Document:

SECURITIES
      PURCHASE AGREEMENT

     

    BY
      AND AMONG

    

    CATALYST
      LIGHTING GROUP, INC.

    

    AND
      

     

    KIG
      INVESTORS I, LLC 

     

    DATED
      AS OF AUGUST 22, 2007

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECURITIES
      PURCHASE AGREEMENT 

     

    THIS
      SECURITIES PURCHASE AGREEMENT (the “Agreement”)
      is
      made and entered into as of August 22, 2007, by and among KIG Investors I,
      LLC,
      a Delaware limited liability company (the "Buyer")
      and
      Catalyst Lighting Group, Inc. a Delaware corporation (the “Company").
      

     

    RECITALS

     

    A. The
      Company currently has 4,190,642 shares of common stock, $0.01 par value, issued
      and outstanding (“Common
      Stock”).
      

     

    B. The
      Company desires to issue to the Buyer 1,572,770 shares of Series A Convertible
      Preferred Stock, $0.01 par value (“Preferred
      Shares”)
      which
      are convertible into 25,620,147 shares of Common Stock (“Conversion
      Shares”),
      and
      the Buyer desires to purchase the Preferred Shares from the Company
      (“Stock
      Issuance”),
      for a
      purchase price of $157,277, or $0.10 per share, and on such other terms and
      conditions set forth herein.

     

    C. As
      a
      condition of the Stock Issuance, the proceeds of the purchase price from the
      Stock Issuance shall be used to pay certain liabilities and obligations of
      the
      Company, all as more specifically set forth herein.

     

    D. As
      a
      further condition to the Stock Issuance, the Company shall have entered into
      certain settlement and release agreements (“Settlement
      Agreements”)
      with
      certain creditors of the Company (“Settlement
      Creditors”)
      pursuant to which such creditors have agreed to accept, in the aggregate, up
      to
      11,542,574 shares of the Company common stock (“Settlement
      Shares”)
      in
      exchange for each creditor’s agreement to terminate and cancel any and all
      agreements and contracts with the Company (including any warrants to purchase
      shares of the Company’s common stock) and to irrevocably release the Company
      from any and all debts, liabilities and obligations, pursuant to the terms
      and
      conditions set forth in such Settlement Agreements, which such terms and
      conditions shall be acceptable to the Buyer. 

     

    E. In
      connection with the Stock Issuance, the Conversion Shares underlying the
      Preferred Shares issued by the Company to the Buyer will be granted registration
      rights pursuant to the terms and conditions set forth in a certain registration
      rights agreement between the Company, the Buyer and the Settlement Creditors,
      the form of which is attached hereto as Exhibit A (“Registration
      Rights Agreement”).

     

    F. The
      execution and delivery of this Agreement, the consummation of the transactions
      contemplated under this Agreement and the execution and delivery of the
      Registration Rights Agreement have been duly authorized and approved by the
      directors of the Company, and no approval of the stockholders of the Company
      is
      required with respect to any of the foregoing.

     

    NOW,
      THEREFORE, in consideration of the above recitals, the covenants, promises
      and
      representations set forth herein, and for other good and valuable consideration,
      the receipt and sufficiency of which are hereby acknowledged, the parties agree
      as follows: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      I

     

    SALE
      AND PURCHASE 

     

    1.1 Sale
      and Purchase of Shares; Registration Rights. At
      the
      Closing and subject to and upon the terms and conditions of this Agreement,
      the
      Company agrees to sell and issue to the Buyer, and the Buyer agrees to purchase
      from the Company, the Preferred Shares. The Preferred Shares, when issued,
      shall
      have registration rights pursuant to the terms and conditions of the
      Registration Rights Agreement, which Registration Rights Agreement shall be
      executed and delivered by the Company and the Buyer at Closing. As of Closing,
      the Preferred Shares shall constitute not less than 61.8% of the issued and
      outstanding shares of the Company’s Common Stock on an as-converted and fully
      diluted basis. The sale and purchase of Preferred Shares contemplated hereunder
      shall be referred to herein as the "Transaction"
      or the
“Stock
      Issuance”.

     

    1.2 Closing. Unless
      this Agreement shall have been terminated pursuant to Article VIII hereof,
      and
      subject to the satisfaction and waiver of the conditions set forth in Article
      VI
      hereof, the closing of the Transaction (the “Closing”)
      shall
      take place at the offices of the Buyer on a date not later than three (3)
      business following the satisfaction or and waiver of the conditions set forth
      in
      Article VI hereof or such other date mutually agreeable to the Buyer and the
      Company (the “Closing
      Date”).
      

     

    1.3 Purchase
      Price.
      The
      aggregate purchase price for the Preferred Shares shall be One Hundred
      Fifty-Seven Thousand Two Hundred Seventy-Seven Dollars ($157,277) ("Purchase
      Price").
      

     

    1.4 Issuance
      of Certificates Representing the Preferred Shares.
      At
      Closing, the Company shall deliver certificate(s) representing the Preferred
      Shares with the restrictive legend under the Securities Act of 1933, as amended
      (“Securities
      Act”).
      

     

    1.5 Taking
      of Necessary Action; Further Action. 

     

    If,
      at
      any time after the Closing, any further action is necessary or desirable to
      carry out the purposes of this Agreement and to vest Buyer with full right,
      title and possession to the Preferred Shares, the Company will take all such
      lawful and necessary action. 

     

    ARTICLE
      II

     

    REPRESENTATIONS
      AND WARRANTIES OF THE
      COMPANY

     

    The
      Company hereby represents and warrants to, and covenants with, the Buyer, as
      follows: 

     

    2.1 Organization
      and Qualification. 

     

    (a) The
      Company is a corporation duly incorporated or organized, validly existing and
      in
      good standing under the laws of the State of Delaware and has the requisite
      corporate power and authority to own, lease and operate its assets and
      properties and to carry on its business as it is now being conducted by the
      Company. The Company is in possession of all franchises, grants, authorizations,
      licenses, permits, easements, consents, certificates, approvals and orders
      (“Approvals”)
      necessary to own, lease and operate the properties it purports to own, operate
      or lease and to carry on its business as it is now being by the Company. The
      Company is duly qualified to conduct its business in each state and each foreign
      jurisdiction in which is required to do so. The Company has filed each annual
      corporate or information report (“Annual
      Report”)
      required to be filed by it in the state of Delaware and in each state and
      foreign jurisdiction in which it is required to be qualified to do business
      as a
      foreign corporation. Complete and correct copies of the articles of
      incorporation or organization and by-laws (or other comparable governing
      instruments with different names) (collectively referred to herein as
      "Charter
      Documents")
      of the
      Company, as amended and currently in effect, and each Annual Report filed by
      the
      Company have been heretofore delivered to the Buyer. The Company is not in
      violation of any of the provisions of the Company's Charter
      Documents.

     

    
      
        
        

      

      
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    (b) The
      minute books of the Company contain true, complete and accurate records of
      all
      meetings and consents in lieu of meetings of its Board of Directors (and any
      committees thereof), similar governing bodies and stockholders ("Corporate
      Records"),
      since
      the time of the Company's organization. Copies of such Corporate Records of
      the
      Company have been heretofore delivered to the Buyer. 

     

    (c) The
      Company has heretofore delivered to the Buyer a true, complete and accurate
      record of the registered ownership of the Company's capital stock maintained
      by
      the Transfer Agent as of a recent date acceptable to the Buyer and a record
      of
      the beneficial ownership of the Company’s capital stock as of a recent date
      acceptable to the Buyer, together stock transfer and issuance ledgers and
      records from the Transfer Agent ("Stock
      Records").
      

     

    2.2 Subsidiaries.
      Whitco
      Company, LP (“Whitco”),
      a
      Texas limited partnership, was formerly a wholly-owned subsidiary of the
      Company, but Whitco was dissolved and terminated as a result of the dissolution
      of Whitco Management, LLC (“Whitco
      Management”),
      a
      Delaware limited liability company and sole general partner of Whitco. The
      Company was the sole member of Whitco Management. 

     

    2.3 Authority
      Relative to this Agreement.
      The
      Company has all necessary corporate power and authority to execute and deliver
      this Agreement, to perform its obligations hereunder and to consummate the
      transactions contemplated hereby (including the Transaction). The execution
      and
      delivery of this Agreement and the consummation by the Company of the
      transactions contemplated hereby (including the Transaction) have been duly
      and
      validly authorized by all necessary corporate action on the part of Company
      (including the approval by its board of directors), and no other corporate
      proceedings on the part of the Company (including the approval of the Company’s
      stockholders) are necessary to authorize this Agreement or to consummate the
      transactions contemplated hereby. This Agreement has been duly and validly
      executed and delivered by the Company and, assuming the due authorization,
      execution and delivery thereof by the Buyer, constitutes the legal and binding
      obligation of the Company, enforceable against the Company in accordance with
      its terms, except as may be limited by bankruptcy, insolvency, reorganization
      or
      other similar laws affecting the enforcement of creditors’ rights generally and
      by general principles of equity and public policy. 

     

    2.4 No
      Conflict; Required Filings and Consents. 

     

    (a) The
      execution and delivery of this Agreement by the Company do not, and the
      performance of this Agreement by the Company shall not: (i) conflict with or
      violate the Company's Charter Documents, (ii) conflict with or violate any
      Legal
      Requirements to which the Company is bound, or (iii) result in any breach of
      or
      constitute a default (or an event that with notice or lapse of time or both
      would become a default) under, or materially impair the Company’s rights or
      alter the rights or obligations of any third party under, or give to others
      any
      rights of termination, amendment, acceleration or cancellation of, or result
      in
      the creation of a lien or encumbrance on any of the properties or assets of
      the
      Company pursuant to any Contracts (as defined in Section 2.16) except, with
      respect to clauses (ii) or (iii), for any such conflicts, violations, breaches,
      defaults or other occurrences that would not, individually and in the aggregate,
      have a Material Adverse Effect on the Company, taken as a whole. For purposes
      of
      this Agreement, “Legal
      Requirements”
means
      any federal, state, local, municipal, foreign or other law, statute,
      constitution, principle of common law, resolution, ordinance, code, edict,
      decree, rule, regulation, ruling or requirement issued, enacted, adopted,
      promulgated, implemented or otherwise put into effect by or under the authority
      of any Governmental Entity (as defined in Section 2.4(b)), and all requirements
      set forth in applicable Contracts. 

     

    
      
        
        

      

      
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    (b)  The
      execution and delivery of this Agreement by the Company does, and the
      performance of its obligations hereunder will not, require any consent,
      approval, authorization or permit of, filing with, or notification to, any
      court, administrative agency, commission, governmental or regulatory authority,
      domestic or foreign (a “Governmental
      Entity”),
      except for applicable requirements, if any, of the Securities Act, the
      Securities Exchange Act of 1934, as amended (the “Exchange
      Act”),
      state
      securities laws (“Blue
      Sky Laws”),
      and
      the rules and regulations thereunder, and appropriate documents with the
      relevant authorities of other jurisdictions in which the Company is qualified
      to
      do business. 

     

    2.5 Capitalization. 

     

    (a) The
      authorized capital stock of the Company consists of 40,000,000 shares of common
      stock, $0.01 par value ("Common
      Stock")
      and
      10,000,000 shares of preferred stock, $0.01 par value ("Preferred
      Stock")
      of
      which 1,600,000 shares will be designated as Series A Convertible Preferred
      Stock pursuant to the Certificate of Designations of Series A Convertible
      Preferred Stock attached hereto as Exhibit
      B)
      ("Series
      A Preferred Stock Designations").
      At
      the close of business on the business day prior to the date hereof:, (i)
      4,190,642 shares of the Company’s common stock were issued and outstanding, all
      of which are validly issued, fully paid and nonassessable; (ii) no shares of
      the
      Company’s preferred stock were issued and outstanding; (iii) no options to
      purchase the Company’s common stock were outstanding; (iv) warrants to purchase
      40,433 shares of the Company’s common stock were outstanding (which excludes
      warrants to be cancelled under the Settlement Agreements and warrants to be
      cancelled by Keating Investments, LLC) )(“Warrants”);
      and
      (v) no notes, debentures or securities convertible into the Company’s common
      stock are outstanding (other than convertible notes held by Laurus Master Fund,
      Ltd. which will be terminated and canceled under the Settlement Agreements
      (“Laurus
      Notes”)).
      All
      shares of the Company’s common stock subject to issuance as aforesaid, upon
      issuance on the terms and conditions specified in the instrument pursuant to
      which they are issuable, will be duly authorized, validly issued, fully paid
      and
      nonassessable. All securities of the Company have been issued and granted in
      compliance with (i) all applicable securities laws and regulations, (ii) all
      Legal Requirements, and (iii) all requirements set forth in any applicable
      contracts. Prior to Closing, there will an aggregate of 1,600,000 shares of
      authorized but unissued shares of Series A Convertible Preferred Stock, par
      value $0.01 per share (“Series
      A Preferred Stock”),
      which, subject to the approval of the Company’s stockholders of the Reverse
      Split (as defined herein) and the Certificate of Amendment (as defined herein),
      which approval in any case shall be required to have occurred subsequent to
      the
      Closing (“Stockholder
      Approval”):
      (i)
      shall be convertible into 16.28982 shares of Common Stock for each share of
      Series A Preferred Stock, subject to adjustment for the Reverse Split. Upon
      the
      issuance of the shares of the Series A Preferred Stock, and, subject to the
      Stockholder Approval, the Conversion Shares issuable upon conversion thereof,
      when issued, will be validly issued, fully paid and non-assessable. The term
      “Reverse
      Split”
shall
      mean a 1-for-10 reverse stock split of the Company’s outstanding shares of
      common stock, and the “Certificate
      of Amendment”
shall
      mean the amendment to the Company’s certificate of incorporation which, in
      addition to the Reverse Split, provides for an increase in the authorized shares
      of the Company’s common stock from 40,000,000 shares to 200,000,000 shares, and
      the reduction of the par value for the Company’s common and preferred stock from
      $0.01 to $0.0001 per share. 

     

    (b) Except
      for the Warrants, Laurus Notes and the Settlement Agreements, (i) there are
      no
      subscriptions, options, warrants, equity securities, partnership interests
      or
      similar ownership interests, calls, rights (including preemptive rights),
      commitments or agreements of any character to which the Company is a party
      or by
      which it is bound obligating the Company to issue, deliver or sell, or cause
      to
      be issued, delivered or sold, or to repurchase, redeem or otherwise acquire,
      or
      cause the repurchase, redemption or acquisition of, any shares of capital stock,
      partnership interests or similar ownership interests of the Company or
      obligating the Company to grant, extend, accelerate the vesting of or enter
      into
      any such subscription, option, warrant, equity security, call, right, commitment
      or agreement, (ii) there are no lock up agreements or other agreements affecting
      the transfer of any equity security of any class of the Company, and (iii)
      there
      are no bonds, debentures, notes or other indebtedness of the Company issued
      or
      outstanding having the right to vote (or convertible into, or exchangeable
      for,
      securities having the right to vote) on any matters on which the stockholders
      of
      the Company may vote. 

     

    
      
        
        

      

      
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    (c) Except
      as
      contemplated by this Agreement and under the Settlement Agreements, there are
      no
      registration rights, and there is no voting trust, proxy, rights plan,
      anti-takeover plan, or other agreement or understanding to which the Company
      is
      a party or by which the Company is bound with respect to any equity security
      of
      any class of the Company.

