Document:

SUPPORT
      SERVICES AGREEMENT

     

    Support
      Services Agreement
      (this
      "Agreement") dated as of May 1, 2007 (the "Effective Date") between Monarch
      Bay
      Management Company, LLC, a California limited liability company ("MBMC") and
      STI
      Group, Inc., a Delaware corporation (“STI”).

    

    WHEREAS,
      STI
      wishes to engage MBMC to provide the Services (as defined below) on the terms
      and conditions set forth herein and MBMC wishes to be so retained;

    

    NOW
      THEREFORE,
      in
      consideration of the premises and of the mutual covenants, conditions and
      agreements contained herein, the parties agree as follows:

     

    ARTICLE
      ONE

    SERVICES

    

    1.1 Management
      Services.
      STI
      hereby engages MBMC to perform the Management Services set forth in Schedule
      1
      hereto for the benefit of STI, and MBMC agrees to perform such Management
      Services, on the terms and conditions set forth herein.

    

    1.2 Facility
      and Administrative Services.
      STI
      hereby engages MBMC to perform the Facility and Administrative Services set
      forth in Schedule 1 hereto for the benefit of STI, and MBMC agrees to perform
      such Facility and Administrative Services, on the terms and conditions set
      forth
      herein.

    

    1.3 Business
      Development Services.
      STI
      hereby engages MBMC, on a non-exclusive basis, to identify and introduce to
      STI
      potential parties to product development relationships, licensing relationships,
      customer or distribution relationships and other similar transactions or
      relationships with STI (each, a “BD Transaction”).

    

    1.4 Creditor
      Resolution Services.
      STI
      hereby engages MBMC, on a non-exclusive basis, to resolve on behalf of STI
      certain claims of STI’s creditors (the “Creditor Claims”). STI will advise MBMC
      in writing of the Creditor Claims and the confirmed debt of each Creditor Claim
      (“Confirmed Debt”) for which, it requires MBMC’s services. MBMC will, use its
      reasonable efforts to negotiate the Creditor Claims and to attempt to effect
      a
      reasonable and fair settlement, discharge, or release of Creditor Claims (the
      “Creditor Resolution Services”). MBMC will consult with STI on a regular basis
      with respect to the Creditor Claims assigned to it and prior to presenting
      any
      final agreement to a creditor will consult with STI and STI will specifically
      approve any such proposed final agreement.

     

    
      
        
        

      

      
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    1.5 Other
      Services.
      STI may,
      from time to time, engage MBMC to perform other services for the benefit of
      STI
      (“Other Services”). The scope of, the applicable fee for, and any additional
      terms and conditions relating to any such other services shall be reflected
      in a
      Services Addendum to this Agreement in the form of Exhibit A
      hereto.

    

    1.6 Reporting.
      STI
      shall have the right to request written reports at any time during the term
      of
      this Agreement, which shall be furnished within 30 days after such request,
      describing the progress, status of, and other matters pertaining to the
      Management Services, the Facility and Administrative Services, the Creditor
      Resolution Services and any Other Services provided pursuant to Section 1.5
      (collectively, the “Services”) as STI shall request. STI may freely utilize all
      such information arising out of the performance of the Services under this
      Agreement in any manner desired.

     

    ARTICLE
      TWO

    COMPENSATION

    

    2.1 Compensation.
      

    

    (a)
      Retainer.
      Upon
      execution of this Agreement, STI will issue to MBMC 5,000 shares of its Series
      A
      Preferred Stock, par value $.001 per share, as a non-refundable retainer fee
      for
      the Services provided by MBMC hereunder. 

    

    (b)
      Management
      Services.
      For
      each month during the term of this Agreement, STI will pay to MBMC a fee in
      respect of the Management Services (the “MS Fee”) equal to $20,000 in cash. The
      MS Fee will be due and payable on the first business day of such month and
      is
      non-refundable. 

     

    (c)
      Facility
      and Administrative Services.
      For
      each month during the term of this Agreement, STI will pay to MBMC a fee in
      respect of the Facility and Administrative Services (the “FAS Fee”) equal to 10%
      of the MS Fee in cash. The FAS Fee will be due and payable on the first business
      day of such month and is non-refundable.

    

    (d)
      Business
      Development Services.
      STI
      will pay to MBMC a fee (the “BD Fee”) equal to 6% of STI’s total revenue from
      any BD Transaction involving STI and a partner or customer introduced to STI
      by
      MBMC (each, a “BD Transaction”) that is entered into during the term of this
      Agreement or any Tail Period (as defined below)). The BD Fee will be due and
      payable in cash, when and as the associated revenue from the BD Transaction
      is
      collected by STI. Notwithstanding the foregoing, the BD Fee payable with respect
      to any BD Transaction will be reduced by the amount of any fees paid by STI
      to
      any investment banker or finder engaged by STI to represent it in such BD
      Transaction. 

    

    (e)
      Creditor
      Resolution Services.
      For
      Creditor Claim which MBMC successfully resolves, STI will pay to MBMC a fee
      (the
“CR Fee”) equal to 20% of the Effected Savings (as defined below) in respect of
      such Creditor Claim. “Effected Savings” means the amount of the Confirmed Debt
      less the amount which is actually paid by STI to settle the Creditor Claim.
      At
      the STI’s option (if STI’s common stock is then quoted on the OTCBB), CR Fees
      may be paid in the form of shares of STI’s common stock (registered under Form
      S-8 or other form to permit the free and immediate resale by MBMC’s designated
      principals and otherwise unlegended and unrestricted), with the number of shares
      payable determined based on a valuation of the common stock equal to 80% of
      the
      closing bid price of the common stock on the OTCBB on the trading day
      immediately preceding the date of delivery of such shares to MBMC’s designated
      principals. Payment of each CR Fee shall be made as part of and contemporaneous
      with the settlement date of the Creditor Claim to which it relates.

