Document:

ex4-2.htm

    

    

    

    

    

    

    

    

    

    

    

    

    

    COMMUNITY
CENTRAL BANK CORPORATION

    

    INCORPORATED UNDER THE LAWS OF THE
STATE OF MICHIGAN

    

    This certifies that
[                                                              ]is
the owner of [number of shares] [(xxxx)]

    

    FULLY
PAID AND NON ASSESSABLE SHARES OF NONCUMULATIVE CONVERTIBLE PERPETUAL PREFERRED
STOCK, SERIES C, NO PAR VALUE PER SHARE (LIQUIDATION AMOUNT $1,000 PER SHARE),
OF

    

    COMMUNITY
CENTRAL BANK CORPORATION, a Michigan corporation (the
“Corporation”).  The shares represented by this certificate are
transferable only on the stock transfer books of the Corporation by the holder
of record hereof, or by such holder’s duly authorized attorney or legal
representative, upon the surrender of this certificate properly
endorsed.

    

    IN WITNESS WHEREOF, the
Corporation has caused this certificate to be executed by the signatures of its
duly authorized officers.

     

    

      
        	 
      	 
      	 
      	
                DATED   _____________________

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                _______________________________

              	 
      	
                 ___________________________________

              	 
      
	 
      	 
      	 
      	
                Ray
      T. Colonius

              	 
      	
                David
      A. Widlak

              	 
      
	 
      	 
      	 
      	
                Treasurer

              	 
      	
                President
      and Chief Executive Officer

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

    

    
      
         

      

      
         

         

      

      
         

      

    

    THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE NOT
SAVINGS ACCOUNTS, DEPOSITS OR OTHER OBLIGATIONS OF A BANK AND ARE NOT INSURED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL
AGENCY.

     

    THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
OR THE SECURITIES LAWS OF ANY STATE AND NEITHER SUCH SECURITIES NOR ANY INTEREST
THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS
(1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) THE CORPORATION
RECEIVES AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO
THE CORPORATION, TO THE EFFECT THAT SUCH SECURITIES MAY BE OFFERED, SOLD,
PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
REGISTRATION STATMENT UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES
LAWS.

     

    The Corporation will furnish to any stockholder on request
and without charge a full statement of the designations and any preferences,
conversion and other rights, voting powers, restrictions, limitations as to
dividends, qualifications, and terms and conditions of redemption of the stock
of each class which the Corporation is authorized to issue, of the differences
in the relative rights and preferences between the shares of each series of
preferred stock which the Corporation is authorized to issue, to the extent they
have been set, and of the authority of the Board of Directors to set the
relative rights and preferences of subsequent series of a preferred class of
stock. Such request may be made to the Secretary of the
Corporation.Exhibit 10.1

	
  

 
	
 BioCurex,
 Inc.

 
	
  

 
	
 (f/k/a
 Whispering Oaks International, Inc.)

 
	
  

 
	

 UNDERWRITING AGREEMENT

 
	
  

 
	

 dated January 19, 2010

 
	
  

 
	

 Paulson Investment Company, Inc.

 

Underwriting Agreement

January 19,
2010

Paulson
Investment Company, Inc.

811 SW Naito Parkway

Portland, Oregon 97204

Ladies and
Gentlemen:

          Introductory. BioCurex, Inc., f/k/a Whispering Oaks International, Inc., a Texas
corporation (the “Company”), proposes to issue and sell to the several
underwriters named in Schedule A (the “Underwriters”) an aggregate of
1,200,000 Units, each Unit consisting of (i) 70 shares of the Company’s common
stock, par value $0.001 per share (“Common Stock”), and (ii) 70
warrants, each to purchase one share of Common Stock (each a “Unit Warrant”,
collectively, the “Unit Warrants”). The Unit Warrants are to be issued
under the terms of a Warrant Agreement (the “Warrant Agreement”) by and
between the Company and Securities Transfer Corporation, as warrant agent (the
“Warrant Agent”), substantially in the form most recently filed as an
exhibit to the Registration Statement (hereinafter defined). The 1,200,000
Units to be sold by the Company are collectively called the “Firm Units”.
In addition, the Company has granted to the Underwriters an option to purchase
up to an additional 180,000 Units (the “Optional Units”), as provided in
Section 2. The Firm Units and, if and to the extent such option is exercised,
the Optional Units are collectively called the “Units”. Paulson
Investment Company, Inc. has agreed to act as representative for the several
Underwriters (in such capacity, the “Representative”) in connection with
the offering and sale of the Units.

          The
Company confirms its agreement with the Underwriters as follows:

          SECTION 1. Representations
and Warranties of the Company.

          The
Company represents, warrants and covenants to each Underwriter as follows:

          (a)
Filing of
the Registration Statement.
The Company has prepared and filed with the Securities and Exchange
Commission (the “Commission”) a registration statement on Form S-1 (File
No. 333-162345), which contains a form of prospectus to be used in connection
with the public offering and sale of the Units. Such registration statement, as
amended, including the financial statements, exhibits and schedules thereto,
and the documents incorporated by reference in the prospectus contained in the
registration statement at the time such registration statement became
effective, in the form in which it was declared effective by the Commission under
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder (collectively, the “Securities Act”), and
including any required information deemed to be a part thereof at the time of
effectiveness pursuant to Rule 430A, Rule 430B or Rule 430C under the
Securities Act, or pursuant to the Securities Exchange Act of 1934 and the
rules and 

regulations
promulgated thereunder (collectively, the “Exchange Act”), is called the
“Registration Statement.” Any registration statement filed by the
Company pursuant to Rule 462(b) under the Securities Act is called the “Rule
462(b) Registration Statement,” and from and after the date and time of
filing of the Rule 462(b) Registration Statement the term “Registration
Statement” shall include the Rule 462(b) Registration Statement. Such
prospectus, in the form first filed pursuant to Rule 424(b) under the
Securities Act after the date and time that this Agreement is executed and
delivered by the parties hereto (the “Execution Time”), or, if no filing
pursuant to Rule 424(b) under the Securities Act is required, the form of final
prospectus relating to the Units included in the Registration Statement at the
effective date of the Registration Statement, is called the “Prospectus.”
All references in this Agreement to the Registration Statement, the Rule 462(b)
Registration Statement, the Company’s preliminary prospectus included in the
Registration Statement (each a “preliminary prospectus”), the
Prospectus, or any amendments or supplements to any of the foregoing, shall
include any copy thereof filed with the Commission pursuant to its Electronic
Data Gathering, Analysis and Retrieval System (“EDGAR”). Any reference
herein to any preliminary prospectus or the Prospectus or any supplement or amendment
to either thereof shall be deemed to refer to and include any documents
incorporated by reference therein as of the date of such reference.

          (b)
Compliance with Registration Requirements.
The Registration Statement has been declared effective by the Commission under
the Securities Act. The Company has complied with all requests of the
Commission for additional or supplemental information. No stop order preventing
or suspending the effectiveness of the Registration Statement or any Rule 462(b)
Registration Statement is in effect and no proceedings for such purpose have
been instituted or are pending or, to the best knowledge of the Company, are
contemplated or threatened by the Commission.

          Each
preliminary prospectus and the Prospectus when filed complied or will comply in
all material respects with the Securities Act and, if filed by electronic
transmission pursuant to EDGAR (except as may be permitted by Regulation S-T
under the Securities Act), was identical in content to the copy thereof
delivered to the Underwriters for use in connection with the offer and sale of
the Units other than with respect to any artwork and graphics that were not
filed. Each of the Registration Statement, any Rule 462(b) Registration
Statement and any post-effective amendment thereto, at the time it became
effective and at all subsequent times until the expiration of the prospectus
delivery period required under Section 4(3) of the Securities Act, complied and
will comply in all material respects with the Securities Act and did not and
will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading. The Prospectus (including any Prospectus wrapper), as
amended or supplemented, as of its date and at all subsequent times until the
Underwriters have completed their distribution of the offering of the Units,
did not and will not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. The
representations and warranties set forth in the two immediately preceding
sentences do not apply to statements in or omissions from the Registration
Statement, any Rule 462(b) Registration Statement, or any post-effective
amendment thereto, or the Prospectus, or any amendments or supplements thereto,
made in reliance upon and in conformity with information relating to the
Underwriters furnished to the Company in writing by the Underwriters or the
Representative expressly for use therein, it being 

2

understood and
agreed that the only such information furnished by the Representative consists
of the information described as such in Section 8 hereof. There are no
contracts or other documents required to be described in the Prospectus or to
be filed as exhibits to the Registration Statement that have not been described
or filed as required.

          (c)
Disclosure
Package. The term “Disclosure Package” shall mean (i) the
preliminary prospectus, as amended or supplemented, (ii) the issuer free
writing prospectuses as defined in Rule 433 of the Securities Act (each, an “Issuer
Free Writing Prospectus”), if any, identified in Schedule B hereto, (iii)
the pricing terms set forth in Schedule C to this Agreement, and (iv) any other
free writing prospectus that the parties hereto shall hereafter expressly agree
in writing to treat as part of the Disclosure Package. As of 9:00 a.m. (Eastern
time) on the date of this Agreement (the “Initial Sale Time”), the
Disclosure Package did not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading. The preceding sentence does not apply to statements in or omissions
from the Disclosure Package based upon and in conformity with written
information furnished to the Company by any Underwriter directly or through the
Representative specifically for use therein,
it being understood and agreed that the only such information furnished by or
on behalf of any Underwriter consists of the information described as such in
Section 8 hereof.

          (d)
INTENTIONALLY LEFT BLANK

          (e)
Issuer
Free Writing Prospectuses. No Issuer Free Writing Prospectus
includes any information that conflicts with the information contained in the
Registration Statement, including any document incorporated by reference
therein that has not been superseded or modified. The foregoing sentence does
not apply to statements in or omissions from any Issuer Free Writing Prospectus
based upon and in conformity with written information furnished to the Company
by any Underwriter directly or through the Representative specifically for use
therein, it being understood and agreed
that the only such information furnished by any Underwriter consists of the
information described as such in Section 8 hereof.

