The Company agrees to pay the Warrant Agent compensation for its services
          hereunder and to reimburse it for its expenses hereunder in accordance with the
          fees listed on Schedule I attached hereto; it further agrees to indemnify the
          Warrant Agent and save it harmless against any and all losses, expenses and
          liabilities, including judgments, costs and counsel fees, for anything done or
          omitted by the Warrant Agent in the execution of its duties and powers hereunder
          except losses, expenses and liabilities arising as a result of the Warrant
          Agent’s negligence or willful misconduct. 

     14.5.    
          The Warrant Agent may resign its duties and be discharged from all further
          duties and liabilities hereunder (except liabilities arising as a result of the
          Warrant Agent’s own negligence or willful misconduct), after giving 60
          days’ prior written notice to the Company. At least 30 days prior to the
          date such resignation is to become effective, the Warrant Agent shall cause a
          copy of such notice of resignation to be mailed to the Registered Holder of each
          Warrant Certificate at the Company’s expense. Upon such resignation, or any
          inability of the Warrant Agent to act as such hereunder, the Company shall
          appoint a new warrant agent in writing. If the Company shall fail to make such
          appointment within a period of 30 days after it has been notified in writing of
          such resignation by the resigning Warrant Agent, then the Registered Holder of
          any Warrant Certificate may apply to any court of competent jurisdiction for the
          appointment of a new warrant agent. Any new Warrant Agent, whether appointed by
          the Company or by such a court, shall be a bank or trust company having a
          capital and surplus, as shown by its last published report to its stockholders,
          of not less than $10,000,000 or a stock transfer company. After acceptance in
          writing of such appointment by the new warrant agent is received by the Company,
          such new warrant agent shall be vested with the same powers, rights, duties and
          responsibilities as if it had been originally named herein as the Warrant Agent,
          without any further assurance, conveyance, act or deed; but, if for any reason
          it shall be necessary or expedient to execute and deliver any further assurance,
          conveyance, act or deed, the same shall be done at the expense of the Company
          and shall be legally and validly executed and delivered by the resigning Warrant
          Agent. Not later than the effective date of any such appointment, the Company
          shall file notice thereof with the resigning Warrant Agent and shall forthwith
          cause a copy of such notice to be mailed to the Registered Holder of each
          Warrant Certificate. 

     14.6.    
          Any corporation into which the Warrant Agent or any new warrant agent may be
          converted or merged or any corporation resulting from any consolidation to which
          the Warrant Agent or any new warrant agent shall be a party or any corporation
          succeeding to the trust business of the Warrant Agent shall be a successor
          warrant agent under this Agreement without any further act, provided that such
          corporation is eligible for appointment as successor to the Warrant Agent under
          the provisions of the preceding paragraph. Any such successor warrant agent
          shall promptly cause notice of its succession as warrant agent to be mailed to
          the Company and to the Registered Holder of each Warrant Certificate. 

     14.7.    
          The Warrant Agent, its subsidiaries and affiliates, and any of its or their
          officers or directors, may buy and hold or sell Warrants or other securities of
          the Company and otherwise deal with the Company in the same manner and to the
          same extent and with like effects as though it were not Warrant Agent. Nothing
          herein shall preclude the Warrant Agent from acting in any other capacity for
          the Company or for any other legal entity. 

SECTION 15. MODIFICATION OF
AGREEMENT. 

     15.1.    
          The Warrant Agent and the Company may by supplemental agreement make any changes
          or corrections in this Agreement (i) that they shall deem it appropriate to cure
          any ambiguity or to correct any defective or inconsistent provision or manifest
          mistake or error herein contained; or (ii) that they may deem necessary or
          desirable and which shall not adversely affect the interests of the Registered
          Holders; provided, however, that this Agreement shall not otherwise be modified,
          supplemented or altered in any respect except with the consent in writing of the
          Registered Holders representing not less than two-thirds of the Warrants, other
          than such changes as are specifically prescribed by this Agreement as originally
          executed. 

SECTION 16. NOTICES. 

