Document:

exhv4w1

Exhibit 4.1

SIEMENS GROUP

SHARE MATCHING PLAN

effective as of November 14, 2008

Plan Rules

Purpose of the SMP

Siemens Aktiengesellschaft (“Company”) is the principal company of Siemens Group, a worldwide
operating group with activities in almost 190 countries and approximately 400,000 employees
worldwide (the Company together with its controlled affiliated companies in terms of section 15 of
the German Stock Corporation Act, the “Siemens Group” and each of its affiliated companies, the
“Group Company”).

With the aim of encouraging Siemens Group senior managers and employees to align their interests
with those of the Siemens Group, the Company has decided to adopt a Share Matching Plan (“SMP”)
which allows the Participating Group Companies (as defined below) to offer to their Eligible
Employees (as defined below) the opportunity to acquire Siemens Shares and, subject to conditions
provided for under the Plan, thereby getting the chance to benefit from Matching Shares.

The SMP shall be implemented in consecutive cycles (“Tranches”) with an offering to acquire Siemens
Shares (each, an “Offering”) being made during each Tranche.

This document (“Plan Rules”) contains the terms and conditions of the SMP and determines the
requirements, conditions and procedures for the individual implementation of each Offering of
Siemens Shares under the SMP by each Participating Group Company.

1. Underlying Shares

Shares to be offered under the SMP are registered no par value shares of the Company, each
entitling to one vote in the Company’s shareholders meeting (“Siemens Shares”).

Siemens Shares are listed on all German stock exchanges, the stock exchanges in New York (in form
of American Depositary Shares evidenced by American Depository Receipts), London and Zurich as well
as on the MTA International in Milan.

2. Implementation of Offerings under the SMP

2.1 Determination of the Tranches and Offerings by the Company

The implementation of each new Tranche under the SMP shall be decided by a resolution of the
Supervisory Board of the Company with respect to the Company’s Managing Board members

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and by the Managing Board of the Company with respect to all other Eligible Employees. For this
purpose, the Supervisory Board and the Managing Board, each in its sole discretion, shall decide
with effect as of the same date (“Resolution Date”) upon the following matters:

- the opening of the relevant Tranche and its geographic scope;

- the definition of the groups of employees to which the Offering under the applicable
Tranche shall be made;

- the dates and duration of the Offering associated with the applicable Tranche (“Offering
Period”);

- the maximum volume of the Offering;

- the nature of the Siemens Shares (i.e., whether the Siemens Shares to be offered under the
Offering shall be existing treasury Siemens Shares or newly-issued Siemens Shares issued
pursuant to an increase of the Company’s registered share capital);

- the purchase price of the Investment Shares, which shall be fixed in accordance with the
provisions of Section 4.3 below; and

- the Offering settlement date after which no payments will be accepted from the
Participants (“Settlement Date”).

The Managing Board of the Company may decide on varying terms for specific countries, as the case
may be, in particular for countries with lower income levels (“Low Income Countries”).

The Managing Board of the Company shall also determine in its sole discretion, if and to what
extent Group Companies, which are fully consolidated, shall have the opportunity to participate in
the relevant Tranche and shall determine the applicable conditions.

2.2 Individual Implementation of the Offerings by the Group Companies

The Managing Board of the Company from time to time in its sole discretion will designate the Group
Companies eligible to participate in a Tranche which thereupon may decide in their discretion each
individually to implement the Offering under such Tranche with respect to their Eligible Employees
(as defined below).

Those Group Companies which elect to participate in the SMP shall conclude (or have concluded) an
agreement with the Company which sets forth the rights and duties of the parties in respect of the
participation of the respective Group Company in the SMP. The Group Companies which have joined
the SMP as reflected by the abovementioned agreement are referred hereinafter, together with the
Company, as “Participating Group Companies” with respect to a Tranche.

To the extent required under applicable local laws, the relevant board or officer of each
Participating Group Company shall take such actions as shall be required under local law for the

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implementation of such new Tranche for such Participating Group Company’s Eligible Employees (as
defined below).

The determinations made with respect to each Tranche and associated Offering, including any
country-specific determinations, shall be incorporated by reference into the Rules and treated as
part of the Rules. Provisions of separate Offerings need not be identical.

The Offerings by the Participating Group Companies to their Eligible Employees are made upon the
terms and conditions determined by the Managing Board of the Company as provided in Section 2.1
above.

Any Offerings made under the SMP are voluntary benefits of the Company or the Participating Group
Companies, as the case may be. Even if Offerings under the SMP have been made repeatedly, there is
no entitlement for a renewed Offering or a benefit of equal value.

3. Eligible Employees

All employees on the pay-roll of a Participating Group Company as of October 1st of the
calendar year in which a Tranche commences are eligible to participate in this respective Offering
made under the SMP (“Eligible Employees”). Members of the Managing Board of the Company are
eligible to participate under the same conditions and are, for the purpose of this Plan Rules, also
referred to as Eligible Employees.

Notwithstanding the foregoing, a person’s status as an Eligible Employee with respect to the
Tranche shall remain entirely at the discretion of the Company and/or the relevant Participating
Group Company.

Each Eligible Employee having acquired Siemens Shares under the SMP is referred hereinafter as a
“Participant”.

4. Acquisition of Investment Shares 

Pursuant to the SMP, Eligible Employees are offered the opportunity to acquire Siemens Shares
(“Investment Shares”) and, subject to conditions set forth below, benefit from the grant of Siemens
Shares for free (“Matching Shares”). Each Participating Group Company which employs Eligible
Employees at the end of the Offering Period is considered to be the company making the Offering to
its respective Eligible Employees and granting Matching Shares under the SMP, and is referred to as
the “Grantor”.

4.1 Purchase Orders

The acquisition of Investment Shares is made by the Eligible Employees by submitting a purchase
order during the applicable Offering Period. Purchase orders are provided to the Eligible
Employees by or on behalf of their respective employing Participating Group Companies in the form
prescribed by the Company by or on behalf of the Participating Group Companies. Purchase orders
may be made available to the Eligible Employees electronically on an Internet-based platform as
administered by the service provider to be designated by the Company (“Service Provider”),
currently UBS Deutschland AG, pursuant to Section 10, or by a

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Participating Group Company. Eligible Employees will be informed in due time prior to the
beginning of the Offering Period about the form of the Purchase Orders applicable for the
respective Tranche. Purchase orders become final and binding to the Participants at the end of the
applicable Offering Period.

4.2 Minimum and Maximum Purchase Amount

The acquisition of Investment Shares is subject to a minimum purchase amount equal to the purchase
price of 3 Investment Shares fixed in accordance with Section 4.3 below and to a maximum purchase
amount the amount of which is fixed for each category of Eligible Employees as follows:

	 	(i)	 	for members of the Managing Board of the Company, top managers of the Company or a
Participating Group Company within the E-level and senior managers of the Company or a
Participating Group Company within the Global Position Level (GPL) 1, 2, 3 and 4, the
maximum purchase amount is equal to 50% of the Eligible Employee’s gross annual bonus paid
with respect to the Company’s fiscal year which precedes the Offering Period of the
applicable Tranche, rounded down to the amount equal to the purchase price of the next
lower entire number of Investment Shares;
	 
	 	(ii)	 	for all other Eligible Employees, the maximum purchase amount is fixed by the relevant
Participating Group Company with respect to its Eligible Employees and shall be equal to an
amount comprised between 3% and 5% of the Participant’s annual gross cash compensation (as
determined on a country specific basis) for the calendar year in which an Offering Period
under a particular Tranche occurs, rounded down to the amount equal to the purchase price
of the next lower entire number of Siemens Shares.

Differing minimum and maximum purchase amounts may be determined for Low Income Countries.

Purchase orders will be processed only up to the above-mentioned limitations.

4.3 Purchase Price

The purchase price of one Investment Share shall be equal to the lowest share price of the Siemens
Share fixed in a regulated market on any German stock exchange on the Resolution Date.

The purchase price shall be fixed in Euros for Eligible Employees employed by a Participating Group
Company in the Euro-zone and in the respective local currency for Eligible Employees of
Participating Group Companies outside the Euro-zone. For this purpose, the conversion of the
purchase price into local currency shall be based on the applicable exchange rate most recently
fixed by the European Central Bank on or most recently before the Resolution Date or, if no such
exchange rate is available, as otherwise provided for by the Managing Board of the Company, subject
to rounding.

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4.4 Payment Method

All payments to be made by the Eligible Employee for the acquisition of Investment Shares are
collected by the Participating Group Company through pay-roll deduction(s) which shall be made
until the Settlement Date.

With respect to Eligible Employees under Section 4.2 (i), the pay-roll deduction shall be made in
the month of payment of the annual bonus. Additional pay-roll deductions to be made until the
Settlement Date may be decided by the Participating Group Company and communicated to the Eligible
Employees locally.

With respect to Eligible Employees under Section 4.2 (ii), pay-roll deductions may be made in one
or more times until the Settlement Date. Alternative collection of funds from the Eligible
Employees may additionally or exclusively be offered. Country-specific pay-roll deduction(s)
schedules or collection processes shall be communicated to the Eligible Employees locally.

Purchase orders will be processed up to the number of Investment Shares funded by payments made
until the Settlement Date. Should the purchase price for the number of ordered Investment Shares
exceed the amount of these payments, the number of ordered Investment Shares will be reduced in due
proportion. Purchase orders will be deemed void without prior notice to the Eligible Employee to
the extent the number of ordered Investment Shares remain unfunded.

Alternatively, in case that the purchase price for the number of ordered Investment Shares exceeds
the amount deductible from the Eligible Employee’s pay-roll or collected otherwise from him/her
until the Settlement Date, country-specific determinations of the Offering may provide (i) that
such purchase orders shall become void without notice to the Eligible Employee with respect to all
ordered Investment Shares or (ii) that such purchase orders remain valid and the respective
Participant liable accordingly whereby the Participating Group Company may also deem such purchase
orders void with respect to all or part of the ordered Investment Shares.

4.5 Delivery of Investment Shares

The Investment Shares acquired by the Participant shall be delivered by the Company on behalf of
the Grantor to the Custody Account (as defined below in Section 11) as promptly as practicable
after the Settlement Date and recorded in the name of the respective Participant in the share
register of the Company.

5. Matching Shares

5.1 Entitlement to Matching Shares

For every 3 (three) Investment Shares Participants shall be entitled to 1 (one) Matching Share. To
the extent the number of Investment Shares acquired is not 3 or in a multiple of 3, any Investment
Shares under or above 3 or such multiple of 3 will produce no entitlement to receive any fractions
of Matching Shares, but only an entitlement to cash compensation to be calculated in accordance
with Section 5.4 below.

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This entitlement is subject to compliance with the following conditions during the period starting
on the last day of the Offering Period and ending on January 31, of the fourth calendar year
beginning after the end of the Offering Period (“Vesting Period”):

	 	(i)	 	continued employment of the Participant with the Grantor or another Group Company;
	 
	 	(ii)	 	continued holding of the relevant number of Investment Shares by the Participant in the
Custody Account; and
	 
	 	(iii)	 	compliance with all terms and conditions of the SMP.

No hedging on Investment Shares (forward sale, put options, cash or physically settled derivatives)
shall be permitted.

The entitlement to Matching Shares or cash compensation for (mathematical) fractions of Matching
Shares corresponding to Investment Shares which are sold, transferred, pledged or hypothecated in
any way during the Vesting Period shall be forfeited without prior notice or refund. This does not
apply with respect to the agreement on the lien pursuant to section 14 of the General Business
Conditions of UBS Deutschland AG or any comparable provision of any agreement with a future service
provider.

The number of Matching Shares to which the Participant is generally entitled may be reduced due to
withholding of taxes and social security contributions pursuant to Section 5.4.

5.2 Termination of Employment

If the Participant ceases to be employed with the Grantor or another Group Company prior to the end
of the Vesting Period, the following rules shall apply. For the avoidance of doubt, transfers of
employment without interruption within the Siemens Group shall have no impact on the vesting of
Participant’s rights under the SMP.