          (f) Offering Materials Furnished to Underwriters.
The Company has delivered to the Representative five complete manually signed
copies of the Registration Statement and of each consent and certificate of
experts filed as a part thereof, and conformed copies of the Registration
Statement (without exhibits) and preliminary prospectuses and the Prospectus,
as amended or supplemented, in such quantities and at such places as the
Representative has reasonably requested.

          (g)
Distribution of Offering Material By the Company.
The Company has not distributed and will not distribute, prior to the later of
each Subsequent Closing Date (as defined below) and the completion of the
Underwriters’ distribution of the Units, any offering material in connection
with the offering and sale of the Units other than a preliminary prospectus,
the Prospectus, any Issuer Free Writing Prospectus reviewed and consented to by
the Representative, and the Registration Statement.

          (h)
The Underwriting Agreement. This
Agreement has been duly authorized (to the extent applicable), executed and
delivered by, and is a valid and binding agreement of, the 

3

Company,
enforceable in accordance with its terms, except as rights to indemnification
hereunder may be limited by applicable law and except as the enforcement hereof
may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws relating to or affecting the rights and remedies of creditors or
by general equitable principles.

          (i)
Authorization of the Common Stock; Validity
of Warrants and Warrant Agreement. 

	
  

 	
  

 
	
  

 	
 (i) The
 Common Stock included in the Units to be purchased by the Underwriters from
 the Company (including units purchasable on exercise of the Underwriters’
 overallotment option described in Section 2(c) and the Representative’s
 Warrants described in Section 2(h)) has been duly authorized and reserved for
 issuance and sale pursuant to this Agreement and, in the case of Common Stock
 issuable on exercise of the Representative’s Warrants, the terms thereof and,
 when so issued and delivered by the Company, will be validly issued, fully
 paid and nonassessable.

 
	
  

 	
  

 
	
  

 	
 (ii)
 The Unit Warrants included in the Units to be purchased by the Underwriters
 from the Company have been duly and validly authorized by all required
 corporate actions and will, when issued and delivered by the Company pursuant
 to this Agreement, be validly executed and delivered by, and will be valid
 and binding agreements of, the Company, enforceable in accordance with their
 terms, except as the enforcement thereof may be limited by bankruptcy,
 insolvency, reorganization, moratorium or other similar laws relating to or
 affecting the rights and remedies of creditors or by general equitable
 principles.

 
	
  

 	
  

 
	
  

 	
 (iii)
 The Representative’s Warrants have been duly and validly authorized by all
 required corporate actions and will, when issued and delivered by the Company
 pursuant to this Agreement, be validly executed and delivered by, and will be
 valid and binding agreements of, the Company, enforceable in accordance with
 their terms, except as the enforcement thereof may be limited by bankruptcy,
 insolvency, reorganization, moratorium or other similar laws relating to or
 affecting the rights and remedies of creditors or by general equitable
 principles.

 
	
  

 	
  

 
	
  

 	
 (iv)
 The Common Stock issuable on exercise of the Unit Warrants has been duly
 authorized and reserved for issuance and sale pursuant to their terms and,
 when issued and delivered by the Company pursuant to such warrants, will be
 validly issued, fully paid and nonassessable.

 
	
  

 	
  

 
	
  

 	
 (v)
 The Warrant Agreement has been duly and validly authorized by all required
 corporate actions of the Company and will, when executed and delivered (and
 assuming due and valid execution by the Warrant Agent) constitute a valid and
 binding agreement of the Company, enforceable against the Company in
 accordance with its terms, except as the enforcement thereof may be limited
 by bankruptcy, insolvency, reorganization, moratorium or other similar laws
 relating to or affecting the rights and remedies of creditors or by general
 equitable principles.

 

4

	
  

 	
  

 
	
  

 	
 (vi)
 Each of the Unit Warrants and the Representative’s Warrants will, when
 issued, possess rights, privileges, and characteristics as represented in the
 most recent form of Warrant Agreement or Representative’s Warrants, as the
 case may be, filed as an exhibit to the Registration Statement.

 

          (j)
No Applicable Registration or Other Similar
Rights. Except as fairly and accurately described in the
Registration Statement, there are no persons with registration or other similar
rights to have any equity or debt securities registered for sale under the
Registration Statement or included in the offering contemplated by this
Agreement, except for such rights as have been duly waived.

          (k)
No Material Adverse Change.
Except as otherwise disclosed in the Disclosure Package, subsequent to the
respective dates as of which information is given in the Disclosure Package:
(i) there has been no material adverse change, or any development that could
reasonably be expected to result in a material adverse change, in the
condition, financial or otherwise, or in the earnings, business, operations or
prospects, whether or not arising from transactions in the ordinary course of
business, of the Company (any such change is called a “Material Adverse
Change”); (ii) the Company has not incurred any material liability or
obligation, indirect, direct or contingent, not in the ordinary course of
business nor entered into any material transaction or agreement not in the
ordinary course of business; and (iii) there has been no dividend or
distribution of any kind declared, paid or made by the Company in respect of
its capital stock.

          (l)
Independent Accountant. Manning
Elliott LLP (the “Accountant”), who has expressed its opinion with respect to
the financial statements (which term as used in this Agreement includes the
related notes thereto) filed with the Commission as a part of the Registration
Statement and included in the Disclosure Package and the Prospectus, is an
independent registered public accounting firm as required by the Securities Act
and the Exchange Act.

          (m)
Preparation of the Financial Statements.
Each of the historical financial statements filed with the Commission as a part
of or incorporated by reference in the Registration Statement, and included or
incorporated by reference in the Disclosure Package and the Prospectus,
presents fairly the information provided as of and at the dates and for the
periods indicated. Such financial statements comply as to form with the
applicable accounting requirements of the Securities Act and have been prepared
in conformity with generally accepted accounting principles applied on a
consistent basis throughout the periods involved, except as may be expressly
stated in the related notes thereto. No other financial statements or
supporting schedules are required to be included or incorporated by reference
in the Registration Statement. Each item of historical financial data relating
to the operations, assets or liabilities of the Company set forth in summary
form in each of the preliminary prospectus and the Prospectus fairly presents
such information on a basis consistent with that of the complete financial
statements contained in the Registration Statement.

          (n)
Incorporation and Good Standing;
Subsidiaries. The Company has been duly incorporated and is validly
existing as a corporation in good standing under the laws of the jurisdiction
of its incorporation and has corporate power and authority to own, lease and
operate 

5

its properties
and to conduct its business as described in the Disclosure Package and the
Prospectus and to enter into and perform its obligations under this Agreement.
The Company is duly qualified as a foreign corporation to transact business and
is in good standing in each jurisdiction in which such qualification is
required except for such jurisdictions where the failure to so qualify or to be
in good standing would not, individually or in the aggregate, result in a
Material Adverse Change. The Company does not own or control, directly or
indirectly, any corporation, association or other entity, other than BioCurex
Inc. China.

          (o)
Capitalization and Other Capital Stock
Matters. The authorized, issued and outstanding capital stock of the
Company is as set forth in the each of the Disclosure Package and the
Prospectus under the caption “Capitalization” (other than for subsequent
issuances, if any, pursuant to employee benefit plans described in each of the
Disclosure Package and the Prospectus or upon exercise of outstanding options
or warrants described in the Disclosure Package and Prospectus, as the case may
be). The Common Stock conforms, and, when issued and delivered as provided in
this Agreement, the Unit Warrants and the Representative’s Warrants will comply
in all material respects to the description thereof contained in the each of
the Disclosure Package and Prospectus. All of the issued and outstanding shares
of Common Stock have been duly authorized and validly issued, are fully paid
and nonassessable and have been issued in compliance with federal and state
securities laws. None of the outstanding shares of Common Stock were issued in
violation of any preemptive rights, rights of first refusal or other similar
rights to subscribe for or purchase securities of the Company. There are no
authorized or outstanding options, warrants, preemptive rights, rights of first
refusal or other rights to purchase, or equity or debt securities convertible
into or exchangeable or exercisable for, any capital stock of the Company other
than those accurately described in the Disclosure Package and the Prospectus.
The description of the Company’s stock option, stock bonus and other stock
plans or arrangements, and the options or other rights granted thereunder, set
forth or incorporated by reference in each of the Disclosure Package and the
Prospectus accurately and fairly presents the information required to be shown
with respect to such plans, arrangements, options and rights.

          (p)
Quotation. The Common Stock is
currently quoted on the OTC Bulletin Board (“OTCBB”) under the symbol “BOCX.”
The Company has not received any notice that the Common Stock is no longer
eligible for quotation on the OTCBB. To the Company’s knowledge, the Company
has satisfied all of the requirements for such quotation of its Common Stock
and to have the Unit Warrants quoted on the OTCBB.

          (q)
Non-Contravention
of Existing Instruments; No Further Authorizations or Approvals Required.
The Company is not in violation
of its charter or bylaws or in default (or, with the giving of notice or lapse
of time, would be in default) (“Default”) under any indenture, mortgage,
loan or credit agreement, note, contract, franchise, lease or other instrument
to which it is a party or by which it or it may be bound (including, without
limitation, such agreements and contracts filed as exhibits to the Registration
Statement or to which any of the property or assets of the Company is subject
(each, an “Existing Instrument”)), except for such Defaults as would
not, individually or in the aggregate, result in a Material Adverse Change. The
Company’s execution, delivery and performance of this Agreement and
consummation of the transactions contemplated hereby and by the Disclosure
Package and the Prospectus (i) have been duly authorized by all necessary
corporate action and will not result in any violation of the provisions 

6

of the charter
or bylaws of the Company, (ii) will not conflict with or constitute a breach
of, or Default under, or result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of the Company pursuant to,
or require the consent of any other party to, any Existing Instrument, except
for such conflicts, breaches, Defaults, liens, charges or encumbrances as would
not, individually or in the aggregate, result in a Material Adverse Change and
(iii) will not result in any violation of any law, administrative regulation or
administrative or court decree applicable to the Company. No consent, approval,
authorization or other order of, or registration or filing with, any court or
other governmental or regulatory authority or agency, is required for the
Company’s execution, delivery and performance of this Agreement and
consummation of the transactions contemplated hereby and by the Disclosure
Package and the Prospectus, except the registration or qualification of the
Common Stock and Unit Warrants under the Securities Act and applicable state
securities or blue sky laws and from the Financial Industry Regulatory
Authority (the “FINRA”).