     

    
      
        
        

      

      
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    (f)
      Other
      Services.
      IF STI
      has engaged to perform any Other Services, STI will pay to MBMC the fee
      specified for such Other Services in the applicable Services Addendum (the
      “Other Services Fee”). Unless otherwise specified in the applicable Services
      Addendum, the Other Services Fee will be due and payable in cash on the first
      business day of each month during which the Other Services are provided and
      will
      be non-refundable.

    

    2.2 Reimbursement.
      STI will
      reimburse MBMC for any and all reasonable expenses incurred by MBMC in
      connection with MBMC's performance of the Management Services and any Other
      Services; provided,
      however,
      that
      any such expenses must be pre-approved by STI and otherwise adhere to control
      procedures implemented by STI. All requests for reimbursement for expenses
      must
      be accompanied by documentation in form and detail satisfactory to STI. STI
      will
      reimburse MBMC for expenses incurred in compliance with this Section 2.2 within
      fifteen days following STI’s receipt of MBMC’s invoice therefore.

    

    

    ARTICLE
      THREE

    REPRESENTATIONS,
      WARRANTIES AND COVENANTS

    

    3.1 Representations
      and Warranties.
      Each
      party represents and warrants to the other that:

    

    (a)
      It
      has not entered into any agreement, whether written or oral, in conflict with
      this Agreement; and

    

    (b)
      It
      has the full power and authority to enter into this Agreement.

    

    3.2 MBMC’s
      Covenants.
      MBMC:

    

    (a)
      shall
      act as an independent contractor with no authority to obligate STI by contract
      or otherwise; 

    

    (b)
      shall
      exercise only such powers and perform such duties as may from time to time
      be
      vested in MBMC or assigned to MBMC by STI;

     

    
      
        
        

      

      
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    (c)
      shall
      devote such time and effort as is reasonably necessary to provide the
      Services;

    

    (d)
      shall
      comply with all applicable laws in the performance of the Services; and

    

    (e)
      shall
      not assign or subcontract performance of this Agreement or any of the Services
      to any person, firm, company or organization without STI’s prior written
      consent;

     

    ARTICLE
      FOUR

    CONFIDENTIAL
      INFORMATION

    

    4.1 Confidentiality.
      MBMC
      shall, during the term of this Agreement and for a period of five years
      thereafter, keep all STI Confidential Information confidential and use such
      information only for the purposes expressly set forth herein. STI Confidential
      Information shall mean all information concerning STI or its current or planned
      business, which is disclosed to MBMC by STI or which results from, or in
      connection with, any Services performed pursuant to this Agreement.

    

    4.2 Access.
      MBMC
      agrees to limit the access to STI Confidential Information to only those persons
      under MBMC's direct control who, with STI’s knowledge and consent, are
      responsible for performing the Services set forth in Article One.

    

    4.3
       Authorized
      Disclosure.
      MBMC
      shall have no obligation of confidentiality and non-use with respect to any
      portion of STI Confidential Information which (i) is or later becomes generally
      available to the public by use, publication or the like, through no act or
      omission of MBMC; (ii) is obtained from a third party who had the legal right
      to
      disclose the information to MBMC; or (iii) MBMC already possesses as evidenced
      by MBMC’s written records predating receipt thereof from STI.

    

    4.4 Return
      of Information.
      Upon the
      termination of this Agreement, MBMC will promptly return to STI all materials,
      records, documents, and other STI Confidential Information in tangible form.
      MBMC shall retain no copies except as required by law of such materials and
      information and, if requested by STI, will delete all STI Confidential
      Information stored in any magnetic or optical disc or memory.

    

    4.5 Third
      Party Information.
      MBMC
      shall not, in connection with the Services to be performed under this Agreement,
      disclose to STI any information, which is confidential or proprietary to MBMC,
      or any third party.

     

    ARTICLE
      FIVE

    INDEMNITY;
      LIMITATION OF LIABILITY

    

    5.1 Indemnity.
       

    

    (a)
      STI
      will indemnify and hold harmless MBMC against any and all losses, claims,
      damages, obligations, penalties, judgments, awards, liabilities, costs, expenses
      and disbursements (and any and all actions, suits, proceedings and
      investigations in respect thereof and any and all legal and other costs,
      expenses and disbursements in giving testimony or furnishing documents in
      response to a subpoena or otherwise), including, without limitation, the costs,
      expenses and disbursements, reasonably incurred, as and when incurred, of
      investigating, preparing or defending any such action, suit, proceeding or
      investigation (whether or not in connection with litigation in which MBMC is
      a
      party), directly or indirectly, caused by, relating to, based upon, arising
      out
      of, or in connection with this Agreement or MBMC's performance hereunder, except
      to the extent primarily caused by the gross negligence or willful misconduct
      of
      MBMC. 

     

    
      
        
        

      

      
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    (b)
      The
      indemnification provisions shall be in addition to any liability which STI
      may
      otherwise have to MBMC or the persons indemnified below in this sentence and
      shall extend to the following: MBMC, its affiliated entities, members,
      employees, legal counsel, agents and controlling persons (within the meaning
      of
      the federal securities laws), and the officers, directors, employees, legal
      counsel, agents and controlling persons of any of them. All references to MBMC
      in this Article Five shall be understood to include any and all of the
      foregoing.