    

    (d) The
      Preferred Shares to be issued with respect to the Transaction contemplated
      under
      this Agreement shall, when issued, be duly authorized, validly issued, fully
      paid and nonassessable, shall be free and clear of all liens, claims, charges,
      encumbrances, pledges, mortgages, security interests, options, rights to
      acquire, proxies, voting trusts or similar agreements, restrictions on transfer
      or adverse claims of any nature whatsoever (“Liens”)
      and
      shall have been issued in compliance with all Legal Requirements. 

     

    2.6 Compliance.
      The
Company
      has complied with, are not in violation of, any laws, rules or regulations
      of
      any Governmental Entity including, without limitation, any and all applicable
      securities laws and regulations, environmental laws and regulations, and laws
      and regulations regarding hazardous and toxic substances and materials, except
      for failures to comply or violations which, individually or in the aggregate,
      have not had and are not reasonably likely to have a Material Adverse Effect
      on
      the Company. 

     

    2.7 Financial
      Statements; Filings. 

     

    (a)  The
      Company has made available to the Buyer each report and statement filed by
      the
      Company with any Governmental Entity (the “Company
      Reports”),
      which
      are all the forms, reports and documents required to be filed by the Company
      with any Governmental Entity, and such Company Reports are true, correct and
      complete. As of their respective dates, the Company Reports (i) were prepared
      in
      accordance and complied in all material respects with the requirements of the
      applicable Governmental Entity, and the rules and regulations of such
      Governmental Entities applicable to such Company Reports, and (ii) did not
      at
      the time they were filed (and if amended or superseded by a filing prior to
      the
      date of this Agreement then on the date of such filing and as so amended or
      superceded) contain any untrue statement of a material fact or omit to state
      a
      material fact required to be stated therein or necessary in order to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading. Except to the extent set forth in the preceding sentence, the
      Company makes no representation or warranty whatsoever concerning the Company
      Reports as of any time other than the time they were filed. 

     

    (b) The
      Company has provided to the Buyer a correct and complete copy of the audited
      financial statements (including, in each case, any related notes thereto) of
      the
      Company and each Subsidiary for the fiscal years ended September 30, 2004 and
      2003, complied as to form in all material respects with the published rules
      and
      regulations of any applicable Governmental Entity, prepared in accordance with
      the generally accepted accounting principles of the United States ("U.S.
      GAAP")
      applied on a consistent basis throughout the periods involved (except as may
      be
      indicated in the notes thereto), audited by a certifying accountant registered
      with the Public Company Accounting Oversight Board (“PCAOB”),
      and
      each fairly presents in all material respects the financial position of the
      Company and Subsidiaries at the respective dates thereof and the results of
      its
      operations and cash flows for the periods indicated. 

     

    
      
        
        

      

      
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    (c)   The
      Company shall provide to the Buyer prior to the Closing, a correct and complete
      copy of the audited consolidated financial statements (including all related
      notes thereto) of the Company for the fiscal year ended September 30, 2005,
      complied as to form in all material respects with the published rules and
      regulations of any applicable Governmental Entity, prepared in accordance with
      U.S. GAAP applied on a consistent basis throughout the periods involved (except
      as may be indicated in the notes thereto), and fairly presenting in all material
      respects the financial position of the Company and Subsidiaries at the date
      thereof and the results of its operations and cash flows for the periods
      indicated. 

     

    (d) The
      Company has previously furnished to the Buyer a complete and correct copy of
      any
      amendments or modifications, which have not yet been filed with the applicable
      Governmental Entities but which are required to be filed with respect to the
      Company, to agreements, documents or other instruments which previously had
      been
      filed by the Company with the applicable Governmental Entities pursuant to
      applicable rules and regulations. The books of account and other financial
      records of the Company have been maintained in accordance with good business
      practice. 

     

    (e) On
      December 27, 2005, the Company filed Form 15-12G (“Form
      15”)
      to
      withdraw the registration of its common stock under the Exchange Act, the Form
      15 was true, accurate and complete, and the Company did not receive any notice
      or comment from the SEC with respect thereto. Accordingly, none of the Company’s
      securities are currently registered under Section 12(g) of the Exchange Act.
      

     

    2.8 No
      Liabilities. Except
      as
      set forth in Schedule
      2.8
      hereto
      and except for the obligations of the Company under the Settlement Agreements
      and Registration Rights Agreement, the Company has no Liabilities. For purposes
      of this Agreement, “Liability”
or
      “Liabilities”
shall
      mean all debts, liabilities and obligations, direct, indirect, absolute or
      contingent of the Company, whether accrued, vested or otherwise, whether known
      or unknown and whether or not reflected, or required in accordance with U.S.
      GAAP to be reflected, in the Company’s balance sheet. The proceeds of the
      Purchase Price will be sufficient to pay and satisfy in full, at Closing, all
      Liabilities set forth on Schedule
      2.8
      hereto
      (“Scheduled
      Liabilities”).

     

    2.9 Absence
      of Certain Changes or Events. Since
      September 30, 2006, there has not been: (i) any Material Adverse Effect on
      the
      Company, (ii) any declaration, setting aside or payment of any dividend on,
      or
      other distribution (whether in cash, stock or property) in respect of, any
      of
      the Company’s capital stock, or any purchase, redemption or other acquisition of
      any of the Company’s capital stock or any other securities of the Company or any
      options, warrants, calls or rights to acquire any such shares or other
      securities, (iii) any split, combination or reclassification of any of the
      Company’s capital stock, (iv) any granting by the Company of any increase in
      compensation or fringe benefits, except for normal increases of cash
      compensation in the ordinary course of business consistent with past practice,
      (v) any material change by the Company in its accounting methods, principles
      or
      practices, except as required by concurrent changes in U.S. GAAP, (vi) any
      change in the auditors of the Company, (vii) any issuance of capital stock
      of
      the Company, or (vii) any revaluation by the Company of any of their respective
      assets, other than in the ordinary course of business. 

     

    
      
        
        

      

      
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    2.10 Litigation.
      There
      are
      no claims, suits, actions or proceedings (at law or in equity) pending or
      threatened against the Company, before any Governmental Entity or arbitrator
      (including, without limitation, any allegation of criminal conduct or a
      violation of the Racketeer and Influenced Corrupt Practices, as amended), and
      the Company is not subject to any outstanding order, writ, judgment, injunction,
      order, decree or arbitration order. There are no suits, actions, claims,
      proceedings pending or threatened, seeking to prevent, hinder, modify or
      challenge the transactions contemplated under this Agreement. 

     

    2.11 Employee
      Benefit Plans. 

     

    (a)  The
      Company does not have in place any arrangement or policy (written or oral)
      providing for insurance coverage, workers’ compensation, disability benefits,
      supplemental unemployment benefits, vacation benefits, severance or termination
      benefits, retirement or deferred compensation, profit sharing, bonuses, stock
      options, stock appreciation rights, stock purchases or other forms of incentive
      compensation or post-retirement insurance, compensation or benefits which is
      maintained or administered by the Company, or to which the Company contributes,
      and which covers any employee or former employee of the Company or under which
      the Company has any liability, including any “employee welfare benefit plan,”
“employee benefit plan” and “employee pension benefit plan” as defined under the
      Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

    

    (b) Neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby will result in any payment (including
      severance, unemployment compensation, golden parachute, bonus or otherwise)
      becoming due to any stockholder, director, employee or consultant of the
      Company. 

     

    2.12 Labor
      Matters.
      The
      Company is not a party to any collective bargaining agreements or labor union
      contract. There are no strikes or labor disputes or lawsuits, unfair labor
      or
      unlawful employment practice charges, contract grievances or similar actions
      pending or threatened by any of the employees, former employees or employment
      applicants of the Company. 

     

    2.13 Restrictions
      on Business Activities. There
      is
      no agreement, commitment, judgment, injunction, order or decree binding upon
      Company or to which Company is a party which has or could reasonably be expected
      to have the effect of prohibiting or materially impairing any business practice
      of the Company, any acquisition of property by the Company or the current or
      future conduct of business by the Company. 

    

    2.14 Taxes. 

     

    (a)  Definition
      of Taxes.
      

     

    For
      the
      purposes of this Agreement, “Tax”
or
      “Taxes”
refers
      to any and all federal, state, local and foreign taxes, including, without
      limitation, gross receipts, income, profits, sales, use, occupation, value
      added, ad valorem, transfer, franchise, withholding, payroll, recapture,
      employment, excise and property taxes, assessments, governmental charges and
      duties together with all interest, penalties and additions imposed with respect
      to any such amounts and any obligations under any agreements or arrangements
      with any other person with respect to any such amounts and including any
      liability of a predecessor entity for any such amounts. 

     

    (b)  Tax
      Returns and Audits.
      

     

    (i)
      the
      Company has timely filed all federal, state, local and foreign returns,
      estimates, information statements and reports relating to Taxes (“Returns”)
      required to be filed by the Company with any Tax authority prior to the date
      hereof, except such Returns which are not material to the Company and for those
      income tax returns for the Company’s fiscal year ended September 30, 2006. All
      such Returns are true, correct and complete in all material respects. The
      Company has paid all Taxes shown to be due on such Returns. 

     

    
      
        
        

      

      
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    (ii)
      All
      Taxes
      that the Company is required by law to withhold or collect have been duly
      withheld or collected, and have been paid over to the proper governmental
      authorities. 

     

    (iii)
      The
      Company has not been delinquent in the payment of any material Tax nor is there
      any material Tax deficiency outstanding, proposed or assessed against the
      Company, nor has the Company executed any unexpired waiver of any statute of
      limitations on or extending the period for the assessment or collection of
      any
      Tax. 

     

    (iv)
      No
      audit
      or other examination of any Return of the Company by any Tax authority is
      presently in progress, nor has the Company been notified of any request for
      such
      an audit or other examination. 

     

    (v)
      No
      adjustment relating to any Returns filed by the Company has been proposed in
      writing, formally or informally, by any Tax authority to the Company or any
      representative thereof. 

     

    (vi)
      The
      Company has no liability for any Taxes for its current fiscal year, whether
      or
      not such Taxes are currently due and payable. 

    

    2.15 No
      Brokers; Third Party Expenses.
      Neither
      the Neither
      company nor the principals of the Company have incurred, nor will they incur,
      directly or indirectly, any liability for brokerage commissions in connection
      with this Agreement or any transaction contemplated hereby. 

     

    2.16 Agreements,
      Contracts and Commitments.
      Except
      as set forth in Schedule
      2.16,
      (a)
      there are no written employment agreements, termination or severance agreements,
      or consulting agreements with the current or former officers, directors,
      employees or consultants of the Company and to which the Company is a party;
      (b)
      the Company is not a party to and is not bound by any commitment, agreement
      or
      other instrument which contemplates payment of any monies or which is otherwise
      material to the operations, assets or financial condition of the Company,
      including but not limited to any royalty, franchising fees, or any other fee
      based on a percentage of revenues or income; (c) the Company is not a party
      to
      and is not bound by any commitment, agreement or instrument which limits the
      freedom of the Company to compete in any line of business or with any Person;
      and (d) the Company is not in default in any material respect under any material
      lease, contract, mortgage, indentures, note, deed of trust, loan agreement,
      bond, guaranty, liens, license, permit, franchise, purchase orders, sales
      orders, arbitration awards, judgments, decrees, orders, documents, instruments,
      understandings and commitments, or other instrument or obligation of any kind,
      whether written or oral. True, correct and complete copies of each contract,
      commitment, agreement, obligation or instrument to which the Company is
      currently a party or bound under (or written summaries in the case of oral
      contracts) have been heretofore delivered to the Buyer.

    

    2.17 Interested
      Party Transactions.
      No
      employee, officer, director or 5% or more stockholder of the Company or a member
      of his or her immediate family is indebted to the Company, nor is the Company
      indebted (or committed to make loans or extend or guarantee credit) to any
      of
      them, other than (i) for payment of salary for services rendered, (ii)
      reimbursement for reasonable expenses incurred on behalf of the Company, and
      (iii) for other employee benefits made generally available to all employees,
      and
      all related party transactions between such persons and the Company have been
      fully and properly disclosed in the Company Reports. 

     

    
      
        
        

      

      
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    2.18 Pink
      Sheet Quotation.
      The
      Company's common stock is quoted on the “pink sheets’ quotation system
      maintained by Pink Sheets, LLC. There is no action or proceeding pending or,
      to
      Company's knowledge, threatened against the Company by NASDAQ or the National
      Association of Securities Dealers ("NASD")
      with
      respect to any intention by such entities to prohibit or terminate the quotation
      of the Company’s Common Stock on the “pink sheets.” There is no action pending
      or threatened, to Company's knowledge, by any market maker in the Company's
      common stock to discontinue their market making activities with respect thereto.
      

     

    2.19 Investment
      Company Act.
      The
      Company is not an “investment company” or an “affiliated person” of or
“promoter” or “principal underwriter” or an “investment company” as such terms
      are defined in the Investment Company Act of 1940, as amended, nor is the
      Company otherwise subject to regulation thereunder. The Company is not a
“holding company” as that term is defined in, and is not otherwise subject to
      regulation under, the Public Utility Holding Company Act of 1935.

     

    2.20 Bankruptcy
      and Criminal Proceedings.
      Except
      for the filing by the Company on July 25, 2006 of a voluntary petition for
      relief under Chapter 11 of the U.S. Bankruptcy Code, which petition was
      dismissed on January 9, 2007, neither the Company and its respective officers,
      directors, affiliates, promoters nor any predecessor of the Company have been
      subject to or suffered any of the following:

     

    (a) a
      petition under the Federal bankruptcy laws or any other insolvency or moratorium
      law or has a receiver, fiscal agent or similar officer been appointed by a
      court
      for such person, or any partnership in which such person was a general partner
      at or within two years before the time of such filing, or any corporation or
      business association of which such person was an executive officer at or within
      two years before the time of such filing;

     

    (b) a
      conviction in a criminal proceeding or a named subject of a pending criminal
      proceeding (excluding traffic violations which do not relate to driving while
      intoxicated or driving under the influence); 

     

    (c) any
      order, judgment or decree, not subsequently reversed, suspended or vacated,
      of
      any court of competent jurisdiction, permanently or temporarily enjoining,
      barring suspending or otherwise limiting such person’s involvement in any type
      of business, securities or banking activities;
      or

     

    (d) been
      found guilty by a court of competent jurisdiction in a civil action or by the
      U.S. Securities and Exchange Commission (“SEC”),
      the
      Commodity Futures Trading Commission (“CFTC”)
      or
      state securities regulators and commissions to have violated any federal or
      state securities or commodities law, regulation or decree and the judgment
      in
      such civil action or finding by the SEC, CFTC or state securities regulators
      or
      commissions has not been subsequently reversed, suspended or vacated.

    

    2.21 Assets;
      Properties and Insurance.
      At
      Closing, the Company will not have any assets, whether tangible or intangible,
      will not own any real or personal property and will not maintain any insurance
      of any kind.

