Document:

ex10x3.htm

    Exhibit 10.3

     

     

    
      
        
SECURITYAGREEMENT

      

      
        (the
"Agreement")

      

      
         

        

         

        
          	Secured
      Party:

                  
                     

                    
TMG HOLDINGS COLORADO,
      LLC

                  

                  
                    7598
      N. Mesa, Suite 205

                    El
      Paso, El Paso County, TX 79912

                    (hereinafter
      referred to as "Secured
      Party")

                  

                	Debtor: 

                   

                  VERECLOUD,
      INC.

                  
                    6560
      S. Greenwood Plaza Blvd., Suite 400 

                    Englewood,
      Arapahoe County, CO 80111 

                    (hereinafter
      referred to as
      "Debtor")

                  

                

        

         

      

      
         

        1.  For value
received, Debtor hereby grants to Secured Party a security interest in the
following collateral ("Collateral"), as the term is hereafter
defined:

      

       

      
        All the
tangible and intangible assets of Verecloud, Inc., a Nevada corporation, now or
hereafter acquired, including but not limited to the: (i) inventory; (ii)
fixtures; (iii) equipment; (iv) accounts receivable; (v) intellectual property
(including, without limitation, (a) all patents, patent applications, patent
disclosures and inventions (whether or not patentable and whether or not reduced
to practice), (b) all trademarks, service marks, trade dress, trade names, and
corporate names and all the goodwill and quality control standards associated
therewith, (c) all registered and unregistered statutory and common law
copyrights, (d) all registrations, applications and renewals for any of the
foregoing, (e) all trade secrets, confidential information, ideas, formulae,
compositions, know-how, manufacturing and production processes and techniques,
research and development information, drawings, specifications, designs, plans,
improvements, proposals, technical and computer data, financial, business and
marketing plans, and customer and supplier lists and related information, (f)
all other proprietary rights (including, without limitation, all computer
software and documentation and all license agreements and sublicense agreements
to and from third parties relating to any of the foregoing), (g) all copies and
tangible embodiments of the foregoing in whatever form or medium, (h) all
damages and payments for past, present and future infringements of the
foregoing, (i) all royalties and income due with respect to the foregoing, and
(j) the right to sue and recover for past, present and future infringements of
the foregoing), (vi) goodwill; and (vii) value as a going concern.

         

      

      
        The
Collateral, as hereinafter defined, is to be used in business other than farming
operations.

         

      

      
        2.  The
property described or referred to in Paragraph 1 above, now owned or hereafter
acquired by Debtor, together with the invoices and profits received therefrom,
accessions, attachments, additions to, substitutes and replacements for,
improvements of such property and all property described above, whether now
existing or hereafter made, including the proceeds of all such property
described above, and the insurance payable by reason of loss or damage thereto,
and all proceeds of any policy of insurance required thereon by Secured Party,
including premium refunds, is collectively referred to hereinbefore and
hereinafter as the "Collateral."

         

        3.  The
Collateral as described hereinabove is located at Debtor's business address 6560
S. Greenwood Plaza Blvd., Suite 400, Englewood, Arapahoe County, CO
80111.

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.  The
security interest granted by this Agreement shall secure the payment and
performance of Debtor's Obligations, as the term is hereinafter defined, to
Secured Party. The term "Obligations," as used herein
means: (i) all indebtedness of Debtor to Secured Party now or hereafter
existing, including, without limitation, the indebtedness evidenced by that one
certain Revolving Credit Note of even date herewith in the maximum principal
amount of $1,564,000.00 (the "Note"), executed by Debtor, and payable to the
order of Secured Party, together with any and all renewals and extensions of the
same, or any part thereof; and (ii) all indebtedness and liabilities of Debtor
to Secured Party at any time arising under the terms of the Loan Agreement of
even date herewith by and between Secured Party and Debtor ("Loan Agreement") or under
the terms hereof.

       

      5.  Debtor
hereby grants to Secured Party a continuing lien upon any and all moneys,
securities and other property of Debtor and the proceeds thereof, now or
hereafter held or received by or in transit to, Secured Party from or for
Debtor, whether for safekeeping, custody, pledge, transmission, collection or
otherwise, and also upon any and all deposits (general or special), certificates
of deposit, and credits of Debtor with, and any and all claims of the Debtor
against Secured Party, at any time existing. Upon the occurrence of a default,
as the term is hereafter defined, Secured Party is hereby authorized at any time
and from time to time, to setoff, appropriate and apply any or all items
hereinabove referred to against the Obligations whether under this Agreement, or
otherwise, and whether now existing or hereafter arising. Secured Party shall
give notice thereof to Debtor promptly after taking any such
action.

       

      6.  Debtor
represents and warrants that: (i) Debtor is the owner of the Collateral and it
is in Debtor's possession at the location specified above; (ii) the Collateral
is not being purchased or used for primarily personal, family or household use;
(iii) the name of Debtor as it appears at the top of this Agreement is Debtor's
name as it appears in its certificate of formation; (iv) Debtor's name as it
appears at the top of this Agreement is not the assumed or business name of
Debtor unless otherwise indicated; (v) Debtor and the officer, manager or member
who may be executing this Agreement on behalf of Debtor, has authority to
execute and deliver this Agreement; (vi) the statements above concerning the
location of Debtor's place of business (or chief executive office), residence,
mailing address and use and location of the Collateral are true and correct;
(vii) except for any prior financing statement from Debtor in favor of Lender
and as otherwise consented to in writing by Lender, no financing statement
covering the Collateral or any part thereof has been made, and no security
interest, other than the one herein created, has attached or been perfected in
the Collateral or in any part thereof; (viii) no dispute, right of setoff,
counterclaim or defenses exist with respect to any part of the Collateral; and
(ix) all statements in the documents pertaining to this transaction provided or
to be provided by Debtor to Secured Party are true and correct.