    

    5.2 Limitation
      of Liability.
      MBMC
      shall not have any liability (whether direct or indirect, in contract or tort
      or
      otherwise) to STI for or in connection with this Agreement or MBMC’s performance
      hereunder, except to the extent that any such liability is found in a final
      judgment by a court of competent jurisdiction (not subject to further appeal)
      to
      have resulted primarily from MBMC's gross negligence or willful misconduct.
      In
      no case shall MBMC’s liability (whether direct or indirect, in contract or tort
      or otherwise) to STI for or in connection with this letter agreement or MBMC’s
      performance hereunder exceed the aggregate fees paid by STI to MBMC
      hereunder.

     

    ARTICLE
      SIX

    TERM
      AND TERMINATION

    

    6.1 Term.
      The
      initial term of this Agreement shall be from the Effective Date through the
      first anniversary thereof (the “Initial Term”). After the Initial Term, the term
      of this Agreement will automatically be extended for an additional successive
      one-year periods unless either party provides written notice to the other party
      of its intent not to so extend the term at least 30 days before the expiration
      of the then current term. 

    

    6.2 Termination.
      This
      Agreement may be terminated by either party upon the breach of a material term
      hereof by the other party, which breach remains uncured for 30 days after the
      date that the non-breaching party has served written notice on the other party,
      which notice will set forth the basis of such breach and the non-breaching
      party's intent to terminate the Agreement. 

     

    
      
        
        

      

      
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    6.3 Effect
      of Termination.
      Upon the
      expiration or termination of this Agreement, each party shall be released from
      all obligations and liabilities hereunder except those arising under Articles
      Four, Five and Eight; provided that, following such termination, MBMC shall
      be
      entitled to receive (a) all amounts payable by STI to MBMC through the date
      of
      expiration or termination and (b) 100% of the BD Fees with respect to any BD
      Transactions consummated within a period of twelve months following the
      termination of this Agreement (the “Tail Period”) with any party identified or
      introduced by MBMC to STI. 

     

    ARTICLE
      SEVEN

    MISCELLANEOUS

    

    7.1 Relationship
      of the Parties.
      

    

    (a)
      STI
      is a sophisticated business enterprise that has retained MBMC for the limited
      purposes set forth in this letter agreement, and the parties acknowledge and
      agree that their respective rights and obligations are contractual in nature.
      STI recognizes that the relationship contemplated hereby is not an exclusive
      relationship for MBMC or any of its personnel. Each party disclaims an intention
      to impose fiduciary obligations on the other by virtue of the engagement
      contemplated by this Agreement.

    

    (b)
      The
      Services do not include requiring MBMC to engage in any activities for which
      an
      investment advisor's registration or license is required under the U.S.
      Investment Advisors Act of 1940, or under any other applicable federal or state
      law; or for which a "broker's" or "dealer's" registration or license is required
      under the U.S. Securities Exchange Act of 1934, or under any other applicable
      federal or state law. MBMC's work on this engagement shall not constitute the
      rendering of legal advice, or the providing of legal services, to STI.
      Accordingly, MBMC shall not express any legal opinions with respect to any
      matters affecting STI. 

    

    (c)
      MBMC
      will be responsible for making appropriate filings and payments to the federal,
      state and local taxing authorities, including payments of all withholding and
      payroll taxes due on compensation received hereunder, estimated income payments,
      employment and self-employment taxes, if applicable.

    

    7.2 Waiver.
      None
      of
      the terms of this Agreement may be waived except by an express agreement in
      writing signed by the party against whom enforcement of such waiver is sought.
      The failure or delay of either party in enforcing any of its rights under this
      Agreement shall not be deemed a continuing waiver of such right. 

    

    7.3 Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties with respect
      to
      the subject matter hereof and supersedes all prior agreements and understandings
      among the parties (whether written or oral) relating to said subject
      matter.

     

    
      
        
        

      

      
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    7.4
       Amendments.
      This
      Agreement may not be released, discharged, amended or modified in any manner
      except by an instrument in writing signed by a duly authorized officer of STI
      and MBMC.

    

    7.5
       Assignment.
      STI has
      specifically contracted for the Services of MBMC and, therefore, MBMC may not
      assign or delegate MBMC's obligations under this Agreement, either in whole
      or
      in part, without the prior written consent of STI. 

    

    7.6 Severability.
      If any
      provision of this Agreement is, becomes, or is deemed invalid, illegal or
      unenforceable in any jurisdiction, such provision shall be deemed amended to
      conform to the applicable laws so as to be valid and enforceable, or, if it
      can
      not be so amended without materially altering the intention of the parties
      hereto, it shall be stricken and the remainder of this Agreement shall remain
      in
      full force and effect.

    

    7.7 Headings.
      Article
      and Section headings contained in the Agreement are included for convenience
      only and are not to be used in construing or interpreting this
      Agreement.

    

    7.8 Notices.
      All
      notices provided for in this Agreement shall be in writing and shall be deemed
      effective when either served by personal delivery or sent by express, registered
      or certified mail, postage prepaid, return receipt requested, to the other
      party
      at the corresponding mailing address set forth below or at such other address
      as
      such other party may hereafter designate by written notice in the manner
      aforesaid. 

    

    7.9 Force
      Majeure.
      MBMC
      shall be excused for failure to provide the Services hereunder to the extent
      that such failure is directly or indirectly caused by
      an
      occurrence commonly known as force majeure, including, without limitation,
      delays arising out of acts of God, acts or orders of a government, agency or
      instrumentality thereof (whether of fact or law), acts of public enemy, riots,
      embargoes, strikes or other concerted acts of workers (whether of MBMC or other
      persons), casualties or accidents, delivery of materials, transportation or
      shortage of cars, trucks, fuel, power, labor or materials or any other causes,
      circumstances or contingencies that are beyond the control of MBMC; provided,
      however, that MBMC shall use its best efforts to resume provision of the
      Services as soon as possible. Notwithstanding any events operating to excuse
      performance by MBMC, this Agreement shall continue in full force for the
      remainder of its term and any renewals thereof.