     16.1.    
          All notices, requests, consents and other communications hereunder shall be in
          writing and shall be deemed to have been made when delivered or mailed first
          class registered or certified mail, postage prepaid as follows: if to the
          Registered Holder of a Warrant Certificate, at the address of such holder as
          shown on the registry books maintained by the Warrant Agent; if to the Company,
          at 10855 Dover Street, Suite 1100, Westminster, CO 80021, Attention: President,
          or at such other address as may have been furnished to the Warrant Agent in
          writing by the Company; if to the Warrant Agent, at the Corporate Office. 

SECTION 17. GOVERNING LAW. 

     17.1.    
          This Agreement shall be governed by and construed in accordance with the laws of
          the State of Colorado, without reference to principles of conflicts of law. 

SECTION 18. BINDING EFFECT. 

     18.1.    
          This Agreement shall be binding upon and inure to the benefit of the Company
          and, the Warrant Agent and their respective successors and assigns, and the
          Registered Holders of the Warrant Certificates. Nothing in this Agreement is
          intended or shall be construed to confer upon any other person any right, remedy
          or claim, in equity or at law, or to impose upon any other person any duty,
          liability or obligation. 

SECTION 19. TERMINATION. 

     19.1.    
          This Agreement shall terminate at the close of business on the Warrant
          Expiration Date or such earlier date upon which all Warrants have been
          exercised, except that the obligation of the Warrant Agent to account to the
          Company for cash held by it and the provisions of Section 13 hereof shall
          survive such termination. 

SECTION 20. COUNTERPARTS. 

     20.1.    
          This Agreement may be executed in several counterparts, which taken together
          shall constitute a single document. 

[Remainder of page
intentionally left blank.]  

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written. 

		
	SECURITY WITH ADVANCED TECHNOLOGY, INC.

By: /s/ Gregory Pusey

         Gregory Pusey

         Chairman of the Board

CORPORATE STOCK TRANSFER, INC.

By: 

         Name: 

         Title: 
	

(SEE REVERSE LEGEND) 

(THIS WARRANT WILL BE
VOID IF NOT EXERCISED PRIOR      
                                TO 5:00 P.M. DENVER
TIME, JULY 18, 2010) 

			
	Number
	SECURITY WITH ADVANCED TECHNOLOGY, INC.   

(F/K/A A4S SECURITY, INC.)
	Warrants _________

WARRANT 

CUSIP 001069111 

        THIS
CERTIFIES THAT, for value received, ________________________ is the registered holder of a
Warrant or Warrants expiring July 18, 2010 (the “Warrant”) to purchase one fully
paid and non-assessable share of Common Stock, no par value per share
(“Shares”), of Security With Advanced Technology, Inc., a Colorado corporation
(F/K/A A4S Security, Inc.) (the “Company”), for each one Warrant evidenced by
this Warrant Certificate. The Warrant entitles the holder thereof to purchase from the
Company, commencing on the date the Warrant is separated from the Unit of which it is a
part, such number of Shares of the Company at the price of $9.00 per share, upon surrender
of this Warrant Certificate and payment of the Warrant Price at the office or agency of
the Warrant Agent, Corporate Stock Transfer, Inc. (such payment to be made by check made
payable to the Warrant Agent), but only subject to the conditions set forth herein and in
the Warrant Agreement between the Company and Corporate Stock Transfer, Inc. The Warrant
Agreement provides that upon the occurrence of certain events the Warrant Price and the
number of Warrant Shares purchasable hereunder, set forth on the face hereof, may, subject
to certain conditions, be adjusted. The term Warrant Price as used in this Warrant
Certificate refers to the price per Share at which Shares may be purchased at the time the
Warrant is exercised. 

        No
fraction of a Share will be issued upon any exercise of a Warrant. If the holder of a
Warrant would be entitled to receive a fraction of a Share upon any exercise of a Warrant,
the Company shall, upon such exercise, round up to the nearest whole number the number of
Shares to be issued to such holder. 

        Upon
any exercise of the Warrant for less than the total number of full Shares provided for
herein, there shall be issued to the registered holder hereof or his assignee a new
Warrant Certificate covering the number of Shares for which the Warrant has not been
exercised. 

        Warrant
Certificates, when surrendered at the office or agency of the Warrant Agent by the
registered holder hereof in person or by attorney duly authorized in writing, may be
exchanged in the manner and subject to the limitations provided in the Warrant Agreement,
but without payment of any service charge, for another Warrant Certificate or Warrant
Certificates of like tenor and evidencing in the aggregate a like number of Warrants. 