       

      7.  So long
as any part of the Obligations remain unpaid or unperformed, Debtor covenants
and agrees to: (i) use or otherwise hold the Collateral with reasonable care,
skill and caution; (ii) keep the Collateral properly sheltered and not permit it
to be damaged or injured; (iii) pay, before delinquent, all taxes and other
assessments lawfully levied against the Collateral; (iv) from time to time
promptly execute and deliver to Secured Party all such other assignments,
certificates, supplemental documents, and financing statements and do all other
acts or things as Secured Party may reasonably request in order to more fully
evidence and perfect the security interest herein created; (v) punctually and
properly perform all of Debtor's covenants, duties and liabilities under this
Agreement and any other security agreement, collateral pledge agreement or
contract of any kind now or hereafter existing as security for or in connection
with payment of the Obligations, or any part thereof; (vi) pay the Obligations
in accordance with the terms of the Note or other documents evidencing the
Obligations, or any part thereof; (vii) promptly furnish Secured Party with any
information or documents which Secured Party may reasonably request concerning
the Collateral; (viii) allow Secured Party to inspect the Collateral and all
records of Debtor relating thereto or to the Obligations, and to make and take
away copies of such records; (ix) promptly notify Secured Party of any change
(other than a change requiring advance notice provided for herein) in any fact
or circumstances warranted or represented by Debtor in this Agreement or in any
other document furnished by Debtor to Secured Party in connection with the
Collateral or the Obligations; (x) give prior written notice to Secured Party of
any change in Debtor's place of business or chief executive office, such notice
to be given not less than fifteen (15) days before such change is made and to
specify the address, county and state to which Debtor is moving; (xi) promptly
notify Secured Party of any claim, action or proceeding affecting title to the
Collateral or any part thereof or the security interest granted herein, and, at
the request of Secured Party, appear in and defend, at Debtor's expense, any
such action or proceeding; (xii) except as otherwise provided in any note or
other instrument evidencing the Obligations, promptly, after being requested by
Secured Party, pay to Secured Party all amounts actually incurred by Secured
Party as court costs and/or attorney's fees incurred by Secured Party in
enforcing this Agreement and the security interest granted herein and the
reasonable costs actually expended for repossession, storing, preparing for
sale, or selling any of the Collateral; and (xiii) promptly furnish Secured
Party with financial statements of Debtor upon request of Secured Party in form
and content satisfactory to Secured Party.

      
        

        2

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

           

          8.  So long
as any part of the Obligations remain unpaid or unperformed, Debtor covenants
and agrees that, without the prior written consent of Secured Party, Debtor will
not: (i) lease, sell, assign, furnish under any contract of service, transfer or
otherwise dispose of the Collateral, or any part thereof, other than in the
ordinary course of business; (ii) create any other security interest in, or
otherwise encumber the Collateral or any part thereof or permit the same to be
or become subject to any lien, attachment, execution, sequestration or other
legal or equitable process, or any encumbrance of any kind or character, except
the security interest herein created and any prior security interests in favor
of Lender; (iii) allow the Collateral or any part thereof to become an accession
to other goods, other than in the ordinary course of business; (iv) allow the
Collateral or any part thereof to be affixed or attached to any real estate; or
(v) cause or permit the Collateral to be removed from the location specified
above other than in the ordinary course of business. Debtor further covenants
not to use the Collateral or permit the same to be used for any unlawful purpose
or in any manner inconsistent with the provisions or requirements of any policy
of insurance thereon. Should any covenant, duty or agreement of Debtor fail to
be performed in accordance with its terms hereunder, Secured Party may, but
shall never be obligated to perform or attempt to perform such covenant, duty or
agreement on behalf of Debtor, and any amount expended by Secured Party in such
performance shall become a part of the Obligations, and, at the request of
Secured Party, Debtor agrees to promptly pay such amount to Secured
Party.

        

         

        9.  In the
event of Debtor's default with respect to payment of any of the Obligations,
each person, firm or corporation obligated to make any payment to Debtor with
respect to any part of the Collateral (hereafter referred to as the "Account
Debtor") is hereby authorized and directed by Debtor to make payment directly to
Secured Party upon notice from Secured Party giving the Account Debtor notice of
this assignment and directing the Account Debtor to make payment directly to
Secured Party. The receipt of Secured Party to any Account Debtor shall be a
full and complete release, discharge and acquittance to such person, firm or
corporation to the extent of any amount so paid to Secured Party. Secured Party
is authorized and empowered on behalf of Debtor, to endorse the name of Debtor
upon any check, draft or other instrument payable to Debtor evidencing payment
upon the Collateral, or any part thereof, and to receive and apply the proceeds
therefrom in accordance with the terms hereof. All payments received by Debtor
or Secured Party with respect to the Collateral or any part thereof, at Secured
Party's option, shall be deposited in a special account by Secured Party in the
name of Debtor styled "Cash Collateral Account" and shall be applied by Secured
Party as provided in Paragraph 12 hereof. The security interest created herein
shall cover all funds in the Cash Collateral Account to secure payment of the
Obligations.

      

       

       

      3

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

        If any
Account Debtor of all or any part of the Collateral fails or refuses to make
payment thereof when due, Secured Party is authorized, in its discretion, either
in its own name or in the name of Debtor, to take such action, including,
without limitation, the institution of legal action as Secured Party shall deem
appropriate for the collection of the Collateral and any proceeds thereof with
respect to which a delinquency exists. Regardless of any other provision hereof,
however, Secured Party shall never be liable for its failure to collect, or for
its failure to exercise diligence in the collection of any of the Collateral or
any proceeds thereof, nor shall it be under any duty whatever to anyone except
to account for the funds that it shall actually receive hereunder. Furthermore,
Secured Party shall have no duty to fix or preserve the rights against prior
parties to the Collateral.

      

       

      10.  Debtor
further covenants and agrees to keep the Collateral insured in such amounts,
against such risks and with such insurers as Secured Party may require. All such
policies of insurance shall be written for the benefit of Secured Party and
Debtor, as their interest may appear, including, without limitation, the
designation of Secured Party as the loss payee and as an additional insured, and
shall provide for at least twenty (20) days' prior written notice of
cancellation to Secured Party. At the request of Secured Party, Debtor shall
promptly furnish to Secured Party evidence of such insurance in form and content
satisfactory to Secured Party. If Debtor fails to perform or observe any
applicable covenants as to insurance on the Collateral contained or referred to
herein, Secured Party may at its option obtain insurance on only Secured Party's
interest in the Collateral with any premium thereby paid by Secured Party to
become a part of the Obligations and to bear interest at a rate equal to the
rate the loan contract will produce over its full term if each scheduled payment
is paid on the date due, such rate to be charged from the date Secured Party
advances funds to pay such premium until the amount of such premium is paid by
Debtor to Secured Party. In the event Secured Party maintains such substitute
insurance, the additional premium for such insurance shall be due and payable by
Debtor to Secured Party in accordance with specific written notification
delivered to Debtor by Secured Party or sent by Secured Party to Debtor. The
obligation of Debtor to pay any such additional premium and any interest
accruing thereon shall be secured by and entitled to all of the benefits of this
Agreement. In the event Debtor should subsequently provide Secured Party with
satisfactory evidence of maintenance by Debtor of required insurance, such
substitute insurance obtained by Secured Party shall be cancelled, and
appropriate adjustments and/or refunds shall be made by Secured Party in favor
of Debtor. Debtor hereby grants Secured Party a security interest in any refunds
of unearned premiums in connection with any cancellation, adjustment or
termination of any policy of insurance required by Secured Party and in all
proceeds of such insurance and hereby appoints Secured Party its
attorney-in-fact to endorse any check, or document that may be payable to Debtor
in order to collect such refunds or proceeds. Any such sums collected by Secured
Party shall be credited, except to the extent applied to the purchase by Secured
Party of similar insurance, to any amounts then owing on the Obligations, and
the balance, if any, shall be promptly refunded to Debtor.