    

    7.10 Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      an original and all of which together shall constitute one and the same
      document, binding on all parties notwithstanding that each of the parties may
      have signed different counterparts.

    

    7.11 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      state of California and the parties to this Agreement hereby submit to the
      exclusive jurisdiction of the courts, both state and federal, in the County
      of
      Orange, State of California.

    

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF,
      the
      parties have entered into this Agreement on the date first above
      written.

    

    MONARCH
      BAY MANAGEMENT COMPANY, LLC

    
      	 	 	 	 
	
              By: 
                Keith Moore

            	 	 	
            
	
              
                

              

              Title:
                Managing Member 

            	 	 	
            
	
              Address:
                30950 Rancho Viejo Rd #120

              
                 San
                  Juan Capistrano, CA 92675

              

            	 	 	
            

    
      	 	 	 	 
	
              STI
                GROUP, INC.

            	 	 	 
	 	 	 	 
	
              By: 
                David Walters 

            	 	 	
            
	
              
                

              

              Title:
                Chief Executive Officer

            	 	 	
            
	
              Address:
                30950 Rancho Viejo Rd #120

              
                San
                  Juan Capistrano, CA 92675

              

            	 	 	
            

    

     

    
      
        
        

      

      
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    Schedule
      1

    Management
      Services

    

    
      	·  	
              Make
                available an individual acceptable to STI in its sole discretion
                to serve
                as Chief Financial Officer of STI.

            

    

    
      	 	 

    

    
      	·  	
              Perform
                all principal accounting and financial officer
                duties.

            

    

    
      	 	 

    

    
      	·  	
              Direct
                all finance, accounting and treasury functions including cash forecasting,
                cash management, operational budgeting, month-end closing, and ensure
                accuracy and compliance in accounting/financial
                reporting.

            

    

    
      	 	 

    

    
      	·  	
              Re-engineer
                the Finance Department - transform finance operations through improved
                processes, advising on financial performance, evaluation of outsourcing
                options, best management practices, evaluating/appraising strategic
                partnerships.

            

    

    
      	 	 

    

    
      	·  	
              Support
                fundraising activities.

            

    

    
      	 	 

    

    
      	·  	
              Analyze
                financial and operating information for management to facilitate
                decision-making and provide input for corrective action, where
                applicable.

            

    

    
      	 	 

    

    
      	·  	
              Recommend/implement
                improvements to ensure the integrity of the company’s financial
                information and systems.

            

    

    
      	 	 

    

    
      	·  	
              Forecast
                and monitor financial information against goals and operating
                strategy.

            

    

    
      	 	 

    

    
      	·  	
              Manage/oversee
                relationships with independent auditors, banks and investment banking
                community.

            

    

    
      	 	 

    

    
      	·  	
              Handle
                financial negotiations with other third party
                relationships.

            

    

    
      	 	 

    

    
      	·  	
              Prepare
                quarterly updates to the financial
                forecast.

            

    

    
      	 	 

    

    
      	·  	
              Lead
                the financial due diligence
                efforts.

            

    

    
      	 	 

    

    
      	·  	
              Lead
                the integration of accounting and finance systems for
                mergers.

            

    

    

    Facility
      and Administrative Services

    

    
      	·  	
              Provision
                of corporate headquarters office
                space.

            

    

    
      	 	 

    

    
      	·  	
              Provision
                of utilities, telecommunications, cleaning and other services related
                to
                maintaining corporate headquarters office
                space.

            

    

    
      	 	 

    

    
      	·  	
              Shipping
                and postage related to corporate headquarters
                functions

            

    

    

    
      
        
        

      

      
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    Attachment
      A

    Services
      Addendum

    

    
      	
              Scope
                of Other Services:

               

               

               

            	 
	
              Other
                Services Fee:

               

               

            	 
	 	 
	
              Other
                Terms and Conditions:

               

               

               

               

            	 

    

     

    
      	Acknowledged
              and agreed by:	 	 
	 	 	 	 	 
	 	 	 	 
	STI
              GROUP, INC.	 	 	 
	 	 	 	 	 
	By:	
            	 	 	
            
	 

              Date:

            	
              

            	 	 	
            
	 	
            	 	 	
            
	 	 	 	 	 
	
              MONARCH
                BAY MANAGEMENT COMPANY, LLC

            	 	 	 
	 	 	 	 	 
	By:	
            	 	 	 
	 

              Date:

            	
              

            	 	 	 

    

     

    
      
        
        

      

      
        Page
          10
          of 10PLACEMENT
      AGENT AND ADVISORY 

    SERVICES
      AGREEMENT

    

    This
      Placement Agent and Advisory Services Agreement (this "Agreement")
      is
      made as of May 1, 2007 (the “Effective
      Date”),
      by
      and between STI Group, Inc., a Delaware corporation (together with its
      subsidiaries, the "Company"),
      and
      Monarch Bay Associates, LLC, a California limited liability company
      ("MBA").
      MBA
      and the Company agree as follows:

    

    
      	1.	
              Engagement
                of MBA:
                The Company hereby engages MBA, and MBA hereby accepts such engagement,
                to
                act as:

            

    

    

    
      	
            	(a)	
              the
                Company's placement agent on an exclusive basis with respect to finding
                investors (the “Investors”) for an offering of the Company’s capital stock
                in a transaction or transactions exempt from registration under the
                Securities Act of 1933, as amended, and in compliance with the applicable
                laws and regulations of any jurisdiction in which securities are
                sold
                under this Agreement (a “Private
                Placement”);
                and

            

    

    

    
      	
            	(b)	
              the
                Company’s advisor, on an exclusive basis, in identifying and introducing
                prospective parties to an acquisition, merger, joint venture or any
                other
                similar transaction or relationship, directly or indirectly, involving
                the
                Company (a “Transaction”).
                