	 	(i)	 	if the Participant terminates his/her employment, or if the employing Group Company
terminates the employment for cause, or if the employment is terminated by mutual agreement
with the employing Group Company (other than for the avoidance of cancellation for
operational reasons), or if the term of the Participant’s employment expires, any
entitlement of the Participant to Matching Shares shall forfeit without prior notice or
refund;
	 
	 	(ii)	 	if the employing Group Company terminates the employment without cause or for
operational reasons (aus betriebsbedingten Gründen) or in the event of a termination by way
of a cancellation contract for the avoidance of termination for operational reasons
(Aufhebungsvertrag aus betriebsbedingten Gründen), or in the event of the Participant’s
retirement pursuant to applicable laws or, in the absence of such laws providing for
specific terms and conditions for retirement, pursuant to the rules of the Participating
Group Company applicable in the particular country, or death, the Participant (or his/her
heirs respectively) is only entitled to a cash compensation in lieu of Matching Shares.
This cash compensation is calculated on a pro-rata-temporis basis (for the portion of the
Vesting Period that has passed), based on the opening share price of the Siemens Share in

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	 	 	 	the XETRA trading (or a comparable successor system) on the last XETRA trading day of the
month in which the employment of the Participant ended, the Participant retired or died;
	 
	 	(iii)	 	in the event of a divestiture of the employing Group Company, if the Participant
continues to be employed by a company qualifying as a Group Company with effect as of or
immediately after the closing date, the Participant’s rights under the SMP will not be
affected;
	 
	 	(iv)	 	if the Participant does not continue to be employed by a company qualifying as provided
above after the closing date in the event of a divestiture of the employing Group Company
(due to the termination of employment of that Participant or due to a change in control in
the employing Group Company), he / she is only entitled to a cash compensation in lieu of
Matching Shares to be calculated in accordance with the provision (ii) above as of the
closing date.

With respect to the forfeiture of the entitlement to the cash compensation for (mathematical)
fractions of Matching Shares and the calculation of the amount thereof, the preceding provisions of
this Section 5.2 shall apply accordingly.

To the extent necessary to prevent or avoid inclusion in income under section 409A of the Internal
Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder (“Code”), if
a Participant ceases to be employed by a Group Company, any payment under this Section 5.2 will be
paid upon the Participant’s “separation from service” within the meaning of section 409A of the
Code or if the Participant is a “specified employee” within the meaning of section 409A of the
Code, any payment under this Section 5.2 will be paid on the date that is six (6) months following
the Participant’s “separation from service” within the meaning of section 409A of the Code.

5.3 Adjustment of Participant’s Entitlement to Matching Shares

In the event that the Company, between the delivery of Investment Shares and the delivery of
Matching Shares, while granting a direct or indirect subscription right to its shareholders,
increases its subscribed capital by the issue of new shares or issues bonds carrying conversion or
option rights, the Managing Board, with respect to all Participants, or the Supervisory Board, with
respect to Members of the Managing Board of the Company, is authorised, in its sole discretion, to
establish economic equality for the Participants such that the proportionate interest of each
Participant immediately following such event will, to the extent practicable, be the same as
immediately before such event. Such establishing of equality may be achieved by way of adjustment
of the number of Matching Shares to be delivered to Participants. The same adjustment shall apply
with respect to the entitlement to the cash compensation for (mathematical) fractions of Matching
Shares. However, Participants may not claim establishing of economic equality. In the event of an
issue of shares, bonds or option rights in the course of equity-based remuneration programmes of
the Company, no equalising compensation will be granted. Establishing of economic equality will be
based on the following principles:

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	 	(i)	 	In the event of a capital increase from the Company’s funds by issue of new shares,
pursuant to section 218 German Stock Corporation Act (AktG), the entitlement of the
Participants to Matching Shares shall be increased in the same proportion as the subscribed
capital. In the event that the capital increase from the Company’s funds is conducted
without an issue of new shares (section 207 para. 2 sentence 2 AktG), the number of
Matching Shares to be delivered shall remain unchanged.
	 
	 	(ii)	 	In the event of a capital reduction, there will be no adjustment of the number of
Matching Shares to be delivered, provided that the total number of shares of the Company’s
stock is not changed by the capital reduction or that the reduction is conducted in
combination with a repayment of capital or with an acquisition of treasury shares against
consideration. In the event of a capital reduction by means of a consolidation of shares
without capital repayment and in the event of an increase of the number of shares without a
change to the capital (share split), the number of Matching Shares which shall be delivered
to Participants shall be reduced or increased, respectively, in accordance with the
proportion of the capital reduction or the share split.

In the event that the adjustment of the number of Matching Shares made pursuant to the preceding
paragraphs does not result in an entire number of Matching Shares, Participants will be entitled to
a cash compensation for any (mathematical) fractions of Matching Shares.

The amount of the cash compensation to be paid to the Participants pursuant to this Section 5.3
will be calculated pursuant to Section 5.4.

5.4 Settlement of Participant’s Entitlement to Matching Shares

The Participant’s entitlement to Matching Shares shall in principle be settled through delivery by
the Company on behalf of the respective Grantors of the Matching Shares to the Custody Account (as
defined below) or any other custody account used for the administration of the SMP on the first
bank working day (meaning any day except Saturdays, Sundays and banking holidays in the State of
Hesse or Bavaria in Germany) following the expiry of the Vesting Period or as promptly as
practicable. The Matching Shares shall be recorded in the name of the respective Participant in the
share register of the Company.

The actual number of Matching Shares transferred to the Custody Account may be reduced by
withholdings of any estimated amounts of tax and social security contributions owed by the
Participant, if and to the extent such withholdings are required by law and will not already be
made pursuant to Section 7. In this case the number of Matching Shares to be delivered will be
rounded down to the nearest whole number and the Participant will receive a cash compensation for
any (mathematical) fractions of Matching Share to be calculated as follows.

The cash compensation shall be paid to the Participant by the Grantor in Euro or local currency.
The amount of the cash compensation shall be calculated with respect to the opening share price of
the Siemens Share in the XETRA trading (or a comparable successor system) on the first XETRA
trading day following the end of the Vesting Period.

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Irrespective of the provisions above, the Grantor reserves the right to pay to the Participant a
cash compensation (in Euro or local currency) in lieu of Matching Shares which shall be calculated
as provided above.

Cash amounts will be paid directly to the Participants net of applicable tax and social security
contributions due by the Participant, if any.

6. Shareholders Rights

Each Participant shall have full shareholders’ rights provided for under German law with respect to
his/her Siemens Shares (Investment Shares and Matching Shares) as from the date such Siemens Shares
are recorded in the share register of the Company in the name of the Participant.

As long as the Participant’s Siemens Shares are held in the Custody Account, the shareholders’
rights with respect to those shares shall be exercised in accordance with the German Stock
Corporation Act, the Company’s Articles of Association and the provisions of the Trust and Custody
Agreement attached in the Schedule.

7. Tax Withholding

The withholding of taxes or similar levies (e.g. employee’s social security contributions) in
connection with the participation in the Plan will be carried out by the respective employer or
Service Provider, as required by the applicable tax or other laws. Any amounts to be withheld by
the employer may be withheld from pay or other amounts due to the Participant, unless withholding
will be made pursuant to Section 5.4.

Participants are obliged to forward a payment in the appropriate amount to their employer to cover
the due taxes and similar expenses, to the extent that the withholdings from pay or other amounts
due to such Participant are insufficient. In the event that the Participant does not, upon request
of the Group Company, deliver satisfactory proof of payment of such amounts, the Group Company may
delay delivery of Matching Shares in its sole discretion.

8. No Right On Continuing Employment

The participation of Eligible Employees in the SMP is voluntary. Purchase of Investment Shares
under the SMP shall not confer upon a Participant any rights with respect to establishing or
continuing the Participant’s employment with the Company or any Group Company, nor shall it
interfere in any way with the Participant’s right or the Company’s or Group Company’s right, as the
case may be, to terminate such employment in accordance with the terms and conditions of
employment. An individual’s decision not to participate in the SMP or hold Investment Shares for
the full Vesting Period will have no consequences on the Participant’s employment with the Company
or any Group Company or any entitlements related to his/her employment.

9. Expenses under the SMP

Each Participating Group Company shall bear with respect to its Participants all costs associated
with the purchase and delivery of the Investment Shares and/or Matching Shares to the Participant,
their operation in the Custody Account under the SMP, and the general

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administration of the SMP, except for any costs associated with the sale of any shares which shall
be borne by the Participant.

Expenses charged to the Participant will be deducted from the proceeds of the sale prior to
remittance of the cash amounts.

10. Administration of the SMP

The Company, acting on behalf of all Participating Group Companies, has entered into an agreement
with the Service Provider for the purpose of administration of the SMP and providing trust and
custody services with regard to the Participants’ Siemens Shares (Investment Shares and Matching
Shares) under the SMP (“Service Agreement”). The Service Provider will provide the required
administration services to the Participants via an internet-based platform (currently UBS
Deutschland AG’s platform called “EquatePlus”) and through a call center.

In case of termination of the Service Agreement with the Service Provider the Company will procure
that appropriate substitutional services be provided by another service provider which the Company
will appoint at its sole discretion.

11. Custody of Siemens Shares 

All Siemens Shares acquired by any Participant under the SMP shall be held in a collective custody
account opened in the name of the Service Provider, subject to the terms and conditions of the
Trust and Custody Agreement to be entered into between each Participant and the Service Provider, a
sample of which is attached in the Schedule (“Custody Account”) and which shall be incorporated by
reference into the Rules and treated as part of the Rules. The Trust and Custody Agreement between
the individual Participant and the Service Provider will be entered into by the Participant
submitting a purchase order during the applicable Offering Period, thereby accepting the Rules and
the terms of the Trust and Custody Agreement.

Each Participant may request transfer of Siemens Shares from the Custody Account to his/her
personal securities account or sale of Siemens Shares directly from the Custody Account. If such
transfer or sale occurs with respect to Investment Shares prior to the delivery of the relating
Matching Shares or cash compensation for any (mathematical) fractions of Matching Shares, all
entitlements to Matching Shares or the said cash compensation corresponding to the transferred or
sold Investment Shares will be forfeited. This does not apply in the event that the Service
Agreement with the Service Provider terminates, and that the Siemens Shares are transferred from
the Custody Account to the collective custody account of the newly appointed service provider. In
such case, all entitlements to Matching Shares or cash compensation for any (mathematical)
fractions of Matching Shares shall remain unaffected.

12. Information of Participants regarding their Siemens Shares

The Service Provider will provide to each Participant an annual statement of his/her holdings under
the SMP and a transaction confirmation upon completion of any transaction on Siemens Shares held in
the Custody Account. Such statements and confirmations will, in principle, be made available via
the internet-based platform (EquatePlus or successor platform), but will be sent by mail to
Participants without access to such platform. In respect of any communication to

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be sent to the Participant by mail, each Participant agrees to inform his/her employing Group
Company and the Service Provider of any change of address.

13. Modification of the Plan Rules 

The Managing Board of the Company may amend at any time the Plan Rules subject to appropriate
information of the Participants. However, the rights and obligations under any rights acquired
before amendment of the Plan Rules shall not be impaired by any amendment of the Plan Rules, except
with the consent of the Participant to whom such rights were granted, or except as necessary or
advisable to comply with any laws or governmental regulations.

To the extent the amendment may have any impact on Participants who are members of the Managing
Board of the Company, any such decision shall be taken by the Supervisory Board of the Company.

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Schedule

Trust and Custody Agreement

between the Eligible Employee participating in the Siemens Group Share Matching Plan for Senior
Managers and Employees (“SMP”)

- hereinafter the “Trustor” -

and

UBS Deutschland AG, Stephanstr. 14-16, 60313 Frankfurt am Main, Germany

- hereinafter the “Trustee” -

the Trustor and the Trustee together hereinafter the “Parties”

Capitalized terms used in this Trust and Custody Agreement and not defined herein shall have the
meanings ascribed to them in the SMP Plan Rules.