       

      11.  The term
"default" as used herein, means the occurrence of an "Event of Default" under
the Loan Agreement.

       

       

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      12.  Upon the
occurrence of a default, in addition to any and all other rights and remedies
which Secured Party may then have hereunder or under the Colorado version of the
Uniform Commercial Code, as amended (hereafter called "Code") or other
applicable laws or agreements, Secured Party at its option may: (i) declare the
entire unpaid balance of principal of and all unpaid, accrued interest on any
one or more of the Obligations immediately due and payable, without notice of
any kind, including but not limited to, notice of intent to accelerate and
notice of acceleration, demand, or presentment, which are hereby waived, except
as otherwise expressly provided herein; (ii) require Debtor to assemble the
Collateral and deliver it to Secured Party at a place to be designated by
Secured Party which is reasonably convenient to both parties; (iii) render
unusable any equipment which may be part of the Collateral; (iv) reduce its
claim to judgment, foreclose or otherwise enforce its security interest in all
or any part of the Collateral by any available judicial or non-judicial
procedure; (v) after notifications, if any, provided for in Paragraph 11 hereof,
sell, lease, or otherwise dispose of, at the office of Secured Party, on the
premises of Debtor or elsewhere, as chosen by Secured Party, all or any part of
the Collateral, in its then condition or following any commercially reasonable
preparation or processing, and any such sale or other disposition may be as a
unit or in parcels by public or private proceedings, and by way of one or more
contracts (it being agreed that the sale of any part of the Collateral shall not
exhaust Secured Party's power of sale, but sales may be made from time to time
until all of the Collateral has been sold or until the Obligations have been
paid in full), and at any such sale it shall not be necessary to exhibit the
Collateral; (vi) at Secured Party's discretion, retain the Collateral in
satisfaction of the Note or any other notes or other documents evidencing the
Obligations whenever the circumstances are such that Secured Party is entitled
to do so under the Code; (vii) apply by appropriate judicial proceedings for
appointment of a receiver for the Collateral or any part thereof and Debtor
hereby consents to any appointment; and/or (viii) buy the Collateral at any
public sale or private sale as permitted by the Code and/or applicable law.
Secured Party shall be entitled to apply the proceeds of any sale or other
disposition of the Collateral in the following order: first to the payment of
all of its reasonable expenses actually incurred in collecting such proceeds,
including the reasonable costs actually expended for repossessing, foreclosing,
storing, preparing for sale or selling the Collateral, including reasonable
attorney's fees and legal expenses incurred by Secured Party in collection and
next toward payment of the balance of the Obligations in such order and manner
as Secured Party in its discretion may deem advisable. Secured Party shall
account to Debtor for any surplus. If the proceeds are not sufficient to pay the
Obligations in full, Debtor shall remain liable for any deficiency.

      
         

        In the
event of a default hereunder, in addition to all other remedies available to
Secured Party, Secured Party shall have the right to enter upon the premises
where the Collateral is located, take possession of the Collateral and remove
the same with or without judicial process (if such taking without judicial
process can be done lawfully and without breach of the peace), and Debtor does
hereby expressly waive any right to any notice, legal process or judicial
hearing prior to such taking of possession by Secured Party. Debtor understands
that the right to prior notice and hearing is a valuable right and agrees to the
waiver thereof as a part of the consideration for and as an inducement to
Secured Party to extend credit now or hereafter to Debtor.

         

        13.  Reasonable
notification of the time and place of any public sale of the Collateral or
reasonable notification of the time after which any private sale or other
intended disposition of the Collateral is to be made shall be sent to Debtor and
to any other person entitled under the Code to notice; provided, that if the
Collateral is perishable, threatens to decline speedily in value, or is of a
type customarily sold on a recognized market, Secured Party may sell or
otherwise dispose of the Collateral without notifications, advertisement or
other notice of any kind. It is agreed that notice mailed or given not less than
ten (10) calendar days prior to the taking of the action to which the notice
relates is reasonable notification and notice for the purposes of this Paragraph
13.

      

       

      14.  Should
any part of the Collateral come into the possession of Secured Party, whether
before or after default, Secured Party may use or operate the Collateral for the
purpose of preserving it or its value pursuant to the order of a court of
appropriate jurisdiction or in accordance with any other rights held by Secured
Party in respect of the Collateral. Debtor covenants to promptly reimburse and
pay to Secured Party, at Secured Party's request, the amount of all reasonable
expenses incurred by Secured Party in connection with its custody, preservation,
use or operation of the Collateral and all such expenses shall be a part of the
Obligations. It is agreed, however, that the risk of accidental loss or damage
to the Collateral is on Debtor, and Secured Party shall have no liability
whatever for failure to obtain or maintain insurance or to determine whether any
insurance ever in force is adequate as to amount or as to the risk
insured.

      

      
        

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          15.  All
rights and remedies of Secured Party hereunder are cumulative of each other and
of every other right or remedy which Secured Party may otherwise have at law or
in equity or under any other contract or document for the enforcement of the
security interest created herein or the collection of any one or more of the
Obligations, and the exercise of one or more rights or remedies shall not
prejudice or impair the concurrent or subsequent exercise of other rights or
remedies. The failure of Secured Party at any time to assert or exercise any
rights granted by this Agreement shall not render the Secured Party liable to
any person concerned herein or deprive Secured Party of any rights granted
herein. All rights of Secured Party hereunder may be assigned or transferred in
whole or in part by Secured Party, as they deem advisable, and the rights of
Secured Party hereunder shall inure to the benefit of its successors and
assigns. All obligations of Debtor hereunder shall bind the heirs, legal
representatives, successors and assigns of Debtor.