            

    

    

    The
      Company acknowledges and agrees that MBA's obligations hereunder are on a
      reasonable best efforts basis only and that the execution of this Agreement
      does
      not constitute a commitment by MBA to purchase the securities and does not
      ensure the successful placement of the securities or any portion thereof or
      the
      success of MBA with respect to securing any other financing or a Transaction
      on
      behalf of the Company. MBA will act solely as a broker with respect to
      identifying and negotiating with potential investors in securities that may
      be
      issued in the Private Placement and potential parties to a Transaction. MBA
      will
      not act as an underwriter in any Private Placement or Transaction.

    

    
      
        	2.	
                MBA's
                  Compensation:
                  The Company hereby agrees to pay MBA fees in such amount and upon
                  such
                  terms and conditions contained herein upon the successful completion
                  of a
                  Private Placement as follows:

              

      

    

    

    
      
        	
              	(a)	
                Retainer.
                  Upon execution of this Agreement, the Company will issue to MBA
                  5,000
                  shares of its Series A Preferred Stock, par value $.001 per share,
                  as a
                  non-refundable retainer fee for the services provided by MBA
                  hereunder.

              

      

    

    

    
      
        	
              	(b)	
                Success
                  Fees.
                  The Company will pay MBA a Success Fee, as described below, when
                  the
                  Company closes on a Private Placement or a Transaction during the
                  Term (as
                  hereinafter defined) of this Agreement or during a one-year period
                  thereafter, so long as any purchasers of the Company’s capital stock or
                  parties to a Transaction were identified by or introduced to the
                  Company
                  by MBA (or are affiliates of any person so identified or
                  introduced).

              

      

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Computation
      and Payment of Success Fees.
      

    

    (i)
      Private
      Placements. For
      each
      Private Placement, the Success Fee will be (x) a cash fee equal to 9% of gross
      proceeds raised in the Private Placement (including, without limitation, upon
      exercise of any warrants issued in Private Placement) and (y) warrants (the
      “MBA
      Warrants”)
      to
      purchase 9% of the total number of shares of common stock issued and issuable
      by
      the Company to Investors under and in connection with the Private Placement,
      including (without limitation) shares issuable upon conversion or exercise
      of
      the securities sold in the Private Placement, at an exercise price equal to
      the
      purchase price of the common stock sold in the Private Placement or, in the
      event that securities convertible into common stock are sold in the Private
      Placement, the conversion price of such securities.

    

    The
      cash
      portion of the Success Fee will be due and payable upon the closing of each
      Private Placement and will be payable directly to MBA from the escrow
      established for such closing or in such other manner as may be acceptable to
      MBA.

    

    MBA
      Warrants will have a five (5) year term (or such longer term as is provided
      in
      any warrants issued in the Private Placement) and will provide for cashless
      exercise (even if the Investors do not have such a right). MBA Warrants will
      have the benefit of full ratchet anti-dilution protection against issuances
      of
      securities at prices (or with conversion or exercise prices, in the case of
      convertible securities, warrants, options or rights) below the exercise price
      of
      MBA Warrants. MBA Warrants will not be callable or redeemable. The shares
      underlying MBA Warrants will be included in the first registration statement
      filed by the Company covering the securities issued in the Private Placement
      (or
      securities issuable upon conversion or exercise thereof). MBA Warrants will
      be
      transferable within MBA’s organization, at MBA’s discretion. MBA Warrants will
      contain such other terms and conditions no less favorable to MBA than the term
      and conditions of any warrants issued to the Investors in the Private
      Placement.

    

    (ii)
      Transactions.
      For
      each
      Transaction, the Success Fee will be a cash fee equal to 3% of the Total
      Consideration (as defined below) with respect to such Transaction. As used
      herein. “Total
      Consideration"
      means,
      with respect to any Transaction, the total value of all cash, securities, or
      other property paid or received, directly or indirectly, by the Company or
      its
      owners (at closing or in the future) in connection with such Transaction,
      including (without limitation) in respect of (i) the assumption (by contract,
      operation of law or otherwise) of any indebtedness or (ii) consulting,
      non-compete or similar agreements. 

    

    The
      Success Fee will be due and payable upon the closing of each Transaction and
      will be payable directly to MBA from the escrow established for such closing
      or
      in such other manner as may be acceptable to MBA; provided
      that in
      the case of any installment or contingent payment made in respect of the
      Transaction, the Success Fee in respect of such installment or contingent
      payment shall be due and payable on the date such payment is made. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      	3.	
              Certain
                Matters Relating to MBA’s Duties:

            

    

    

    
      	
            	(a)	
              MBA
                shall (i) assist the Company in the preparation of information documents
                to be shared with potential Investors and parties to Transactions
                (ii)
                identify and screen potential Investors and parties to Transactions,
                and
                (iii) perform other related duties.

            

    

    

    
      	
            	(b)	
              MBA
                shall perform its duties under this Agreement in a manner consistent
                with
                the instructions of the Company. Such performance shall include the
                delivery of information to potential interested parties, conducting
                due
                diligence, and leading discussions with potential Investors and parties
                to
                Transactions.

            

    

    

    
      	
            	(c)	
              MBA
                shall not engage in any form of general solicitation or advertising
                in
                performing its duties under this Agreement. This prohibition includes,
                but
                is not limited to, any mass mailing, any advertisement, article or
                notice
                published in any magazine, newspaper or newsletter and any seminar
                or
                meeting where the attendees have been invited by any mass mailing,
                general
                solicitation or advertising. 