     Preamble

As an employee of Siemens Aktiengesellschaft (hereinafter the “Company”) or one of its controlled
affiliated companies that elects to participate in the SMP, the Trustor will be offered to purchase
Company shares (hereinafter “Investment Shares”) and to receive further Company shares free of
charge subject to the terms of the SMP (hereinafter “Matching Shares”). The Trustee has been
commissioned by the Company, acting on behalf of all Participating Group Companies, with the task
of administering the SMP and any Siemens shares acquired within the context of the SMP and held on
the Custody Account, as determined below.

To this end, the Parties establish a custody and trust relationship in order to authorize and
regulate the exercise by the Trustee of shareholders’ rights and to regulate the Parties’
respective rights and obligations in respect of Siemens Shares acquired or received under the SMP
by the Trustor as follows:

	1	 	Conclusion of the Agreement
	 
	 	 	This Agreement shall be validly concluded by submitting a purchase order during the Offering
Period of the applicable Tranche in accordance with the terms and conditions of the SMP, except
that it shall not enter into effect, if the Trustee is prevented from doing so by law (e.g.
relating to anti-money-laundering or terror-financing).
	 
	 	 	The purchase order may be submitted (i) electronically via EquatePlus or via another
internet-based platform provided by the Company, or (ii) orally by using the call center(s)
provided for by the Trustee, or (iii) if applicable, in writing on the forms provided by the
Company for this purpose.

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	2	 	Custody Agreement / Establishment of Trusteeship / Authorization
	 
	2.1	 	The Trustor hereby authorizes the Trustee to keep in custody his/her Investment Shares and
Matching Shares, subject to their delivery to the Trustee by the Company or the Group Company,
as the case may be, within the context of the SMP. Therefore, the Trustee is hereby
authorized and directed to open a custody account in its own name (“Custody Account”) and hold
the respective Investment Shares and Matching Shares for custody therein. Investment Shares
and Matching Shares held in the Custody Account are referred hereinafter as “Trust Shares”.
The Trustor remains the legal owner of such Trust Shares, and as such is to be registered in
the Company’s share register. The Trustee shall assist in any reasonable kind and by any
reasonable means in effecting the registration of the Trustor’s Trust Shares in the Company’s
share register.
	 
	2.2	 	As soon as reasonably practicable, the Trustee shall report to the Trustor individually the
number of Trust Shares deposited in the name of the Trustor in the Custody Account according
to his/her purchase order submitted during the applicable Offering Period or delivered free of
charge according to the SMP provisions.
	 
	2.3	 	The Trustor undertakes to make any declarations and to perform any measures required for the
custody of the Trust Shares.
	 
	2.4	 	Furthermore, the Trustor authorizes the Trustee as per section 185 German Civil Code (BGB) to
exercise on a fiduciary basis all shareholders’ rights (that is to validly hold, exercise and
dispose of Trustor’s shareholder rights including their transfer) in respect of the Trust
Shares owned by Trustor — except for the entitlement to participate in and to exercise the
voting rights in general shareholders’ meetings of the Company (Ermächtigungstreuhand, trust
based on authorization). The Trustee accepts the trust and custody assignment as well as the
authorization.
	 
	2.5	 	These agreements on trusteeship and custody as well as the authorization also apply for any
further Investment Shares and Matching Shares that the Trustee will be assigned to keep in
custody and to exercise shareholder rights on a fiduciary basis in the future.
	 
	3	 	Content of the Trusteeship
	 
	3.1	 	The Trustee undertakes to keep in custody the Trust Shares of the Company on behalf of the
Trustor and to exercise the legal power transferred by the Trustor over to it on a fiduciary
basis in its own name, but for the benefit of the Trustor.
	 
	3.2	 	The Trusteeship also applies for all sums of money which the Trustee shall collect in
connection with the Trust Shares (e.g. dividends). The Trustee shall pay such sums into a
trust deposit clearing account.
	 
	3.3	 	The Trust Shares held in the Custody Account shall be freely transferable; therefore, the
Trustor may instruct the Trustee at any time to execute a transfer or sale. Transfer requests
and sell orders may be made using EquatePlus or the Call Center. The respective Trust Shares
will be transferred or sold by the Trustee upon such request.

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	4	 	Obligations of the Trustee
	 
	4.1	 	The Trustee undertakes to refrain from any disposal and/or encumbrance (e.g.
transfer/assignment, pledging, granting of usufruct, etc.) in respect of the Trust Shares and
of the amount in the Trust deposit clearing account to be credited to the Trustor. However,
the Trustee shall be allowed to execute a transfer or sale of Trust Shares upon instruction of
the Trustor.
	 
	4.2	 	Before exercising the shareholder rights assigned to the Trustee pursuant to this Agreement,
the Trustee shall obtain the instructions of the Trustor and shall comply with these
instructions. The Trustee is not obliged to verify the compliance of the Trustor’s
instructions with the provisions of the SMP. Where, in cases of urgency which do not allow for
a delay, it is not possible to obtain the Trustor’s instructions in advance, the Trustee shall
act, taking into account interests of the Trustor, according to its best judgment and with due
consideration of its obligations.
	 
	4.3	 	The Trustee undertakes to remit or pay to the Trustor any amount it receives as a result of
the business activity relating to the Trust Shares (e.g. dividends, profits, any other
remuneration including any proceeds from liquidation), or to make use of such accordingly, as
stipulated. The Trustee is entitled to deduct its expenses as described in Section 5 below to
the extent that such expenses are not paid by the Participating Group Company. The Trustee
shall provide the Trustor with the transaction confirmation without undue delay after each
transaction relating to the Trust Shares. Such confirmations as well as annual account
statements will, in principle, be made available via EquatePlus, but will be sent by mail to
Trustors without access to EquatePlus.
	 
	4.4	 	The Trustee can, at its own discretion, but within the scope of any restrictions as provided
for in the Service Agreement with the Company, call on the services of third parties in
fulfillment of its duties, or transfer these duties to third parties. The Trustee shall
inform the Trustor of these third parties and of the tasks undertaken by the third party on
behalf of the Trustee. The Trustee is responsible for such third party (section 278 BGB).
	 
	5	 	Remuneration, Refund of Expenses
	 
	5.1	 	Except as provided otherwise below, the Trustee shall not be entitled to any fees or charges
or reimbursement of costs or expenses from the Trustor.
	 
	5.2	 	The Trustee shall be entitled to refund for any expenses (including any statutory value added
tax, if applicable) which are incurred by the Trustee due to its proper fulfillment of this
Agreement.
	 
	5.3	 	Unless stipulated otherwise in this Agreement, the remuneration and reimbursement of cost and
expenses of the Trustee in relation to its services rendered under this Agreement are governed
by separate agreement between the Trustee and the Company.
	 
	5.4	 	The Trustor shall bear all fees and third-party expenses (e.g., stock exchange fees) deriving
from the sale of his/her Trust Shares held in the Custody Account. Any share sale shall be
charged with a fee of 0.40 % of the transaction volume, minimum fee EUR 15.00. Such

23

 

	 	 	fees and expenses will be deducted from the proceeds of the sale prior to remittance of the
cash amounts to the Trustor.
	 
	6	 	Communication / Use of the “EquatePlus” Online Administration System
	 
	6.1	 	For the purposes of communication with the Trustee, the Trustee shall make available to the
Trustor an Internet web page set up on request of the Company within the Trustee’s online
administration system “EquatePlus” in order to administer the Trust Shares in accordance with
the following terms of this Section 6, and shall grant the Trustor the corresponding entry and
access rights.
	 
	6.2	 	The Trustee can change the functionalities or the content of this web page at any time, or
restrict the use of or access to the web page or individual functions thereof, as appropriate
and necessary. If the Trustor acts in breach of the rules established for the use of this web
page, the Trustee may exclude him temporarily or permanently from the use of this web page.
	 
	6.3	 	The Trustor is responsible for preventing and excluding any unauthorized use of his/her user
identification and his/her password for the call centre and the web page. If the Trustor
becomes aware of any unauthorized use of his/her user identification and of his/her password,
he/she must inform the Trustee accordingly, without delay.
	 
	6.4	 	The Trustee is not responsible for errors or damages which might arise from the use of
e-mails or from an unauthorized use of the Trustor’s user identification and password in
breach with the provisions of this Agreement, unless the Trustee was or should have been aware
of such unauthorized use. All information provided to the Trustee in connection with use of
the web page shall be recorded and stored, and kept available for checking by the Trustee’s
management, auditors and by the regulatory authorities.
	 
	6.5	 	The web page shall contain specific electronic functionalities designed to submit
instructions, requests, authorizations, or personal details to the Trustee. This information
may also be passed on through the call centre provided. The transmission of instructions,
requests or authorizations relating to the rights of the Trustor in accordance with the SMP
and for the Trust Shares and the transmission of personal credit details (including credit
card numbers), changes of address, communication in confirmation of a change of user
identification and pass word or other time-sensitive instructions must not be sent to the
Trustee via e-mail.
	 
	6.6	 	The web page shall be accessible through the Internet by means of publicly available web
browsers and software.
	 
	6.7	 	Such web page does not represent any offer for the purchase or sale of securities and must
not be regarded as providing advice in legal, taxation and investment matters. The Trustee
provides no guarantee that any materials published on this web page by third parties are
accurate, complete and up-to-date and bears no liability for opinions and recommendations
published on this web page by third parties.

24

 

	6.8	 	The information available through the web page is not the official record of the Trustor’s
entitlements under the SMP.
	 
	6.9	 	The information on this web page, including text, graphic presentation, illustrations and
audio and video clips, is protected by copyrights, proprietary rights, trademarks and/or other
intellectual property rights and these are controlled by the Trustee, unless stipulated
otherwise. The information contained therein may be used or printed out for personal use only.
The materials provided on this web page may not be used without the prior written consent of
the holder of the copyright or any other protected right.
	 
	6.10	 	If such web page should contain links to other web pages containing information on other
companies, organizations or persons, the Trustor acknowledges that these other web pages
cannot be influenced by the Trustee. Accordingly, the Trustee is not responsible for the
information or links to be found on such pages. The Trustee provides such links only as a
service and has not tested or checked the software or information to be found on such web
pages. The fact that the Trustee provides a link to another web page does not mean that the
Trustee has access to such pages, their content or to the participants in this other web page.
Third parties not associated with the Trustee may make the links to these other web pages
available. The Trustor acknowledges that the use of software or information from the Internet
is associated with a general risk.
	 
	7	 	Personal Data
	 
	 	 	The Parties acknowledge, that the Trustor has agreed, agrees, or will agree, in connection
with his/her participation in the SMP, to the collection, processing and use of his/her
personal data in the manner, and under the circumstances, described in the Data Privacy
Consent Declaration, which is attached as Exhibit 1, and the documents cited therein. The
Trustee and any third parties involved by it pursuant to Section 4.4 shall be entitled to
handle the Trustor’s personal data in the same said manner and under the same said
circumstances to the extent that it serves the purposes and the execution of this Agreement.
	 
	8	 	Taxes and Levies
	 
	 	 	The Trustor is debtor of, and responsible for, all taxes and social security levies arising in
connection with the Trust Shares and the proportional amount attributable to the Trustor in
the trust deposit clearing account. The Trustor is responsible for passing on to the Trustee
the correct data required for the calculation and payment of taxes and levies due from the
Trustor. The Trustee can not accept exemption orders of the Trustor and non-assessment notes.
	 
	9	 	Indemnification / Liability
	 
	9.1	 	At the request of the Trustee, the Trustor shall entirely indemnify the former in connection
with all obligations arising from the fiduciary exercise of shareholder rights under the Trust
Shares by the Trustee in accordance with this Agreement, unless the Trustee has acted contrary
to the instructions of the Trustor. If the Trustee has already fulfilled any such obligation,
then it may demand refund from the Trustor.

25

 

	9.2	 	This indemnification also applies to any taxes and levies of any kind to be paid by the
Trustee in connection with the Trust Shares.
	 