    

    2.22 Environmental
      Matters.
      The
      Company: (a) has not received any written notice, citation, claim, assessment,
      proposed assessment or demand for abatement alleging that it is responsible
      for
      the correction or cleanup of any condition resulting from a violation of any
      law, ordinance or other governmental regulation regarding environmental matters;
      (b) has no knowledge that any toxic or hazardous substances or materials have
      been emitted, generated, disposed of or stored on any real property owned or
      leased by it, or owned or controlled by it as a trustee or fiduciary
      (collectively, the “Properties”),
      in
      any manner that violates or, after the lapse of time may violate, any presently
      existing federal, foreign, regional, state or local law or regulation governing
      or pertaining to such substances and materials; and (c) has no knowledge that,
      during its ownership or lease of such Properties, any of such Properties has
      been operated in any manner that violated any applicable federal, foreign,
      regional, state or local law or regulation governing or pertaining to toxic
      or
      hazardous substances and materials.

     

    
      
        
        

      

      
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    2.23 Intellectual
      Property.
      There
      are no arrangements relating to the use by the Company of any intellectual
      property owned by another Person, and the Company has not at any time been
      in
      breach of such arrangements. The Company has not granted and is not obligated
      to
      grant a license, assignment or other right with respect to any intellectual
      property.

     

    2.24 Representations
      and Warranties Complete.
      The
      representations and warranties of the Company included in this Agreement and
      any
      list, statement, document or information set forth in, or attached to, any
      Schedule provided pursuant to this Agreement or delivered hereunder, are true
      and complete in all material respects and do not contain any untrue statement
      of
      a material fact or omit to state a material fact required to be stated therein
      or necessary to make the statements contained therein not misleading, under
      the
      circumstance under which they were made.

     

    ARTICLE
      III

     

    REPRESENTATIONS
      AND WARRANTIES OF THE BUYER

     

    Buyer
      represents and warrants to, and covenants with, the Company, as follows:

     

    3.1 Organization.
      The
      Buyer is a limited liability company duly organized and validly existing under
      the laws of the State of Delaware and has the requisite power and authority
      to
      own, lease and operate its assets and properties and to carry on its business
      as
      it is now being or currently planned by the Buyer to be
      conducted.

     

    3.2 Authority
      Relative to this Agreement.
      The
      Buyer has full power and authority to: (i) execute, deliver and perform this
      Agreement, and each ancillary document which the Buyer has executed or delivered
      or is to execute or deliver pursuant to this Agreement, and (ii) carry out
      the
      Buyer's obligations hereunder and thereunder and, to consummate the transactions
      contemplated hereby (including the Transaction). The execution and delivery
      of
      this Agreement and the consummation by the Buyer of the transactions
      contemplated hereby (including the Transaction) have been duly and validly
      authorized by all necessary action on the part of the Buyer (including the
      approval by its Board of Managers), and no other proceedings on the part of
      the
      Buyer are necessary to authorize this Agreement or to consummate the
      transactions contemplated hereby. This Agreement has been duly and validly
      executed and delivered by the Buyer and, assuming the due authorization,
      execution and delivery thereof by the Company, constitutes the legal and binding
      obligation of the Buyer, enforceable against the Buyer in accordance with its
      terms, except as may be limited by bankruptcy, insolvency, reorganization or
      other similar laws affecting the enforcement of creditors’ rights generally and
      by general principles of equity and public policy.

     

    3.3 No
      Conflict; Required Filings and Consents.
      

     

    (a)  The
      execution and delivery of this Agreement by the Buyer does not, and the
      performance of this Agreement by the Buyer, shall not: (i) conflict with or
      violate the Buyer's certificate of organization or operating agreement, or
      (ii)
      subject to obtaining the adoption of this Agreement and the Transaction by
      the
      Board of Managers, conflict with or violate any laws or
      regulations.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (b)  The
      execution and delivery of this Agreement by the Buyer does not, and the
      performance of its obligations hereunder will not, require any consent,
      approval, authorization or permit of, or filing with or notification to, any
      Governmental Entity, except for applicable requirements, if any, of the Exchange
      Act and the rules and regulations thereunder. 

     

    3.4 Brokers.
      The
      Buyer has not incurred, nor will it incur, directly or indirectly, any liability
      for brokerage or finders' fees or agent’s commissions or any similar charges in
      connection with this Agreement or any transaction contemplated hereby.

     

    3.5
      Approval.
      The
      Board of Managers of the Buyer has, as of the date of this Agreement,
      unanimously declared the advisability of the Transaction and approved this
      Agreement and the transactions contemplated hereby. 

    

    3.6
      Acquisition
      of Shares for Investment.
      The
      Buyer is an “accredited investor,” as such term is defined in Section 2(15) of
      the Securities Act and Rule 501 of Regulation D promulgated thereunder, the
      Buyer is purchasing the Preferred Shares (and upon conversion, the Conversion
      Shares) for the Buyer’s own account, solely for investment purposes, and not
      with a view to, or for resale in connection with, any distribution thereof
      or
      with any present intention of distributing or selling any of the Preferred
      Shares (and upon conversion, the Conversion Shares), except as allowed by the
      Securities Act, or any rules and regulations promulgated thereunder. The Buyer
      understands and agrees that the Preferred Shares (and upon conversion, the
      Conversion Shares) being acquired pursuant to this Agreement have not been
      registered under the Securities Act or under any applicable state securities
      laws and may not be sold, pledged, assigned, hypothecated or otherwise
      transferred ("Transfer"),
      except pursuant to an effective registration statement under the Securities
      Act
      or pursuant to an exemption from registration under the Securities Act, the
      availability of which shall be established to the satisfaction of the Company
      at
      or prior to the time of Transfer. The Buyer acknowledges that it must bear
      the
      economic risk of its investment in the Preferred Shares (and upon conversion,
      the Conversion Shares) for an indefinite period of time since the Preferred
      Shares (and upon conversion, the Conversion Shares) have not been registered
      under the Securities Act and therefore cannot be sold unless the Preferred
      Shares (and upon conversion, the Conversion Shares) are subsequently registered
      or an exemption form registration is available. The Buyer has received and
      reviewed such information concerning the Company as it deems necessary to
      evaluate the risks and merits of its investment in the Company. The Buyer has
      such knowledge and experience in financial matters as to be capable of
      evaluating the merits and risks of an investment in the Preferred Shares (and
      upon conversion, the Conversion Shares). The sale of the Preferred Shares (and
      upon conversion, the Conversion Shares) to the Buyer is being made without
      any
      public solicitation or advertisements.

     

    3.7 Bankruptcy
      and Criminal Proceedings.
      Neither
      the Buyer nor its managers, affiliates, promoters nor any predecessor of the
      Buyer have been subject to or suffered any of the following:

     

    (a) a
      petition under the Federal bankruptcy laws or any other insolvency or moratorium
      law or has a receiver, fiscal agent or similar officer been appointed by a
      court
      for such person, or any partnership in which such person was a general partner
      at or within two years before the time of such filing, or any corporation or
      business association of which such person was an executive officer at or within
      two years before the time of such filing;

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (b) a
      conviction in a criminal proceeding or a named subject of a pending criminal
      proceeding (excluding traffic violations which do not relate to driving while
      intoxicated or driving under the influence); 

     

    (c) any
      order, judgment or decree, not subsequently reversed, suspended or vacated,
      of
      any court of competent jurisdiction, permanently or temporarily enjoining,
      barring suspending or otherwise limiting such person’s involvement in any type
      of business, securities or banking activities; or

     

    (d) been
      found guilty by a court of competent jurisdiction in a civil action or by the
      U.S. Securities and Exchange Commission (“SEC”),
      the
      Commodity Futures Trading Commission (“CFTC”)
      or
      state securities regulators and commissions to have violated any federal or
      state securities or commodities law, regulation or decree and the judgment
      in
      such civil action or finding by the SEC, CFTC or state securities regulators
      or
      commissions has not been subsequently reversed, suspended or
      vacated.

     

    3.8 Representations
      and Warranties Complete.
      The
      representations and warranties of the Buyer included in this Agreement and
      any
      list, statement, document or information set forth in, or attached to, any
      Schedule provided pursuant to this Agreement or delivered hereunder, are true
      and complete in all material respects and do not contain any untrue statement
      of
      a material fact or omit to state a material fact required to be stated therein
      or necessary to make the statements contained therein not misleading, under
      the
      circumstance under which they were made.

     

    ARTICLE
      IV

     

    CONDUCT
      PRIOR TO THE EFFECTIVE TIME

     

    During
      the period from the date of this Agreement and continuing until the earlier
      of
      the termination of this Agreement pursuant to its terms or the Closing, the
      Company, except to the extent that the Buyer shall otherwise consent in writing,
      shall carry on its business in the usual, regular and ordinary course consistent
      with past practices, in substantially the same manner as heretofore conducted
      and in compliance with all applicable laws and regulations, pay its debts and
      taxes when due subject to good faith disputes over such debts or taxes, pay
      or
      perform other material obligations when due, and use its commercially reasonable
      efforts consistent with past practices and policies to preserve substantially
      intact its present business organization. 

     

    ARTICLE
      V

     

    ADDITIONAL
      AGREEMENTS

    

    5.1 Payment
      of Company Closing Obligations.
      Any and
      all debts,
      liabilities or obligations of the Company, whether or not such obligations
      are
      due at the time of Closing (including, without limitation: (i) the Scheduled
      Liabilities and all fees and expenses incurred by the Company for attorneys,
      accountants, advisors and consultants in connection with the Transaction, and
      (ii) any advances made to the Company, or any expenses paid on behalf of the
      Company, by the Buyer or its affiliates for the payment of costs associated
      with
      the Compliance Matters or any other corporate purpose. 

     

    5.2  Resignations
      and Appointments of Company's Officers and Directors.
      At or
      prior to Closing, the Company shall deliver to the Buyer resignations, in a
      form
      and substance acceptable to the Buyer, providing for the resignation of all
      of
      the directors (except for Kevin R. Keating) and all officers of the Company
      other than Kevin R. Keating (the "Resignations").
      

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    5.3 Undertaking
      by New Company Accountants.
      At or
      prior to Closing, the Company shall obtain, and deliver to the Buyer, an
      undertaking from a registered public accounting firm acceptable to the Buyer
      (“Accountant”),
      in a
      form and substance satisfactory to the Buyer, providing that: (i) the Accountant
      agrees to an engagement with Company to serve as its registered public
      accounting firm following the Closing for purposes of auditing the Company’s
      financial statements for the fiscal years ended September 30, 2006 and 2007,
      at
      rates acceptable to the Buyer, (ii) the Accountant is willing to act as the
      Company’s registered public accounting firm for ongoing reporting requirements
      under the Exchange Act including, without limitation, the filing of Forms 10-QSB
      and 10-KSB, at the rates and charges acceptable to the Buyer, (iii) the
      Accountant is duly registered with the U.S. Public Company Accounting Oversight
      Board ("PCAOB"),
      and
      (iv) the Accountant shall provide its consent to the use of its audited
      financial statements and accompanying report in any regulatory filing by the
      Company prior to or following the Closing including, without limitation, the
      Company’s Form 10-SB to be filed by the Company following the Closing
      ("Undertaking").
      

     

    5.4 Compliance
      Matters.
      Prior
      to and as a condition of the Closing, the Company shall: (i) update and complete
      the books and records of the Company and its subsidiaries through September
      30,
      2007 and deliver the same to the Buyer, (ii) prepare and have audited by Hein
      & Associates its financial statements for the fiscal year ended September
      30, 2005 (“2005
      Audit”),
      (iii)
      provide the Buyer with any information required to be included by the Company
      in
      a Form 10-SB to be filed by the Company following the Closing, and (iv) prepare
      and file all of the Company’s income, franchise and other tax returns for the
      fiscal years ended September 30, 2007 (“Tax
      Returns”)(collectively,
      the “Compliance
      Matters”).
      

     

    5.5 Other
      Actions; Due Diligence Schedule.
      The
      Buyer and the Company shall cooperate with each other and use their respective
      reasonable best efforts to take or cause to be taken all actions, and do or
      cause to be done all things, necessary, proper or advisable on their part under
      this Agreement and applicable laws to consummate the Transaction and the other
      transactions contemplated hereby, including preparing and filing as soon as
      practicable all documentation to effect all necessary notices, reports and
      other
      filings, and obtaining as soon as practicable all consents, registrations,
      approvals, permits and authorizations necessary or advisable to be obtained
      from
      any third party and/or any Governmental Entity in order to consummate the
      Transaction or any of the other transactions contemplated hereby. 

     

    5.6 Confidentiality;
      Access to Information.
      Each
      party agrees to maintain and hold in strict confidence any material, non-public
      information provided by any other party in connection with transactions
      contemplated hereunder. The Company shall afford the Buyer and its financial
      advisors, accountants, counsel and other representatives reasonable access
      during normal business hours, upon reasonable notice, to the properties, books,
      records and personnel of the Company and its Subsidiaries during the period
      prior to the Closing to obtain all information concerning the business,
      including financial condition, properties, results of operations and personnel
      of the Company and its Subsidiaries, as the Buyer may reasonably request. No
      information or knowledge obtained by the Buyer in any investigation pursuant
      to
      this Section 5.6 will affect or be deemed to modify any representation or
      warranty contained herein or the conditions to the obligations of the parties
      to
      consummate the Transaction. 

     

    5.7 No
      Solicitation.
      Other
      than with respect to the Transaction, the Company agrees that it shall not,
      and
      shall direct and use its reasonable best efforts to cause its officers,
      directors, employees, representatives, agents, or affiliates (including, but
      not
      limited to any investment banker, attorney, or accountant retained by the
      Company) to, directly or indirectly, solicit, knowingly encourage, initiate
      discussions or negotiations with, or knowingly provide any nonpublic information
      to, any corporation, partnership, person, or other entity or group concerning
      any proposed Alternative Transaction (as defined below), or otherwise knowingly
      facilitate any effort or attempt to make or implement an Alternative
      Transaction. For
      purposes of this Agreement, the term “Alternative Transaction” shall mean any of
      the following involving the Company or any subsidiary: (i) any tender offer,
      exchange offer, merger, consolidation, share exchange, business combination
      or
      similar transaction involving capital stock of the Company; (ii) any transaction
      or series of related transactions pursuant to which any person or entity (or
      its
      shareholders), (a “Third Party”) acquires shares (or securities exercisable for
      or convertible into shares) representing more that 20% of the outstanding shares
      of any class of capital stock of the Company; or (iii) any sale, lease,
      exchange, licensing, transfer or other disposition pursuant to which a Third
      Party acquires control of more than 20% of the assets (including, but not
      limited to, intellectual property assets) of the Company (determined by
      reference to the fair market value of such assets), in a single transaction
      or
      series of related transactions. The Company shall immediately terminate all
      discussions with Third Parties concerning any proposed Alternate Transaction,
      and will request that such Third Parties promptly return any confidential
      information furnished by the Company in connection with any proposed Alternative
      Transaction.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    5.8
      Public
      Disclosure.
      The
      Buyer and
      the
      Company shall consult with each other and agree in writing before issuing any
      press release or otherwise making any public statement with respect to the
      Transaction or this Agreement and will not issue any such press release or
      make
      any such public statement prior to such consultation. 

     

    5.9 Business
      Records.
      At
      Closing, the Company shall deliver to Buyer all
      records and documents relating to the Company, wherever located, including,
      without limitation, books, records, supplier and customer lists and files,
      government filings, the Returns, consent decrees, orders, and correspondence,
      financial information and records, electronic files containing any financial
      information and records, and other documents used in or associated with the
      Company ("Business
      Records").