          (r)
No
Material Actions or Proceedings. Except as otherwise disclosed in
the Disclosure Package and the Prospectus, there are no legal or governmental
actions, suits or proceedings pending or, to the best of the Company’s
knowledge, threatened (i) against or affecting the Company, (ii) which have as
the subject thereof any officer or director (in such capacities) of, or
property owned or leased by, the Company or (iii) relating to environmental or
discrimination matters, where in any such case (A) there is a reasonable
possibility that such action, suit or proceeding might be determined adversely
to the Company and (B) any such action, suit or proceeding, if so determined
adversely, would reasonably be expected to result in a Material Adverse Change
or adversely affect the consummation of the transactions contemplated by this
Agreement. No material labor dispute with the employees of the Company exists
or, to the best of the Company’s knowledge, is threatened or imminent except
for such disputes as would not, individually or in the aggregate, result in a
Material Adverse Change.

          (s)
Intellectual Property Rights. The Company owns or possesses
sufficient trademarks, trade names, patent rights, copyrights, domain names,
licenses, approvals, trade secrets and other similar rights (collectively, “Intellectual
Property Rights”) reasonably necessary to conduct its businesses as now
conducted; and the expected expiration of any of such Intellectual Property
Rights would not result in a Material Adverse Change. The Company has not
received any notice of infringement or conflict with asserted Intellectual
Property Rights of others, which infringement or conflict, if the subject of an
unfavorable decision, would result in a Material Adverse Change. The Company is
not a party to or bound by any options, licenses or agreements with respect to
the Intellectual Property Rights of any other person or entity that are
required to be set forth in the Disclosure Package and the Prospectus and are
not described in all material respects. None of the technology employed by the
Company has been obtained or is being used by the Company in violation of any
contractual obligation binding on the Company or, to the Company’s knowledge,
any of its officers, directors or employees or otherwise in violation of the
rights of any persons. 

          (t)
All Necessary Permits, etc.
Except as otherwise disclosed in the Disclosure Package and the Prospectus or
except as would not result in a Material Adverse Change, the Company possesses
such valid and current certificates, authorizations or permits issued by the
appropriate state, federal or foreign regulatory agencies or bodies necessary
to conduct its businesses, and the Company has not received any notice of
proceedings relating to the 

7

revocation or
modification of, or non-compliance with, any such certificate, authorization or
permit which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, could result in a Material Adverse Change.

          (u)
Title to Properties. The Company has good and marketable
title to all the properties and assets reflected as owned in the financial
statements referred to in Section 1(m) above (or elsewhere in the Disclosure
Package and the Prospectus), in each case free and clear of any security
interests, mortgages, liens, encumbrances, equities, claims and other defects,
except such as do not materially and adversely affect the value of such
property and do not materially interfere with the use made or proposed to be
made of such property by the Company. The real property, improvements, equipment
and personal property held under lease by the Company are held under valid and
enforceable leases, with such exceptions as are not material and do not
materially interfere with the use made or proposed to be made of such real
property, improvements, equipment or personal property by the Company.

          (v)
Tax Law Compliance. The Company
has filed all necessary federal, state and foreign income and franchise tax
returns and has paid all taxes required to be paid by it and, if due and
payable, any related or similar assessment, fine or penalty levied against it.
The Company has made adequate charges, accruals and reserves in the applicable
financial statements referred to in Section 1(m) above in respect of all
federal, state and foreign income and franchise taxes for all periods as to
which the tax liability of the Company has not been finally determined.

          (w)
Company Not an “Investment Company.” The Company has been
advised of the rules and requirements under the Investment Company Act of 1940,
as amended (the “Investment Company Act”). The Company is not, and after
receipt of payment for the Units and the application of the proceeds thereof as
contemplated under the caption “Use of Proceeds” in each of the preliminary
prospectus and the Prospectus will not be, an “investment company” within the
meaning of the Investment Company Act and will conduct its business in a manner
so that it will not become subject to the Investment Company Act.

          (x)
Insurance. The Company is insured
by recognized, financially sound and reputable institutions with policies in
such amounts and with such deductibles and covering such risks as the Company
reasonably believes are adequate and customary for its business including, but
not limited to, policies covering real and personal property owned or leased by
the Company against theft, damage, destruction, acts of vandalism and
earthquakes. The Company reasonably believes that it will be able (i) to renew
its existing insurance coverage as and when such policies expire or (ii) to
obtain comparable coverage from similar institutions as may be necessary or
appropriate to conduct its business as now conducted and at a cost that would
not result in a Material Adverse Change. The Company has not been denied any
insurance coverage which it has sought or for which it has applied.

          (y)
No Price Stabilization or Manipulation.
The Company has not taken and will not take, directly or indirectly, any action
designed to or that might be reasonably expected to cause or result in
stabilization or manipulation of the price of any securities of the Company to
facilitate the sale or resale of the Common Stock or Unit Warrants or the
underlying securities. The Company acknowledges that the Underwriters may
engage in passive market making 

8

transactions
in the Units on the OTCBB in accordance with Regulation M under the Exchange
Act.

          (z)
Related Party Transactions. There
are no business relationships or related-party transactions involving the
Company or any other person required to be described in the preliminary
prospectus or the Prospectus that have not been described as required. 

          (aa)
Disclosure
Controls and Procedures. The Company has established and maintains
disclosure controls and procedures (as such term is defined in Rule 13a-15(e)
under the Exchange Act), which (i) are designed to ensure that material
information relating to the Company is made known to the Company’s principal
executive officer and its principal financial officer by others within those
entities, particularly during the periods in which the periodic reports
required under the Exchange Act are being prepared, (ii) will be evaluated for
effectiveness as of the end of each fiscal quarter and fiscal year of the
Company and (iii) are effective in all material respects to perform the
functions for which they were established. The Company is not aware of (a) any
significant deficiency in the design or operation of internal controls which
could adversely affect the Company’s ability to record, process, summarize and
report financial data or any material weaknesses in internal controls or (b)
any fraud, whether or not material, that involves management or other employees
who have a significant role in the Company’s internal controls.

          (bb)
Company’s Accounting System. The
Company maintains a system of accounting controls sufficient to provide
reasonable assurances that (i) transactions are executed in accordance with
management’s general or specific authorization; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain accountability for
assets; (iii) access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the recorded
accountability for assets is compared with existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

          (cc)
No Unlawful Contributions or Other Payments.
Neither the Company nor, to the best of the Company’s knowledge, any employee
or agent of the Company has made any contribution or other payment to any
official of, or candidate for, any federal, state or foreign office in
violation of any law or of the character required to be disclosed in the
Disclosure Package and the Prospectus.

          (dd) Compliance with Environmental Laws.
Except as would not, individually or in the aggregate, result in a Material
Adverse Change (i) the Company is not in violation of any federal, state, local
or foreign law or regulation relating to pollution or protection of human
health or the environment (including, without limitation, ambient air, surface
water, groundwater, land surface or subsurface strata) or wildlife, including
without limitation, laws and regulations relating to emissions, discharges,
releases or threatened releases of chemicals, pollutants, contaminants, wastes,
toxic substances, hazardous substances, petroleum and petroleum products
(collectively, “Materials of Environmental Concern”), or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Materials of Environment Concern
(collectively, “Environmental Laws”), which violation includes, but is
not limited to, noncompliance with any permits or other governmental 

9

authorizations
required for the operation of the business of the Company under applicable
Environmental Laws, or noncompliance with the terms and conditions thereof, nor
has the Company received any written communication, whether from a governmental
authority, citizens group, employee or otherwise, that alleges that the Company
is in violation of any Environmental Law; (ii) there is no claim, action or
cause of action filed with a court or governmental authority, no investigation
with respect to which the Company has received written notice, and no written
notice by any person or entity alleging potential liability for investigatory
costs, cleanup costs, governmental responses costs, natural resources damages,
property damages, personal injuries, attorneys’ fees or penalties arising out
of, based on or resulting from the presence, or release into the environment,
of any Material of Environmental Concern at any location owned, leased or
operated by the Company, now or in the past (collectively, “Environmental
Claims”), pending or, to the best of the Company’s knowledge, threatened
against the Company or any person or entity whose liability for any
Environmental Claim the Company has retained or assumed either contractually or
by operation of law; and (iii) to the best of the Company’s knowledge, there
are no past or present actions, activities, circumstances, conditions, events
or incidents, including, without limitation, the release, emission, discharge,
presence or disposal of any Material of Environmental Concern, that reasonably
could result in a violation of any Environmental Law or form the basis of a
potential Environmental Claim against the Company or against any person or entity
whose liability for any Environmental Claim the Company has retained or assumed
either contractually or by operation of law.

          (ee) ERISA Compliance. The
Company and any “employee benefit plan” (as defined under the Employee
Retirement Income Security Act of 1974, as amended, and the regulations and
published interpretations thereunder (collectively, “ERISA”))
established or maintained by the Company or its “ERISA Affiliates” (as defined
below) are in compliance in all material respects with ERISA. “ERISA
Affiliate” means, with respect to the Company, any member of any group of
organizations described in Section 414(b), (c), (m) or (o) of the Internal
Revenue Code of 1986, as amended, and the regulations and published
interpretations thereunder (the “Code”) of which the Company is a
member. No “reportable event” (as defined under ERISA) has occurred or is
reasonably expected to occur with respect to any “employee benefit plan”
established or maintained by the Company or any of its ERISA Affiliates. No
“employee benefit plan” established or maintained by the Company or any of its
ERISA Affiliates, if such “employee benefit plan” were terminated, would have
any “amount of unfunded benefit liabilities” (as defined under ERISA). Neither
the Company nor any of its ERISA Affiliates has incurred or reasonably expects
to incur any liability under (i) Title IV of ERISA with respect to termination
of, or withdrawal from, any “employee benefit plan” or (ii) Sections 412, 4971,
4975 or 4980B of the Code. Each “employee benefit plan” established or
maintained by the Company, or any of its ERISA Affiliates that is intended to
be qualified under Section 401(a) of the Code is so qualified and nothing has
occurred, whether by action or failure to act, which would cause the loss of
such qualification. 