        Upon
due presentment for registration of transfer of the Warrant Certificate at the office or
agency of the Warrant Agent, a new Warrant Certificate or Warrant Certificates of like
tenor and evidencing in the aggregate a like number of Warrants shall be issued to the
transferee in exchange for this Warrant Certificate, subject to the limitations provided
in the Warrant Agreement, without charge except for any applicable tax or other
governmental charge. 

        The
Company and the Warrant Agent may deem and treat the registered holder as the absolute
owner of this Warrant Certificate (notwithstanding any notation of ownership or other
writing hereon made by anyone), for the purpose of any exercise hereof, of any
distribution to the registered holder, and for all other purposes, and neither the Company
nor the Warrant Agent shall be affected by any notice to the contrary. 

        This
Warrant does not entitle the registered holder to any of the rights of a Stockholder of
the Company until exercised. 

        The
Company reserves the right to call the Warrant, at any time after July 18, 2008 and prior
to its exercise, with a notice of call in writing to the Warrantholders of Record, giving
30 days’ notice of such call at any time after the Warrant becomes exercisable if the
last sale price of the Shares has been at least $13.50 per share on each of 30 consecutive
trading days prior to the date on which notice of such call is given. The call price of
the Warrants is to be $.10 per Warrant. Any Warrant either not exercised, or tendered back
to the Company by the end of the date specified in the notice of call, shall be canceled
on the books of the Company and have no further value except for the $.10 call price. 

Countersigned: 

			
	CORPORATE STOCK TRANSFER, INC.

          (Denver, Colorado)

                     as Warrant Agent, 

                                       

                                       

                                       

                                       

By:

                                       

                                       

                                       

                                       

                    Authorized Officer
	

 SECURITY WITH   

    ADVANCED

  TECHNOLOGY,

 INC. CORPORATE

      SEAL

                 

                 

    COLORADO

       X

                 
	

By:

______________________       ____________________   

SIGNATURE TO COME        
       SIGNATURE TO COME

             Secretary
                         
                        President

SUBSCRIPTION FORM

To Be Executed by the Registered Holder in Order to Exercise Warrants

The undersigned Registered Holder
irrevocably elects to exercise Warrants represented by this Warrant Certificate, and to
purchase the shares of Common Stock issuable upon the exercise of such Warrants, and
requests that Certificates for such shares shall be issued in the name of 

(PLEASE TYPE OR PRINT
NAME AND ADDRESS) 

(SOCIAL SECURITY OR TAX
IDENTIFICATION NUMBER) 

and be delivered to 

(PLEASE PRINT OR TYPE
NAME AND ADDRESS) 

and, if such number of Warrants shall
not be all the Warrants evidenced by this Warrant Certificate, that a new Warrant
Certificate for the balance of such Warrants be registered in the name of, and delivered
to, the Registered Holder at the address stated below: 

		
	Dated:  ________________
	___________________________________  

(SIGNATURE)

___________________________________  

(ADDRESS)

___________________________________  

(TAX IDENTIFICATION NUMBER)

ASSIGNMENT 
To Be Executed by the Registered Holder in Order to Assign Warrants

For Value Received,
_____________________________________ hereby sell, assign, and transfer unto 

(PLEASE TYPE OR PRINT
NAME AND ADDRESS) 

(SOCIAL SECURITY OR TAX
IDENTIFICATION NUMBER) 

and be delivered to 

(PLEASE PRINT OR TYPE
NAME AND ADDRESS) 

____________________________________of
the Warrants represented by this Warrant Certificate, and hereby irrevocably constitute
and appoint ____________________________________ Attorney to
transfer this Warrant Certificate on the books of the Company, with full power of
substitution in the premises. 

		
	Dated:  ________________
	_________________________

(SIGNATURE)

THE SIGNATURE TO THE ASSIGNMENT OF
THE SUBSCRIPTION FORM MUST CORRESPOND TO THE NAME WRITTEN UPON THE FACE OF THIS WARRANT
CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATSOEVER, AND MUST BE GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM
OF THE AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE/ARCAEX OR
CHICAGO STOCK EXCHANGE.

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