     

    5.10 Ownership
      Records; Transfer Agent Undertaking.
      At
      Closing, the Company shall deliver to Buyer a full and complete listing of
      all
      stockholders of the Company, dated within three (3) business days prior to
      Closing, from and certified by the Company’s transfer agent showing the name and
      address of each stockholder, the number of shares owned by each stockholder,
      and
      the certificate number and issue dates for the shares owned by each stockholder.
      At or prior to Closing, the Company shall obtain, and deliver to the Buyer,
      an
      undertaking from the transfer agent, in a form and substance satisfactory to
      the
      Buyer, stating the amount of any and all fees and charges owed to the transfer
      agent by the Company for services rendered prior to Closing together with a
      copy
      of the current agreement in place between the Company and the transfer agent
      (“Transfer
      Agent Undertaking").

     

    ARTICLE
      VI

     

    CONDITIONS
      TO THE TRANSACTION

     

    6.1 Conditions
      to Obligations of Each Party to Effect the Transaction. The
      respective obligations of each party to this Agreement to effect the Transaction
      shall be subject to the satisfaction at or prior to the Closing Date of the
      following conditions: 

     

    (a) No
      Order.
      No
      Governmental Entity shall have enacted, issued, promulgated, enforced or entered
      any statute, rule, regulation, executive order, decree, injunction or other
      order (whether temporary, preliminary or permanent) which is in effect and
      which
      has the effect of making the Transaction illegal or otherwise prohibiting
      consummation of the Transaction, substantially on the terms contemplated by
      this
      Agreement. All waiting periods, if any, under any law in any jurisdiction in
      which the Company or the Buyer has material operations relating to the
      transactions contemplated hereby will have expired or terminated. 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (b) Preferred
      Stock Designations.
      Prior
      to Closing, the Board of Director of the Company shall have adopted, and the
      Company shall have filed with and have accepted by the Secretary of State of
      the
      State of Delaware, the Certificate of Designations attached hereto as Exhibit
      A.

     

    6.2 Additional
      Conditions to Obligations of the Company. The
      obligations of the Company to consummate and effect the Transaction shall be
      subject to the satisfaction at or prior to the Closing Date of each of the
      following conditions, any of which may be waived, in writing, exclusively by
      the
      Company: 

     

    (a) Representations
      and Warranties.
      Each
      representation and warranty of the Buyer contained in this Agreement (i) shall
      have been true and correct as of the date of this Agreement and (ii) shall
      be
      true and correct on and as of the Closing Date with the same force and effect
      as
      if made on the Closing Date. The Company shall have received a certificate
      with
      respect to the foregoing signed on behalf of the Buyer by an authorized manager
      of the Buyer ("Buyer
      Closing Certificate").
      

     

    (b) Agreements
      and Covenants.
      The
Buyer
      shall have performed or complied in all material respects with all agreements
      and covenants required by this Agreement to be performed or complied with by
      it
      on or prior to the Closing Date, except to the extent that any failure to
      perform or comply (other than a willful failure to perform or comply or failure
      to perform or comply with an agreement or covenant reasonably within the control
      of the Buyer) does not, or will not, constitute a Material Adverse Effect with
      respect to the Buyer taken as a whole, and the Company shall have received
      the
      Buyer Closing Certificate to such effect. 

     

    (c) Other
      Deliveries.
      At or
      prior to Closing, the Buyer shall have delivered to the Company: (i) the
      resolutions by the Buyer's board of managers approving this Agreement and the
      transactions contemplated hereunder, (ii) the duly executed Registration Rights
      Agreement, and (iii) such other documents or certificates as shall reasonably
      be
      required by the Company and its counsel in order to consummate the transactions
      contemplated hereunder. At or prior to the Closing, the Buyer shall have
      delivered the Purchase Price to the Company, and the proceeds thereof shall
      be
      handled and disbursed in accordance with Section 5.1 hereof. 

     

    6.3
       Additional
      Conditions to the Obligations of the Buyer. The
      obligations of the Buyer to consummate and effect the Transaction shall be
      subject to the satisfaction at or prior to the Closing Date of each of the
      following conditions, any of which may be waived, in writing, exclusively by
      the
      Buyer: 

     

    (a) Representations
      and Warranties.
      Each
      representation and warranty of the Company contained in this Agreement (i)
      shall
      have been true and correct as of the date of this Agreement and (ii) shall
      be
      true and correct on and as of the Closing Date with the same force and effect
      as
      if made on and as of the Closing. The Buyer shall have received a certificate
      with respect to the foregoing signed on behalf of the Company with respect
      to
      the warranties and representations made by the Company under this Agreement
      ("Company
      Closing Certificate").
      

     

    (b) Agreements
      and Covenants.
      The
      Company shall
      have performed or complied in all material respects with all agreements and
      covenants required by this Agreement to be performed or complied with by the
      Company at or prior to the Closing Date except to the extent that any failure
      to
      perform or comply (other than a willful failure to perform or comply or failure
      to perform or comply with an agreement or covenant reasonably within the control
      of the Company) does not, or will not, constitute a Material Adverse Effect
      on
      the Company, and the Buyer shall have received the Closing Certificate to such
      effect. 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (c) Company
      Disclosure Schedules.
      The
      Buyer shall have completed its due diligence investigation and review of the
      Company which shall be acceptable to the Buyer in its sole discretion. The
      Company shall have delivered the disclosure schedules under Article II to the
      Buyer, and such disclosure schedules are reasonably satisfactory to the
      Buyer.

     

    (d) Cancellation
      and Termination of Options and Contracts.
      The
      Company shall have delivered to the Buyer written instruments evidencing that
      all agreements, contracts and commitments under which the Company is a party
      or
      under which the Company has any obligations have been cancelled or terminated
      without any further liability to the Company including, without limitation,
      the
      termination of the Company’s engagement with its existing transfer agent under
      terms and conditions acceptable to the Buyer. 

     

    (e) Settlement
      Agreements.
      The
      Company and the Settlement Creditors have executed and delivered to the Buyer
      the Settlement Agreements, the Settlement Shares shall be issued at or prior
      to
      the Closing, and the Settlement Creditors have executed and delivered to the
      Company any UCC termination filings. 

     

    (f) Corporate
      Matters; Compliance Matters.
      The
      Company shall have delivered to the Buyer a certified copy of the Company’s
      certificate of incorporation, with any amendments thereto, a certified copy
      of
      the Company’s bylaws, with any amendments thereto, a certificate of good
      standing in Delaware. All of the Compliance Matters have been completed to
      the
      satisfaction of the Buyer.

     

    (g) Other
      Deliveries.
      At or
      prior to Closing, the Company shall have delivered to the Buyer: (i) the
      resolutions by the Company's board of directors approving this Agreement and
      the
      transactions contemplated hereunder, (ii) the duly executed Registration Rights
      Agreement, and (iii) such other documents or certificates as shall reasonably
      be
      required by the Buyer and its counsel in order to consummate the transactions
      contemplated hereunder. At or prior to the Closing, the Company shall have
      caused the certificates representing the Preferred Shares to be delivered to
      the
      Buyer. 

     

    ARTICLE
      VII

    

    SURVIVAL

    

    All
      representations, warranties, agreements and covenants contained in or made
      pursuant to this Agreement, or any Schedule hereto or thereto or any certificate
      delivered at the Closing, shall not survive the Closing, and no claims by virtue
      of the breach such representations, warranties, agreements and covenants shall
      be made after the Closing. 

     

    ARTICLE
      VIII

     

    TERMINATION,
      AMENDMENT AND WAIVER

     

    8.1 Termination. This
      Agreement may be terminated at any time prior to the Closing: 

     

    (a) by
      mutual
      written agreement of the Buyer and the Company; 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (b) by
      either
      the Buyer or the Company if the Transaction shall not have been consummated
      for
      any reason by December 31, 2007 or such other date mutually agreeable to the
      Buyer and the Company; or

     

    (c) by
      either
      the Buyer or the Company if a Governmental Entity shall have issued an order,
      decree or ruling or taken any other action, in any case having the effect of
      permanently restraining, enjoining or otherwise prohibiting the Transaction,
      which order, decree, ruling or other action is final and nonappealable.

     

    8.2
      Notice
      of Termination; Effect of Termination.
      Any
      termination of this Agreement under Section 8.1 above will be effective
      immediately upon the delivery of written notice of the terminating party to
      the
      other parties hereto. In the event of the termination of this Agreement as
      provided in Section 8.1, this Agreement shall be of no further force or effect
      and the Transaction shall be abandoned, except (i) as set forth in this Section
      8.2, Section 8.3 and Article IX (General Provisions), each of which shall
      survive the termination of this Agreement, and (ii) nothing herein shall relieve
      any party from liability for any intentional or willful breach of this
      Agreement.

     

    8.3 Fees
      and Expenses. All
      fees
      and expenses incurred in connection with this Agreement and the transactions
      contemplated hereby shall be paid by the party incurring such expenses whether
      or not the Transaction is consummated. Without limiting the foregoing sentence,
      the Company shall be responsible for all costs associated with the Compliance
      Matters, which shall be paid at Closing. 

     

    8.4 Amendment. This
      Agreement may be amended by the parties hereto at any time by execution of
      an
      instrument in writing signed on behalf of each of the Buyer and the Company.
      

     

    8.5 Extension;
      Waiver. At
      any
      time prior to the Closing, any party hereto may, to the extent legally allowed,
      (i) extend the time for the performance of any of the obligations or other
      acts
      of the other parties hereto, (ii) waive any inaccuracies in the representations
      and warranties made to such party contained herein or in any document delivered
      pursuant hereto and (iii) waive compliance with any of the agreements or
      conditions for the benefit of such party contained herein. Any agreement on
      the
      part of a party hereto to any such extension or waiver shall be valid only
      if
      set forth in an instrument in writing signed on behalf of such party. Delay
      in
      exercising any right under this Agreement shall not constitute a waiver of
      such
      right.

     

    ARTICLE
      IX

     

    GENERAL
      PROVISIONS

     

    9.1 Notices. All
      notices and other communications hereunder shall be in writing and shall be
      deemed given if delivered personally or by commercial delivery service, or
      sent
      via telecopy (receipt confirmed) to the parties at the following addresses
      or
      telecopy numbers (or at such other address or telecopy numbers for a party
      as
      shall be specified by like notice): 

     

    (a) if
      to the
      Buyer, to: 

    

    KIG
      Investors I, LLC

    Attn:
      Timothy J. Keating, Manager

    5251
      DTC
      Parkway, Suite 1090

    Denver,
      Colorado 80111

    (720)
      889-0135 fax

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (b) if
      to the
      Company, to: 

    

    Catalyst
      Lighting Group, Inc. 

    Attn:
      Kevin R. Keating, Director 

    936A
      Beachland Boulevard, Suite 13

    Vero
      Beach, FL 32963

    (772)
      231-5947 fax

     

    9.2 Interpretation. 

     

    (a) When
      a
      reference is made in this Agreement to Exhibits, such reference shall be to
      an
      Exhibit to this Agreement unless otherwise indicated. When a reference is made
      in this Agreement to Sections, such reference shall be to a Section of this
      Agreement. Unless otherwise indicated the words “include,” “includes” and
“including” when used herein shall be deemed in each case to be followed by the
      words “without limitation.” The table of contents and headings contained in this
      Agreement are for reference purposes only and shall not affect in any way the
      meaning or interpretation of this Agreement. When reference is made herein
      to
“the business of” an entity, such reference shall be deemed to include the
      business of all direct and indirect subsidiaries of such entity. 

     

    (b) For
      purposes of this Agreement, the term “Material
      Adverse Effect”
when
      used in connection with an entity means any change, event, violation,
      inaccuracy, circumstance or effect, individually or when aggregated with other
      changes, events, violations, inaccuracies, circumstances or effects, that is
      materially adverse to the business, assets (including intangible assets),
      revenues, financial condition or results of operations of such entity and its
      Subsidiaries, if any, taken as a whole (it being understood that neither of
      the
      following alone or in combination shall be deemed, in and of itself, to
      constitute a Material Adverse Effect: (a) changes attributable to the public
      announcement or pendency of the transactions contemplated hereby, (b) changes
      in
      general national or regional economic conditions or (c) changes affecting the
      industry generally in which the Company or the Buyer operates).

     

    (c) For
      purposes of this Agreement, the term “Person”
shall
      mean any individual, corporation (including any non-profit corporation), general
      partnership, limited partnership, limited liability partnership, joint venture,
      estate, trust, company (including any limited liability company or joint stock
      company), firm or other enterprise, association, organization, entity or
      Governmental Entity. 

     

    (b) For
      purposes of this Agreement, all monetary amounts set forth herein are referenced
      in United States dollars, unless otherwise noted.

     

    9.3 Counterparts. This
      Agreement may be executed in one or more counterparts, all of which shall be
      considered one and the same agreement and shall become effective when one or
      more counterparts have been signed by each of the parties and delivered to
      the
      other party, it being understood that all parties need not sign the same
      counterpart. Facsimile and electronic signatures to this Agreement by the
      parties shall be accepted and shall be treated as original signatures hereto.
      

     

    9.4 Entire
      Agreement; Third Party Beneficiaries. This
      Agreement and the documents and instruments and other agreements among the
      parties hereto as contemplated by or referred to herein, including the Schedules
      hereto (a) constitute the entire agreement among the parties with respect to
      the
      subject matter hereof and supersede all prior agreements and understandings,
      both written and oral, among the parties with respect to the subject matter
      hereof, and (b) are not intended to confer upon any other person any rights
      or
      remedies hereunder (except as specifically provided in this Agreement).

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    9.5 Severability. In
      the
      event that any provision of this Agreement, or the application thereof, becomes
      or is declared by a court of competent jurisdiction to be illegal, void or
      unenforceable, the remainder of this Agreement will continue in full force
      and
      effect and the application of such provision to other persons or circumstances
      will be interpreted so as reasonably to effect the intent of the parties hereto.
      The parties further agree to replace such void or unenforceable provision of
      this Agreement with a valid and enforceable provision that will achieve, to
      the
      extent possible, the economic, business and other purposes of such void or
      unenforceable provision. 

     

    9.6 Other
      Remedies; Specific Performance. Except
      as
      otherwise provided herein, any and all remedies herein expressly conferred
      upon
      a party will be deemed cumulative with and not exclusive of any other remedy
      conferred hereby, or by law or equity upon such party, and the exercise by
      a
      party of any one remedy will not preclude the exercise of any other remedy.
      The
      parties hereto agree that irreparable damage would occur in the event that
      any
      of the provisions of this Agreement were not performed in accordance with their
      specific terms or were otherwise breached. It is accordingly agreed that the
      parties shall be entitled to seek an injunction or injunctions to prevent
      breaches of this Agreement and to enforce specifically the terms and provisions
      hereof in any court of the United States or any state having jurisdiction,
      this
      being in addition to any other remedy to which they are entitled at law or
      in
      equity. 

     

    9.7 Governing
      Law. This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Delaware, USA, regardless of the laws that might otherwise govern
      under
      applicable principles of conflicts of law thereof. 

     

    9.8 Rules
      of Construction. The
      parties hereto agree that they have been represented by counsel during the
      negotiation and execution of this Agreement and, therefore, waive the
      application of any law, regulation, holding or rule of construction providing
      that ambiguities in an agreement or other document will be construed against
      the
      party drafting such agreement or document. 