	9.3	 	The Trustor is aware that certain of the Trustee’s services are provided in the form of
electronic communication and that the Trustee provides neither warranty nor guarantee (1) that
these services will be provided without interruption and/or fault, (2) for the results arising
out of the use of these services, and (3) for the execution in good time, accurateness,
completeness or content of information or of transactions being provided by means of these
services or in connection with the use of a software program by the Trustor.
	 
	9.4	 	Where it is not possible for one party to fulfill any contractual obligation due to reasons
of force majeure, this failure to fulfill does not represent a breach of contract as long as
the case of force majeure persists and the relevant party applies all necessary and reasonable
efforts, including the application of alternative resources, to fulfill its contractual
obligation to the greatest possible extent. The party hindered in fulfillment of its
contractual obligations by an instance of force majeure must inform the other party
accordingly, without delay, describing the instance of force majeure in detail.
	 
	10	 	Clarification of Risk
	 
	 	 	The Trustor confirms that he/she is aware of the risks associated with securities services and
ancillary securities services and of the risk to lose the invested capital in part or in total.
	 
	11	 	Transfer of Rights
	 
	 	 	The Trustor must inform the Trustee without delay if he/she transfers over to any third party
any individual, or all, claims and rights in accordance with this Agreement.
	 
	12	 	Termination of Contractual Relationships
	 
	12.1	 	Both the Trustee and the Trustor may properly terminate this contractual relationship with 1
(one) month’s written notice to the end of a month. The right to extraordinary termination
remains unaffected by this arrangement. In any case this contractual relationship ends with
the termination of the Service Agreement between the Company and the Trustee with respect to
the administration of the SMP.
	 
	12.2	 	Upon termination of this Agreement, the Trustor holds a claim against the Trustee for return
of the Trust Shares and the transfer of the portion of the trust deposit clearing account
attributable to the Trustor. The Trustee must issue to the Trustor the statement of account
in respect of expenses and earnings, without delay.
	 
	12.3	 	In the event of a termination of this Agreement due to the termination of the Service
Agreement between the Company and the Trustee, the Trustee shall transfer the Trust Shares and
any portion of the trust deposit clearing account attributable to the Trustor to the
collective custody account of a newly appointed service provider as notified to the Trustee by
the Company on behalf of the Trustor.

26

 

	12.4	 	In the event of a termination of this Agreement for any other reason, the Trustee shall
request in writing from the Trustor to notify the Trustee of his/her personal account(s) to
which the Trust Shares and any portion of the trust deposit clearing account attributable to
the Trustor shall be transferred. Upon such request the Trustee shall provide the Trustor
without undue delay of such information, and the Trustee shall thereupon effect such transfer
without delay. In the event that the Trustor does not inform the Trustee of his/her account
details within four months of the termination, the Trustee shall be entitled to sell the
respective Trust Shares and transfer the sales proceeds, less applicable fees and expenses, to
an account designated by the Company on behalf of the Trustor, provided that the Trustee upon
termination of the Agreement has also informed the Trustor in writing accordingly of such
Trustee’s right in case of a failure of the Trustor to deliver new account information in
time.
	 
	13	 	Miscellaneous
	 
	13.1	 	The Trustor shall inform the Trustee of any changes in his/her personal data in the online
administration system “EquatePlus” or via the Call Center without undue delay.
	 
	13.2	 	Any changes and/or additions to this Agreement, including to this Section, must be applied in
written form to be effective.
	 
	13.3	 	This Agreement is subject to German law. The place of jurisdiction for all disputes arising
out of and connected with this Agreement is — to the extent permissible — Frankfurt am Main.
	 
	13.4	 	If any provision of this Agreement should be or become ineffective, in part or in full, this
does not result in the other provisions being ineffective. The Parties agree to replace the
ineffective provision with an effective provision that as closely as possible achieves the
sense and purpose — particularly from an economic point of view — of the ineffective
provision, or what would have been agreed if the ineffectiveness of the provision had been
realized at the time of drafting.
	 
	13.5	 	The same applies should this Agreement be found to contain any gap.
	 
	13.6	 	The Trustee’s General Business Conditions attached as Exhibit 2 apply supplementary. In case
of a conflict, the provisions of the SMP document and this Agreement shall prevail.

***

27Filed by Bowne Pure Compliance

Exhibit 4.1

BRIDGE LOAN AGREEMENT

THIS BRIDGE LOAN AGREEMENT (“Agreement”) is made as of the [                    ] day of November, 2008, by
and among Smart Move, Inc., a Delaware corporation (the “Company”), and John Thomas Bridge &
Opportunity Fund, L.P. ( “Investor”).

Recitals

A. The Company and the Investor are executing and delivering this Agreement in reliance upon
the exemption from securities registration afforded by the provisions of Regulation D (“Regulation
D”), as promulgated by the U.S. Securities and Exchange Commission (the “SEC”) under the Securities
Act of 1933, as amended; and

B. The Company wishes to procure a short-term loan (the “Bridge Loan”) from Investor and
Investor is willing to lend funds to the Company upon the terms and conditions stated in this
Agreement, in exchange for an unsecured promissory note in the form attached hereto as Exhibit “A”
in the principal amount of $300,000, bearing interest at the rate of 10% per annum, the
“Debenture”) and (ii) an Equity Consideration consisting of (A) shares of Company common stock, par
value $.0001 per share (“Common Stock) and (B) a three-year warrant to purchase shares of Company
Common Stock in the form attached hereto as Exhibit B (the “Warrant”), more fully set forth
in Section 2.2.

In consideration of the mutual promises made herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

1. Definitions. In addition to those terms defined above and elsewhere in this
Agreement, for the purposes of this Agreement, the following terms shall have the meanings set
forth below:

“10-KSB” has the meaning set forth in Section 4.6

“Affiliate” means, with respect to any Person, any other Person which directly or
indirectly through one or more intermediaries Controls, is controlled by, or is under common
control with, such Person.

“Business Day” means a day, other than a Saturday or Sunday, on which banks in
Houston, Texas are open for the general transaction of business.

“Closing” has the meaning set forth in Section 3.

“Closing Date” has the meaning set forth in Section 3.

“Company’s Knowledge” means the actual knowledge of the executive officers (as defined
in Rule 405 under the 1933 Act) of the Company, after due inquiry.

“Confidential Information” means trade secrets, confidential information and know-how
(including but not limited to ideas, formulae, compositions, processes, procedures and techniques,
research and development information, computer program code, performance specifications, support
documentation, drawings, specifications, designs, business and marketing plans, and customer and
supplier lists and related information).

“Control” (including the terms “controlling”, “controlled by” or “under common control
with”) means the possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

“Debenture” has the meaning set forth in recitals.

 

1

 

“Debenture Shares” means the shares of Common Stock issuable to Investor upon a
default of the Debenture, should Investor elect to convert all or a part of such Debenture as
permitted upon such a default.

“Environmental Laws” has the meaning set forth in Section 4.16.

“Equity Consideration” means the Equity Shares and Warrant to be issued as set forth
in Section 2.2.

“Equity Shares” shall have the meaning as set forth in Section 2.2.

“Evaluation Date” has the meaning set forth in Section 4.26.

“Extension Fees” shall mean the Company Common Stock to be issued pursuant to the
Debenture in the event that the maturity date is extended.

“GAAP” has the meaning set forth in Section 4.18.

“Infringe” has the meaning set forth in Section 4.15(d).

“Intellectual Property” means all of the following: (i) patents, patent applications,
patent disclosures and inventions (whether or not patentable and whether or not reduced to
practice); (ii) trademarks, service marks, trade dress, trade names, corporate names, logos,
slogans and Internet domain names, together with all goodwill associated with each of the
foregoing; (iii) copyrights and copyrightable works; (iv) registrations, applications and renewals
for any of the foregoing; and (v) proprietary computer software (including but not limited to data,
data bases and documentation).

“License Agreements” has the meaning set forth in Section 4.15(b).

“Material Adverse Effect” means a material adverse effect on (i) the assets,
liabilities, results of operations, condition (financial or otherwise), business, or prospects of
the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company to perform
its obligations under the Transaction Documents.

“New Financing Transaction” has the meaning as set forth in Section 2.2.

“Obligation Date Market Price” shall mean, as of any date of determination: i) in the case of
a determination date coinciding with any public offering of securities that include Common Stock
(with or without other securities) by the Company under the 1933 Act (other than a shelf
registration) the price at which the Company or any underwriter sells the securities to the public,
and ii) in all other cases the average closing price per share of the Common Stock on the American
Stock Exchange or other principal national securities exchange on which the shares of Common Stock
or other securities (as the case may be) are listed or admitted to trading for the five (5)
consecutive trading days preceding the date on or as of which the relevant obligation to be
satisfied by issuance of restricted shares of Common Stock or Warrants exercisable to acquire
Common Stock falls due, or if the shares of Common Stock are not listed or admitted to trading on
any national securities exchange, the average of the reported bid and asked prices during such 15
trading day period in the over the counter market as furnished by the National Quotation Bureau,
Inc

“Person” means an individual, corporation, partnership, limited liability company,
trust, business trust, association, joint stock company, joint venture, sole proprietorship,
unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

“Purchase Price” means $300,000.

“SEC Filings” has the meaning set forth in Section 4.6.

“Securities” means the Debenture, the Equity Shares, the Warrant and the Underlying
Shares.

 

2

 

“Subsidiary” of any Person means another Person, an amount of the voting securities,
other voting ownership or voting partnership interests of which is sufficient to elect at least a
majority of its Board of Directors or other governing body (or, if there are no such voting
interests, 50% or more of the equity interests of which) is owned directly or indirectly by such
first Person.

“Transaction Documents” means this Agreement, the Warrant, the Debenture, and the
Registration Rights Agreement.

“Underlying Shares” means the Warrant Shares and the Debenture Shares.

“Warrants” has the meaning set forth in the recitals.

“Warrant Shares” means the shares of Common Stock issuable upon the exercise of the
Warrant.

“1933 Act” means the Securities Act of 1933, as amended, or any successor statute, and
the rules and regulations promulgated thereunder.

“1934 Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder.

2. Debenture and Other Securities Issued in Exchange for Bridge Loan Funding.

2.1 Purchase and Issuance of the Debenture. Subject to the terms and conditions of
this Agreement, on the Closing Date the Investor shall purchase and the Company shall sell and
issue to the Investor the Debenture in the principal amount of $300,000, in the form attached
hereto as Exhibit A, in exchange for the Purchase Price.

2.2 Purchase of Debenture and Issuance of the Equity Consideration. Concurrently upon
the closing of a single or a series of debt, equity, equity equivalent or other financings
resulting in the Company receiving gross proceeds of at least Five Million Dollars ($5,000,000)
occurring subsequent to the date of this Agreement (“New Financing Transaction”), the Company will
issue to the Investor the Equity Shares and the Warrant. The Equity Shares shall consist of a
number of shares of Common Stock equal to the original principal amount of the Debenture divided by
the Obligation Date Market Price. The Warrant shall be in the form attached as Exhibit B to this
Agreement and shall provide for the right to purchase a number of shares of Company Common Stock
equal to 200% of the Equity Shares actually issued, at an exercise price per share equal to 150% of
the Obligation Date Market Price used in determining the number of Equity Shares actually issued.

2.3 Lock-up/Leak Out. In the event the Company proposes to complete an
underwritten public offering within 12 months of the Closing, then the Investor shall execute a
lock-up agreement pursuant to which the Investor will agree not to sell, pledge, hypothecate,
transfer, assign or in any other manner dispose of the of the Equity Shares or the Underlying
Shares for a period not to exceed six months following the Closing. For the three months following
the six month lock-up period, the Investor may sell, pledge, hypothecate, transfer, assign or in
any other manner dispose of the Equity Shares or the Underlying Shares in an amount not to exceed
1% of the total outstanding shares of Company Common Stock at the beginning of such three month
period. For the three months following the nine month lock-up/leak-out period, the Investor may
sell, pledge, hypothecate, transfer, assign or in any other manner dispose of the Equity Shares or
the Underlying Shares in an amount not to exceed 1% of the total outstanding shares of Company
Common Stock at the beginning of such three month period. Notwithstanding the preceding, in no
event will the Investor be subject to a lock-up agreement that is more restrictive than offered to
the Company’s officers, directors, and the holders of 5% or more of the Company’s Common Stock. All
sales shall be subject to the requirements of SEC Rule 144 unless the resale is registered under
the 1933 Act.