            

    

    

    
      	
            	(d)	
              MBA
                is and will hereafter act as an independent contractor and not as
                an
                employee of the Company and nothing in this Agreement shall be interpreted
                or construed to create any employment, partnership, joint venture,
                or
                other relationship between MBA and the Company. MBA will not hold
                itself
                out as having, and will not state to any person that MBA has, any
                relationship with the Company other than as an independent contractor.
                MBA
                shall have no right or power to find or create any liability or obligation
                for or in the name of the Company or to sign any documents on behalf
                of
                the Company.

            

    

    

    4. Certain
      Matters Relating to Company’s Duties:

    

    
      	
            	(a)	
              The
                Company shall promptly provide MBA with all relevant information
                about the
                Company (to the extent available to the Company in the case of parties
                other than the Company) that shall be reasonably requested or required
                by
                MBA, which information shall be complete and accurate in all material
                respects at the time furnished.

            

    

    

    
      	
            	(b)	
              The
                Company recognizes that in order for MBA to perform properly its
                obligations in a professional manner, it is necessary that MBA be
                informed
                of and, to the extent practicable, participate in meetings and discussions
                between the Company and any third party, including, without limitation,
                any prospective purchaser of the Company’s securities, relating to the
                matters covered by the terms of MBA's
                engagement.

            

    

    

    
      	
            	(c)	
              The
                Company agrees that any report or opinion, oral or written, delivered
                to
                it by MBA is prepared solely for its confidential use and shall not
                be
                reproduced, summarized, or referred to in any public document or
                given or
                otherwise divulged to any other person without MBA's prior written
                consent, except as may be required by applicable law or
                regulation.

            

    

    

    
      	
            	(d)	
              The
                Company represents and warrants that: (i) it has full right, power
                and
                authority to enter into this Agreement and to perform all of its
                obligations hereunder; (ii) this Agreement has been duly authorized
                and
                executed by and constitutes a valid and binding agreement of the
                Company
                enforceable in accordance with its terms; and (iii) the execution
                and
                delivery of this Agreement and the consummation of the transactions
                contemplated hereby do not conflict with or result in a breach of
                the
                Company's certificate of incorporation or by-laws. Further, this
                Agreement
                and the transactions contemplated herein shall not conflict with
                or result
                in the breach of any agreement to which the Company is a party at
                the time
                the transactions contemplated herein are
                consummated.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	5.	
              Term;
                Termination of Agreement.
                The term of this Agreement shall commence on the Effective Date and
                shall
                expire one year thereafter unless terminated earlier pursuant to
                the terms
                of this paragraph (the “Term”). Either party may terminate this Agreement
                prior to its expiration by notifying the other party in writing upon
                a
                material breach by that other party, unless such breach is curable
                and is
                in fact cured within fifteen (15) days after such notice. Notwithstanding
                the foregoing, all provisions of this Agreement (including Exhibit
                A
                hereto) other than Sections 1, 3 and 4 (a) and (b) shall survive
                the
                termination or expiration of this Agreement. MBA shall be entitled
                to
                compensation under Section 2 (and payment for non-accountable expenses
                under Section 12) based on the completion of a Private Placement
                or a
                Transaction prior to the termination or expiration of this Agreement
                or
                during the period one year following termination so long as any Investors
                or party to a Transaction, as the case may be, (or any affiliate
                of any
                such person or entity) were identified by or introduced to the Company
                by
                MBA. MBA will provide to the Company within ten business days after
                the
                expiration or termination of this Agreement a list of all persons
                or
                entities identified by or introduced to the Company by MBA pursuant
                to
                this Agreement (the “Introduction List”). Within five business day
                following the delivery of the Introduction List to the Company, the
                Company will provide MBA with written notice of any objections to
                the
                inclusion of any person or entity in the Introduction List and state
                the
                basis for each objection in reasonable detail. The inclusion of a
                person
                or entity in the Introduction List shall be deemed conclusive in
                making a
                later determination as to whether a Success Fee is payable hereunder,
                unless the Company shall have made a timely and proper objection.
                The
                parties will cooperate to resolve the status of any person or entity
                as to
                which the Company shall have made a timely and proper
                objection.

            

    

    

    Except
      as
      otherwise specifically provided for herein, the Company shall have no liability
      to MBA should the Company terminate this Agreement prior to the completion
      of a
      Private Placement or a Transaction. 

    

    
      	6.	
              Indemnification.
                The indemnification provisions set forth in Exhibit A hereto are
                incorporated by reference and are a part of this
                Agreement.

            

    

    

    
      	7.	
              Notices.
                Any notice, consent, authorization or other communication to be given
                hereunder shall be in writing and shall be deemed duly given and
                received
                when delivered personally, when transmitted by fax during the normal
                business hours of the party receiving such notice so long a copy
                of that
                notice is also send by certified mail, return receipt requested at
                the
                time it is transmitted by fax, five business days after being mailed
                by
                certified mail, return receipt requested or one business day after
                being
                sent by a nationally recognized overnight delivery service, charges
                and
                postage prepaid, properly addressed to the party to receive such
                notice,
                at the following address or fax number for such party (or at such
                other
                address or fax number as shall hereafter be specified by such party
                by
                like notice):

            

    

    

    (a)         
       If
      to the
      Company, to:

    

    STI
      Group, Inc.

    ATTN:
      Chief Executive Officer

    30950
      Rancho Viejo Rd #120

    San
      Juan
      Capistrano, California 92675

    Telephone
      Number:  

    Fax
      Number:  

    E-mail:
         

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b)        
        If
      to
      MBA, to:

    

    David
      Walters, Managing Director

    Monarch
      Bay Associates, LLC

    30950
      Rancho Viejo Rd #120

    San
      Juan
      Capistrano, California 92675

    Telephone
      Number: (949)
      260-0150

    Fax
      Number: (815)
      301-8756 

    E-mail:  

    

    
      	8.	
              Company
                to Control Transactions.
                The
                terms and conditions under which the Company would enter into a Private
                Placement or a Transaction shall be at the sole discretion of the
                Company.
                Nothing in this Agreement shall obligate the Company to actually
                consummate a Private Placement or a Transaction. The Company may
                terminate
                any negotiations or discussions at any time and reserves the right
                not to
                proceed with a Private Placement or a Transaction.
                