     

    9.9 Assignment. No
      party
      may assign either this Agreement or any of its rights, interests, or obligations
      hereunder without the prior written approval of the other parties. Subject
      to
      the first sentence of this Section 9.9, this Agreement shall be binding upon
      and
      shall inure to the benefit of the parties hereto and their respective successors
      and permitted assigns. 

     

    9.10 Arbitration.
      Any
      disputes or claims arising under or in connection with this Agreement or the
      transactions contemplated hereunder shall be resolved by binding arbitration.
      Notice of a demand to arbitrate a dispute by either party shall be given in
      writing to the other at their last known address. Arbitration shall be commenced
      by the filing by a party of an arbitration demand with the American Arbitration
      Association (“AAA”)
      in its
      office in Denver, Colorado USA. The arbitration and resolution of the dispute
      shall be resolved by a single arbitrator appointed by the AAA pursuant to AAA
      rules. The arbitration shall in all respects be governed and conducted by
      applicable AAA rules, and any award and/or decision shall be conclusive and
      binding on the parties. The arbitration shall be conducted in Denver, Colorado.
      The arbitrator shall supply a written opinion supporting any award, and judgment
      may be entered on the award in any court of competent jurisdiction. Each party
      shall pay its own fees and expenses for the arbitration, except that any costs
      and charges imposed by the AAA and any fees of the arbitrator for his services
      shall be assessed against the losing party by the arbitrator. In the event
      that
      preliminary or permanent injunctive relief is necessary or desirable in order
      to
      prevent a party from acting contrary to this Agreement or to prevent irreparable
      harm prior to a confirmation of an arbitration award, then either party is
      authorized and entitled to commence a lawsuit solely to obtain equitable relief
      against the other pending the completion of the arbitration in a court having
      jurisdiction over the parties. All rights and remedies of the parties shall
      be
      cumulative and in addition to any other rights and remedies obtainable from
      arbitration.

     

    [Remainder
      of this page intentionally left blank.]

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

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

    
      	 	 	 
	 	
              KIG
                Investors I, LLC 

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Timothy J. Keating 
	 	
              

              Timothy
                J. Keating, Manager

            

    

     

    
      	 	 	 
	 	
              Catalyst
                Lighting Group, Inc. 

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Dennis H. Depenbusch 
	 	
              
Dennis
              H. Depenbusch, CEO

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    Index
      of Exhibits

    

    Exhibit
      A - Registration Rights Agreement

    

    Exhibit
      B - Certificate
      of Designations of Series A Convertible Preferred Stock 

     

    Schedules

    

    Disclosure
      Schedules by the Company (to be delivered prior to
      Closing)

     

    
      
        
        

      

      
        21REGISTRATION
      RIGHTS AGREEMENT

     

    THIS
      REGISTRATION RIGHTS AGREEMENT (this
      “Agreement”)
      is
      made as of this 12th day of September, 2007, by and among Catalyst Lighting
      Group, Inc., a Delaware corporation (the “Company”),
      and
      KIG Investors I, LLC, a Delaware limited liability company (“Holder”).
      

     

    A. The
      Company has issued a total of 1,572,770 shares of Series A Convertible Preferred
      Stock, par value $0.01 per share (“Preferred
      Shares”)
      to the
      Holder for a purchase price of $157,277.

     

    B. The
      Preferred Shares are convertible into 25,620,147 shares of common stock, par
      value $0.01 per share (“Shares”).

     

    C. As
      partial consideration for the Holder’s purchase of the Preferred Shares, the
      Company agreed to grant to the Holder the registration rights set forth herein.
      

     

    D. Unless
      otherwise provided in this Agreement, capitalized terms used herein shall have
      the respective meanings set forth in Section 11 hereof. 

     

    NOW,
      THEREFORE,
      in
      consideration of the above premises and the mutual covenants contained herein
      and other good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, the Company and Holder hereby agree as
      follows:

     

    1. Registration.

     

    (a) Demand
      Registration Rights.
      Commencing
      on the date that is thirty (30) days after the date the
      Company completes a business combination with a private company in a reverse
      merger or reverse take-over transaction (“Reverse
      Merger”),
      the
      Holder shall
      have a separate one-time right, by written notice to the Company, signed by
      the
      Holder ("Demand
      Notice"),
      to
      request the Company to register for resale all of the Registrable Securities
      included by the Holder in the Demand Notice (“Demand
      Registration Right”)
      under
      and in accordance with the provisions of the Securities Act for an offering
      to
      be made on a continuous basis pursuant to Rule 415 by filing with the Commission
      a Registration Statement covering the resale of such Registrable Securities
      ("Demand
      Registration Statement").
       The Demand Registration Statement required hereunder shall be filed on
      Form S-3 (except if the Company is not then eligible to register for resale
      the
      Registrable Securities on Form S-3, then such Registration Statement will be
      on
      Form S-1, Form SB-2, or such other appropriate form) by the applicable Filing
      Date. The Demand Registration Statement required hereunder shall contain the
      Plan of Distribution, attached hereto as Exhibit
      A
      (which
      may be modified to respond to comments, if any, received by the Commission).
       The Company shall cause the Demand Registration Statement to be declared
      effective under the Securities Act as promptly as possible after the filing
      thereof and shall keep the Demand Registration Statement continuously effective
      under the Securities Act until the earlier of (i) two years after its Effective
      Date, (ii) such time as all of the Registrable Securities covered by such
      Registration Statement have been publicly sold by the Holder, or (iii) such
      time
      as all of the Registrable Securities covered by such Registration Statement
      may
      be sold by the Holder pursuant to Rule 144(k), or Rule 144 without regard to
      the
      volume limitations for sales as provided in that regulation, as determined
      by
      the counsel to the Company pursuant to a written opinion letter to such effect,
      addressed and acceptable to the Company's transfer agent and the affected Holder
      ("Effectiveness
      Period”).
      By
      5:00 p.m. (New York City time) on the business day immediately following the
      Effective Date of such Registration Statement, the Company shall file with
      the
      Commission in accordance with Rule 424 under the Securities Act the final
      Prospectus to be used in connection with sales pursuant to such Registration
      Statement (whether or not such filing is technically required under such Rule).
      

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b) Restrictions
      on Demand Registration.
      The
      Company may postpone for up to thirty (30) days the filing or the effectiveness
      of a Demand Registration Statement if the Company reasonably determines that
      such Demand Registration Statement would have a material adverse effect on
      any
      proposal or plan by the Company or any of its subsidiaries to engage in any
      acquisition of assets (other than in the ordinary course of business) or any
      merger, consolidation, tender offer, reorganization or similar transaction;
      provided, however, that in such event, the Holder shall be entitled to withdraw
      such request and, if such request is withdrawn, such request for demand
      registration shall not count as a request for demand registration under Section
      1(a) above and the Company shall pay all Registration Expenses in connection
      with such registration. The Company may delay the filing or effectiveness of
      a
      Demand Registration Statement hereunder only once in any twelve-month
      period.

     

    (c) Continuing
      Demand Registration Rights.
      If all
      of the Registrable Securities to be included in the Demand Registration
      Statement filed pursuant to Section 1(a) cannot be so included due to Commission
      Comments, and there is not an effective Registration Statement otherwise
      covering the Registrable Securities, then the Company shall prepare and file
      by
      the applicable Filing Date for such Registration Statement(s), such number
      of
      additional Registration Statements as may be necessary in order to ensure that
      all Registrable Securities are covered by an existing and effective Registration
      Statement. Accordingly, for example, if shares included in an initial
      Registration Statement filed under Section 1(a) are removed from such
      Registration Statement filed under Section 1(a) due to Commission Comments
      and
      Commission Comments again require shares to be removed for such newly filed
      Registration Statement under this Section 1(c), then the Company will prepare
      and file additional Registration Statements until such time as all such required
      shares are covered by effective Registration Statements. Any Registration
      Statements to be filed under this Section shall be for an offering to be made
      on
      a continuous basis pursuant to Rule 415, on Form S-3 (except if the Company
      is
      not then eligible to register for resale the Registrable Securities on Form
      S-3,
      then such Registration Statement will be on Form S-1, Form SB-2, or such other
      appropriate form). Such Registration Statements shall contain (except if
      otherwise required pursuant to written comments received from the Commission
      upon a review of such Registration Statement) the "Plan of Distribution"
      attached hereto as Exhibit
      A.
      The
      Company shall cause such Registration Statements to be declared effective under
      the Securities Act as promptly as possible after the filing thereof and shall
      keep such Registration Statements continuously effective under the Securities
      Act during the Effectiveness Period. By 5:00 p.m. (New York City time) on the
      business day immediately following the Effective Date of such Registration
      Statement, the Company shall file with the Commission in accordance with Rule
      424 under the Securities Act the final Prospectus to be used in connection
      with
      sales pursuant to such Registration Statement (whether or not such filing is
      technically required under such Rule). 

     

    (d) Piggyback
      Registrations Rights.
      At any
      time there is not an effective Registration Statement covering the Registrable
      Securities, and the Company shall determine to prepare and file with the
      Commission a Registration Statement relating to an offering for its own account
      or the account of others under the Securities Act of any of its equity
      securities, other than on Form S-4 or Form S-8 (each as promulgated under the
      Securities Act) or their then equivalents relating to equity securities to
      be
      issued solely in connection with any acquisition of any entity or business
      or
      equity securities issuable in connection with stock option or other employee
      benefit plans, then the Company shall send to the Holder a written notice of
      such determination at least twenty (20) days prior to the filing of any such
      Registration Statement and shall automatically include in such Registration
      Statement all Registrable Securities for resale and offer on a continuous basis
      pursuant to Rule 415; provided, however, that (i) if, at any time after giving
      written notice of its intention to register any securities and prior to the
      effective date of the Registration Statement filed in connection with such
      registration, the Company determines for any reason not to proceed with such
      registration, the Company will be relieved of its obligation to register any
      Registrable Securities in connection with such registration, (ii) in case of
      a
      determination by the Company to delay registration of its securities, the
      Company will be permitted to delay the registration of Registrable Securities
      for the same period as the delay in registering such other securities, (iii)
      each Holder is subject to confidentiality obligations with respect to any
      information gained in this process or any other material non-public information
      he, she or it obtains, (iv) each Holder is subject to all applicable laws
      relating to insider trading or similar restrictions; and (v) if all of the
      Registrable Securities of the Holder cannot be so included due to Commission
      Comments, then the Company may reduce the number of the Holder’s Registrable
      Securities covered by such Registration Statement to the maximum number which
      would enable the Company to conduct such offering in accordance with the
      provisions of Rule 415. 
      The
      Holder shall be entitled to include all Registrable Securities for resale in
      the
      Registration Statement filed by the Company in connection with a public offering
      of equity securities by the Company after the date of this Agreement (the
“Initial
      Registration Statement”),
      pursuant to Rule 415, so long as (1) such shares shall not be included as part
      of the underwritten offering of primary shares by the Company, unless the
      Company and underwriter agree to allow the inclusion of such Registrable Shares
      as part of the underwritten offering and, in such event, the Holder elects
      to
      include the Registrable Securities in the underwriting subject to an allocation
      among all holders of registration rights in the manner set forth in Section
      1(e)
      hereof, (2) the underwriter approves the inclusion of such Registrable
      Securities in such Initial Registration Statement, subject to customary
      underwriter cutbacks applicable to all holders of registration rights, (3)
      the
      Holder shall enter into the underwriters’ form of lockup agreement as and to the
      extent requested by the underwriters, which may require that all of the
      Registrable Securities held by the Holder not be sold or otherwise transferred
      without the consent of the underwriters for a period not to exceed 180 days
      from
      the closing of the offering contemplated by the Initial Registration Statement,
      and (4) if all of the Registrable Securities of the Holder cannot be so included
      due to Commission Comments, then the Company may reduce the number of the
      Holder’s Registrable Securities covered by such Registration Statement to the
      maximum number which would enable the Company to conduct such offering in
      accordance with the provisions of Rule 415. The Company shall cause any
      Registration Statement filed under this Section 1(d) to be declared effective
      under the Securities Act as promptly as possible after the filing thereof and
      shall keep such Registration Statement continuously effective under the
      Securities Act during the Effectiveness Period. By 5:00 p.m. (New York City
      time) on the business day immediately following the Effective Date of such
      Registration Statement, the Company shall file with the Commission in accordance
      with Rule 424 under the Securities Act the final Prospectus to be used in
      connection with sales pursuant to such Registration Statement (whether or not
      such filing is technically required under such Rule).

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (e) Cutback
      Provisions.
      In the
      event all of the Registrable Securities of the Holder cannot be included in
      a
      Registration Statement under Sections 1(a), 1(c) or 1(d) hereof due to
      Commission Comments or underwriter cutbacks, then the Company, unless otherwise
      prohibited by the Commission, shall cause the Registrable Securities of the
      Holder to be included in such Registration Statement to be reduced pro rata
      based on the number of registrable securities held by all holders of
      registration rights as of the date immediately preceding the Reverse
      Merger.

     

    (f) Termination
      of Registration Rights.
      The
      registration rights afforded to the Holder under this Section 1 shall terminate
      on the earliest date when all Registrable Securities of the Holder either:
      (i)
      have been publicly sold
      by the
      Holder pursuant to a Registration Statement, (ii) have
      been
      covered by an effective Registration Statement which has been effective for
      an
      aggregate period of twelve (12) months (whether or not consecutive), or (iii)
      may
      be
      sold by the Holder pursuant to Rule 144(k), or Rule 144 without regard to the
      volume limitations for sales as provided in that regulation, as determined
      by
      the counsel to the Company pursuant to a written opinion letter to such effect,
      addressed and acceptable to the Company's transfer agent and the affected
      Holder.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    2. Registration
      Procedures.
      Whenever any Registrable Securities are to be registered pursuant to this
      Agreement, the Company shall use its best efforts to effect the registration
      and
      sale of such Registrable Securities in accordance with the intended method
      of
      disposition thereof, and pursuant thereto the Company shall have the following
      obligations:

     

    (a) The
      Company shall prepare and file with the Commission a Registration Statement
      with
      respect to such Registrable Securities and use its best efforts to cause such
      Registration Statement to become effective.

     

    (b) The
      Company shall prepare and file with the Commission such amendments (including
      post-effective amendments) and supplements to a Registration Statement and
      the
      Prospectus used in connection with such Registration Statement, which Prospectus
      is to be filed pursuant to Rule 424 promulgated under the Securities Act, as
      may
      be necessary to keep such Registration Statement effective at all times during
      the Effectiveness Period, and, during such period, comply with the provisions
      of
      the Securities Act with respect to the disposition of all Registrable Securities
      of the Company covered by such Registration Statement until such time as all
      of
      such Registrable Securities shall have been disposed of in accordance with
      the
      intended methods of disposition by the seller or sellers thereof as set forth
      in
      such Registration Statement. In the case of amendments and supplements to a
      Registration Statement which are required to be filed pursuant to this Agreement
      by reason of the Company filing a report on Form 10-QSB, Form 10-KSB or any
      analogous report under the Securities Exchange Act, the Company shall have
      incorporated such report by reference into such Registration Statement, if
      applicable, or shall file such amendments or supplements with the Commission
      on
      the same day on which the Securities Exchange Act report is filed which created
      the requirement for the Company to amend or supplement such Registration
      Statement. 