        

      

       

      16.  Should
any part of the Obligations be payable in installments, the acceptance by
Secured Party at any time and from time to time of part payment of the aggregate
amount of all installments then matured shall not be deemed to be a waiver of
the default then existing. No waiver by Secured Party of any default shall be
deemed to be a waiver of any other subsequent default, nor shall any such waiver
by Secured Party be deemed to be a continuing waiver. No delay or omission by
Secured Party in exercising any right or power hereunder, or under any other
documents executed by Debtor as security for or in connection with one or more
of the Obligations, shall impair any such right or power or be construed as a
waiver thereof or any acquiescence therein, nor shall any single or partial
exercise of any such right or power preclude other or further exercise thereof,
or the exercise of any other right or power of Secured Party hereunder or under
such other documents.

       

      17.  If the
Obligations or any part thereof are given in renewal or extension or applied
toward the payment of indebtedness secured by a pledge, security agreement or
other lien, Secured Party shall be, and is hereby, subrogated to all of the
rights, titles, security interests and other liens securing the indebtedness so
renewed, extended or paid.

       

      18.  Consistent
with the provisions of the Note, no provision of this Agreement, the Note and/or
any other note, instrument or document executed by Debtor evidencing one or more
of the Obligations is intended to or shall require or permit the holder to take,
receive, collect, contract for or reserve, directly or indirectly, in money,
goods or things in action, or in any other way, any greater interest, sum or
value in excess of the maximum rate of interest permitted by the law in effect
in the State of Colorado, federal law, or the governing laws of any other
applicable jurisdiction, at the applicable date.

       

      19.  This
Agreement shall be not severable or divisible in any way but, it is specifically
agreed that, if any provision should be invalid, the invalidity shall not affect
the validity of the remainder of this Agreement. Secured Party and Debtor agree
that the validity of this Agreement and all agreements and documents executed in
connection with this Agreement shall, to the extent possible be governed by the
laws of the State of Colorado.

       

      20.  All
written notices permitted or required to be given pursuant to this Agreement
shall be effective if mailed or delivered to the party at the address shown at
the top of this Agreement or at such other address previously designated in
writing by a party hereto.

       

      21.  A carbon,
photographic or other reproduction of this Agreement or of any financing
statement executed in connection with this transaction may be filed as a
financing statement with any filing officer authorized to accept such filings
under the Uniform Commercial Code as adopted in Colorado or any other state in
the United States.

       

       

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        22.     
Upon satisfaction of all obligations due from Debtor to Secured Party under the
Note, Loan Agreement and all other instruments and/or documents securing the
same, and upon written notification from Debtor to Secured Party that Debtor has
terminated its right to request further advances, Debtor shall have the right to
terminate the Loan Agreement, the Note and this Security Agreement and receive
from Secured Party a release of any and all liens and security interests held by
Secured Party and securing the repayment of the obligations. Upon such
termination and satisfaction of all such conditions, Debtor may also file a
termination statement for any financing statements filed pursuant to this
Security Agreement.

      

       

      
        Executed
to be effective June 10, 2010.

        

      

      
        

        
          
            	
                    Secured
      Party:    

                     

                    TMG HOLDINGS
      COLORADO, LLC,   

                    a Texas limited liability company 

                     

                     

                  	 	 	
                     Debtor:

                     

                    VERECLOUD,
      INC.

                    a Nevada corporation

                  	 
	By:	
                    /s/
      Scott M. Schwartz

                  	 	 	By:	
                    /s/
      Mike Cookson

                  	 
	Name:	Scott
      M. Schwartz	 	 	Name:	Mike
      Cookson	 
	Its:	President	 	 	Its:	Chief
      Operating Officer	 
	
                     

                  	 	 	
                     

                  	 
	
                     

                  	 	 	
                     

                  	 

          

        

        
                                                                                 

        
 

         

         

         

        7ex10x4.htm

    Exhibit 10.4

     

     

    
      SUBSCRIPTION
AGREEMENT

      and

      LETTER OF
INVESTMENT INTENT

       

      Verecloud,
Inc.

      6560 S.
Greenwood Plaza Blvd., Suite 400

      Englewood,
Colorado 80111

       

      Gentlemen:

       

      The
undersigned (the "Subscriber") hereby
tenders this subscription for the purchase of the number of shares of common
stock, par value $0.001 per share ("Common Stock" or
"Securities"),
of Verecloud, Inc., a Nevada corporation (the "Company"), set forth
herein.  The Subscriber understands that a subscription for the
Securities may be rejected for any reason and that, in the event that this
subscription is rejected, the funds delivered herewith will be promptly
returned, without interest thereon or deduction therefrom.  By
execution below, the Subscriber acknowledges that the Company is relying upon
the accuracy and completeness of the representations contained herein in
complying with its obligations under applicable U.S. federal and state
securities laws.

       

      1.  Subscription
Commitment.  The Subscriber hereby commits to subscribe for the
purchase of the number of Securities as specified on the Subscriber's signature
page attached hereto, and, as full payment therefor, agrees to pay in cash in
U.S. Dollars the amount set forth on the Subscriber's signature page by wire
transfer, to the Company's bank account in accordance with the wire transfer
instructions attached hereto as Exhibit
A.  The subscription price for the Common Stock is $0.02 per
share, based upon a valuation of the Company of $1,308,860 with 65,443,000
shares of Common Stock issued and outstanding prior to this
financing.

       

      2.  Representations and
Warranties of the Company.  In order to induce the Subscriber
to enter into this Subscription Agreement and Letter of Investment Intent, the
Company hereby represents and warrants to the Subscriber as
follows:

       

      (a)  The
Company is a corporation, duly organized, validly existing and in good standing
under the laws of the State of Nevada and has all requisite corporate power and
authority to carry on its business as now conducted.

       

      (b)  The
Company has all requisite legal and corporate power and authority to enter into
this Subscription Agreement and Letter of Investment Intent and consummate the
transactions contemplated hereby.  This Subscription Agreement and
Letter of Investment Intent is a valid and binding obligation of the Company,
enforceable in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency, moratorium, and other laws of general application
affecting the enforcement of creditors' rights and general principles of
equity.