            

    

    

    
      	9.	
              Confidentiality
                of Company Information.
                MBA, and its officers, directors, employees and agents shall maintain
                in
                strict confidence and not copy, disclose or transfer to any other
                party
                (1) all confidential business and financial information regarding
                the
                Company and its affiliates, including without limitation, projections,
                business plans, marketing plans, product development plans, pricing,
                costs, customer, vendor and supplier lists and identification, channels
                of
                distribution, and terms of identification of proposed or actual contracts
                and (2) all confidential technology of the Company. In furtherance
                of the
                foregoing, MBA agrees that it shall not transfer, transmit, distribute,
                download or communicate, in any electronic, digitized or other form
                or
                media, any of the confidential technology of the Company. The foregoing
                is
                not intended to preclude MBA from utilizing, subject to the terms
                and
                conditions of this Agreement, the Private Placement or Offering Memorandum
                and/or other documents prepared or approved by the Company. Further,
                the
                Company must approve the Private Placement or Offering Memorandum,
                being
                prepared by MBA, before it is mailed to prospective Investors or
                parties
                to a Transaction.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    All
      communications regarding any possible transactions, requests for due diligence
      or other information, requests for facility tours, product demonstrations or
      management meetings, will be submitted or directed to the Company, and MBA
      shall
      not contact any employees, customers, suppliers or contractors of the Company
      or
      its affiliates without express permission. Nothing in this Agreement shall
      constitute a grant of authority to MBA or any representatives thereof to remove,
      examine or copy any particular document or types of information regarding the
      Company, and the Company shall retain control over the particular documents
      or
      items to be provided, examined or copied. If a Private Placement or a
      Transaction is not consummated, or if at any time the Company so requests,
      MBA
      and its representatives will return to the Company all copies of information
      regarding the Company in their possession.

    

    The
      provisions of this Section shall survive any termination of this
      Agreement.

    

    
      	10.	
              Press
                Releases, Etc.
                The Company shall control all press releases or announcements to
                the
                public, the media or the industry regarding any Private Placement,
                Transaction or business relationship involving the Company or its
                affiliates. Except for communication to Investors in furtherance
                of this
                Agreement, MBA will not disclose the fact that discussions or negotiations
                are taking place concerning a possible Private Placement or a Transaction
                involving the Company, or the status or terms and conditions
                thereof.

            

    

    

    
      	11.	
              Due
                Diligence:
                Neither
                the Company, nor any of its directors, officers or stockholders,
                should,
                in any way rely on MBA to perform any due diligence with respect
                to the
                Company. It is expressly understood and agreed that the Investors
                and
                parties to any Transaction will conduct their own due diligence on
                the
                Company and the opportunity.

            

    

    

    
      	12.	
              Expenses,
                Etc.
                The Company will pay to MBA a non-accountable expense fee equal to
                2% of
                gross proceeds raised in each Private Placement (the “Non-Accountable
                Fee”), which will be used to pay MBA’s travel and other expenses. The
                Non-Accountable Fee will be paid in the same time and manner as the
                Success Fee. The Company will pay all other costs and expenses incident
                to
                the issuance, offer, sale and delivery of each Private Placement,
                including but are not limited to state “Blue Sky” fees, legal fees,
                printing costs, travel costs, mailing, couriers, and personal background
                checks.

            

    

    

    
      	13.	
              Compliance
                with Laws.
                MBA represents and warrants that it shall conduct itself in compliance
                with applicable federal and state laws. MBA represents that it is
                not a
                party to any other Agreement, which would conflict with or interfere
                with
                the terms and conditions of this
                Agreement.

            

    

    

    
      	14.	
              Assignment
                Permissable.
                MBA reserves the right to assign a portion of this Agreement to one
                or
                more sub-agents with respect to any Private Placement or Transaction,
                subject to the prior written consent of the Company. Any approved
                sub-agent shall be paid a portion of Success Fees as may be determined
                by
                MBA. The Company does acknowledge that MBA may pay other consultants
                or
                agents in connection with the Private Placement(s) and Transaction(s).
                

            

    

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	15.	
              Amendments.
                Neither party may amend this Agreement or rescind any of its existing
                provisions without the prior written consent of the other
                party.

            

    

    

    
      	16.	
              Governing
                Law; Dispute Resolution.
                This Agreement shall be deemed to have been made in the State of
                California and shall be construed, and the rights and liabilities
                determined, in accordance with the law of the State of California,
                without
                regard to the conflicts of laws rules of such jurisdiction. Any
                controversy or claim relating to or arising from this Agreement (an
                "Arbitrable Dispute") shall be settled by arbitration in accordance
                with
                the Commercial Arbitration Rules of the American Arbitration Association
                (the "AAA") as such rules may be modified herein or as otherwise
                agreed by
                the parties in controversy. The forum for arbitration shall be Orange
                County, California. Following thirty (30) days notice by any party
                of
                intention to invoke arbitration, any Arbitrable Dispute arising under
                this
                Agreement and not mutually resolved within such thirty (30) day period
                shall be determined by a single arbitrator upon which the parties
                agree.

            

    

    

    
      	17.	
              Waiver.
                Neither MBA’s nor the Company’s failure to insist at any time upon strict
                compliance with this Agreement or any of its terms nor any continued
                course of such conduct on their part shall constitute or be considered
                a
                waiver by MBA or the Company of any of their respective rights or
                privileges under this Agreement.