          (ff)
Compliance
with Sarbanes-Oxley Act of 2002. The Company and, to the best of its knowledge, its officers
and directors are in compliance with applicable provisions of the
Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in
connection therewith (the “Sarbanes-Oxley Act”) that are effective and
are actively taking steps to ensure that they will be in compliance with other
applicable provisions of the Sarbanes-Oxley Act upon the 

10

effectiveness
of such provisions, including Section 402 related to loans and Sections 302 and
906 related to certifications.

          (gg)
Material
Understandings, Generally. Except as fairly described in the
Prospectus and the Disclosure Package, the Company has not made a determination
to take any action and is not a party to any understanding, whether or not
legally binding, with any other person with respect to the taking of any action
that, if known to prospective purchasers of the Units, would be likely to
affect their assessment of the value or prospects of the Company or their
decision to invest in the Units.

          Any
certificate signed by an officer of the Company and delivered to the
Representative or to counsel for the Underwriters shall be deemed to be a
representation and warranty by the Company to each Underwriter as to the
matters set forth therein.

          The
Company acknowledges that the Underwriters and, for purposes of the opinions to
be delivered pursuant to Section 5 hereof, counsel to the Company and counsel
to the Underwriters, will rely upon the accuracy and truthfulness of the
foregoing representations and hereby consents to such reliance.

          SECTION 2. Purchase, Sale and Delivery of the Units. 

          (a)
The Firm Units. Upon the terms
herein set forth, the Company agrees to issue and sell the Firm Units to the
several Underwriters. On the basis of the representations, warranties and
agreements herein contained, and upon the terms but subject to the conditions
herein set forth, the Underwriters agree, severally and not jointly to purchase
the Firm Units from the Company. The purchase price per Firm Unit to be paid by
the several Underwriters to the Company shall be $4.55 per Unit.

          (b)
The First Closing Date. Delivery
of the Firm Units to be purchased by the Underwriters and payment therefor
shall be made at 7:30 a.m. (Pacific time) on January 22, 2010, or such other
time and date as the Representative shall designate by notice to the Company
(the time and date of such closing are called the “First Closing Date”). The
Company hereby acknowledges that circumstances under which the Representative
may provide notice to postpone the First Closing Date as originally scheduled
include, but are in no way limited to, any determination by the Company or the
Representative to recirculate to the public copies of an amended or
supplemented Prospectus or Disclosure Package or a delay as contemplated by the
provisions of Section 10.

          (c)
The Optional Units; Each Subsequent Closing
Date. In addition, on the basis of the representations, warranties
and agreements herein contained, and upon the terms but subject to the
conditions herein set forth, the Company hereby grants an option to the
Underwriters to purchase up to an aggregate of 180,000 Optional Units from the
Company at the purchase price per Unit to be paid by the Underwriters for the
Firm Units. The option granted hereunder may be exercised at any time and from
time to time upon notice by the Representative to the Company which notice may
be given at any time within 45 days from the date of this Agreement. Such
notice shall set forth (i) the aggregate number of Optional Units as to which
the Underwriters are exercising the option, (ii) the names and denominations in
which the 

11

Optional Units
are to be registered and (iii) the time, date and place at which such Optional
Units will be delivered (which time and date may be simultaneous with, but not
earlier than, the First Closing Date; and in such case the term “First Closing
Date” shall refer to the time and date of delivery of the Firm Units and the
Optional Units). Each time and date of delivery, if subsequent to the First
Closing Date, is called the “Subsequent Closing Date” and shall be
determined by the Representative and shall not be earlier than three or later
than five full business days after delivery of such notice of exercise. 

          (d)
Public Offering of the Units. The
Representative hereby advises the Company that the Underwriters intend to offer
for sale to the public, as described in the Prospectus, the Units as soon after
this Agreement has been executed and the Registration Statement has been
declared effective as the Representative, in its sole judgment, has determined
is advisable and practicable.

          (e)
Payment for the Units. Payment
for the Units to be sold by the Company shall be made at the First Closing Date
(and, if applicable, at any Subsequent Closing Date) by wire transfer of
immediately available funds to the order of the Company. It is understood that
the Representative has been authorized, for its own account and the accounts of
the several Underwriters, to accept delivery of and receipt for, and make
payment of the purchase price for, the Firm Units and any Optional Units the Underwriters
have agreed to purchase. The Representative, individually and not as the
Representative of the Underwriters, may (but shall not be obligated to) make
payment for any Units to be purchased by any Underwriter whose funds shall not
have been received by the Representative by the First Closing Date or any
Subsequent Closing Date, as the case may be, for the account of such
Underwriter, but any such payment shall not relieve such Underwriter from any
of its obligations under this Agreement.

          (f)
Delivery of the Units. Delivery
of the Firm Units and the Optional Units shall be made through the facilities
of The Depository Trust Company unless the Representative shall otherwise
instruct. Time shall be of the essence, and delivery at the time and place
specified in this Agreement is a further condition to the obligations of the
Underwriters.

          (g)
Delivery of Prospectus to the Underwriters.
Not later than 10:00 p.m. (Eastern time) on the second business day following
the date the Units are first released by the Underwriters for sale to the
public, the Company shall deliver or cause to be delivered, copies of the
Prospectus in such quantities and at such places as the Representative shall
request.

          (h)
Representative’s
Warrants. In
addition to the sums payable to the Representative as provided elsewhere
herein, the Representative shall be entitled to receive at the closing
occurring on the First Closing Date, for itself alone and not as Representative
of the Underwriters, as additional compensation for its services,
Representative’s Warrants for the purchase of up to 120,000 Units at a price of
$6.00 per Unit, upon the terms and subject to adjustment and conversion as
described in the form of Representative’s Warrants filed as an exhibit to the
Registration Statement.

          SECTION 3. Covenants
of the Company. 

          The
Company covenants and agrees with each Underwriter as follows:

12

          (a)
Representative’s
Review of Proposed Amendments and Supplements. During the period
beginning at the Initial Sale Time and ending on the later of the First Closing
Date or such date as, in the opinion of counsel for the Underwriters, the
Prospectus is no longer required by law to be delivered in connection with
sales by an Underwriter or dealer, including under circumstances where such
requirement may be satisfied pursuant to Rule 172 under the Securities Act (the
“Prospectus Delivery Period”), prior to amending or supplementing the
Registration Statement or the Prospectus, including any amendment or supplement
through incorporation by reference of any report filed under the Exchange Act,
the Company shall furnish to the Representative for review a copy of each such
proposed amendment or supplement, and the Company shall not file any such
proposed amendment or supplement to which the Representative reasonably object.

          (b)
Securities
Act Compliance. After the date of this Agreement, the Company shall
promptly advise the Representative in writing (i) when the Registration
Statement, if not effective at the Execution Time, shall have become effective,
(ii) of the receipt of any comments of, or requests for additional or
supplemental information from, the Commission, (iii) of the time and date of
any filing of any post-effective amendment to the Registration Statement or any
amendment or supplement to any preliminary prospectus or the Prospectus, (iv)
of the time and date that any post-effective amendment to the Registration
Statement becomes effective and (v) of the issuance by the Commission of
any stop order suspending the effectiveness of the Registration Statement or
any post-effective amendment thereto or of any order or notice preventing or
suspending the use of the Registration Statement, any preliminary prospectus or
the Prospectus, or of any proceedings to remove, suspend or terminate from
listing or quotation the Common Stock from any securities exchange upon which
it is listed for trading or included or designated for quotation, or of the
threatening or initiation of any proceedings for any of such purposes. The
Company shall use its best efforts to prevent the issuance of any such stop
order or prevention or suspension of such use. If the Commission shall enter
any such stop order or order or notice of prevention or suspension at any time,
the Company will use its best efforts to obtain the lifting of such order at
the earliest possible moment, or will file a new registration statement and use
its best efforts to have such new registration statement declared effective as
soon as practicable. Additionally, the Company agrees that it shall comply with
the provisions of Rules 424(b) and 430A, as applicable, under the Securities
Act, including with respect to the timely filing of documents thereunder, and
will use its reasonable efforts to confirm that any filings made by the Company
under such Rule 424(b) were received in a timely manner by the Commission.

          (c)
Exchange
Act Compliance. During the Prospectus Delivery Period, the Company
will file all documents required to be filed with the Commission pursuant to
Section 13, 14 or 15 of the Exchange Act in the manner and within the time
periods required by the Exchange Act.

          (d) Amendments
and Supplements to the Registration Statement, Prospectus and Other Securities
Act Matters. If, during the Prospectus Delivery Period, any event or
development shall occur or condition exist as a result of which the Disclosure
Package or the Prospectus as then amended or supplemented would include any
untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein in the light of the
circumstances under which they were made, as the case may be, not misleading,
or if it shall be necessary to amend or supplement the Disclosure Package or
the Prospectus, or to file 

13

under the
Exchange Act any document incorporated by reference in the Disclosure Package
or the Prospectus, in order to make the statements therein, in the light of the
circumstances under which they were made, as the case may be, not misleading,
or if in the opinion of the Representative it is otherwise necessary to amend
or supplement the Registration Statement, the Disclosure Package or the
Prospectus, or to file under the Exchange Act any document incorporated by
reference in the Disclosure Package or the Prospectus, or to file a new
registration statement containing the Prospectus, in order to comply with law,
including in connection with the delivery of the Prospectus, the Company agrees
to (i) notify the Representative of any such event or condition (unless such
event or condition was previously brought to the Company’s attention by the
Representative during the Prospectus Delivery Period) and (ii) promptly prepare
(subject to Sections 3(a) and 3(e) hereof), file with the Commission (and use
its best efforts to have any amendment to the Registration Statement or any new
registration statement to be declared effective) and furnish at its own expense
to the Underwriters and to dealers, amendments or supplements to the
Registration Statement, the Disclosure Package or the Prospectus, or any new
registration statement, necessary in order to make the statements in the
Disclosure Package or the Prospectus as so amended or supplemented, in the
light of the circumstances under which they were made, as the case may be, not
misleading or so that the Registration Statement, the Disclosure Package or the
Prospectus, as amended or supplemented, will comply with law.