       

      (c)  The
compliance and fulfillment of the terms and conditions hereof will not conflict
with, or result in a breach of, the terms, conditions or provisions of, or
constitute a default under, any contract to which the Company is a party or by
which the Company is otherwise bound, or the Company's articles of incorporation
and bylaws, which conflict, breach or default would have a material adverse
affect on the Company's ability to consummate the transaction contemplated by
this subscription.

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d)  The
Company has not used any broker or finder in connection with the transaction
contemplated hereby, and the Company shall have no liability as a result of or
in connection with any brokerage or finder's fee or other commission of any
person or entity retained by the Company in connection with the transactions
contemplated by this subscription.

       

      (e)  When
issued, sold, and delivered in accordance with the terms of this subscription
and for consideration expressed therein, the Securities will be duly and validly
issued, fully paid and non-assessable and, based upon the representations of the
Subscriber in this subscription, will be issued in compliance with all federal
and state securities laws.  

       

      3.  Representations, Warranties
and Covenants of the Subscriber.  In order to induce the
Company to accept this subscription, the Subscriber hereby represents and
warrants to, and covenants with, the Company as follows:

       

      (a)  The
Subscriber has been given access to full and complete information regarding the
Company and has utilized such access to the Subscriber's satisfaction for the
purpose of obtaining such information regarding the Company as the Subscriber
has reasonably requested; and, particularly, the Subscriber has been given
reasonable opportunity to ask questions of, and receive answers from,
representatives of the Company concerning the terms and conditions of the
offering of the Securities and to obtain any additional information, to the
extent reasonably available.

       

      (b)  The
Subscriber acknowledges and agrees that, except as set forth herein, no
representations or warranties have been made to the Subscriber by the Company,
any selling agent of the Company, or any agent, employee, or affiliate of the
Company or such selling agent.

       

      (c)  The
Subscriber believes that an investment in the Securities is suitable for the
Subscriber based upon the Subscriber's investment objectives and financial
needs.  The Subscriber: (i) has adequate means for providing for the
Subscriber's current financial needs and personal contingencies; (ii) has no
need for liquidity in this investment; (iii) at the present time, can afford a
complete loss of such investment; and (iv) does not have an overall commitment
to investments which are not readily marketable that is disproportionate to the
Subscriber's net worth, and the Subscriber's investment in the Securities will
not cause such overall commitment to become excessive.

       

      (d)  The
Subscriber, in reaching a decision to subscribe, has such knowledge and
experience in financial and business matters that the Subscriber is capable of reading
and interpreting financial statements, evaluating the merits and risk of an
investment in the Securities and has the net worth to undertake such
risks.

       

      (e)  The
Subscriber has not used any broker or finder in connection with the transaction
contemplated hereby, and the Subscriber shall have no liability as a result of
or in connection with any brokerage or finder's fee or other commission of any
person or entity retained by the Subscriber in connection with the transactions
contemplated by this subscription.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (f)  The
Subscriber was not offered or sold the Securities, directly or indirectly, by
means of any form of general advertising or general solicitation, including, but
not limited to, the following:  (i) any advertisement, article, notice
or other communication published in any newspaper, magazine, or similar medium
of or broadcast over television or radio; or (ii) any seminar or meeting whose
attendees had been invited by any general solicitation or general
advertising.

       

      (g)  The
Subscriber does not desire to utilize the services of any other person, or has
obtained, to the extent the Subscriber deems necessary, the Subscriber's own
personal professional advice, in connection with evaluating the risks inherent
in the investment in the Securities and the suitability of an investment in the
Securities in light of the Subscriber's financial condition and investment
needs.

       

      (h)  The
information contained in this Subscription Agreement and Letter of Investment
Intent is true, complete and correct as of the date hereof; the Subscriber
understands that the Company's determination that the exemption from the
registration provisions of the Securities Act of 1933, as amended (the "Act"), which is based
upon non-public offerings and applicable to the offer and sale of the
Securities, is based, in part, upon the representations, warranties, and
agreements made by the Subscriber herein; and subject to paragraph 5 of this
Subscription Agreement and Letter of Investment Intent, the Subscriber consents
to the disclosure of any such information, and any other information furnished
to the Company, to any governmental authority, self-regulatory organization, or,
to the extent required by law, to any other person.

       

      (i)  The
Subscriber realizes that: (i) the purchase of the Securities is a long-term
investment; (ii) the Subscriber must bear the economic risk of investment for an
indefinite period of time because the Securities have not been registered under
the Act or under the securities laws of any state and, therefore, the Securities
cannot be resold unless they are subsequently registered under said laws, or
exemptions from such registrations are available; (iii) there is presently
no public market for the Securities and the Subscriber may be unable to
liquidate the Subscriber's investment in the event of an emergency, or pledge
the Securities as collateral for a loan; and (iv) the transferability of the
Securities is restricted and (A) requires conformity with the restrictions
contained in paragraph 8 below and (B) legends will be placed on the
certificate(s) representing the Securities referring to the applicable
restrictions on transferability.

       

      (j)  The
Subscriber certifies, under penalties of perjury, that the Subscriber is NOT
subject to the backup withholding provisions of Section 3406(a)(i)(C) of the
Internal Revenue Code of 1986, as amended (the "Code").

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (k)  The
Subscriber has been advised and understands that: (i) the Securities have not
been registered under the Act or applicable state securities laws and that the
Securities are being offered and sold pursuant to exemptions from such laws;
(ii) the offering may not have been filed with or reviewed by certain state
securities administrators because of the limited nature of the offering; and
(iii) if at any time on or after the date hereof, and for a period of six (6)
months thereafter, the Company proposes to file a registration statement under
the Act with respect to an offering of equity securities, or securities or other
obligations exercisable or exchangeable for, or convertible into, equity
securities, by the Company for its own account or any of its security holders
for their account, other than a registration statement (i) filed in connection
with any employee stock option or other benefit plan, (ii) for an offering of
debt that is convertible into equity securities of the Company or (iiii) for a
dividend reinvestment plan, then the Company shall (x) give written notice of
such proposed filing to the Subscriber as soon as practicable, but in no event
less than 10 days before the anticipated filing date, which notice shall
describe the amount and type of securities to be included in such offering, the
intended method(s) of distribution, and the name of the proposed managing
underwriter or underwriters, if any, of the offering, and (y) offer to the
Subscriber in such notice the opportunity to register the sale of such number of
shares of Common Stock as the Subscriber may request in writing within five days
following receipt of such notice (a "Piggy-Back
Registration").  The Company shall cause such Securities to be
included in such registration and shall use its best efforts to cause the
managing underwriter or underwriters of a proposed underwritten offering to
permit Securities requested to be included in a Piggy-Back Registration on the
same terms and conditions as any similar securities of the Company and to permit
the sale or other disposition of such Securities in accordance with the intended
method(s) of distribution thereof.  If the Subscriber distributes its
Securities through a Piggy-Back Registration that involves an underwriter or
underwriters, it shall enter into an underwriting agreement in customary form
with the underwriter or underwriters selected for such Piggy-Back
Registration.