 

3

 

2.4 Registration of Resale of Securities. On or before the later of (i) 60 days
following the issuance of the Equity Right Shares and the Warrant, and (ii) the earlier of (A) 10
days after the Company files its Annual Report on Form 10-K for the 2008 fiscal year or (B) April
30, 2009, the Company shall file a Registration Statement covering the resale of the Equity Right
Shares and the Warrant. Within 60 days following the conversion
of the Debenture upon an event of default, the Company shall file a Registration Statement covering
the resale of the Debenture Shares. To document this covenant of the Company, concurrently upon
(a) the issuance of the Equity Right Shares and the Warrant or (b) the conversion of all or a
portion of the Debenture upon an event of default thereunder, the Company shall execute and deliver
a registration rights agreement, in the form attached hereto as Exhibit C (“Registration Rights
Agreement”).

3. Closing. Within one Business Day of the date of executing this Agreement, the
Company shall cause the delivery of the Debenture registered in the name and amount as set forth on
the signature page attached hereto and the Investor shall wire to the Company in same day funds an
amount representing such Investor’s Purchase Price, as set forth on the signature page hereto
(“Closing” or “Closing Date”). The Closing shall occur upon confirmation that the conditions to
Closing in Section 6 hereof have been satisfied.

4. Representations and Warranties of the Company. The Company hereby represents and
warrants to the Investor that, except as set forth in the SEC Filings:

4. 1 Organization, Good Standing and Qualification. Each of the Company and its
Subsidiaries is a corporation duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation and has all requisite corporate power and authority to
carry on its business as now conducted and to own its properties. Each of the Company and its
Subsidiaries is duly qualified to do business as a foreign corporation and is in good standing in
each jurisdiction in which the conduct of its business or its ownership or leasing of property
makes such qualification or leasing necessary unless the failure to so qualify has not had and
could not reasonably be expected to have a Material Adverse Effect. The Company’s Subsidiaries are
listed in the SEC Filings.

4.2 Authorization. The Company has full power and authority and has taken all
requisite action on the part of the Company, its officers, directors and stockholders necessary for
(i) the authorization, execution and delivery of the Transaction Documents, (ii) the authorization
of the performance of all obligations of the Company hereunder or thereunder, and (iii) the
authorization, issuance (or reservation for issuance) and delivery of the Securities. The
Transaction Documents constitute the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating
to or affecting creditors’ rights generally.

4.3 Capitalization. Except as disclosed in the SEC Filings made subsequent to October
27, 2008, the Definitive Proxy Statement filed for the company’s special meeting of shareholders
held October 27, 2008 sets forth (a) the authorized capital stock of the Company on the date
hereof; (b) the number of shares of capital stock issued and outstanding; (c) the number of shares
of capital stock issuable pursuant to the Company’s stock plans; and (d) the number of shares of
capital stock issuable and reserved for issuance pursuant to securities (excluding the Equity
Shares and Underlying Shares) exercisable for, or convertible into or exchangeable for any shares
of capital stock of the Company. All of the issued and outstanding shares of the Company’s capital
stock have been duly authorized and validly issued and are fully paid, nonassessable and free of
pre-emptive rights and were issued in full compliance with applicable state and federal securities
law and any rights of third parties other than as described in the SEC filings. All of the issued
and outstanding shares of capital stock of the Company each Subsidiary have been duly authorized
and validly issued and are fully paid, nonassessable and free of pre-emptive rights, were issued in
full compliance with applicable state and federal securities law.

Except as described in the SEC Filings, the Company does not have outstanding stockholder
purchase rights or “poison pill” or any similar arrangement in effect giving any Person the right
to purchase any equity interest in the Company upon the occurrence of certain events.

 

4

 

4.4 Valid Issuance. The Debenture and the Debenture Shares have been duly and validly
authorized and, when issued and paid for pursuant to this Agreement, will be validly issued, fully
paid and nonassessable, and shall be free and clear of all encumbrances and restrictions (other
than those created by the Investor), except for restrictions on transfer set forth in the
Transaction Documents and those imposed by applicable securities laws. The Warrant and the Warrant
Shares shall have been duly and validly authorized and will be validly issued, fully paid and
non-assessable free and clear of all encumbrances and restrictions, except for restrictions on
transfer set forth in the Transaction Documents or imposed by applicable securities laws. The
Equity Shares and Extension Fees have been duly and validly authorized and will be validly issued,
fully paid and non-assessable free and clear of all encumbrances and restrictions, except for
restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities
laws. The Company has reserved a sufficient number of shares of shares of Common Stock for
issuance as the Equity Share and Warrant component of the Equity Consideration and for purposes of
any payment of Extension Fees, interest or other obligations as described in the Debenture, except
for restrictions on transfer set forth in the Transaction Documents or imposed by applicable
securities laws. The Company has reserved a sufficient number of shares of shares of Common Stock
for issuance of the Equity Shares, free and clear of all encumbrances and restrictions, except for
restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities
laws.

4.5 Consents. The execution, delivery and performance by the Company of the
Transaction Documents and the offer, issuance and sale of the Securities require no consent of,
action by or in respect of, or filing with, any Person, and except in respect of an additional
listing application by the America Stock Exchange, no governmental body, agency, or official other
than filings that have been made pursuant to applicable state securities laws and post-sale filings
pursuant to applicable state and federal securities laws which the Company undertakes to file
within the applicable time periods. Subject to the accuracy of the representations and warranties
of the Investor set forth in Section 5 hereof, the Company has taken all action necessary to exempt
(i) the issuance and sale of shares comprising the Equity Shares component of the Equity
Consideration and the Extension Fees, (ii) the issuance of the Warrant Shares upon due exercise of
the Warrants, (iii) the issuance of the Debenture Shares in the case of a default of the Debenture,
and (iv) the other transactions contemplated by the Transaction Documents from the provisions of
any stockholder rights plan or other “poison pill” arrangement, any anti-takeover, business
combination or control share law or statute binding on the Company or to which the Company or any
of its assets and properties may be subject and any provision of the Company’s Certificate of
Incorporation or Bylaws that is or could reasonably be expected to become applicable to the
Investor as a result of the transactions contemplated hereby, including without limitation, the
issuance of the Securities and the ownership, disposition or voting of the Securities by the
Investor or the exercise of any right granted to the Investor pursuant to this Agreement or the
other Transaction Documents.

4.6 Delivery of SEC Filings; Business. The Company has made available to the Investor
through the EDGAR system, true and complete copies of the Company’s most recent Annual Report on
Form 10-KSB for the fiscal year ended December 31, 2007 (the “10-KSB”), and all other reports filed
by the Company pursuant to the 1934 Act since the filing of the 10-KSB and prior to the date hereof
(collectively, the “SEC Filings”). The SEC Filings are the only filings required of the Company
pursuant to the 1934 Act for such period. The Company and its Subsidiaries are engaged in all
material respects only in the business described in the SEC Filings and the SEC Filings contain a
complete and accurate description in all material respects of the business of the Company and its
Subsidiaries, taken as a whole.

4.7 Use of Proceeds. The net proceeds of the sale of the Debenture hereunder shall be
used by the Company for working capital.

4.8 No Material Adverse Change. Since September 30, 2008, except as identified and
described in the SEC Filings, there has not been:

(i) any change in the consolidated assets, liabilities, financial condition or operating
results of the Company from that reflected in the financial statements included in the Company’s
Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, except for changes in the
ordinary course of business which have not had and could not reasonably be expected to have a
Material Adverse Effect, individually or in the aggregate;

(ii) any declaration or payment of any dividend, or any authorization or payment of any
distribution, on any of the capital stock of the Company, or any redemption or repurchase of any
securities of the Company;

(iii) any material damage, destruction or loss, whether or not covered by insurance to any
assets or properties of the Company or its Subsidiaries;

 

5

 

(iv) any waiver, not in the ordinary course of business, by the Company or any Subsidiary of a
material right or of a material debt owed to it;

(v) any satisfaction or discharge of any lien, claim or encumbrance or payment of any
obligation by the Company or a Subsidiary, except proposals to secure waivers or commitments from
existing debt holders to defer scheduled payments of interest or principal as described in the SEC
filings, or in the ordinary course of business (as such business is presently conducted and as it
is proposed to be conducted);

(vi) any change or amendment to the Company’s Certificate of Incorporation or Bylaws, except
as described in the Proxy Statement filed in connection with a Special Meeting of Shareholders held
on October 27, 2008, or material change to any material contract or arrangement by which the
Company or any Subsidiary is bound or to which any of their respective assets or properties is
subject;

(vii) any material labor difficulties or labor union organizing activities with respect to
employees of the Company or any Subsidiary;

(viii) any material transaction entered into by the Company or a Subsidiary other than in the
ordinary course of business;

(ix) the loss of the services of any key employee, or material change in the composition or
duties of the senior management of the Company or any Subsidiary;

(x) the loss or threatened loss of any customer which has had or could reasonably be expected
to have a Material Adverse Effect; or

(xi) any other event or condition of any character that has had or could reasonably be
expected to have a Material Adverse Effect.

4.9 SEC Filings.

(a) Since January 1, 2008, at the time of filing thereof, the SEC Filings complied as to form
in all material respects with the requirements of the 1934 Act and did not contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were made, not
misleading. All SEC comments on any filing made pursuant to the 1933 Act or 1934 Act have been
resolved to the satisfaction of the SEC.

(b) Each registration statement and any amendment thereto filed by the Company since February
9, 2007 pursuant to the 1933 Act and the rules and regulations thereunder, as of the date such
statement or amendment became effective, complied as to form in all material respects with the 1933
Act and did not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary in order to make the statements made therein not
misleading; and each prospectus filed pursuant to Rule 424(b) under the 1933 Act, as of its issue
date and as of the closing of any sale of securities pursuant thereto did not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements made therein, in the light of the circumstances under
which they were made, not misleading.

4.10 No Conflict, Breach, Violation or Default. The execution, delivery and
performance of the Transaction Documents by the Company and the issuance and sale of the Securities
will not conflict with or result in a breach or violation of any of the terms and provisions of, or
constitute a default under (i) the Company’s Certificate of Incorporation or the Company’s Bylaws,
both as in effect on the date hereof (true and complete copies of which have been made available to
the Investor through the EDGAR system), or (ii)(a) any statute, rule, regulation or, subject to
approval of listing, any order of the American Stock Exchange or of any governmental agency or body
or any court, domestic or foreign, having jurisdiction over the Company, any Subsidiary or any of
their respective assets or properties, or (b) any agreement or instrument to which the Company or
any Subsidiary is a
party or by which the Company or a Subsidiary is bound or to which any of their respective assets
or properties is subject.

 

6

 

4.11 Tax Matters. The Company and each Subsidiary has timely prepared and filed all
tax returns required to have been filed by the Company or such Subsidiary with all appropriate
governmental agencies and timely paid all taxes shown thereon or otherwise owed by it. The
charges, accruals and reserves on the books of the Company in respect of taxes for all fiscal
periods are adequate in all material respects, and there are no material unpaid assessments against
the Company or any Subsidiary nor, to the Company’s Knowledge, any basis for the assessment of any
additional taxes, penalties or interest for any fiscal period or audits by any federal, state or
local taxing authority except for any assessment which is not material to the Company and its
Subsidiaries, taken as a whole. All taxes and other assessments and levies that the Company or any
Subsidiary is required to withhold or to collect for payment have been duly withheld and collected
and paid to the proper governmental entity or third party when due. There are no tax liens or
claims pending or, to the Company’s Knowledge, threatened against the Company or any Subsidiary or
any of their respective assets or property. There are no outstanding tax sharing agreements or
other such arrangements between the Company and any Subsidiary or other corporation or entity.