          (e)
Permitted Free Writing Prospectuses.
The Company represents that it has not made, and agrees that, unless it obtains
the prior written consent of the Representative, it will not make, any offer
relating to the Units that would constitute an Issuer Free Writing Prospectus
or that would otherwise constitute a “free writing prospectus” (as
defined in Rule 405 of the Securities Act) required to be filed by the Company
with the Commission or retained by the Company under Rule 433 of the Securities
Act; provided that the prior written consent of the Representative hereto shall
be deemed to have been given in respect of the Free Writing Prospectuses
included in Schedule B hereto. Any such free writing prospectus consented to by
the Representative is hereinafter referred to as a “Permitted Free Writing
Prospectus”. The Company agrees that (i) it has treated and will treat, as
the case may be, each Permitted Free Writing Prospectus as an Issuer Free
Writing Prospectus, and (ii) has complied and will comply, as the case may be,
with the requirements of Rules 164 and 433 of the Securities Act applicable to
any Permitted Free Writing Prospectus, including in respect of timely filing
with the Commission, legending and record keeping.

          (f)
Copies of
any Amendments and Supplements to the Prospectus. The Company agrees
to furnish the Representative, without charge, during the Prospectus Delivery
Period, as many copies of each of the preliminary prospectus, the Prospectus
and the Disclosure Package and any amendments and supplements thereto
(including any documents incorporated or deemed incorporated by reference
therein) as the Representative may reasonably request.

          (g)
Blue Sky
Compliance. The Company shall cooperate with the Representative and
counsel for the Underwriters to qualify or register the Common Stock and the
Unit Warrants for sale under (or obtain exemptions from the application of) the
state securities or blue sky laws of those jurisdictions designated by the
Representative, shall comply with such laws and shall continue such
qualifications, registrations and exemptions in effect so long as required for
the distribution of the Common Stock and the Unit Warrants. The Company shall
not be required to 

14

qualify as a
foreign corporation or to take any action that would subject it to general
service of process in any such jurisdiction where it is not presently qualified
or where it would be subject to taxation as a foreign corporation. The Company
will advise the Representative promptly of the suspension of the qualification
or registration of (or any such exemption relating to) the Common Stock and/or
the Unit Warrants for offering, sale or trading in any jurisdiction or any
initiation or threat of any proceeding for any such purpose, and in the event
of the issuance of any order suspending such qualification, registration or
exemption, the Company shall use its best efforts to obtain the withdrawal
thereof at the earliest possible moment.

          (h)
Use of
Proceeds. The Company shall apply the net proceeds from the sale of
the Units sold by it in the manner described under the caption “Use of
Proceeds” in the Disclosure Package and the Prospectus.

          (i)
Transfer
Agent. The Company shall engage and maintain, at its expense, a
registrar and transfer agent for the Common Stock and the Unit Warrants.

          (j)
Earnings
Statement. As soon as practicable and in any event no later than 15
months after the effective date of the Registration Statement, the Company will
make generally available to its security holders and to the Representative an
earnings statement (which need not be audited) covering a period of at least 12
months beginning after the effective date of the Registration Statement that satisfies
the provisions of Section 11(a) of the Securities Act and Rule 158 under the
Securities Act.

          (k)
Periodic
Reporting Obligations. During the Prospectus Delivery Period, the
Company shall file, on a timely basis, with the Commission all reports and
documents required to be filed under the Exchange Act. Additionally, the
Company shall report the use of proceeds from the issuance of the Units as may
be required under Rule 463 under the Securities Act.

          (l)
Company
to Provide Interim Financial Statements. Prior to the First Closing
Date and, if applicable, each Subsequent Closing Date, the Company will furnish
the Underwriters, as soon as they have been prepared by or are available to the
Company, a copy of any unaudited interim financial statements of the Company
for any period subsequent to the period covered by the most recent financial
statements appearing in the Registration Statement and the Prospectus.

          (m)
Quotation. The Company will use its
best efforts to include, subject to notice of issuance, the Common Stock and
the Unit Warrants on the OTCBB.

          (n)
INTENTIONALLY OMITTED 

          (o)
Warrant
Solicitation Fees. The Company hereby engages the Representative, on
a non-exclusive basis, as its agent for the solicitation of the exercise of the
Unit Warrants. The Company will (i) assist the Representative with respect to
the solicitation, if requested by the Representative, and (ii) provide the Representative,
and direct the Company’s transfer and warrant agent to provide to the Representative,
at the Company’s cost, lists of the record and, to the extent known, beneficial
owners of the Unit Warrants. Commencing one year from the effective date of the
Registration Statement, the Company will pay the Representative a commission of
five percent (5%) of the exercise price of the Unit Warrants for
each Unit 

15

Warrant exercised, payable on the date of such exercise, on the terms
provided for in the Warrant Agreement, only if permitted under the rules and
regulations of the FINRA and only to the extent that a holder who exercises
Unit Warrants specifically designates, in writing, that the Representative
solicited the exercise. The Representative may engage sub-agents in its
solicitation efforts. The Company agrees to disclose the arrangement to pay
solicitation fees to the Representative in any prospectus used by the Company
in connection with the registration of the shares of Common Stock underlying
the Unit Warrants.

          (p)
Right of
First Refusal. For a period of 36 months from the effective date of
the Registration Statement, the Company grants the Representative the right of
first refusal to act as lead underwriter for any and all future public and
private equity and debt offerings of the Company, or any successor to or
subsidiary of the Company, excluding ordinary course of business financings
such as bank lines of credit, accounts receivable and factoring. The
Representative shall have thirty (30) days from receipt of written notice with
regard to any such offering to exercise its right of first refusal with respect
thereto.

          (q)
Future
Reports to the Representative. During the period of five years
hereafter, the Company will furnish, if not otherwise available on EDGAR, to
the Representative at 811 SW Naito Parkway, Portland, Oregon 97204 Attention: Syndicate
Department: (i) as soon as practicable after the end of each fiscal year,
copies of the Annual Report of the Company containing the balance sheet of the
Company as of the close of such fiscal year and statements of income,
stockholders’ equity and cash flows for the year then ended and the opinion
thereon of the Company’s independent public or certified public accountants;
(ii) as soon as practicable after the filing thereof, copies of each proxy statement,
Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on
Form 8-K or other report filed by the Company with the Commission, the FINRA or
any securities exchange; and (iii) as soon as available, copies of any report
or communication of the Company mailed generally to holders of its capital
stock.

          (r) Investment
Limitation. The Company shall not invest, or otherwise use the
proceeds received by the Company from its sale of the Units in such a manner as
would require the Company to register as an investment company under the
Investment Company Act.

          (s) No
Manipulation of Price. The Company will not take, directly or
indirectly, any action designed to cause or result in, or that has constituted
or might reasonably be expected to constitute, the stabilization or
manipulation of the price of any securities of the Company.

          (t) Existing
Lock-Up Agreements. Except
as described in the Prospectus, there are no existing agreements between
the Company and its security holders that prohibit the sale, transfer,
assignment, pledge or hypothecation of any of the Company’s securities. The
Company will direct the transfer agent to place stop transfer restrictions upon
the securities of the Company that are bound by such “lock-up” agreements for
the duration of the periods contemplated therein.

          SECTION 4. Payment of
Expenses.

          (a) The Representative shall be entitled to reimbursement from the
Company, for itself alone and not as Representative of the Underwriters, to a non-accountable expense allowance
equal to 3% of the aggregate initial public offering price of the Firm Units.
The 

16

Representative
shall be entitled to withhold this
allowance on the Closing Date related to the purchase of the Firm Units.

          (b)
In addition to the payment described in Paragraph (a) of this Section 4, the
Company agrees to pay all costs, fees and expenses incurred in connection with
the performance of its obligations hereunder and in connection with the
transactions contemplated hereby, including without limitation (i) all expenses
incident to the issuance and delivery of the Units (including all printing and
engraving costs, if any), (ii) all fees and expenses of the registrar and
transfer agent of the Common Stock, (iii) all necessary issue, transfer and
other stamp taxes in connection with the issuance and sale of the Units to the
Underwriters, (iv) all fees and expenses of the Company’s counsel, independent
public or certified public accountants and other advisors, (v) all costs and
expenses incurred in connection with the preparation, printing, filing,
shipping and distribution of the Registration Statement (including financial
statements, exhibits, schedules, consents and certificates of experts), each
Issuer Free Writing Prospectus, each preliminary prospectus and the Prospectus,
and all amendments and supplements thereto, and this Agreement, (vi) all filing
fees, attorneys’ fees and expenses incurred by the Company or the Underwriters
in connection with qualifying or registering (or obtaining exemptions from the
qualification or registration of) all or any part of the Units for offer and
sale under the state securities or blue sky laws, and, if requested by the Representative,
preparing and printing a “Blue Sky Survey” or memorandum, and any supplements
thereto, advising the Underwriters of such qualifications, registrations and
exemptions, (vii) the filing fees incident to the FINRA’s review and approval
of the Underwriters’ participation in the offering and distribution of the
Units, and (viii) all other fees, costs and expenses referred to in Item 25 of
Part II of the Registration Statement. Except as provided in this Section 4,
Section 6, Section 8 and Section 9 hereof, the Underwriters shall pay its own
expenses, including the fees and disbursements of its counsel.

          SECTION 5. Conditions
of the Obligations of the Underwriters. The obligations of the
several Underwriters to purchase and pay for the Firm Units as provided herein
on the First Closing Date and, with respect to the Optional Units, each
Subsequent Closing Date, shall be subject to (1) the accuracy of the
representations and warranties on the part of the Company set forth in Section
1 hereof as of the date hereof and as of the First Closing Date and each
Subsequent Closing Date as though then made; (2) the timely performance by the
Company of its covenants and other obligations hereunder; and (3) each of the
following additional conditions:

          (a) Accountant’s
Comfort Letter. On the date hereof, the Representative shall have
received from the Accountant, a letter dated the date hereof addressed to the
Underwriters, in form and substance satisfactory to the Representative,
containing statements and information of the type ordinarily included in
accountant’s “comfort letters” to underwriters, delivered according to
Statement of Auditing Standards No. 72 (or any successor bulletin), with
respect to the audited and unaudited financial statements and certain financial
information contained in the Registration Statement and the Prospectus (and the
Representative shall have received an additional two conformed copies of such
accountant’s letter for the several Underwriters).