       

      (l)  The
Securities are being purchased for the Subscriber's own account and for
investment purposes only, and without the intention of reselling or
redistributing the same.  The Subscriber has made no agreement with
others regarding any of the Securities.  The Subscriber is aware that,
in the view of the Securities and Exchange Commission, a purchase of such
Securities with an intent to resell by reason of any foreseeable specific
contingency or anticipated change in market value, or any change in the
condition of the Company, or in connection with a contemplated liquidation
settlement of any loan obtained for the acquisition of such Securities and for
which such Securities were pledged, would represent an intent inconsistent with
the representations set forth above.  The Subscriber further
represents and agrees that if, contrary to the foregoing intentions, the
Subscriber should later desire to dispose of or transfer any of such Securities
in any manner, the Subscriber shall not do so unless and until: (i) said
Securities shall have first been registered under the Act and all applicable
securities laws; or (ii) the Subscriber shall have first delivered to the
Company a written notice declaring such holder's intention to effect such
transfer and describe in sufficient detail the manner and circumstances of the
proposed transfer, which notice shall be accompanied either by a written opinion
of legal counsel who shall be reasonably satisfactory to the Company, which
opinion shall be addressed to the Company and reasonably satisfactory in form
and substance to the Company's counsel, to the effect that the proposed sale or
transfer is exempt from the registration provisions of the Act and all
applicable state securities laws, or by a "no action" letter from the Securities
and Exchange Commission to the effect that the transfer of the Securities
without registration will not result in recommendation by the staff of the
Commission that action be taken with respect thereto.

       

      (m)  Stop
transfer instructions will be placed with the transfer agent for the Securities,
and a legend will be placed on any certificate representing the Securities
substantially to the following effect:

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER ANY STATE
SECURITIES OR BLUE SKY LAWS.  THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY NOT BE OFFERED FOR SALE, TRANSFERRED, SOLD, ASSIGNED, PLEDGED,
HYPOTHECATED OR OTHERWISE ENCUMBERED OR DISPOSED OF (A "TRANSFER") EXCEPT (A)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND UNDER ANY
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS OR (B) UPON RECEIPT BY THE ISSUER
OF AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE ISSUER, THAT SUCH
TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE ACT PURSUANT TO REGULATIONS
PROMULGATED THEREUNDER AND UNDER ANY APPLICABLE STATE SECURITIES OR BLUE SKY
LAWS.

       

      4.  Preemptive
Rights.

       

      (a)  Prior to
the termination date of that certain Loan Agreement, of even date herewith, by
and between the Company and TMG Holdings Colorado, LLC, an affiliate of the
Subscriber, and except for the issuance of Common Stock by the Company (i)
pursuant to the Company's equity incentive plan, approved by the Company's Board
of Directors, (ii) pursuant to options, warrants or rights to acquire capital
stock or other securities of the Company that are outstanding as of the date
hereof, or (iii) as consideration for the acquisition of all or any substantial
portion of the assets of all or any portion of the capital stock of any person
or entity (whether by sale of stock, merger or otherwise), if the Company sells
any Common Stock (the "Issuance"), the
Company will offer to sell to the Subscriber, and the Subscriber shall be
entitled to purchase, all or part of any Common Stock at the same price and on
the same terms as such Common Stock is sold by the Company pursuant to this
Section 4.

       

      (b)  The
Company will cause to be given to the Subscriber a written notice setting forth
the terms and conditions upon which the Subscriber may purchase Common Stock
from the Company pursuant to this Section 4 (the "Preemptive
Notice").  After receiving the Preemptive Notice, the
Subscriber may irrevocably agree to purchase the Common Stock offered to the
Subscriber by the Company pursuant to this Section 4, on the date specified by
the Company in the Preemptive Notice, by deliver of a written notice to the
Company within 10 days of the date the Company delivered or caused to be
delivered the Preemptive Notice to the Subscriber (the "Preemptive
Reply").

       

      5.  Residence.  The
Subscriber represents and warrants that the Subscriber is a bona fide resident
of, is domiciled in and received the offer and made the decision to invest in
the Securities in the state and/or country set forth on the signature page
hereof, and the Securities are being purchased by the Subscriber in the
Subscriber's name solely for the Subscriber's own beneficial interest and not as
nominee for, or on behalf of, or for the beneficial interest of, or with the
intention to transfer to, any other person, trust or organization, except as
specifically set forth in paragraph 12 of this Subscription Agreement and Letter
of Investment Intent.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6.  Investor
Qualification.  The Subscriber represents and warrants that the
Subscriber or the purchaser of the Securities named in paragraph 12 comes within
at least one category marked below, and that for any category marked the
Subscriber has truthfully set forth the factual basis or reason the Subscriber
comes within that category.  ALL INFORMATION IN RESPONSE TO THIS
PARAGRAPH WILL BE KEPT STRICTLY CONFIDENTIAL.  The Subscriber agrees
to furnish any additional information which the Company deems necessary in order
to verify the answers set forth below.

       

      
        	
                Category
      I

              	 	 	
                The
      Subscriber is an individual (not a partnership, corporation, etc.) whose
      individual net worth, or joint net worth with the Subscriber's spouse,
      presently exceeds $1,000,000.

              

      

      
         

        
          	
                   

                	 	 	
                  
                    Explanation.  In
      calculation of net worth, the Subscriber may include equity in personal
      property and real estate, including the Subscriber's principal residence,
      cash, short term investments, stocks and securities.  Equity in
      personal property and real estate should be based on the fair market value
      of such property less debt secured by such property.

                     

                  

                

        

      

       

      
        
          	
                  Category
      II

                	 	 	
                  
                    The
      Subscriber is an individual (not a partnership, corporation, etc.) who had
      an individual net income in excess of $200,000 in each of the last two
      years, or joint income with his/her spouse in excess of $300,000 in each
      of the last two years, and has a reasonable expectation of reaching the
      same income level in the current
year.