4.12 Title to Properties. Except as disclosed in the SEC Filings with respect to
security interests held by existing convertible note and debenture holders, the Company and each
Subsidiary has good and marketable title to all real properties and all other properties and assets
owned by it, in each case free from liens, encumbrances and defects that would materially affect
the value thereof or materially interfere with the use made or currently planned to be made thereof
by them; and except as disclosed in the SEC Filings, the Company and each Subsidiary holds any
leased real or personal property under valid and enforceable leases with no exceptions that would
materially interfere with the use made or currently planned to be made thereof by them.

4.13 Certificates, Authorities and Permits. The Company and each Subsidiary possess
adequate certificates, authorities or permits issued by appropriate governmental agencies or bodies
necessary to conduct the business now operated by it, and neither the Company nor any Subsidiary
has received any notice of proceedings relating to the revocation or modification of any such
certificate, authority or permit that, if determined adversely to the Company or such Subsidiary,
could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.

4.14 Labor Matters.

(a) The Company is not a party to or bound by any collective bargaining agreements or other
agreements with labor organizations. The Company has not violated in any material respect any
laws, regulations, orders or contract terms, affecting the collective bargaining rights of
employees, labor organizations or any laws, regulations or orders affecting employment
discrimination, equal opportunity employment, or employees’ health, safety, welfare, wages and
hours.

(b) (i) There are no labor disputes existing, or to the Company’s Knowledge, threatened,
involving strikes, slow-downs, work stoppages, job actions, disputes, lockouts or any other
disruptions of or by the Company’s employees, (ii) there are no unfair labor practices or petitions
for election pending or, to the Company’s Knowledge, threatened before the National Labor Relations
Board or any other federal, state or local labor commission relating to the Company’s employees,
(iii) no demand for recognition or certification heretofore made by any labor organization or group
of employees is pending with respect to the Company and (iv) to the Company’s Knowledge, the
Company enjoys good labor and employee relations with its employees and labor organizations.

(c) The Company is, and at all times has been, in compliance in all material respects with all
applicable laws respecting employment (including laws relating to classification of employees and
independent contractors) and employment practices, terms and conditions of employment, wages and
hours, and immigration and naturalization. There are no claims pending against the Company before
the Equal Employment Opportunity Commission or any other administrative body or in any court
asserting any violation of Title VII of the Civil Rights Act of 1964, the Age Discrimination Act of
1967, 42 U.S.C. §§ 1981 or 1983 or any other federal, state or local Law, statute or ordinance
barring discrimination in employment.

 

7

 

(d) Except as disclosed in the SEC Filings, the Company is not a party to, or bound by, any
employment or other contract or agreement that contains any severance, termination pay or change of
control liability or obligation, including, without limitation, any “excess parachute payment,” as
defined in Section 2806(b) of the Internal Revenue Code.

(e) Each of the Company’s employees is a Person who is either a United States citizen or a
permanent resident entitled to work in the United States. To the Company’s Knowledge, the Company
has no liability for the improper classification by the Company of such employees as independent
contractors or leased employees prior to the Closing.

4.15 Intellectual Property.

(a) All Intellectual Property of the Company and its Subsidiaries is currently in compliance
with all legal requirements (including timely filings, proofs and payments of fees) and is valid
and enforceable. No Intellectual Property of the Company or its Subsidiaries which is necessary
for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently
conducted or as currently proposed to be conducted has been or is now involved in any cancellation,
dispute or litigation, and, to the Company’s Knowledge, no such action is threatened. No patent of
the Company or its Subsidiaries has been or is now involved in any interference, reissue,
re-examination or opposition proceeding.

(b) All of the licenses and sublicenses and consent, royalty or other agreements concerning
Intellectual Property which are necessary for the conduct of the Company’s and each of its
Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted
to which the Company or any Subsidiary is a party or by which any of their assets are bound (other
than generally commercially available, non-custom, off-the-shelf software application programs
having a retail acquisition price of less than $10,000 per license) (collectively, “License
Agreements”) are valid and binding obligations of the Company or its Subsidiaries that are parties
thereto and, to the Company’s Knowledge, the other parties thereto, enforceable in accordance with
their terms, except to the extent that enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the
enforcement of creditors’ rights generally, and there exists no event or condition which will
result in a material violation or breach of or constitute (with or without due notice or lapse of
time or both) a default by the Company or any of its Subsidiaries under any such License Agreement.

(c) The Company and its Subsidiaries own or have the valid right to use all of the
Intellectual Property that is necessary for the conduct of the Company’s and each of its
Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted
and for the ownership, maintenance and operation of the Company’s and its Subsidiaries’ properties
and assets, free and clear of all liens, encumbrances, adverse claims or obligations to license all
such owned Intellectual Property and Confidential Information, other than licenses entered into in
the ordinary course of the Company’s and its Subsidiaries’ businesses. The Company and its
Subsidiaries have a valid and enforceable right to use all third party Intellectual Property and
Confidential Information used or held for use in the respective businesses of the Company and its
Subsidiaries.

(d) The conduct of the Company’s and its Subsidiaries’ businesses as currently conducted does
not infringe or otherwise impair or conflict with (collectively, “Infringe”) any Intellectual
Property rights of any third party or any confidentiality obligation owed to a third party, and, to
the Company’s Knowledge, the Intellectual Property and Confidential Information of the Company and
its Subsidiaries which are necessary for the conduct of Company’s and each of its Subsidiaries’
respective businesses as currently conducted or as currently proposed to be conducted are not being
Infringed by any third party. There is no litigation or order pending or outstanding or, to the
Company’s Knowledge, threatened or imminent, that seeks to limit or challenge or that concerns the
ownership, use, validity or enforceability of any Intellectual Property or Confidential Information
of the Company and its Subsidiaries and the Company’s and its Subsidiaries’ use of any Intellectual
Property or Confidential Information owned by a third party, and, to the Company’s Knowledge, there
is no valid basis for the same.

(e) The consummation of the transactions contemplated hereby and by the other Transaction
Documents will not result in the alteration, loss, impairment of or restriction on the Company’s or
any
of its Subsidiaries’ ownership or right to use any of the Intellectual Property or Confidential
Information which is necessary for the conduct of Company’s and each of its Subsidiaries’
respective businesses as currently conducted or as currently proposed to be conducted.

 

8

 

(f) The Company and its Subsidiaries have taken reasonable steps to protect the Company’s and
its Subsidiaries’ rights in their Intellectual Property and Confidential Information. Each
employee, consultant and contractor who has had access to Confidential Information which is
necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as
currently conducted or as currently proposed to be conducted has executed an agreement to maintain
the confidentiality of such Confidential Information and has executed appropriate agreements that
are substantially consistent with the Company’s standard forms thereof. Except under
confidentiality obligations, there has been no material disclosure of any of the Company’s or its
Subsidiaries’ Confidential Information to any third party.

4.16 Environmental Matters. Neither the Company nor any Subsidiary is in violation of
any statute, rule, regulation, decision or order of any governmental agency or body or any court,
domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or
relating to the protection or restoration of the environment or human exposure to hazardous or
toxic substances (collectively, “Environmental Laws”), owns or operates any real property
contaminated with any substance that is subject to any Environmental Laws, is liable for any
off-site disposal or contamination pursuant to any Environmental Laws, or is subject to any claim
relating to any Environmental Laws, which violation, contamination, liability or claim has had or
could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate;
and there is no pending or, to the Company’s Knowledge, threatened investigation that might lead to
such a claim.

4.17 Litigation. There are no pending actions, suits or proceedings against or
affecting the Company, its Subsidiaries or any of its or their properties; and to the Company’s
Knowledge, no such actions, suits or proceedings are threatened or contemplated.

4.18 Financial Statements. The financial statements included in each SEC Filing filed
on or after January 1, 2008 present fairly, in all material respects, the consolidated financial
position of the Company as of the dates shown and its consolidated results of operations and cash
flows for the periods shown, and such financial statements have been prepared in conformity with
United States generally accepted accounting principles applied on a consistent basis (“GAAP”)
(except as may be disclosed therein or in the notes thereto, and, in the case of quarterly
financial statements, as permitted by Form 10-Q under the 1934 Act).

4.19 Insurance Coverage. The Company and each Subsidiary maintains in full force and
effect insurance coverage that is customary for comparably situated companies for the business
being conducted and properties owned or leased by the Company and each Subsidiary, and the Company
reasonably believes such insurance coverage to be adequate against all liabilities, claims and
risks against which it is customary for comparably situated companies to insure.

4.20 Brokers and Finders. No Person will have, as a result of the transactions
contemplated by the Transaction Documents, any valid right, interest or claim against or upon the
Company, any Subsidiary or an Investor for any commission, fee or other compensation pursuant to
any agreement, arrangement or understanding entered into by or on behalf of the Company, other than
a $15,000 fee to be paid to John Thomas Financial, Inc. and a $21,000 fee to be paid to Paulson
Investment Company, Inc.

4.21 No Directed Selling Efforts or General Solicitation. Neither the Company nor any
Person acting on its behalf has conducted any general solicitation or general advertising (as those
terms are used in Regulation D) in connection with the offer or sale of any of the Securities.

4.22 No Integrated Offering. Neither the Company nor any of its Affiliates, nor any
Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any
Company security or solicited any offers to buy any security, under circumstances that would
adversely affect reliance by the Company on Section 4(2) for the exemption from registration for
the transactions contemplated hereby or would require registration of the Securities under the 1933
Act.

 

9

 

4.23 Private Placement. The offer and sale of the Securities to the Investor as
contemplated hereby is exempt from the registration requirements of the 1933 Act.

4.24 Questionable Payments. Neither the Company nor any of its Subsidiaries, nor
their respective directors, officers or employees nor, to the Company’s Knowledge, any of their
respective current or former stockholders, agents or other Persons acting on behalf of the Company
or any Subsidiary, has on behalf of the Company or any Subsidiary or in connection with their
respective businesses: (a) used any corporate funds for unlawful contributions, gifts,
entertainment or other unlawful expenses relating to political activity; (b) made any direct or
indirect unlawful payments to any governmental officials or employees from corporate funds; (c)
established or maintained any unlawful or unrecorded fund of corporate monies or other assets; (d)
made any false or fictitious entries on the books and records of the Company or any Subsidiary; or
(e) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment
of any nature.

4.25 Transactions with Affiliates. Except as disclosed in the SEC Filings, none of
the officers or directors of the Company and, to the Company’s Knowledge, none of the employees of
the Company is presently a party to any transaction with the Company or any Subsidiary (other than
as holders of stock options and/or warrants, and for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the Company’s
Knowledge, any entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee or partner.

4.26 Internal Controls. The Company’s certifying officers have evaluated the
effectiveness of the Company’s controls and procedures as of the end of the period covered by the
most recently filed periodic report under the 1934 Act (such date, the “Evaluation Date”). The
Company presented in its most recently filed periodic report under the 1934 Act the conclusions of
the certifying officers about the effectiveness of the disclosure controls and procedures based on
their evaluations as of the Evaluation Date, which conclusions disclose certain weaknesses
identified by such officers and being addressed by the Company as therein described, to which
reference is here made for a more particular description. Since the Evaluation Date, there have
been no significant changes in the Company’s internal controls (as such term is defined in Item 308
of Regulation S-B) or, to the Company’s Knowledge, in other factors that could significantly affect
the Company’s internal controls. The Company maintains and will continue to maintain a standard
system of accounting established and administered in accordance with GAAP and the applicable
requirements of the 1934 Act.

4.27 Saleable Value of Assets. Based on the financial condition of the Company as of
the Closing Date and giving effect to the net proceeds from the Closing, the Company’s fair
saleable value of its assets exceeds the amount that will be required to be paid on or in respect
of the Company’s existing debts and other liabilities (including known contingent liabilities) as
they mature, provided, however, that the Company has no assurance that a fair saleable value could
be realized upon the sale of its assets under current market conditions and has disclosed its need
to complete a New Financing Transaction. As of Closing, the Company does not intend to incur new
indebtedness beyond its ability to pay such debts as they mature (taking into account the timing
and amounts of cash to be payable on or in respect of its debt) and the Company’s need to complete
a New Financing Transaction as described herein.