          (b)
Effectiveness of Registration Statement; Compliance
with Registration Requirements; No Stop Order. For the period from and after effectiveness
of this Agreement and 

17

prior to the First Closing Date and, with respect to the Optional
Units, any Subsequent Closing Date:

	
  

 	
  

 
	
  

 	
 (i) the
 Company shall have filed the Prospectus with the Commission (including the
 information required by Rule 430A under the Securities Act) in the manner and
 within the time period required by Rule 424(b) under the Securities Act; or
 the Company shall have filed a post-effective amendment to the Registration
 Statement containing the information required by such Rule 430A, and such
 post-effective amendment shall have become effective; and

 
	
  

 	
  

 
	
  

 	
 (ii) no stop
 order suspending the effectiveness of the Registration Statement, or any
 post-effective amendment to the Registration Statement, shall be in effect
 and no proceedings for such purpose shall have been instituted or threatened
 by the Commission.

 

          (c) No Material
Adverse Change. For the period from and after the date of this
Agreement and prior to the First Closing Date and, with respect to the Optional
Units, each Subsequent Closing Date, in the judgment of the Representative
there shall not have occurred any Material Adverse Change.

          (d) Opinion of
Counsel for the Company. On each of the First Closing Date and each
Subsequent Closing Date the Representative shall have received the opinion of Morse,
Zelnick, Rose & Lander LLP, counsel for the Company, dated as of the First
Closing Date or the Subsequent Closing Date, as applicable, substantially in
the form attached as Exhibit A (and the Representative shall have received an
additional two conformed copies of such counsel’s legal opinion for the several
Underwriters).

          (e) Opinion of
Counsel for the Underwriters. On each of the First Closing Date and
each Subsequent Closing Date the Representative shall have received the opinion
of Holland & Knight LLP, counsel for the Underwriters, dated as of the
First Closing Date or each Subsequent Closing Date, as applicable, in a form
satisfactory to the Representative (and the Representative shall have received
an additional two conformed copies of such counsel’s legal opinion for the
several Underwriters).

          (f) Officers’
Certificate. On each of the First Closing Date and each Subsequent
Closing Date, the Representative shall have received a written certificate
executed by the Chairman of the Board, Chief Executive Officer or President of
the Company and the Chief Financial Officer or Chief Accounting Officer of the
Company, dated as of such Closing Date, to the effect that the signers of such
certificate have reviewed the Registration Statement, the Prospectus and any
amendment or supplement thereto, any Issuer Free Writing Prospectus and any
amendment or supplement thereto and this Agreement, to the effect set forth in
subsection (b)(ii) of this Section 5, and further to the effect that:

	
  

 	
  

 
	
  

 	
 (i) for the
 period from and after the date of this Agreement and prior to such Closing
 Date, there has not occurred any Material Adverse Change;

 

18

	
  

 	
  

 
	
  

 	
 (ii) the
 representations, warranties and covenants of the Company set forth in Section
 1 of this Agreement are true and correct with the same force and effect as
 though expressly made on and as of such Closing Date; and

 
	
  

 	
  

 
	
  

 	
 (iii) the Company
 has complied with all the agreements hereunder and satisfied all the
 conditions on its part to be performed or satisfied hereunder at or prior to
 such Closing Date.

 

          (g) Bring-down
Comfort Letter. On each of the First Closing Date and each
Subsequent Closing Date, the Representative shall have received from the
Accountant a letter dated such date, in form and substance satisfactory to the Representative,
to the effect that it reaffirms the statements made in the letter furnished by
it pursuant to subsection (a) of this Section 5, except that the specified date
referred to therein for the carrying out of procedures shall be no more than
three business days prior to the First Closing Date or Subsequent Closing Date,
as the case may be (and the Representative shall have received an additional
two conformed copies of such accountant’s letter for the several Underwriters).

          (h) Lock-Up
Agreement from Certain Securityholders of the Company. On or prior
to the date hereof, the Company shall have furnished to the Representative an
agreement in the form of Exhibit B hereto from each of the Company’s officers,
directors and more than 5% stockholders, and such agreement shall be in full
force and effect on each of the First Closing Date and each Subsequent Closing
Date.

          (i) Additional
Documents. On or before each of the First Closing Date and each
Subsequent Closing Date, the Representative and counsel for the Underwriters
shall have received such information, documents and opinions as they may
reasonably require for the purposes of enabling them to pass upon the issuance
and sale of the Units as contemplated herein, or in order to evidence the
accuracy of any of the representations and warranties, or the satisfaction of
any of the conditions or agreements, herein contained.

          If
any condition specified in this Section 5 is not satisfied when and as required
to be satisfied, this Agreement may be terminated by the Representative by
notice to the Company at any time on or prior to the First Closing Date and,
with respect to the Optional Units, at any time prior to each Subsequent
Closing Date, which termination shall be without liability on the part of any
party to any other party, except that Section 4, Section 6, Section 8 and Section
9 shall at all times be effective and shall survive such termination.

          SECTION 6. Reimbursement
of Underwriters’ Expenses. If this Agreement is terminated by the Representative
pursuant to Section 5 or Section 11, or by the Company pursuant to Section 7,
or if the sale to the Underwriters of the Units on the First Closing Date or
Subsequent Closing Date is not consummated because of any refusal, inability or
failure on the part of the Company to perform any agreement herein or to comply
with any provision hereof, the Company agrees to reimburse the Representative
and the other Underwriters (or such Underwriters as have terminated this
Agreement with respect to themselves), severally, upon demand for all
out-of-pocket expenses that shall have been reasonably incurred by the
Representative and the Underwriters in connection with the proposed purchase
and the offering and sale of the Units, including but not limited to fees and
disbursements of counsel, printing 

19

expenses,
travel expenses, postage, facsimile and telephone charges; provided, however,
that the Company shall only reimburse the Representative (and not any of the
other Underwriters) for fees and disbursements of counsel.

          SECTION 7. Effectiveness
of this Agreement. This Agreement shall not become effective until
the later of (i) the execution of this Agreement by the parties hereto and (ii)
notification (including by way of oral notification from the reviewer at the
Commission) by the Commission to the Company of the effectiveness of the
Registration Statement under the Securities Act; provided that Sections 4, 6, 8 and 9 shall at all
times be effective.

          Prior
to such effectiveness, this Agreement may be terminated by any party by notice
to each of the other parties hereto, and any such termination shall be without
liability on the part of (a) the Company to any Underwriter, except that
(solely in the case where the Company has terminated this Agreement pursuant to
this Section 7) the Company shall be obligated to reimburse the expenses of the
Representative and the Underwriters pursuant to Sections 4 and 6 hereof, or (b)
any Underwriter to the Company except that the provisions of Section 8 and
Section 9 shall at all times be effective and shall survive such termination.

          SECTION 8. Indemnification.

          (a) Indemnification
of the Underwriters. 

          (1)
The Company agrees to indemnify and hold harmless each Underwriter, its
officers and employees, and each person, if any, who controls any Underwriter
within the meaning of the Securities Act and the Exchange Act against any loss,
claim, damage, liability or expense, as incurred, to which such Underwriter or
such controlling person may become subject, under the Securities Act, the
Exchange Act or other federal or state statutory law or regulation, or at
common law or otherwise (including in settlement of any litigation, if such
settlement is effected with the written consent of the Company), insofar as
such loss, claim, damage, liability or expense (or actions in respect thereof
as contemplated below) arises out of or is based (i) upon any untrue statement
or alleged untrue statement of a material fact contained in the Registration
Statement, or any amendment thereto, including any information deemed to be a
part thereof pursuant to Rule 430A, Rule 430B and Rule 430C under the
Securities Act, or the omission or alleged omission therefrom of a material
fact required to be stated therein or necessary to make the statements therein
not misleading; or (ii) upon any untrue statement or alleged untrue statement
of a material fact contained in any Issuer Free Writing Prospectus, any
preliminary prospectus or the Prospectus (or any amendment or supplement
thereto), or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; or (iii) in whole or
in part upon any inaccuracy in the representations and warranties of the
Company contained herein; or (iv) in whole or in part upon any failure of the
Company to perform its obligations hereunder or under law; or (v) upon any act
or failure to act or any alleged act or failure to act by any Underwriter in
connection with, or relating in any manner to, the Common Stock or the offering
contemplated hereby, and which is included as part of or referred to in any
loss, claim, damage, liability or action arising out of or based upon any
matter covered by clause (i) or (ii) above, provided that the Company shall not
be liable under this clause (v) to the extent that a court of competent
jurisdiction shall have determined by a final judgment that such loss, claim,

20

damage, liability or action resulted directly from any such acts or failures to
act undertaken or omitted to be taken by such Underwriter through its bad faith
or willful misconduct; and to reimburse each Underwriter and each such
controlling person for any and all expenses (including the fees and
disbursements of counsel chosen by the Representative) as such expenses are
reasonably incurred by such Underwriter or such controlling person in
connection with investigating, defending, settling, compromising or paying any
such loss, claim, damage,
liability, expense or action; provided, however, that the
foregoing indemnity agreement shall not apply to any loss, claim, damage,
liability or expense to the extent, but only to the extent, arising out of or
based upon any untrue statement or alleged untrue statement or omission or
alleged omission made in reliance upon and in conformity with written
information furnished to the Company by the Representative expressly for use in
the Registration Statement, any Issuer Free Writing Prospectus, any preliminary
prospectus or the Prospectus (or any amendment or supplement thereto). The
indemnity agreement set forth in this Section 8(a)(1) shall be in addition to
any liabilities that the Company may otherwise have.