                  

                

        

         

        
          	
                  Category
      III

                	 	 	
                  
                    The
      Subscriber is an executive officer or director of the
      Company.

                  

                

        

         

        
          	
                  Category
      IV

                	 	 	
                  
                    The
      Subscriber is a bank; savings and loan; insurance company; registered
      broker or dealer; registered investment company; registered business
      development company; licensed small business investment company ("SBIC"); or
      employee benefit plan within the meaning of Title I of ERISA whose plan
      fiduciary is either a bank, savings and loan, insurance company or
      registered investment advisor or whose total assets exceed $5,000,000; or
      a self-directed employee benefit plan with investment decisions made
      solely by persons that are accredited
  investors.

                  

                

        

         

      

      
        
          
            	
                     

                  	 	 	
                    
                       

                    

                  

          

        

        
           

          
            
              
                	
                         

                      	 	 	
                        
                           

                        

                      

              

            

          

        

      

      
        
          
            
              
                	
                         

                      	 	 	
                        
                          (describe entity)

                        

                      

              

               

              
                
                  	
                          Category
      V

                        	 	 	
                          
                            
                              The
      Subscriber is a private business development company as defined in
      Section 202(a)(22) of the Investment Advisers Act of 1940, as
      amended.

                            

                          

                        

                

                
                   

                  
                    
                      
                        	
                                 

                              	 	 	
                                
                                   

                                

                              

                      

                    

                    
                       

                      
                        
                          
                            	
                                     

                                  	 	 	
                                    
                                       

                                    

                                  

                          

                        

                      

                    

                  

                  
                    
                      
                        
                          
                            	
                                     

                                  	 	 	
                                    
                                      (describe
entity)

                                    

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

        

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

        
           

          
            
              	
                      Category
      VI

                    	 	 	
                      
                        
                          
                            The
      Subscriber is an entity with total assets in excess of $5,000,000 which
      was not
      formed for the purpose of investing in the Securities and which is one of
      the following:

                          

                        

                      

                    

            

            
               

              
                
                  
                    	
                             

                          	 	 	
                            
                              a corporation;
or

                            

                          

                  

                

              

            

          

        

        
          
             

            
              
                
                  	
                           

                        	 	 	
                          
                            a partnership;
or

                          

                        

                

              

            

          

          
            
               

              
                
                  
                    	
                             

                          	 	 	
                            
                              a business trust;
or

                            

                          

                  

                

              

            

            
              
                 

                
                  
                    
                      	
                               

                            	 	 	
                              
                                a tax-exempt organization descrived in Section
      501(c)(3) of the
Code.

                              

                            

                    

                  

                

              

               

            

          

        

        
          
            
              
                
                  	
                           

                        	 	 	
                          
                             

                          

                        

                

              

              
                 

                
                  
                    
                      	
                               

                            	 	 	
                              
                                 

                              

                            

                    

                  

                

              

            

            
              
                
                  
                    
                      	
                               

                            	 	 	
                              
                                (describe entity)

                              

                            

                    

                     

                    
                      
                        
                          	
                                  Category
      VII

                                	 	 	
                                  
                                    
                                      
                                        The
      Subscriber is a trustee for a trust that is revocable by the grantor at
      any time (including an IRA) and the grantor qualifies under either
      Category I or Category II above.  A copy of the declaration of
      trust or trust agreement and a representation as to the net worth or
      income of the grantor is
  enclosed.

                                      

                                    

                                  

                                

                        

                        
                          
                             

                            
                              
                                	
                                        Category
      VIII

                                      	 X	 	
                                        
                                          
                                            
                                              
                                                The
      Subscriber is an entity, all the equity owners of which are "accredited
      investors" within one or more of the above categories, other than Category
      IV or Category V.  If relying upon this category
      alone, each equity owner must complete a separate copy of this
      Agreement.

                                              

                                            

                                          

                                        

                                      

                              

                              
                                
                                   

                                  
                                    
                                      
                                        
                                          
                                            	
                                                     

                                                  	 	 	
                                                    
                                                      
                                                        Subscriber is a Texas limited liability company,
      owned equally by Scott M. Schwartz and Douglas A. Schwartz 

                                                      

                                                    

                                                  

                                          

                                        

                                        
                                           

                                          
                                            
                                              
                                                	
                                                         

                                                      	 	 	
                                                        
                                                           

                                                        

                                                      

                                              

                                            

                                          

                                        

                                      

                                      
                                        
                                          
                                            
                                              
                                                	
                                                         

                                                      	 	 	
                                                        
                                                          (describe entity)

                                                        

                                                      

                                              

                                               

                                              
                                                
                                                  
                                                    
                                                      	
                                                              Category
      IX

                                                            	 	 	
                                                              
                                                                
                                                                  
                                                                    The
      Subscriber is a trust with total assets in excess of $5,000,000, not
      formed for the specific purpose of acquiring the Securities, whose
      purchase is directed by a person who has such knowledge and experience in
      financial and business matters that he or she is capable of evaluating the
      merits and risks of the prospective
      investment.

                                                                  

                                                                

                                                              

                                                            

                                                    

                                                  

                                                

                                              

                                               

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      7.  Additional
Representations.  The Subscriber makes the following additional
representations:

       

      (a)  The
Subscriber was not organized for the specific purpose of acquiring the
Securities; and

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)  This
Subscription Agreement and Letter of Investment Intent has been duly authorized
by all necessary action on the part of the Subscriber, has been duly executed by
an authorized officer or representative of the Subscriber, and is a legal, valid
and binding obligation of the Subscriber enforceable in accordance with its
terms.

       

      8.  Reliance on
Representations.

       

      (a)  The
Subscriber understands the meaning and legal consequences of the
representations, warranties, agreements, covenants, and confirmations set out
above, and agrees that the subscription made hereby may be accepted in reliance
thereon.  The Subscriber agrees to indemnify and hold harmless the
Company (including for this purpose its employees, and each person who controls
the Company within the meaning of Section 20 of the Securities Exchange Act of
1934, as amended) from and against any and all loss, damage, liability or
expense, including reasonable costs and attorney's fees and disbursements, which
the Company, or such other persons may incur by reason of, or in connection
with, any representation or warranty made herein not having been true when made,
any misrepresentation made by the Subscriber or any failure by the Subscriber to
fulfill any of the covenants or agreements set forth herein or in any other
document provided by the Subscriber to the Company.