4.28 Disclosures. Neither the Company nor any Person acting on its behalf has
provided the Investor or its agent or counsel with any information that constitutes or might
constitute material, non-public information. The written materials delivered to the Investor in
connection with the transactions contemplated by the Transaction Documents do not contain any
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements contained therein, in light of the circumstances under which they were made, not
misleading.

 

10

 

5. Representations and Warranties of the Investor. The Investor hereby represents and
warrants to the Company that:

5.1 Organization and Existence. Investor is a validly existing corporation, limited
partnership or limited liability company and has all requisite corporate, partnership or limited
liability company power and authority to invest in the Securities pursuant to this Agreement.

5.2 Authorization. The execution, delivery and performance by Investor of the
Transaction Documents to which Investor is a party have been duly authorized and will each
constitute the valid and legally binding obligation of such Investor, enforceable against Investor
in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability, relating to or affecting
creditors’ rights generally.

5.3 Purchase Entirely for Own Account. The Securities to be received by Investor
hereunder will be acquired for Investor’s own account, not as nominee or agent, and not with a view
to the resale or distribution of any part thereof in violation of the 1933 Act, and such Investor
has no present intention of selling, granting any participation in, or otherwise distributing the
same in violation of the 1933 Act without prejudice, however, to such Investor’s right at all times
to sell or otherwise dispose of all or any part of such Securities in compliance with applicable
federal and state securities laws. Nothing contained herein shall be deemed a representation or
warranty by such Investor to hold the Securities for any period of time except as required by law.
Investor is not a broker-dealer registered with the SEC under the 1934 Act or an entity engaged in
a business that would require it to be so registered.

5.4 Investment Experience; Knowledge of Risk Profile. Investor acknowledges that it
can bear the economic risk and complete loss of its investment in the Securities and has such
knowledge and experience in financial or business matters that it is capable of evaluating the
merits and risks of the investment contemplated hereby. Investor recognizes that the consideration
being given by the Company in exchange for the Loan in the form of Equity Consideration reflects
that this investment has a high degree of risk and the potential for loss of the entire investment.
The security being purchase is unsecured, and the Company has had recurring losses and has a
substantial amount of secured debt. There can be no assurance that a New Financing as described
herin will occur.

5.5 Disclosure of Information. Investor has had an opportunity to receive all
information related to the Company requested by it and to ask questions of and receive answers from
the Company regarding the Company, its business and the terms and conditions of the offering of the
Securities. Investor acknowledges receipt of copies of the SEC Filings, that all statements,
representations and warranties of the Company in this Agreement are deemed supplemented or
qualified by the disclosures therein contained, that the SEC Filings include forward looking
statements concerning results or expectations that are subject to significant risks as therein
described which the Investor has been advised to consider in making the Bridge Loan and related
investment in the securities constituting the Equity Consideration. Neither such inquiries nor any
other due diligence investigation conducted by such Investor shall modify, amend or affect
Investor’s right to rely on the Company’s representations and warranties contained in this
Agreement.

5.6 Restricted Securities. Such Investor understands that the Securities are
characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they
are being acquired from the Company in a transaction not involving a public offering and that under
such laws and applicable regulations such securities may be resold without registration under the
1933 Act only in certain limited circumstances and in compliance with applicable federal and state
securities laws.

5.7 Legends. It is understood that, except as provided below, certificates evidencing
the Securities may bear the following or any similar legend:

(a) “The securities represented hereby may not be transferred unless (i) such securities have
been registered for sale pursuant to the Securities Act of 1933, as amended, (ii) such securities
may be sold pursuant to Rule 144, or (iii) the Company has received an opinion of counsel
reasonably satisfactory to it that such transfer may lawfully be made without registration under
the Securities Act of 1933 or qualification under applicable state securities laws.
Notwithstanding the foregoing, the securities may be pledged in connection with a bona fide margin
account secured by the securities.”

(b) If required by the authorities of any state in connection with the issuance of sale of the
Securities, the legend required by such state authority.

 

11

 

5.8 Accredited Investor. Investor is an accredited investor as defined in Rule 501(a)
of Regulation D, as amended, under the 1933 Act.

5.9 No General Advertisement. Investor did not learn of the investment in the
Securities as a result of any public advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media or broadcast over
television, radio or internet or presented at any seminar or other general advertisement.

5.10 Brokers and Finders. No Person will have, as a result of the transactions
contemplated by the Transaction Documents, any valid right, interest or claim against or upon the
Company, any Subsidiary or an Investor for any commission, fee or other compensation pursuant to
any agreement, arrangement or understanding entered into by or on behalf of such Investor, except
as set forth in Section 4.20.

5.11 Patriot Act. Neither Investor nor any of its Affiliates has been designated, and
is not owned or controlled, by a “suspected terrorist” as defined in Executive Order 13224. None
of the cash used to fund such Investor’s portion of the Purchase Price has been, and none of the
cash used to fund any cash exercise of such Investor’s Warrants will be, or derived from, any
activity that could cause the Company to be in violation of the United States Bank Secrecy Act, the
United States International Money Laundering Control Act of 1986 or the United States International
Money Laundering Abatement and Anti-Terrorist Financing Act of 2001.

6. Conditions to Closing.

6.1 Conditions to the Investor’s Obligations. The obligation of Investor to purchase
the Debenture at the Closing is subject to the fulfillment to Investor’s satisfaction, on or prior
to the Closing Date, of the following conditions, any of which may be waived by Investor:

(a) The representations and warranties made by the Company in Section 4 hereof qualified as to
materiality shall be true and correct at all times prior to and on the Closing Date, except to the
extent any such representation or warranty expressly speaks as of an earlier date, in which case
such representation or warranty shall be true and correct as of such earlier date, and, the
representations and warranties made by the Company in Section 4 hereof not qualified as to
materiality shall be true and correct in all material respects at all times prior to and on the
Closing Date, except to the extent any such representation or warranty expressly speaks as of an
earlier date, in which case such representation or warranty shall be true and correct in all
material respects as of such earlier date. The Company shall have performed in all material
respects all obligations and covenants herein required to be performed by it on or prior to the
Closing Date.

(b) The Company shall have obtained any and all consents, permits, approvals, registrations
and waivers necessary or appropriate for consummation of the purchase and sale of the Securities
and the consummation of the other transactions contemplated by the Transaction Documents, all of
which shall be in full force and effect.

(c) No judgment, writ, order, injunction, award or decree of or by any court, or judge,
justice or magistrate, including any bankruptcy court or judge, or any order of or by any
governmental authority, shall have been issued, and no action or proceeding shall have been
instituted by any governmental authority, enjoining or preventing the consummation of the
transactions contemplated hereby or in the other Transaction Documents.

(d) The Company shall have filed a listing application with the American Stock Exchange to
list the Underlying Shares, Extension Fees and the Equity Consideration Shares on the American
Stock Exchange with in twenty-four (24) hours to the date of this Agreement.

 

12

 

(e) The Company shall have delivered a Certificate, executed on behalf of the Company by its
Secretary, dated as of the Closing Date, certifying the resolutions adopted by the Board of
Directors
of the Company approving the transactions contemplated by this Agreement and the other Transaction
Documents, and the issuance of the Securities, certifying the current versions of the Certificate
of Incorporation and Bylaws of the Company and certifying as to the signatures and authority of
persons signing the Transaction Documents and related documents on behalf of the Company.

(f) The Investor shall have received an opinion from the Company’s counsel, dated as of the
Closing Date, in form and substance reasonably acceptable to the Investor and addressing such legal
matters as the Investor may reasonably request.

(g) No stop order or suspension of trading shall have been imposed by the SEC or any other
governmental or regulatory body with respect to public trading in the Common Stock.

(h) The Company shall have delivered the Securities to the Investor.

6.2 Conditions to Obligations of the Company. The Company’s obligation to sell and
issue the Debenture at the Closing is subject to the fulfillment to the satisfaction of the Company
on or prior to the Closing Date of the following conditions, any of which may be waived by the
Company:

(a) The representations and warranties made by the Investor in Sections 5.1 and 5.2 hereof
(the “Investment Representations”), shall be true and correct in all material respects when made,
and shall be true and correct in all material respects on the Closing Date with the same force and
effect as if they had been made on and as of said date. The Investment Representations shall be
true and correct in all respects when made, and shall be true and correct in all respects on the
Closing Date with the same force and effect as if they had been made on and as of said date. The
Investor shall have performed in all material respects all obligations and covenants herein
required to be performed prior to the Closing Date.

(b) The Investor shall have delivered the Purchase Price to the Company.

6.3 Termination by Either Company or Investor. Either the Company or Investor shall
have the right to terminate this Agreement if the Closing hasn’t occurred prior to December 1,
2008.

7. Covenants and Agreements of the Company.

7.1 Reservation of Common Stock. The Company shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock, solely for the purpose of
providing for the exercise of the Warrant, conversion of the Debenture, payment of Extension Fees
and the issuance of the Equity Shares, such number of shares of Common Stock as shall from time to
time equal the number of Underlying Shares, Extension Fees and the Equity Shares issuable pursuant
to this Agreement in accordance with their respective terms. In the event the Company shall
at any time after the date of this Agreement and prior to the date the Equity Consideration is paid
in full: (i) declare a dividend on shares of Common Stock payable in shares of any class of capital
stock of the Company, (ii) subdivide the outstanding shares of Common Stock into a greater number
of shares of Common Stock, (iii) combine the outstanding shares of Common Stock into a smaller
number of shares pursuant to a reverse split, or (iv) issue any shares of capital stock in a
reclassification of shares of the Common Stock (including any such reclassification in connection
with a consolidation or merger in which the Company is the continuing corporation), then in such
event the number and kind of shares of capital stock issued at the Maturity Date of the Debenture
or issuable pursuant to Warrants to be delivered at the Maturity Date as the Equity Consideration
hereunder, shall be proportionately adjusted so that the Investor shall be entitled to receive the
aggregate number and kind of shares of capital stock corresponding to the number and kind of shares
which the Investor would have been entitled to receive if the securities comprising the Equity
Consideration had been issuable and issued immediately prior to such date. For the avoidance of
doubt, in the case of a reverse split, the number of shares which the Investor would be entitled to
receive hereunder or upon exercise of the Default Conversion right under the Debenture or upon
exercise of the right to purchase securities under the Warrant would be reduced to the applicable
fraction (e.g., one-tenth to one-fifteenth) of the number of shares of common stock which the
Investor would have received or been able to purchase upon an issuance, conversion or exercise
occurring immediately prior to the reverse split, at an issue price, conversion price or exercise
price equal to the corresponding multiple (e.g., ten to fifteen times) the price in effect before
the reverse split, resulting in the same aggregate price or value being
deemed received or required to be paid upon exercise as would have been applicable immediately
preceding the reverse split.

 

13

 

7.2 Reports. The Company will furnish to the Investor and/or assignee such
information relating to the Company and its Subsidiaries as from time to time may reasonably be
requested by the Investor and/or assignee; provided, however, that the Company shall not disclose
material nonpublic information to the Investor, or to advisors to or representatives of the
Investor, unless prior to disclosure of such information the Company identifies such information as
being material nonpublic information and provides the Investor, such advisors and representatives
with the opportunity to accept or refuse to accept such material nonpublic information for review
and Investor enters into an appropriate confidentiality agreement with the Company with respect
thereto.

7.3 No Conflicting Agreements. The Company will not take any action, enter into any
agreement or make any commitment that would conflict or interfere in any material respect with the
Company’s obligations to the Investor under the Transaction Documents.

7.4 Insurance. The Company shall maintain in full force and effect insurance coverage
that is customary for comparably situated companies for the business being conducted and properties
owned or leased by the Company and each Subsidiary, in amounts the Company reasonably believes to
be adequate against all liabilities, claims and risks against which it is customary for comparably
situated companies to insure.