          (b) Indemnification
of the Company, its Directors and Officers. Each Underwriter agrees,
severally and not jointly, to indemnify and hold harmless the Company, each of
its directors, each of its officers who signed the Registration Statement and
each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act, against any loss, claim, damage, liability
or expense, as incurred, to which the Company, or any such director, officer,
or controlling person may become subject, under the Securities Act, the
Exchange Act, or other federal or state statutory law or regulation, or at
common law or otherwise (including in settlement of any litigation, if such
settlement is effected with the written consent of such Underwriter), insofar
as such loss, claim, damage, liability or expense (or actions in respect thereof
as contemplated below) arises out of or is based upon any untrue or alleged
untrue statement of a material fact contained in the Registration Statement,
any Issuer Free Writing Prospectus, any preliminary prospectus or the
Prospectus (or any amendment or supplement thereto), or arises out of or is
based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission
was made in the Registration Statement, any Issuer Free Writing Prospectus, any
preliminary prospectus or the Prospectus (or any amendment or supplement thereto),
in reliance upon and in conformity with written information furnished to the
Company by the Representative expressly for use therein; and to reimburse the
Company, or any such director, officer, or controlling person for any legal and
other expense reasonably incurred by the Company, or any such director,
officer, or controlling person in connection with investigating, defending,
settling, compromising or paying any such loss, claim, damage, liability,
expense or action. The Company hereby acknowledges that the only information
that the Underwriters have furnished to the Company expressly for use in the
Registration Statement, any Issuer Free Writing Prospectus, any preliminary
prospectus or the Prospectus (or any amendment or supplement thereto) are the
statements set forth in the table in the first paragraph and in the Section
entitled “Stabilization” under the caption “Underwriting” in the preliminary
prospectus and the Prospectus; and the Underwriters confirm that such
statements are correct. The indemnity agreement set forth in this Section 8(b)
shall be in addition to any liabilities that each Underwriter may otherwise
have.

21

          (c) Notifications
and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 8 of notice of the commencement of any
action, such indemnified party will, if a claim in respect thereof is to be
made against an indemnifying party under this Section 8, notify the
indemnifying party in writing of the commencement thereof, but the omission so
to notify the indemnifying party will not relieve it from any liability which
it may have to any indemnified party for contribution or otherwise than under
the indemnity agreement contained in this Section 8 or to the extent it is not
prejudiced as a proximate result of such failure. In case any such action is
brought against any indemnified party and such indemnified party seeks or
intends to seek indemnity from an indemnifying party, the indemnifying party
will be entitled to participate in, and, to the extent that it shall elect,
jointly with all other indemnifying parties similarly notified, by written
notice delivered to the indemnified party promptly after receiving the
aforesaid notice from such indemnified party, to assume the defense thereof
with counsel reasonably satisfactory to such indemnified party; provided,
however, if the defendants in any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have
reasonably concluded that a conflict may arise between the positions of the
indemnifying party and the indemnified party in conducting the defense of any
such action or that there may be legal defenses available to it and/or other
indemnified parties which are different from or additional to those available
to the indemnifying party, the indemnified party or parties shall have the
right to select separate counsel to assume such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party
or parties. Upon receipt of notice from the indemnifying party to such
indemnified party of such indemnifying party’s election so to assume the
defense of such action and approval by the indemnified party of counsel, the
indemnifying party will not be liable to such indemnified party under this
Section 8 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof unless (i) the
indemnified party shall have employed separate counsel in accordance with the
proviso to the next preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one
separate counsel (together with local counsel), approved by the indemnifying
party (the Representative in the case of Section 8(b) and Section 9),
representing the indemnified parties who are parties to such action) or (ii)
the indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of commencement of the action, in each of which cases the fees and
expenses of counsel shall be at the expense of the indemnifying party.

          (d)
Settlements. The indemnifying party under this Section 8
shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent or if there be a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any loss, claim, damage, liability or expense by
reason of such settlement or judgment. Notwithstanding the foregoing sentence,
if at any time an indemnified party shall have requested an indemnifying party
to reimburse the indemnified party for fees and expenses of counsel as
contemplated by Section 8(c) hereof, the indemnifying party agrees that it
shall be liable for any settlement of any proceeding effected without its
written consent if (i) such settlement is entered into more than 30 days after
receipt by such indemnifying party of the aforesaid request and (ii) such
indemnifying party shall not have reimbursed the indemnified party in
accordance with such request prior to the date of such settlement. No
indemnifying party shall, without the prior written consent of the indemnified

22

party, effect
any settlement, compromise or consent to the entry of judgment in any pending
or threatened action, suit or proceeding in respect of which any indemnified
party is or could have been a party and indemnity was or could have been sought
hereunder by such indemnified party, unless such settlement, compromise or
consent includes an unconditional release of such indemnified party from all
liability on claims that are the subject matter of such action, suit or
proceeding. 

          SECTION 9. Contribution.
If the indemnification provided for in Section 8 is for any reason
held to be unavailable to or otherwise insufficient to hold harmless an
indemnified party in respect of any losses, claims, damages, liabilities or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount paid or payable by such indemnified party, as incurred, as
a result of any losses, claims, damages, liabilities or expenses referred to
therein (i) in such proportion as is appropriate to reflect the relative
benefits received by the indemnifying parties on the one hand, and the
indemnified parties, on the other hand, from the offering of the Units pursuant
to this Agreement or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) above but also the
relative fault of the indemnifying parties, on the one hand, and the
indemnified parties, on the other hand, in connection with the statements or
omissions or inaccuracies in the representations and warranties herein which
resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The relative benefits received by
the indemnifying parties, on the one hand, and the indemnified parties, on the
other hand, in connection with the offering of the Units pursuant to this
Agreement shall be deemed to be in the same respective proportions as the total
net proceeds from the offering of the Units pursuant to this Agreement (before
deducting expenses) received by the indemnifying parties, and the total
underwriting discount received by the indemnified parties, in each case as set
forth on the front cover page of the Prospectus bear to the aggregate initial
public offering price of the Units as set forth on such cover. The relative
fault of the indemnifying parties, on the one hand, and the indemnified
parties, on the other hand, shall be determined by reference to, among other
things, whether any such untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact or any such inaccurate
or alleged inaccurate representation or warranty relates to information
supplied by indemnifying parties, on the one hand, or the indemnified parties,
on the other hand, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

          The
amount paid or payable by a party as a result of the losses, claims, damages,
liabilities and expenses referred to above shall be deemed to include, subject
to the limitations set forth in Section 8(c), any legal or other fees or
expenses reasonably incurred by such party in connection with investigating or
defending any action or claim. The provisions set forth in Section 8(c) with
respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 9; provided, however, that no
additional notice shall be required with respect to any action for which notice
has been given under Section 8(c) for purposes of indemnification.

          The
Company and the Underwriters agree that it would not be just and equitable if
contribution pursuant to this Section 9 were determined by pro rata allocation
or by any other

23

method of
allocation which does not take account of the equitable considerations referred
to in this Section 9.

          Notwithstanding
the provisions of this Section 9, no Underwriter shall not be required to
contribute any amount in excess of the underwriting commissions received by
such Underwriter in connection with the Units underwritten by it and
distributed to the public. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters’ obligations to contribute pursuant to this
Section 9 are several, and not joint, in proportion to their respective
underwriting commitments as set forth opposite their names in Schedule A. For
purposes of this Section 9, each officer and employee of an Underwriter and
each person, if any, who controls an Underwriter within the meaning of the
Securities Act and the Exchange Act shall have the same rights to contribution
as such Underwriter; and each director of the Company, each officer of the
Company who signed the Registration Statement, and each person, if any, who controls
the Company within the meaning of the Securities Act and the Exchange Act shall
have the same rights to contribution as the Company.

          SECTION 10.
 Default of One or More of the Several
Underwriters. If, on the First Closing Date or each Subsequent
Closing Date, as the case may be, any one or more of the several Underwriters
shall fail or refuse to purchase Units that it or they have agreed to purchase
hereunder on such date, and the aggregate number of Units which such defaulting
Underwriter or Underwriters agreed but failed or refused to purchase does not
exceed 10% of the aggregate number of the Units to be purchased on such date,
the other Underwriters shall be obligated, severally, in the proportions that
the number of Firm Units set forth opposite their respective names on Schedule
A bears to the aggregate number of Firm Units set forth opposite the names of
all such non-defaulting Underwriters, or in such other proportions as may be
specified by the Representative with the consent of the non-defaulting
Underwriters, to purchase the Units which such defaulting Underwriter or
Underwriters agreed but failed or refused to purchase on such date. If, on the
First Closing Date or each Subsequent Closing Date, as the case may be, any one
or more of the Underwriters shall fail or refuse to purchase Units and the
aggregate number of Units with respect to which such default occurs exceeds 10%
of the aggregate number of Units to be purchased on such date, and arrangements
satisfactory to the Representative and the Company for the purchase of such
Units are not made within 48 hours after such default, this Agreement shall
terminate without liability of any party to any other party except that the
provisions of Section 4, Section 6, Section 8 and Section 9 shall at all times
be effective and shall survive such termination. In any such case either the
Representative or the Company shall have the right to postpone the First
Closing Date or each Subsequent Closing Date, as the case may be, but in no
event for longer than seven days in order that the required changes, if any, to
the Registration Statement and the Prospectus or any other documents or
arrangements may be effected.

          As
used in this Agreement, the term “Underwriter” shall be deemed to include
any person substituted for a defaulting Underwriter under this Section 10. Any
action taken under this Section 10 shall not relieve any defaulting Underwriter
from liability in respect of any default of such Underwriter under this
Agreement.

          SECTION 11.
Termination of this Agreement. Prior to the First Closing
Date and, with respect to Optional Units, each Subsequent Closing Date, whether
before or after notification by

24

the Commission
to the Company of the effectiveness of the Registration Statement under the
Securities Act, this Agreement may be terminated by the Representative notice
given to the Company if at any time (i) trading or quotation in any of the
Company’s securities shall have been suspended or limited by the Commission or
by the OTCBB; (ii) a general banking moratorium shall have been declared by any
of federal, New York or Texas authorities; (iii) there shall have occurred any
outbreak or escalation of national or international hostilities or any crisis
or calamity, or any change in the United States or international financial
markets, or any substantial change or development involving a prospective
substantial change in United States’ or international political, financial or
economic conditions that, in the judgment of the Representative is material and
adverse and makes it impracticable to market the Units in the manner and on the
terms described in the Prospectus or to enforce contracts for the sale of
securities; or (iv) in the judgment of the Representative there shall have
occurred any Material Adverse Change (regardless of whether any loss associated
with such Material Adverse Change shall have been insured). Any termination
pursuant to this Section 11 shall be without liability on the part of (a) the
Company to any Underwriter, except that the Company shall be obligated to
reimburse the expenses of the Representative and the Underwriters, (b) any
Underwriter to the Company, or (c) of any party hereto to any other party
except that the provisions of Section 8 and Section 9 shall at all times be
effective and shall survive such termination.