            

    

    

    
      	18.	
              Severability.
                If any provision herein is or should become inconsistent with any
                present
                or future law, rule or regulation of any sovereign government or
                regulatory body having jurisdiction over the subject matter of this
                Agreement, such provision shall be deemed to be rescinded or modified
                in
                accordance with such law, rule or regulation. In all other respects,
                this
                Agreement shall continue to remain in full force and effect.
                

            

    

    

    
      	19.	
              Counterparts.
                This Agreement may be executed in two or more counterparts, each
                of which
                shall be deemed an original, and will become effective and binding
                upon
                the parties at such time as all of the signatories hereto have signed
                a
                counterpart of this Agreement. All counterparts so executed shall
                constitute one Agreement binding on all of the parties hereto,
                notwithstanding that all of the parties are not signatory to the
                same
                counterpart. Each of the parties hereto shall sign a sufficient number
                of
                counterparts so that each party will receive a fully executed original
                of
                this Agreement.

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	20.	
              Entire
                Agreement.
                This Agreement (together with Exhibit A hereto) constitutes the entire
                agreement between the Company and MBA. No other agreements, covenants,
                representations or warranties, express or implied, oral or written,
                have
                been made by any party hereto to any other party concerning the subject
                matter hereof. All prior and contemporaneous conversations, negotiations,
                possible and alleged agreements, representations, covenants and warranties
                concerning the subject matter hereof are merged herein and shall
                be of no
                further force or effect. 

            

    

     

    
      	 	 	 
	 	
              Monarch
                Bay Associates, LLC (the
                “MBA”)

            
	 	 	
 
	
            	By:  	 
	 	 	
              
                

              

              Keith Moore

            
	 	
              Title: 
                

            	
              Managing
                Director

            

    

     

    
       

      
        	 	 	 
	 	
                STI
                  Group, Inc. (the
                  “Company”)

              
	 
 	 
 	 
 
	
              	By:  	 
	 	 	
                
                  

                

                David Walters

              
	 	
                Title: 
                  

              	
                CEO

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      A

    Indemnification

    

    The
      Company agrees that it shall indemnify and hold harmless, MBA, its stockholders,
      members directors, officers, employees, agents, affiliates and controlling
      persons within the meaning of Section 20 of the Securities Exchange Act of
      1934
      and Section 15 of the Securities Act of 1933, each as amended (any and all
      of
      whom are referred to as an "Indemnified Party"), from and against any and all
      losses, claims, damages, liabilities, or expenses, and all actions in respect
      thereof (including, but not limited to, all legal or other expenses reasonably
      incurred by an Indemnified Party in connection with the investigation,
      preparation, defense or settlement of any claim, action or proceeding, whether
      or not resulting in any liability), incurred by an Indemnified Party with
      respect to, caused by, or otherwise arising out of any transaction contemplated
      by this Agreement or MBA's performing the services contemplated hereunder;
      provided, however, the Company will not be liable to the extent, and only to
      the
      extent, that any loss, claim, damage, liability or expense is finally judicially
      determined to have resulted primarily from MBA's gross negligence or bad faith
      in performing such services.

    

    If
      the
      indemnification provided for herein is conclusively determined (by an entry
      of
      final judgment by a court of competent jurisdiction and the expiration of the
      time or denial of the right to appeal) to be unavailable or insufficient to
      hold
      any Indemnified Party harmless in respect to any losses, claims, damages,
      liabilities or expenses referred to herein, then the Company shall contribute
      to
      the amounts paid or payable by such Indemnified Party in such proportion as
      is
      appropriate and equitable under all circumstances taking into account the
      relative benefits received by the Company on the one hand and MBA on the other,
      from the transaction or proposed transaction under the Agreement or, if
      allocation on that basis is not permitted under applicable law, in such
      proportion as is appropriate to reflect not only the relative benefits received
      by the Company on the one hand and MBA on the other, but also the relative
      fault
      of the Company and MBA; provided, however, in no event shall the aggregate
      contribution of MBA and/or any Indemnified Party be in excess of the net
      compensation actually received by MBA and/or such Indemnified Party pursuant
      to
      this Agreement.

    

    The
      Company shall not settle or compromise or consent to the entry of any judgment
      in or otherwise seek to terminate any pending or threatened action, claim,
      suit
      or proceeding in which any Indemnified Party is or could be a party and as
      to
      which indemnification or contribution could have been sought by such Indemnified
      Party hereunder (whether or not such Indemnified Party is a party thereto),
      unless such consent or termination includes an express unconditional release
      of
      such Indemnified Party, reasonably satisfactory in form and substance to such
      Indemnified Party, from all losses, claims, damages, liabilities or expenses
      arising out of such action, claim, suit or proceeding.

    

    In
      the
      event any Indemnified Party shall incur any expenses covered by this Exhibit
      A,
      the Company shall reimburse the Indemnified Party for such covered expenses
      within ten (10) business days of the Indemnified Party's delivery to the Company
      of an invoice therefor, with receipts attached. Such obligation of the Company
      to so advance funds may be conditioned upon the Company's receipt of a written
      undertaking from the Indemnified Party to repay such amounts within ten (10)
      business days after a final, non-appealable judicial determination that such
      Indemnified Party was not entitled to indemnification hereunder.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    The
      foregoing indemnification and contribution provisions are not in lieu of, but
      in
      addition to, any rights which any Indemnified Party may have at common law
      hereunder or otherwise, and shall remain in full force and effect following
      the
      expiration or termination of MBA's engagement and shall be binding on any
      successors or assigns of the Company and successors or assigns to all or
      substantially all of the Company's business or assets.

    

    
      
        
        

      

      
        10

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