7.5 Compliance with Laws. The Company will comply in all material respects with all
applicable laws, rules, regulations, orders and decrees of all governmental authorities.

7.6 Listing of Common Stock. The Company will use commercially reasonable efforts to
implement its plan to restore compliance as previously approved by the American Stock Exchange and
necessary in order to continue the listing and trading of its Common Stock on the American Stock
Exchange and, in accordance, therewith, will use commercially reasonable efforts to comply in all
respects with the Company’s reporting, filing and other obligations under the bylaws or rules of
such market.

7.7 Removal of Legends. Upon the earlier of (i) registration for resale of the
Underlying Shares and the Equity Shares or (ii) applicable provisions of Rule 144 allowing sales to
be made free of restrictions becoming available, the Company shall (A) deliver to the transfer
agent for the Common Stock (the “Transfer Agent”) irrevocable instructions that the Transfer Agent
shall reissue a certificate representing shares of Common Stock without legends upon receipt by
such Transfer Agent of the legended certificates for such shares, together with either (1) a
customary representation by the Investor that Rule 144 applies to the shares of Common Stock
represented thereby or (2) a statement by the Investor that such Investor has sold the shares of
Common Stock represented thereby in accordance with the plan of distribution contained in the
registration statement and, if applicable, in accordance with any prospectus delivery requirements,
and (B) cause its counsel to deliver to the Transfer Agent one or more blanket opinions to the
effect that the removal of such legends in such circumstances may be effected under the 1933 Act.
From and after the earlier of such dates, upon an Investor’s written request, the Company shall
promptly cause certificates evidencing the Investor’s Securities to be replaced with certificates
which do not bear such restrictive legends, and Underlying Shares subsequently issued upon due
exercise of the Warrant or as provided in the the Debenture shall not bear such restrictive legends
provided the provisions of either clause (i) or clause (ii) above, as applicable, are satisfied
with respect to such Underlying Shares. When the Company is required to cause unlegended
certificates to replace previously issued legended certificates, if instructions to the Transfer
Agent to deliver unlegended certificates are not delivered to the Transfer Agent within three (3)
Business Days after the Investor’s written request to the Company therefor confirming Investor’s
prior submission of legended certificate(s) to the Transfer Agent along with all legal opinions and
other documents customarily required to be furnished to the Transfer Agent as provided above and
executed in proper form (or to the Company, in the case of the Warrant or Debenture), the Company
shall be liable to the Investor for liquidated damages in an amount equal to 3% of the aggregate
purchase price of the Securities evidenced by such certificate(s) as of the end of each thirty (30)
day period beyond such three (3) Businesss (or portion thereof if extending beyond a single thirty
day period) that the instructions to deliver unlegended certificates have not been so delivered.

 

14

 

7.8 Prohibited Transactions. From the date hereof until the date the Debenture is
repaid in full, the Company shall be prohibited from effecting or entering into an agreement to
effect any subsequent
financing involving a “Variable Rate Transaction”. The term “Variable Rate Transaction” shall mean
a transaction in which the Company issues or sells (i) any debt or equity securities that are
convertible into, exchangeable or exercisable for, or include the right to receive additional
shares of Common Stock either (A) at a conversion, exercise or exchange rate or other price that is
based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at
any time after the initial issuance of such debt or equity securities, or (B) with a conversion,
exercise or exchange price that is subject to being reset at some future date after the initial
issuance of such debt or equity security or upon the occurrence of specified or contingent events
directly or indirectly related to the business of the Company or the market for the Common Stock or
(ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby
the Company may sell securities at a future determined price.

7.9 Other Negative Covenants. Until the later of the maturity date of the Debenture and one
day after the closing of the New Financing Tranasction, unless such transaction is approved in
writing by the Investor, the Company hereby further covenants and agrees that it will not:

(i) Sell, lease, or otherwise dispose of all or substantially all of its assets;

(ii) Dissolve, liquidate, or wind up its business;

(iii) Conduct its business other than in its ordinary and usual course;

(iv) Pay any dividend or make any other distributions of cash or property to any of the
holders of its capital stock;

(v) Merge or consolidate with another entity;

(vi) Issue any shares of Company capital stock or Company debt securities, except for
securities to be issued pursuant to existing agreements, bank or other financing that does not
provide for the issuance of Company equity or equity equivalent securities..

7.10 Best Efforts. The Company shall use its best efforts to close a New Financing
Transaction within six months of the date of this Agreement.

8. Survival and Indemnification.

8.1 Survival. The representations, warranties, covenants and agreements contained in
this Agreement shall survive the Closing of the transactions contemplated by this Agreement.

8.2 Indemnification. The Company agrees to indemnify and hold harmless the Investor
and its Affiliates and their respective directors, officers, employees and agents from and against
any and all losses, claims, damages, liabilities and expenses (including without limitation
reasonable attorney fees and disbursements and other expenses incurred in connection with
investigating, preparing or defending any action, claim or proceeding, pending or threatened and
the costs of enforcement thereof) (collectively, “Losses”) to which such Person may become subject
as a result of any breach of representation, warranty, covenant or agreement made by or to be
performed on the part of the Company under the Transaction Documents, and will reimburse any such
Person for all such amounts as they are incurred by such Person.

 

15

 

8.3 Conduct of Indemnification Proceedings. Promptly after receipt by any Person
(the “Indemnified Person”) of notice of any demand, claim or circumstances which would or might
give rise to a claim or the commencement of any action, proceeding or investigation in respect of
which indemnity may be sought pursuant to Section 8.2, such Indemnified Person shall promptly
notify the Company in writing and the Company shall assume the defense thereof, including the
employment of counsel reasonably satisfactory to such Indemnified Person, and shall assume the
payment of all fees and expenses; provided, however, that the failure of any
Indemnified Person so to notify the Company shall not relieve the Company of its obligations
hereunder except to the extent that the Company is materially prejudiced by such failure to notify.
In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of
such counsel shall be at the expense of such Indemnified Person unless: (i) the Company and the
Indemnified Person shall have mutually agreed to the retention of such counsel; or (ii) in the
reasonable judgment of counsel to such Indemnified Person representation of both parties by the
same counsel would be inappropriate due to actual or potential differing interests between them.
The Company shall not be liable for any settlement of any proceeding effected without its written
consent, which consent shall not be unreasonably withheld, but if settled with such consent, or if
there be a final judgment for the plaintiff, the Company shall indemnify and hold harmless such
Indemnified Person from and against any loss or liability (to the extent stated above) by reason of
such settlement or judgment. Without the prior written consent of the Indemnified Person, which
consent shall not be unreasonably withheld, the Company shall not effect any settlement of any
pending or threatened proceeding in respect of which any Indemnified Person is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Party, unless such
settlement includes an unconditional release of such Indemnified Person from all liability arising
out of such proceeding.

9. Miscellaneous.

9.1 Successors and Assigns. This Agreement may not be assigned by a party hereto
without the prior written consent of the Company or the Investor, as applicable, provided, however,
that an Investor may assign its rights and delegate its duties hereunder in whole or in part to an
Affiliate or to a third party acquiring some or all of its Securities in a private transaction
without the prior written consent of the Company, after notice duly given by Investor to the
Company provided, that no such assignment or obligation shall affect the obligations of Investor
hereunder. The provisions of this Agreement shall inure to the benefit of and be binding upon the
respective permitted successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or their respective
successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.

9.2 Counterparts; Faxes. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. This Agreement may also be executed via facsimile, which shall be deemed an
original.

9.3 Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

9.4 Notices. Unless otherwise provided, any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given as hereinafter described
(i) if given by personal delivery, then such notice shall be deemed given upon such delivery, (ii)
if given by telex or telecopier, then such notice shall be deemed given upon receipt of
confirmation of complete transmittal, (iii) if given by mail, then such notice shall be deemed
given upon the earlier of (A) receipt of such notice by the recipient or (B) three days after such
notice is deposited in first class mail, postage prepaid, and (iv) if given by an internationally
recognized overnight air courier, then such notice shall be deemed given one Business Day after
delivery to such carrier. All notices shall be addressed to the party to be notified at the
address as follows, or at such other address as such party may designate by ten days’ advance
written notice to the other party:

If to the Company:

Smart Move, Inc.

5990 Greenwood Plaza Blvd, #2 Suite 390

Greenwood Village, CO 80111

Attention: Chris Sapyta

Facsimile: 720-488-0199

With a copy to:

[                                        ]

[                                        ]

[                                        ]

Attention: [                                        ]

Facsimile: [                                        ]

If to the Investor, to the address set forth on the signature page.

 

16

 

9.5 Expenses. The parties hereto shall pay their own costs and expenses in connection
herewith, except that the Company shall pay $6,000 of the fees and expenses of Brewer & Pritchard;
it being understood that Brewer & Pritchard has only rendered legal advice to the Investor and not
to the Company in connection with the transactions contemplated hereby, and that the Company has
relied for such matters on the advice of its own respective counsel. Such expenses shall be paid
not later than the Closing. The Company shall reimburse the Investor upon demand for all
reasonable out-of-pocket expenses incurred by the Investor, including without limitation
reimbursement of attorneys’ fees and disbursements, in connection with any amendment, modification
or waiver of this Agreement or the other Transaction Documents. In the event that legal
proceedings are commenced by any party to this Agreement against another party to this Agreement in
connection with this Agreement or the other Transaction Documents, the party or parties which do
not prevail in such proceedings shall severally, but not jointly, pay their pro rata share of the
reasonable attorneys’ fees and other reasonable out-of-pocket costs and expenses incurred by the
prevailing party in such proceedings.

9.6 Amendments and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of the Company
and the Investor. Any amendment or waiver effected in accordance with this paragraph shall be
binding upon each holder of any Securities purchased under this Agreement at the time outstanding,
each future holder of all such Securities, and the Company.

9.7 Publicity. No public release or announcement concerning the transactions
contemplated hereby shall be issued without the prior written consent of the Company and any press
release mentioning the Investor shall be submitted for approval of the Investor (which shall not be
unreasonably withheld). Notwithstanding, the Company will file such Current Report on Form 8-K as
well as copies of the Transaction Documents and make such other disclosures as required to fulfill
its obligations under applicable securities laws in the manner and time required by the SEC.

9.8 Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof but shall be
interpreted as if it were written so as to be enforceable to the maximum extent permitted by
applicable law, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, the parties hereby waive any provision of law which renders any
provision hereof prohibited or unenforceable in any respect.

9.9 Entire Agreement. This Agreement, including the Exhibits and the Disclosure
Schedules, and the other Transaction Documents constitute the entire agreement among the parties
hereof with respect to the subject matter hereof and thereof and supersede all prior agreements and
understandings, both oral and written, between the parties with respect to the subject matter
hereof and thereof.

9.10 Further Assurances. The parties shall execute and deliver all such further
instruments and documents and take all such other actions as may reasonably be required to carry
out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein
contained.

9.11 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement
shall be governed by, and construed in accordance with, the internal laws of the State of Colorado
without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of Texas located in Harris County
and the United States District Court for the Southern District of Texas for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this Agreement and the
transactions contemplated hereby. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same methods as are
specified for the giving of notices
under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any
such court in any such suit, action or proceeding and to the laying of venue in such court. Each
party hereto irrevocably waives any objection to the laying of venue of any such suit, action or
proceeding brought in such courts and irrevocably waives any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE
PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS
AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

17

 

IN WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized
officers to execute this Agreement as of the date first above written.

	 	 	 	 	 
	The Company:	 SMART MOVE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	The Investor:	 JOHN THOMAS BRIDGE & OPPORTUNITY
FUND, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Aggregate Purchase Price: $300,000

Principal Amount of Debenture: $300,000

Address for Notice:

John Thomas Bridge & Opportunity Fund, L.P.

3 Riverway, Suite 1800

Houston, Texas 77056

Attention: George Jarkesy

with a copy to:

Brewer & Pritchard, P.C.

3 Riverway, Suite 1800

Houston, Texas 77056

Attn: Thomas C. Pritchard

Telephone: (713) 209-2911

Facsimile: (713) 209-2921

Email: Pritchard@bplaw.com

 

18

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