     

    (c) The
      Company shall furnish to each seller of Registrable Securities in any
      Registration Statement, without charge, (i) promptly after the same is prepared
      and filed with the Commission at least one copy of such Registration Statement
      and any amendment(s) thereto, including financial statements and schedules,
      all
      documents incorporated therein by reference, if requested by such seller, all
      exhibits and each preliminary Prospectus, (ii) upon the effectiveness of any
      Registration Statement, ten (10) copies of the Prospectus included in such
      Registration Statement and all amendments and supplements thereto (or such
      other
      number of copies as such seller may reasonably request) and (iii) such other
      documents, including copies of any preliminary or final Prospectus, as such
      seller may reasonably request from time to time in order to facilitate the
      disposition of the Registrable Securities owned by such seller.

     

    (d) The
      Company shall use its best efforts to (i) register and qualify, unless an
      exemption from registration and qualification applies, the resale by any seller
      of the Registrable Securities covered by a Registration Statement under such
      other securities or "blue sky" laws of all applicable jurisdictions in the
      United States, (ii) prepare and file in those jurisdictions, such amendments
      (including post-effective amendments) and supplements to such registrations
      and
      qualifications as may be necessary to maintain the effectiveness thereof during
      the Effectiveness Period, (iii) take such other actions as may be necessary
      to
      maintain such registrations and qualifications in effect at all times during the
      Effectiveness Period, and (iv) take all other actions reasonably necessary
      or
      advisable to qualify the Registrable Securities for sale in such jurisdictions;
      provided, however, that the Company shall not be required in connection
      therewith or as a condition thereto to (x) qualify to do business in any
      jurisdiction where it would not otherwise be required to qualify but for this
      Section 2(d), (y) subject itself to general taxation in any such jurisdiction,
      or (z) file a general consent to service of process in any such jurisdiction.
      

     

    (e) The
      Company shall use its best efforts to prevent the issuance of any stop order
      or
      other suspension of effectiveness of a Registration Statement, or the suspension
      of the qualification of any of Registrable Securities for sale in any
      jurisdiction and, if such an order or suspension is issued, to obtain the
      withdrawal of such order or suspension at the earliest possible moment and
      to
      notify the Holder of any Registrable Securities being sold of the issuance
      of
      such order and the resolution thereof or its receipt of actual notice of the
      initiation or threat of any proceeding for such purpose. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (f) The
      Company shall notify the Holder in writing of the happening of any event, as
      promptly as practicable after becoming aware of such event, as a result of
      which
      the Prospectus included in a Registration Statement, as then in effect, includes
      an untrue statement of a material fact or omission to state a material fact
      required to be stated therein or necessary to make the statements therein,
      in
      the light of the circumstances under which they were made, not misleading
      (provided that in no event shall such notice contain any material, nonpublic
      information), and, subject to Section 2(r), promptly prepare a supplement or
      amendment to such Registration Statement to correct such untrue statement or
      omission, and deliver ten (10) copies of such supplement or amendment to the
      Holder (or such other number of copies as the Holder may reasonably request).
      

     

    (g) The
      Company shall promptly notify the Holder in writing (i) when a Prospectus or
      any
      Prospectus supplement or post-effective amendment has been filed, and when
      a
      Registration Statement or any post-effective amendment has become effective
      (notification of such effectiveness shall be delivered to the Holder by
      facsimile on the same day of such effectiveness and by overnight mail), (ii)
      of
      any request by the Commission for amendments or supplements to a Registration
      Statement or related Prospectus or related information, and (iii) of the
      Company's reasonable determination that a post-effective amendment to a
      Registration Statement would be appropriate.

     

    (h) If
      the
      Holder is required under applicable securities laws to be described in a
      Registration Statement as an underwriter, at the reasonable request of such
      Holder, the Company shall furnish to such Holder, on the date of the
      effectiveness of such Registration Statement and thereafter from time to time
      on
      such dates as the Holder may reasonably request (i) a letter, dated such date,
      from the Company's independent certified public accountants in form and
      substance as is customarily given by independent certified public accountants
      to
      underwriters in an underwritten public offering, addressed to the Holder, and
      (ii) an opinion, dated as of such date, of counsel representing the Company
      for
      purposes of such Registration Statement, in form, scope and substance as is
      customarily given in an underwritten public offering, addressed to the
      Holder.

     

    (i) If
      the
      Holder is required under applicable securities laws to be described in a
      Registration Statement as an underwriter, then at the request of such Holder
      in
      connection with such Holder's due diligence requirements, the Company shall
      make
      available for inspection by (i) the Holder, (ii) the Holder’s legal counsel, and
      (iii) one firm of accountants or other agents retained by the Holder
      (collectively, the "Inspectors"),
      all
      pertinent financial and other records, and pertinent corporate documents and
      properties of the Company (collectively, the "Records"),
      as
      shall be reasonably deemed necessary by each Inspector, and cause the Company's
      officers, directors and employees to supply all information which any Inspector
      may reasonably request; provided, however, that each Inspector shall agree
      to
      hold in strict confidence and shall not make any disclosure (except to the
      Holder) or use of any Record or other information which the Company determines
      in good faith to be confidential, and of which determination the Inspectors
      are
      so notified, unless (a) the disclosure of such Records is necessary to avoid
      or
      correct a misstatement or omission in any Registration Statement or is otherwise
      required under the Securities Act, (b) the release of such Records is ordered
      pursuant to a final, non-appealable subpoena or order from a court or government
      body of competent jurisdiction, or (c) the information in such Records has
      been
      made generally available to the public other than by disclosure in violation
      of
      this or any other agreement of which the Inspector has knowledge. Each Holder
      agrees that it shall, upon learning that disclosure of such Records is sought
      in
      or by a court or governmental body of competent jurisdiction or through other
      means, give prompt notice to the Company and allow the Company, at its expense,
      to undertake appropriate action to prevent disclosure of, or to obtain a
      protective order for, the Records deemed confidential. Nothing herein (or in
      any
      other confidentiality agreement between the Company and the Holder) shall be
      deemed to limit the Holder's ability to sell Registrable Securities in a manner
      which is otherwise consistent with applicable laws and regulations.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (j)
      The
      Company shall hold in confidence and not make any disclosure of information
      concerning the Holder provided to the Company unless (i) disclosure of such
      information is necessary to comply with federal or state securities laws, (ii)
      the disclosure of such information is necessary to avoid or correct a
      misstatement or omission in any Registration Statement, (iii) the release of
      such information is ordered pursuant to a subpoena or other final,
      non-appealable order from a court or governmental body of competent
      jurisdiction, or (iv) such information has been made generally available to
      the
      public other than by disclosure in violation of this Agreement or any other
      agreement. The Company agrees that it shall, upon learning that disclosure
      of
      such information concerning the Holder is sought in or by a court or
      governmental body of competent jurisdiction or through other means, give prompt
      written notice to the Holder and allow the Holder, at the Holder’s expense, to
      undertake appropriate action to prevent disclosure of, or to obtain a protective
      order for, such information.

     

    (k)
      The
      Company shall use its best efforts either to (i) cause all of the Registrable
      Securities covered by a Registration Statement to be listed on each securities
      exchange on which securities of the same class or series issued by the Company
      are then listed, if any, if the listing of such Registrable Securities is then
      permitted under the rules of such exchange, or (ii) secure designation and
      quotation of all of the Registrable Securities covered by a Registration
      Statement on The NASDAQ Global Market, The NASDAQ Capital Market or the American
      Stock Exchange, or (iii) if, despite the Company's best efforts to satisfy,
      the
      preceding clauses (i) and (ii) the Company is unsuccessful in satisfying the
      preceding clauses (i) and (ii), to secure the inclusion for quotation on the
      Over-the-Counter Bulletin Board for such Registrable Securities and, without
      limiting the generality of the foregoing, to use its best efforts to arrange
      for
      at least two market makers to register with the National Association of
      Securities Dealers, Inc. ("NASD")
      as
      such with respect to such Registrable Securities. The Company shall pay all
      fees
      and expenses in connection with satisfying its obligation under this Section
      2(k).

     

    (l)
      The
      Company shall cooperate with the Holder who hold Registrable Securities being
      offered and, to the extent applicable, facilitate the timely preparation and
      delivery of certificates (not bearing any restrictive legend) representing
      the
      Registrable Securities to be offered pursuant to a Registration Statement and
      enable such certificates to be in such denominations or amounts, as the case
      may
      be, as the Holder may reasonably request and registered in such names as the
      Holder may request.

     

    (m)
      If
      requested by the Holder, the Company shall (i) as soon as practicable
      incorporate in a Prospectus supplement or post-effective amendment such
      information as the Holder reasonably requests to be included therein relating
      to
      the sale and distribution of Registrable Securities, including, without
      limitation, information with respect to the number of Registrable Securities
      being offered or sold, the purchase price being paid therefor and any other
      terms of the offering of the Registrable Securities to be sold in such offering;
      (ii) as soon as practicable make all required filings of such Prospectus
      supplement or post-effective amendment after being notified of the matters
      to be
      incorporated in such Prospectus supplement or post-effective amendment; and
      (iii) as soon as practicable, supplement or make amendments to any Registration
      Statement if reasonably requested by the Holder holding any Registrable
      Securities.

     

    (n)
      The
      Company shall use its best efforts to cause the Registrable Securities covered
      by a Registration Statement to be registered with or approved by such other
      governmental agencies or authorities as may be necessary to consummate the
      disposition of such Registrable Securities.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (o)
      The
      Company shall make generally available to its security holders as soon as
      practical, but not later than ninety (90) days after the close of the period
      covered thereby, an earnings statement (in form complying with, and in the
      manner provided by, the provisions of Rule 158 under the Securities Act)
      covering a twelve-month period beginning not later than the first day of the
      Company's fiscal quarter next following the effective date of a Registration
      Statement.

     

    (p)
      The
      Company shall otherwise use its best efforts to comply with all applicable
      rules
      and regulations of the Commission in connection with any registration
      hereunder.

     

    (q)
      Within
      two (2) business days after a Registration Statement which covers Registrable
      Securities is ordered effective by the Commission, the Company shall deliver,
      and shall cause legal counsel for the Company to deliver, to the transfer agent
      for such Registrable Securities (with copies to the Holder whose Registrable
      Securities are included in such Registration Statement) confirmation that such
      Registration Statement has been declared effective by the Commission in the
      form
      attached hereto as Exhibit
      B
      and the
      Irrevocable Transfer Agent Instructions in the form attached hereto as
Exhibit
      C.

     

    (r)
      Notwithstanding
      anything to the contrary herein, at any time after the Effective Date of a
      Registration Statement, the Company may delay the disclosure of material,
      non-public information concerning the Company the disclosure of which at the
      time is not, in the good faith opinion of the Board of Directors of the Company
      and its counsel, in the best interest of the Company and, in the opinion of
      counsel to the Company, otherwise required (a "Grace
      Period");
      provided, that the Company shall promptly (i) notify the Holder in writing
      of
      the existence of material, non-public information giving rise to a Grace Period
      (provided that in each notice the Company will not disclose the content of
      such
      material, non-public information to the Holder) and the date on which the Grace
      Period will begin, and (ii) notify the Holder in writing of the date on which
      the Grace Period ends; and, provided further, that no Grace Period shall exceed
      five (5) consecutive days and during any three hundred sixty five (365) day
      period such Grace Periods shall not exceed an aggregate of twenty (20) days
      and
      the first day of any Grace Period must be at least five (5) trading days after
      the last day of any prior Grace Period (each, an "Allowable
      Grace Period").
      For
      purposes of determining the length of a Grace Period above, the Grace Period
      shall begin on and include the date the Holder receives the notice referred
      to
      in clause (i) and shall end on and include the later of the date the Holder
      receives the notice referred to in clause (ii) and the date referred to in
      such
      notice. The provisions of Section 2(e) hereof shall not be applicable during
      the
      period of any Allowable Grace Period. Upon expiration of the Grace Period,
      the
      Company shall again be bound by Section 2(f) with respect to the information
      giving rise thereto unless such material, non-public information is no longer
      applicable. Notwithstanding anything to the contrary, the Company shall cause
      its transfer agent to deliver unlegended shares of Common Stock to a transferee
      of the Holder in connection with any sale of Registrable Securities with respect
      to which the Holder has entered into a contract for sale, and delivered a copy
      of the Prospectus included as part of the applicable Registration Statement
      (unless an exemption from such Prospectus delivery requirements exists), prior
      to the Holder’s receipt of the notice of a Grace Period and for which the Holder
      has not yet settled. 

     

    3. Obligations
      of the Holders.
      

     

    (a) At
      least
      five (5) business days prior to the first anticipated filing date of a
      Registration Statement, the Company shall notify the Holder in writing of the
      information the Company requires from the Holder if the Holder’s Registrable
      Securities are to be included in such Registration Statement. It shall be a
      condition precedent to the obligations of the Company to complete the
      registration pursuant to this Agreement with respect to the Registrable
      Securities of the Holder that the Holder shall furnish to the Company such
      information regarding itself, the Registrable Securities held by it and the
      intended method of disposition of the Registrable Securities held by it as
      shall
      be reasonably required to effect the effectiveness of the registration of such
      Registrable Securities and shall execute such documents in connection with
      such
      registration as the Company may reasonably request.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (b) The
      Holder, by the Holder’s acceptance of the Registrable Securities, agrees to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of any Registration Statement hereunder, unless
      the Holder has notified the Company in writing of the Holder's election to
      exclude all of the Holder’s Registrable Securities from such Registration
      Statement.

     

    (c) The
      Holder agrees that, upon receipt of any notice from the Company of the happening
      of any event of the kind described in Sections 2(e) or 2(f), the Holder will
      immediately discontinue disposition of Registrable Securities pursuant to any
      Registration Statement(s) covering such Registrable Securities until the
      Holder’s receipt of the copies of the supplemented or amended Prospectus
      contemplated by Sections 2(e) or 2(f) or receipt of notice that no supplement
      or
      amendment is required. Notwithstanding anything to the contrary, the Company
      shall cause its transfer agent to deliver unlegended shares of Common Stock
      to a
      transferee of the Holder in connection with any sale of Registrable Securities
      with respect to which the Holder has entered into a contract for sale prior
      to
      the Holder’s receipt of a notice from the Company of the happening of any event
      of the kind described in Sections 2(e) or 2(f) and for which the Holder has
      not
      yet settled.

     

    (d) The
      Holder covenants and agrees that it will comply with the Prospectus delivery
      requirements of the Securities Act as applicable to it or an exemption therefrom
      in connection with sales of Registrable
      Securities pursuant to a Registration Statement.

     

    4. Registration
      Expenses.
      All
      expenses incident to the Company’s performance of or compliance with this
      Agreement, including without limitation all registration and filing fees, fees
      and expenses of compliance with securities or blue sky laws, printing expenses,
      messenger and delivery expenses, fees and disbursements of custodians, and
      fees
      and disbursements of counsel for the Company and all independent certified
      public accountants, underwriters (excluding discounts, commissions and placement
      agent fees) and other Persons retained by the Company (all such expenses being
      herein called “Registration
      Expenses”),
      shall
      be borne by the Company. Further, the Company shall pay its internal expenses
      (including, without limitation, all salaries and expenses of its officers and
      employees performing legal or accounting duties), the expense of any annual
      audit or quarterly review, the expense of any liability insurance and the
      expenses and fees for listing the securities to be registered on each securities
      exchange on which similar securities issued by the Company are then
      listed.