          SECTION 12.
No Advisory or Fiduciary
Responsibility. The Company acknowledges and agrees that: (i) the
purchase and sale of the Units pursuant to this Agreement, including the
determination of the public offering price of the Units and any related
discounts and commissions, is an arm’s-length commercial transaction between
the Company, on the one hand, and the several Underwriters, on the other hand,
and the Company is capable of evaluating and understanding and understands and
accepts the terms, risks and conditions of the transactions contemplated by
this Agreement; (ii) in connection with each transaction contemplated hereby
and the process leading to such transaction each Underwriter is and has been
acting solely as a principal and is not the financial advisor, agent or
fiduciary of the Company or its affiliates, stockholders, creditors or
employees or any other party; (iii) no Underwriter has assumed and will not
assume an advisory, agency or fiduciary responsibility in favor of the Company
with respect to any of the transactions contemplated hereby or the process
leading thereto (irrespective of whether such Underwriter has advised or is
currently advising the Company on other matters) and no Underwriter has any
obligation to the Company with respect to the offering contemplated hereby
except the obligations expressly set forth in this Agreement; (iv) the several
Underwriters and their respective affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Company and
that the several Underwriters have no obligation to disclose any of such
interests by virtue of any advisory, agency or fiduciary relationship; and (v)
the Underwriters have not provided any legal, accounting, regulatory or tax
advice with respect to the offering contemplated hereby and the Company has
consulted its own legal, accounting, regulatory and tax advisors to the extent
it deemed appropriate. The Company hereby waives and releases, to the fullest
extent permitted by law, any claims that the Company may have against the
several Underwriters with respect to any breach or alleged breach of agency or
fiduciary duty.

          This
Agreement supersedes all prior agreements and understandings (whether written
or oral) between the Company and the several Underwriters, or any of them, with
respect to the subject matter hereof.

25

          SECTION 13.
Representations and Indemnities to Survive Delivery. The
respective indemnities, agreements, representations, warranties and other
statements of the Company, of its officers, and of the several Underwriters set
forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation made by or on behalf of any Underwriter
or the Company or any of its or their partners, officers or directors or any
controlling person, as the case may be, and will survive delivery of and
payment for the Units sold hereunder and any termination of this Agreement.

          SECTION 14.
Notices. All communications hereunder shall be in writing
and shall be mailed, hand delivered or telecopied and confirmed to the parties
hereto as follows:

	
  

 	
  

 	
  

 
	
  

 	
 If to the
 Representative:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Paulson
 Investment Company, Inc.

 
	
  

 	
  

 	
 811 SW Naito
 Parkway, Suite 200

 
	
  

 	
  

 	
 Portland, OR
 97204

 
	
  

 	
  

 	
 Facsimile:
 (503) 243-6095

 
	
  

 	
  

 	
 Attention:
 Syndicate Department

 
	
  

 	
  

 	
  

 
	
  

 	
 with a copy to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Holland
 & Knight LLP

 
	
  

 	
  

 	
 111 SW Fifth
 Avenue, Suite 2300

 
	
  

 	
  

 	
 Portland, OR
 97204

 
	
  

 	
  

 	
 Facsimile:
 (503) 241-8014

 
	
  

 	
  

 	
 Attention:
 Mark A. von Bergen, Esq.

 
	
  

 	
  

 	
  

 
	
  

 	
 If to the
 Company:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 BioCurex,
 Inc.

 
	
  

 	
  

 	
 7080 River
 Road, Suite 215

 
	
  

 	
  

 	
 Richmond,
 British Columbia, Canada V6X 1X5

 
	
  

 	
  

 	
 Facsimile:
 (604) 207-9165

 
	
  

 	
  

 	
 Attention:
 Ricardo Moro-Vidal

 
	
  

 	
  

 	
  

 
	
  

 	
 with a copy to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Morse,
 Zelnick, Rose & Lander LLP

 
	
  

 	
  

 	
 405 Park
 Avenue, Suite 1401

 
	
  

 	
  

 	
 New York, NY
 10022

 
	
  

 	
  

 	
 Facsimile:
 (212) 838-9190

 
	
  

 	
  

 	
 Attention:
 Joel J. Goldschmidt, Esq.

 

          Any
party hereto may change the address for receipt of communications by giving written
notice to the others.

26

          SECTION 15.
Successors. This Agreement will inure to the benefit of and
be binding upon the parties hereto, including any substitute Underwriters,
pursuant to Section 10 thereof, and to the benefit of the employees, officers
and directors and controlling persons referred to in Section 8 and Section 9,
and in each case their respective successors, and personal representatives and
no other person will have any right or obligation hereunder. The term “successors”
shall not include any purchaser of the Units as such from any of the
Underwriters merely by reason of such purchase.

          SECTION 16.
Partial Unenforceability. The invalidity or unenforceability
of any Section, paragraph or provision of this Agreement shall not affect the
validity or enforceability of any other Section, paragraph or provision hereof.
If any Section, paragraph or provision of this Agreement is for any reason
determined to be invalid or unenforceable, there shall be deemed to be made such
minor changes (and only such minor changes) as are necessary to make it valid
and enforceable.

          SECTION 17.
Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF OREGON
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE.

          SECTION 18.
Consent to Jurisdiction. Any legal suit, action or
proceeding arising out of or based upon this Agreement or the transactions
contemplated hereby (“Related Proceedings”) may be instituted in the
federal courts of the United States of America located in Portland, Oregon or
the courts of the Oregon in each case located in Portland, Oregon
(collectively, the “Specified Courts”), and each party irrevocably
submits to the exclusive jurisdiction (except for proceedings instituted in
regard to the enforcement of a judgment of any such court (a “Related
Judgment”), as to which such jurisdiction is non-exclusive) of such courts
in any such suit, action or proceeding. Service of any process, summons, notice
or document by mail to such party’s address set forth above shall be effective
service of process for any suit, action or other proceeding brought in any such
court. The parties irrevocably and unconditionally waive any objection to the
laying of venue of any suit, action or other proceeding in the Specified Courts
and irrevocably and unconditionally waive and agree not to plead or claim in
any such court that any such suit, action or other proceeding brought in any
such court has been brought in an inconvenient forum. 

          SECTION 19.
General Provisions. This Agreement constitutes the entire
agreement of the parties to this Agreement and supersedes all prior written or
oral and all contemporaneous oral agreements, understandings and negotiations
with respect to the subject matter hereof. This Agreement may be executed in
two or more counterparts, each one of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument. This
Agreement may not be amended or modified unless in writing by all of the
parties hereto, and no condition herein (express or implied) may be waived
unless waived in writing by each party whom the condition is meant to benefit.
The Section headings herein are for the convenience of the parties only and
shall not affect the construction or interpretation of this Agreement.

          Each
of the parties hereto acknowledges that it is a sophisticated business person
who was adequately represented by counsel during negotiations regarding the
provisions hereof,

27

including,
without limitation, the indemnification provisions of Section 8 and the
contribution provisions of Section 9, and is fully informed regarding said
provisions. Each of the parties hereto further acknowledges that the provisions
of Sections 8 and 9 hereto fairly allocate the risks in light of the ability of
the parties to investigate the Company, its affairs and its business in order
to assure that adequate disclosure has been made in the Registration Statement,
any preliminary prospectus and the Prospectus (and any amendments and
supplements thereto), as required by the Securities Act and the Exchange Act.

          The
respective indemnities, contribution agreements, representations, warranties
and other statements of the Company and the several Underwriters set forth in
or made pursuant to this Agreement shall remain operative and in full force and
effect, regardless of (i) any investigation, or statement as to the results
thereof, made by or on behalf of any Underwriter, the officers or employees of
any Underwriter, any person controlling any Underwriter, the Company, the
officers or employees of the Company, or any person controlling the Company,
(ii) acceptance of the Units and payment for them hereunder and (iii)
termination of this Agreement.

          Except
as otherwise provided, this Agreement has been and is made solely for the
benefit of and shall be binding upon the Company, the Underwriters, the
Underwriters’ officers and employees, any controlling persons referred to
herein, the Company’s directors and the Company’s officers who sign the
Registration Statement and their respective successors and assigns, all as and
to the extent provided in this Agreement, and no other person shall acquire or
have any right under or by virtue of this Agreement. The term “successors
and assigns” shall not include a purchaser of any of the Units from any of
the several Underwriters merely because of such purchase. 

28

          If
the foregoing is in accordance with your understanding of our agreement, kindly
sign and return to the Company the enclosed copies hereof, whereupon this
instrument, along with all counterparts hereof, shall become a binding
agreement in accordance with its terms.

	
  

 	
  

 	
  

 
	
  

 	
 Very truly
 yours,

 
	
  

 	
  

 	
  

 
	
  

 	
 BIOCUREX,
 INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Denis
 Burger

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:   Denis
 Burger, Ph.D.

 
	
  

 	
  

 	
 Title:     Executive
 Chairman

 

          The
foregoing Underwriting Agreement is hereby confirmed and accepted by the
Representative as of the date first above written.

PAULSON
INVESTMENT COMPANY, INC.

Acting as Representative of the several

Underwriters named in the attached Schedule A.

	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ Lorraine
 Maxfield

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Name:   Lorraine
 Maxfield

 	
  

 
	
  

 	
 Title:     SVP
 Corporate Finance 

 	
  

 

29

SCHEDULE A

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Underwriters

 	
  

 	
 Number of Firm

 Units to be

 Purchased

 	
  

 
	

 

 	
  

 	

 

 	
  

 
	
 Paulson
 Investment Company, Inc.

 	
  

 	
  

 	
 1,080,000

 	
  

 
	
 Noble
 International Investments, Inc.

 	
  

 	
  

 	
 120,000

 	
  

 
	

 

 	
  

 	

 

 	

 

 	
  

 
	
 Total

 	
  

 	
  

 	
 1,200,000

 	
  

 
	
  

 	
  

 	

 

 	

 

 	
  

 

SCH. A-1

SCHEDULE B

Issuer Free Writing Prospectus

None

SCH. B-1

Schedule C

Pricing Terms

Price per Unit
to public: $5.00

Underwriting
discounts and commissions per Unit: $0.45

Offering
proceeds to the Company, before expenses: $5,460,000

Closing Date: January 22, 2010

EX.B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]