     

    5. Indemnification.

     

    In
      the
      event any Registrable Securities are included in a Registration Statement under
      this Agreement:

     

    (a)
      To
      the
      fullest extent permitted by law, the Company will, and hereby does, indemnify,
      hold harmless and defend the Holder, the directors, officers, members, partners,
      employees, agents, representatives of, and each Person, if any, who controls
      the
      Holder within the meaning of the Securities Act or the Securities Exchange
      Act
      (each, an "Indemnified
      Person"),
      against any losses, claims, damages, liabilities, judgments, fines, penalties,
      charges, costs, reasonable attorneys' fees, amounts paid in settlement or
      expenses, joint or several, (collectively, "Claims")
      incurred in investigating, preparing or defending any action, claim, suit,
      inquiry, proceeding, investigation or appeal taken from the foregoing by or
      before any court or governmental, administrative or other regulatory agency,
      body or the Commission, whether pending or threatened, whether or not an
      indemnified party is or may be a party thereto ("Indemnified
      Damages"),
      to
      which any of them may become subject insofar as such Claims (or actions or
      proceedings, whether commenced or threatened, in respect thereof) arise out
      of
      or are based upon: (i) any untrue statement or alleged untrue statement of
      a
      material fact in a Registration Statement or any post-effective amendment
      thereto or in any filing made in connection with the qualification of the
      offering under the securities or other "blue sky" laws of any jurisdiction
      in
      which Registrable Securities are offered ("Blue
      Sky Filing"),
      or
      the omission or alleged omission to state a material fact required to be stated
      therein or necessary to make the statements therein not misleading, (ii) any
      untrue statement or alleged untrue statement of a material fact contained in
      any
      preliminary Prospectus if used prior to the effective date of such Registration
      Statement, or contained in the final Prospectus (as amended or supplemented,
      if
      the Company files any amendment thereof or supplement thereto with the
      Commission) or the omission or alleged omission to state therein any material
      fact necessary to make the statements made therein, in the light of the
      circumstances under which the statements therein were made, not misleading,
      (iii) any violation or alleged violation by the Company of the Securities Act
      or
      the Securities Exchange Act, any other law, including, without limitation,
      any
      state securities law, or any rule or regulation thereunder relating to the
      offer
      or sale of the Registrable Securities pursuant to a Registration Statement
      or
      (iv) any violation of this Agreement (the matters in the foregoing clauses
      (i)
      through (iv) being, collectively, "Violations").
      Subject to Section 5(c), the Company shall reimburse the Indemnified Persons,
      promptly as such expenses are incurred and are due and payable, for any legal
      fees or other reasonable expenses incurred by them in connection with
      investigating or defending any such Claim. Notwithstanding anything to the
      contrary contained herein, the indemnification agreement contained in this
      Section 5(a): (i) shall not apply to a Claim by an Indemnified Person arising
      out of or based upon a Violation which occurs in reliance upon and in conformity
      with information furnished in writing to the Company by such Indemnified Person
      for such Indemnified Person expressly for use in connection with the preparation
      of the Registration Statement or any such amendment thereof or supplement
      thereto, if such Prospectus was timely made available by the Company pursuant
      to
      Section 2(c) and (ii) shall not be available to the extent such Claim is based
      on a failure of the Holder to deliver or to cause to be delivered the Prospectus
      made available by the Company, including a corrected Prospectus, if such
      Prospectus or corrected Prospectus was timely made available by the Company
      pursuant to Section 2(c); and (iv) shall not apply to amounts paid in settlement
      of any Claim if such settlement is effected without the prior written consent
      of
      the Company, which consent shall not be unreasonably withheld or delayed. Such
      indemnity shall remain in full force and effect regardless of any investigation
      made by or on behalf of the Indemnified Person and shall survive the transfer
      of
      the Registrable Securities by the Holder pursuant to Section 9.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (b)
      In
      connection with any Registration Statement in which the Holder is participating,
      the Holder agrees to indemnify, hold harmless and defend, to the same extent
      and
      in the same manner as is set forth in Section 6(a), the Company, each of its
      directors, each of its officers who signs the Registration Statement and each
      Person, if any, who controls the Company within the meaning of the Securities
      Act or the Securities Exchange Act (each, an "Indemnified
      Party"),
      against any Claim or Indemnified Damages to which any of them may become
      subject, under the Securities Act or the Securities Exchange Act or otherwise,
      insofar as such Claim or Indemnified Damages arise out of or are based upon
      any
      Violation, in each case to the extent, and only to the extent, that such
      Violation occurs in reliance upon and in conformity with written information
      furnished to the Company by the Holder expressly for use in connection with
      such
      Registration Statement; and, subject to Section 5(c), the Holder will reimburse
      any legal or other expenses reasonably incurred by an Indemnified Party in
      connection with investigating or defending any such Claim; provided, however,
      that the indemnity agreement contained in this Section 5(b) and the agreement
      with respect to contribution contained in Section 6 shall not apply to amounts
      paid in settlement of any Claim if such settlement is effected without the
      prior
      written consent of the Holder, which consent shall not be unreasonably withheld
      or delayed; provided, further, however, that the Holder shall be liable under
      this Section 5(b) for only that amount of a Claim or Indemnified Damages as
      does
      not exceed the net proceeds to the Holder as a result of the sale of Registrable
      Securities pursuant to such Registration Statement. Such indemnity shall remain
      in full force and effect regardless of any investigation made by or on behalf
      of
      such Indemnified Party and shall survive the transfer of the Registrable
      Securities by the Holder pursuant to Section 9.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (c)
      Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      5
      of notice of the commencement of any action or proceeding (including any
      governmental action or proceeding) involving a Claim, such Indemnified Person
      or
      Indemnified Party shall, if a Claim in respect thereof is to be made against
      any
      indemnifying party under this Section 5, deliver to the indemnifying party
      a
      written notice of the commencement thereof, and the indemnifying party shall
      have the right to participate in, and, to the extent the indemnifying party
      so
      desires, jointly with any other indemnifying party similarly noticed, to assume
      control of the defense thereof with counsel mutually satisfactory to the
      indemnifying party and the Indemnified Person or the Indemnified Party, as
      the
      case may be; provided, however, that an Indemnified Person or Indemnified Party
      shall have the right to retain its own counsel with the fees and expenses of
      not
      more than one counsel for such Indemnified Person or Indemnified Party to be
      paid by the indemnifying party, if, in the reasonable opinion of counsel
      retained by the indemnifying party, the representation by such counsel of the
      Indemnified Person or Indemnified Party and the indemnifying party would be
      inappropriate due to actual or potential differing interests between such
      Indemnified Person or Indemnified Party and any other party represented by
      such
      counsel in such proceeding. The Indemnified Party or Indemnified Person shall
      cooperate fully with the indemnifying party in connection with any negotiation
      or defense of any such action or Claim by the indemnifying party and shall
      furnish to the indemnifying party all information reasonably available to the
      Indemnified Party or Indemnified Person which relates to such action or Claim.
      The indemnifying party shall keep the Indemnified Party or Indemnified Person
      reasonably apprised at all times as to the status of the defense or any
      settlement negotiations with respect thereto. No indemnifying party shall be
      liable for any settlement of any action, claim or proceeding effected without
      its prior written consent, provided, however, that the indemnifying party shall
      not unreasonably withhold, delay or condition its consent. No indemnifying
      party
      shall, without the prior written consent of the Indemnified Party or Indemnified
      Person, consent to entry of any judgment or enter into any settlement or other
      compromise which does not include as an unconditional term thereof the giving
      by
      the claimant or plaintiff to such Indemnified Party or Indemnified Person of
      a
      release from all liability in respect to such Claim or litigation, and such
      settlement shall not include any admission as to fault on the part of the
      Indemnified Party. Following indemnification as provided for hereunder, the
      indemnifying party shall be subrogated to all rights of the Indemnified Party
      or
      Indemnified Person with respect to all third parties, firms or corporations
      relating to the matter for which indemnification has been made. The failure
      to
      deliver written notice to the indemnifying party within a reasonable time of
      the
      commencement of any such action shall not relieve such indemnifying party of
      any
      liability to the Indemnified Person or Indemnified Party under this Section
      5,
      except to the extent that the indemnifying party is prejudiced in its ability
      to
      defend such action.

     

    (d)
      The
      indemnification required by this Section 5 shall be made by periodic payments
      of
      the amount thereof during the course of the investigation or defense, as and
      when bills are received or Indemnified Damages are incurred.

     

    (e) The
      indemnity agreements contained herein shall be in addition to (i) any cause
      of
      action or similar right of the Indemnified Party or Indemnified Person against
      the indemnifying party or others, and (ii) any liabilities the indemnifying
      party may be subject to pursuant to the law. 

     

    6. Contribution.
      To the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 5 to the
      fullest extent permitted by law; provided, however, that: (i) no Person involved
      in the sale of Registrable Securities which Person is guilty of fraudulent
      misrepresentation (within the meaning of Section 10(f) of the Securities Act)
      in
      connection with such sale shall be entitled to contribution from any Person
      involved in such sale of Registrable Securities who was not guilty of fraudulent
      misrepresentation; and (ii) contribution by any seller of Registrable Securities
      shall be limited in amount to the net amount of proceeds received by such seller
      from the sale of such Registrable Securities pursuant to such Registration
      Statement

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    7. Participation
      in Underwritten Registrations.
      No
      Person may participate in any registration hereunder which is underwritten
      or
      sold through a placement agent unless such Person (i) agrees to sell such
      Person’s securities on the basis provided in any underwriting or placement
      agency arrangements approved by the Company, and (ii) completes and executes
      all
      questionnaires, powers of attorney, indemnities, underwriting or placement
      agency agreements and other documents required under the terms of such
      underwriting or placement agency arrangements.

     

    8. Reports
      under Securities Exchange Act.
      With a
      view to making available to the Holder the benefits of Rule 144 promulgated
      under the Securities Act or any other similar rule or regulation of the
      Commission that may at any time permit the Holder to sell securities of the
      Company to the public without registration ("Rule
      144"),
      commencing not later than the completion of the Reverse Merger the Company
      agrees to,: 

     

    (a) make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144;

     

    (b) file
      with
      the Commission in a timely manner all reports and other documents required
      of
      the Company under the Securities Act and the Securities Exchange Act so long
      as
      the Company remains subject to such requirements and the filing of such reports
      and other documents is required for the applicable provisions of Rule 144;
      and

     

    (c) furnish
      to the Holder so long as the Holder owns Registrable Securities, promptly upon
      request, (i) a written statement by the Company, if true, that it has complied
      with the reporting requirements of Rule 144, the Securities Act and the
      Securities Exchange Act, (ii) a copy of the most recent annual or quarterly
      report of the Company and such other reports and documents so filed by the
      Company, and (iii) such other information as may be reasonably requested to
      permit the Holder to sell such securities pursuant to Rule 144 without
      registration.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    9. Assignment
      of Registration Rights.
      The
      rights under this Agreement shall be automatically assignable by the Holder
      to
      any transferee of all or any portion of the Holder’s Registrable Securities if:
      (i) the Holder agrees in writing with the transferee or assignee to assign
      such
      rights, and a copy of such agreement is furnished to the Company within a
      reasonable time after such assignment; (ii) the Company is, within a reasonable
      time after such transfer or assignment, furnished with written notice of (a)
      the
      name and address of such transferee or assignee, and (b) the securities with
      respect to which such registration rights are being transferred or assigned;
      (iii) immediately following such transfer or assignment the further disposition
      of such securities by the transferee or assignee is restricted under the
      Securities Act and applicable state securities laws; and (iv) at or before
      the
      time the Company receives the written notice contemplated by clause (ii) of
      this
      sentence the transferee or assignee agrees in writing with the Company to be
      bound by all of the provisions contained herein. 

     

    10. Amendment
      of Registration Rights.
      Provisions of this Agreement may be amended and the observance thereof 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 Holder.
      

     

    11. Definitions.

     

    (a) “Commission”
means
      the Securities and Exchange Commission.

     

    (b) “Commission
      Comments”
means
      written comments pertaining solely to Rule 415 which are received by the Company
      from the Commission, and a copy of which shall have been provided by the Company
      to the Holder, to a filed Registration Statement which limit the amount of
      shares which may be included therein to a number of shares which is less than
      such amount sought to be included thereon as filed with the
      Commission.

     

    (c) “Common
      Stock”
means
      the common stock, $0.01 par value per share, of the Company.

     

    (d) “Effective
      Date”
means,
      as to a Registration Statement, the date on which such Registration Statement
      is
      first declared effective by the Commission.

     

    (e) “Filing
      Date”
means
      (a) with respect to the Registration Statement required to be filed under
      Section 1(a), the 30th day following the receipt by the Company of the Demand
      Notice, and (b) with respect to any Registration Statements required to be
      filed
      under Section 1(c), each such Registration Statement shall be filed by the
      six-month anniversary of the Effective Date of the Registration Statement
      required to be filed under Section 1(a) and for all subsequent Registration
      Statements, the six-month anniversary of the Effective Date of the immediately
      preceding Registration Statement required to be filed under Section 1(c), as
      applicable. 

     

    (f) “Person”
means
      an individual, a partnership, a limited liability company, a corporation, an
      association, a joint stock company, a trust, a joint venture, an unincorporated
      organization and a governmental entity or any department, agency or political
      subdivision thereof. 

     

    (g) "Prospectus"
      means
      the prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective Registration Statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by any prospectus supplement, with respect to the terms of the offering of
      any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (h) “Registrable
      Securities”
means
      (i) the Shares issued to the Holder and held by the Holder or its assignees,
      (ii) any shares of Common Stock issued to the Holder (whether issued before
      or
      after the date hereof) and held by the Holder or its assignees, (iii) any Common
      Stock issuable upon conversion of any securities convertible into shares of
      Common Stock (including the Preferred Shares) or upon exercise of any warrants,
      options or similar instruments (whether such convertible securities, warrants,
      options or similar instruments are issued before or after the date hereof),
      and
      (iv) any other shares of Common Stock or any other securities issued or issuable
      with respect to the securities referred to in clause (i), (ii) or (iii) by
      way
      of a stock dividend or stock split or in connection with an exchange or
      combination of shares, recapitalization, merger, consolidation or other
      reorganization. 

     

    (i) "Registration
      Statement"
      means
      any registration statement required to be filed hereunder (which, at the
      Company’s option, may be an existing registration statement of the Company
      previously filed with the Commission, but not declared effective), including
      (in
      each case) the Prospectus, amendments and supplements to the Registration
      Statement or Prospectus, including pre- and post-effective amendments, all
      exhibits thereto, and all material incorporated by reference or deemed to be
      incorporated by reference in the Registration Statement 

     

    (j) "Rule
      415"
      means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.  

     

    (k) “Rule
      424"
      means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    (l) “Securities
      Act”
means
      the Securities Act of 1933, as amended from time to time.

     

    (m) “Securities
      Exchange Act”
means
      the Securities Exchange Act of 1934, as amended from time to time.

     

    12. Miscellaneous.

     

    (a) A
      Person
      is deemed to be a holder of Registrable Securities whenever such Person owns
      or
      is deemed to own of record such Registrable Securities. If the Company receives
      conflicting instructions, notices or elections from two or more Persons with
      respect to the same Registrable Securities, the Company shall act upon the
      basis
      of instructions, notice or election received from the such record owner of
      such
      Registrable Securities.

     

    (b) Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) one business day after deposit with a nationally recognized overnight
      delivery service, in each case properly addressed to the party to receive the
      same. The addresses and facsimile numbers for such communications shall
      be:

     

    
      
        	
                 

              	
                If
                  to the Company:

              
	
                 

              	
                 

              
	
                 

              	
                Catalyst
                  Lighting Group, Inc.

              
	
                 

              	
                936A
                  Beachland Boulevard, Suite 13

              
	
                 

              	
                Vero
                  Beach, Florida 32963

              
	
                 

              	
                Telephone:
                  (772) 231-7544

              
	
                 

              	
                Facsimile:
                  (772) 231-5947

              
	
                 

              	
                Attention:
                  Kevin Keating, CEO 

              
	
                 

              	
                 

              
	
                 

              	
                and

              

      

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                If
                  to the Holder:

              
	
                 

              	
                KIG
                  Investors I, LLC

              
	
                 

              	
                Attn:
                  Timothy J. Keating, Manager

              
	
                 

              	
                5251
                  DTC Parkway, Suite 1090

              
	
                 

              	
                Greenwood
                  Village, Colorado 80111

              
	
                 

              	
                (720)
                  889-0135 fax

              

      

    

     

    or
      to
      such other address and/or facsimile number and/or to the attention of such
      other
      Person as the recipient party has specified by written notice given to each
      other party five (5) days prior to the effectiveness of such change. Written
      confirmation of receipt (A) given by the recipient of such notice, consent,
      waiver or other communication, (B) mechanically or electronically generated
      by
      the sender's facsimile machine containing the time, date, recipient facsimile
      number and an image of the first page of such transmission or (C) provided
      by a
      courier or overnight courier service shall be rebuttable evidence of personal
      service, receipt by facsimile or receipt from a nationally recognized overnight
      delivery service in accordance with clause (i), (ii) or (iii) above,
      respectively.

     

    (c) Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

     

    (d) All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of
      Delaware, without giving effect to any choice of law or conflict of law
      provision or rule (whether of the State of Delaware or other jurisdictions)
      that
      would cause the application of the laws of any jurisdictions other than the
      State of Delaware. Each party hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts sitting in the State of Delaware,
      for the adjudication of any dispute hereunder or in connection herewith or
      with
      any transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper. Each party hereby
      irrevocably waives personal service of process and consents to process being
      served in any such suit, action or proceeding by mailing a copy thereof to
      such
      party at the address for such notices to it under this Agreement and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing contained herein shall be deemed to limit in any way any right
      to serve process in any manner permitted by law. If any provision of this
      Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
      or unenforceability shall not affect the validity or enforceability of the
      remainder of this Agreement in that jurisdiction or the validity or
      enforceability of any provision of this Agreement in any other jurisdiction.
      EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
      CONTEMPLATED HEREBY.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    (e) This
      Agreement and the instruments referenced herein and therein constitute the
      entire agreement among the parties hereto with respect to the subject matter
      hereof and thereof. There are no restrictions, promises, warranties or
      undertakings, other than those set forth or referred to herein and therein.
      This
      Agreement and the instruments referenced herein and therein supersede all prior
      agreements and understandings among the parties hereto with respect to the
      subject matter hereof and thereof.

     

    (f) Subject
      to the requirements of Section 9, this Agreement shall inure to the benefit
      of
      and be binding upon the permitted successors and assigns of each of the parties
      hereto.

     

    (g) The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    (h) This
      Agreement may be executed in identical counterparts, each of which shall be
      deemed an original but all of which shall constitute one and the same agreement.
      This Agreement, once executed by a party, may be delivered to the other party
      hereto by facsimile transmission of a copy of this Agreement bearing the
      signature of the party so delivering this Agreement. This Agreement may also
      be
      executed by electronic signature of such Person.

     

    (i) Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as any other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    (j) All
      consents and other determinations required to be made by the Holder pursuant
      to
      this Agreement shall be made, unless otherwise specified in this Agreement,
      by
      the Holder.

     

    (k) The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent and no rules of strict construction
      will
      be applied against any party. 

     

    (l) This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person.

     

    (m) The
      obligations of the Holder hereunder are several and not joint with the
      obligations of any other Holder, and no provision of this Agreement is intended
      to confer any obligations on a Holder vis-à-vis any other Holder. Nothing
      contained herein, and no action taken by any Holder pursuant hereto, shall
      be
      deemed to constitute the Holder as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Holder
      are
      in any way acting in concert or as a group with respect to such obligations
      or
      the transactions contemplated herein.

     

    (n) Currency.
      As used
      herein, "Dollar", "US Dollar" and "$" each mean the lawful money of the United
      States.

     

    *
      * * * *
      *

     

    
      
         

      

      
        15

        
          

        

      

       

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement as of the date first
      written above.

    
      	 	 	 
	 	
              HOLDER:

            
	 	 
	 	
              KIG
                Investors I, LLC 

            
	 
 	 
 	 
 
	
            	By:  	
              /s/
                Timothy J. Keating

            
	 	
              

              Timothy
                J. Keating, Manager

            

    

     

    
      	 	 	 
	 	
              COMPANY:

            
	 	 
	 	
              Catalyst
                Lighting Group, Inc.

            
	 
 	 
 	 
 
	
            	By:  	
              /s/
                Kevin R. Keating 

            
	 	
              

              Kevin
                R. Keating, CEO

            

    

     

    
      
         

      

      
        16

        
          

        

      

       

    

    Exhibit
      A

     

    Plan
      of Distribution

     

    The
      Selling Stockholders and any of their pledgees, donees, transferees, assignees
      and successors-in-interest may, from time to time, sell any or all of their
      shares of Common Stock on any stock exchange, market or trading facility on
      which the shares are traded or in private transactions. These sales may be
      at
      fixed or negotiated prices. The Selling Stockholders may use any one or more
      of
      the following methods when selling shares:

     

    
      	 	
              
                ·

              

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits Investors;

            

    

     

    
      	 	
              
                ·

              

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a 

              portion
                of the block as principal to facilitate the
                transaction;

            

    

     

    
      	 	
              
                ·

              

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

     

    
      	 	
              
                ·

              

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	 	
              
                ·

              

            	
              privately
                negotiated transactions;

            

    

     

    
      	 	
              
                ·

              

            	
              to
                cover short sales made after the date that this Registration Statement
                is
                declared effective by the

              Commission;

            

    

     

    
      	 	
              
                ·

              

            	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a 

              stipulated
                price per share;

            

    

     

    
      	 	
              
                ·

              

            	
              a
                combination of any such methods of sale;
                and

            

    

     

    
      	 	
              
                ·

              

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this prospectus.

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated. The
      Selling Stockholders do not expect these commissions and discounts to exceed
      what is customary in the types of transactions involved.

     

    The
      Selling Stockholders may from time to time pledge or grant a security interest
      in some or all of the Shares owned by them and, if they default in the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell shares of Common Stock from time to time under this prospectus,
      or under an amendment to this prospectus under Rule 424(b)(3) or other
      applicable provision of the Securities Act of 1933 amending the list of selling
      stockholders to include the pledgee, transferee or other successors in interest
      as selling stockholders under this prospectus.

     

    Upon
      the
      Company being notified in writing by a Selling Stockholder that any material
      arrangement has been entered into with a broker-dealer for the sale of Common
      Stock through a block trade, special offering, exchange distribution or
      secondary distribution or a purchase by a broker or dealer, a supplement to
      this
      prospectus will be filed, if required, pursuant to Rule 424(b) under the
      Securities Act, disclosing (i) the name of each such Selling Stockholder and
      of
      the participating broker-dealer(s), (ii) the number of shares involved, (iii)
      the price at which such the shares of Common Stock were sold, (iv) the
      commissions paid or discounts or concessions allowed to such broker-dealer(s),
      where applicable, (v) that such broker-dealer(s) did not conduct any
      investigation to verify the information set out or incorporated by reference
      in
      this prospectus, and (vi) other facts material to the transaction. In addition,
      upon the Company being notified in writing by a Selling Stockholder that a
      donee
      or pledgee intends to sell more than 500 shares of Common Stock, a supplement
      to
      this prospectus will be filed if then required in accordance with applicable
      securities law.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    The
      Selling Stockholders also may transfer the shares of Common Stock in other
      circumstances, in which case the transferees, pledgees or other successors
      in
      interest will be the selling beneficial owners for purposes of this
      prospectus.

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Discounts, concessions, commissions and
      similar selling expenses, if any, that can be attributed to the sale of the
      securities will be paid by the Selling Stockholder and/or the purchasers. Each
      Selling Stockholder has represented and warranted to the Company that it
      acquired the securities subject to this registration statement in the ordinary
      course of such Selling Stockholder's business and, at the time of its purchase
      of such securities such Selling Stockholder had no agreements or understandings,
      directly or indirectly, with any person to distribute any such
      securities.

     

    The
      Company has advised each Selling Stockholder that it may not use shares
      registered on this Registration Statement to cover short sales of Common Stock
      made prior to the date on which this Registration Statement shall have been
      declared effective by the Commission. If a Selling Stockholder uses this
      prospectus for any sale of the Common Stock, it will be subject to the
      prospectus delivery requirements of the Securities Act. The Selling Stockholders
      will be responsible to comply with the applicable provisions of the Securities
      Act and Exchange Act, and the rules and regulations thereunder promulgated,
      including, without limitation, Regulation M, as applicable to such Selling
      Stockholders in connection with resales of their respective shares under this
      Registration Statement.

     

    The
      Company is required to pay all fees and expenses incident to the registration
      of
      the shares, but the Company will not receive any proceeds from the sale of
      the
      Common Stock. The Company has agreed to indemnify the Selling Stockholders
      against certain losses, claims, damages and liabilities, including liabilities
      under the Securities Act.

    
      
         

      

      
        18

        
          

        

      

       

    

    EXHIBIT
      B

     

    FORM
      OF NOTICE OF EFFECTIVENESS

     

    OF
      REGISTRATION STATEMENT

     

    [Transfer
      Agent]

    [Address]

    Attention:
      

    

    Re: ___________________
      (“Company”)

     

    Ladies
      and Gentlemen:

     

    [We
      are][I am] counsel to _________, a _________ corporation (the "Company"), and
      have represented the Company in connection with that certain Registration Rights
      Agreement with _____________ (the “Holder”) (the "Registration Rights
      Agreement") pursuant to which the Company agreed, among other things, to
      register the Registrable Securities (as defined in the Registration Rights
      Agreement), under the Securities Act of 1933, as amended (the "1933 Act").
      In
      connection with the Company's obligations under the Registration Rights
      Agreement, on ____________ ___, 200_, the Company filed a Registration Statement
      on Form SB-2 (File No. 333-_____________) (the "Registration Statement") with
      the Securities and Exchange Commission (the "SEC") relating to the Registrable
      Securities which names the Holder as a selling stockholder
      thereunder.

     

    In
      connection with the foregoing, [we][I] advise you that a member of the SEC's
      staff has advised [us][me] by telephone that the SEC has entered an order
      declaring the Registration Statement effective under the 1933 Act at [ENTER
      TIME
      OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and [we][I] have no
      knowledge, after telephonic inquiry of a member of the SEC's staff, that any
      stop order suspending its effectiveness has been issued or that any proceedings
      for that purpose are pending before, or threatened by, the SEC and the
      Registrable Securities are available for resale under the 1933 Act pursuant
      to
      the Registration Statement.

     

    This
      letter shall serve as our standing instruction to you that the shares of Common
      Stock are freely transferable by the Holder pursuant to the Registration
      Statement. You need not require further letters from us to effect any future
      legend-free issuance or reissuance of shares of Common Stock to the Holders
      as
      contemplated by the Company's Irrevocable Transfer Agent Instructions dated
      ___________, 200_. 

     

    
      	 	 	 	
              Very
                truly yours,

            

    

    
      
         

      

      
        19

        
          

        

      

       

    

    EXHIBIT
      B

    

    IRREVOCABLE
      TRANSFER AGENT INSTRUCTIONS

    

    _______________,
      2007

     

    [Addressed
      to Transfer Agent]

    _______________________

    _______________________

     

    Attention: [________________________]

    

    Ladies
      and Gentlemen:

     

    Reference
      is made to that certain Registration Rights Agreement, dated as of
      _________________, 2007 (the "Agreement"),
      by
      and among ______________, a _____________ corporation (the "Company"),
      and
      _________________________ (the "Holder"),
      pursuant to which the Company is obligated to register the Holders shares (the
      "Common
      Shares")
      of
      Common Stock of the Company, par value $0.0001 per share (the "Common
      Stock").

     

    This
      letter shall serve as our irrevocable authorization and direction to you
      (provided that you are the transfer agent of the Company at such time) to issue
      shares of Common Stock upon transfer or resale of the Common Shares.

     

    You
      acknowledge and agree that so long as you have previously received (a) written
      confirmation from the Company's legal
      counsel that either (i) a registration statement covering resales of the Common
      Shares has been declared effective by the Securities and Exchange Commission
      (the "SEC")
      under
      the Securities Act of 1933, as amended (the "1933
      Act"),
      or
      (ii) sales of the Common Shares may be made in conformity with Rule 144 under
      the 1933 Act (“Rule
      144”),
      (b) if
      applicable, a copy of such registration statement,
      and
      (c)
      notice from legal counsel to the Company or any Holder that a transfer of Common
      Shares has been effected either pursuant to the registration statement (and
      a
      prospectus delivered to the transferee) or pursuant to Rule 144,
      then
as
      promptly as practicable,
      you
      shall
      issue the certificates representing the Common Shares registered
      in the names of such transferees,
      and
      such certificates shall not bear any legend restricting transfer of the Common
      Shares thereby and should not be subject to any stop-transfer
      restriction; provided,
      however, that if such Common Shares and are not registered for resale under
      the
      1933 Act or able to be sold under Rule 144, then the certificates for such
      Common Shares shall bear the following legend:

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN
      THE
      ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
      THE
      SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY
      ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
      SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE
      FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
      SECURITIES.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    A
      form of
      written confirmation from the Company's outside legal counsel that a
      registration statement covering resales of the Common Shares has been declared
      effective by the SEC under the 1933 Act is attached hereto.

     

    Please
      execute this letter in the space indicated to acknowledge your agreement to
      act
      in accordance with these instructions. Should you have any questions concerning
      this matter, please contact me at ____________.

     

    
      	 	 	 
	 	
              Very
                truly yours,

            
	 	 
	 	
              ___________________
                (“Company”) 

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

            
	 	Title:

    

     

    THE
      FOREGOING INSTRUCTIONS ARE

    ACKNOWLEDGED
      AND AGREED TO

     

    this
      ___
      day of ________________, 2007

     

    [TRANSFER
      AGENT]

     

    
      	 	 	 	 
	
              By:

            	 	 	
            
	
              
                

              

              Name:

            	 	 	
            
	
              
                

              

              Title:

            	 	 	
            
	
              
                

              

            	 	 	 

    

     

    Enclosures

     

    Copy:
      Holder

     

    
      
         

      

      
        21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}]]