       

      (b)  The
Company understands the meaning and legal consequences of the representations,
warranties, agreements, covenants, and confirmations set out above, and agrees
that the subscription made hereby may be accepted in reliance
thereon.  The Company agrees to indemnify and hold harmless the
Subscriber (including for this purpose its employees, and each person who
controls the Subscriber within the meaning of Section 20 of the Securities
Exchange Act of 1934, as amended) from and against any and all loss, damage,
liability or expense, including reasonable costs and attorney's fees and
disbursements, which the Subscriber, or such other persons may incur by reason
of, or in connection with, any representation or warranty made herein not having
been true when made, any misrepresentation made by the Company or any failure by
the Company to fulfill any of the covenants or agreements set forth herein or in
any other document provided by the Company to the Subscriber.

       

      9.  Transferability and
Assignability.  Neither this Subscription Agreement and Letter
of Investment Intent nor any of the rights of the Subscriber hereunder may be
transferred or assigned by the Subscriber.  The Subscriber agrees that
the Subscriber may not cancel, terminate, or revoke this Subscription Agreement
and Letter of Investment Intent or any agreement of the Subscriber made
hereunder (except as otherwise specifically provided herein) and that this
Subscription Agreement and Letter of Investment Intent shall survive the death
or disability of the Subscriber and shall be binding upon the Subscriber's
heirs, executors, administrators, successors, and assigns.

       

      10.  Notices.  All
notices or other communications hereunder shall be in writing and shall be
deemed to have been duly given if delivered personally or mailed by certified or
registered mail, return receipt requested, postage prepaid, as
follows:  if to the Subscriber, to the address set forth below; and if
to the Company, to the address at the beginning of this Subscription Agreement
and Letter of Investment Intent, or to such other address as the Company or the
Subscriber shall have designated to the other by like notice.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      11.  Counterparts.  This
Subscription Agreement and Letter of Investment Intent may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same document.

       

      IN
NO EVENT WILL THE COMPANY OR ANY OF ITS AFFILIATES OR THE PROFESSIONAL ADVISORS
ENGAGED BY THEM BE LIABLE IF FOR ANY REASON RESULTS OF OPERATIONS OF THE COMPANY
ARE NOT AS PROJECTED IN THE DOCUMENTS.  INVESTORS MUST LOOK SOLELY TO,
AND RELY ON, THEIR OWN ADVISORS WITH RESPECT TO THE TAX CONSEQUENCES OF
INVESTING IN THE SECURITIES.

       

      12.  Title.  Please
indicate in which manner the Securities are to be held by placing an "X" in one
space below:

       

      
        	 	 (a)	 	 	 Individual
      Ownership
	 	 (b)	 	 	 Community
      Property
	 	 (c)	 	 	 Joint Tenant
      with Right of Survivorship (both parties must sign)
	 	 (d)	 	 	 Partnership
	 	 (e)	 	 	 Tenants in
      Common
	 	 (f)	 	 	 Corporation
	 	 (g)	 	 	 Trust
	 	 (h)	 X	 	 Other
      (Describe):
	 	
                 

                A limited liability company. 

              
	 	 	 	 	 
	 	 	 	 	 
	 	 Please
      print above the exact name(s) in which the Securities are to be
      held.

      

                                                                                                                          

       

      13.  State of Residence or
Principal Office.  The Subscriber's state of residence, if an
individual, or state in which the principal office is located, if an entity, and
the state in which the Subscriber received the offer to invest and made the
decision to invest in the Securities is:    Texas 

       

      14.  Social Security Number or
Tax I.D.  If the Subscriber is a U.S. citizen or entity, the
Subscriber's Social Security Number or federal tax identification number
is:  74-3024203 .

       

      [SIGNATURE
PAGES BEGIN ON NEXT PAGE]

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SIGNATURE
PAGE

       

      (ENTITY)

       

      The
Subscriber hereby represents it has read this entire Subscription Agreement and
Letter of Investment Intent dated June 10, 2010.

       

       

      
      

       

      
        	 	 	 	 	 	 
	 	 	 	Dated: 
    	 June 10,
      2010	 
	 	 	 	 	
                 

                 

              	 
	 	 	 	
                Address
      to which Correspondence 

                Should
      be Directed

              	 
	 	 	 	 	 	 
	
                TMG HOLDINGS, LLC

                Name of Entity

              	 	
                7598
      N. Mesa, Suite 205

                El Paso, TX 
      79912

              	 
	 	 	 	 	 	 
	By:  	 /s/ Scott
      M.Schwartz	 	 	 	 
	 	 Signature	 	 	 	 
	 	 	 	 	 	 
	Its:	 President	 	 74-3024203 	 
	 	 Title	 	Tax
      Identification or Social Security Number 

                (for
      U.S. entities)

              	 
	 	 	 	 	 
	Scott M.
      Schwartz   	 	 (915)
      845-4000 	 
	Name Typed or
      Printed 	 	 Telephone
      Number	 
	 	 	 	 	 	 
	 	 	 	 	 	 

      

       

       

      Number of
Shares of Common Stock Subscribed for:

       

      21,800,000

       

      Total
Subscription Amount (at $0.02 per share):

       

      $436,000.00

       

      

       

      [Signature
Page—Entity]

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      CERTIFICATE
OF SIGNATORY

       

      

      I, Scott M. Schwartz, am
the President
of

       

      TMG
HOLDINGS, LLC (the "Entity").

       

      I certify
that I am empowered and duly authorized by the Entity to execute and carry out
the terms of the Subscription Agreement and Letter of Investment Intent and to
purchase and hold the Securities, and certify that the Subscription Agreement
and Letter of Investment Intent has been duly and validly executed on behalf of
the Entity and constitutes a legal and binding obligation of the
Entity.

       

      IN
WITNESS WHEREOF, I have hereto set may hand this 10th day of June,
2010.

      

      
      

       

      
        	 	/s/ Scott M.
      Schwartz	 
	 	 Signature	 

      

       

      

      

      

      

      

      

      

      

      

      [Certificate
of Signatory Signature Page]

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ACCEPTANCE

       

      This
Subscription Agreement and Letter of Investment Intent is accepted as of June
10, 2010.

       

       

       

      
         

        
          	 	
                  VERECLOUD,
      INC. 

                   

                   

                	 
	 By:   
      	/s/ Mike
      Cookson	 
	 	
                  Mike
      Cookson

                  Chief Operating Officer

                	 

        

         

         

      

      

      

      

      

      

      

      

      

       

      

      

      

      [Countersignature
Page to Subscription Agreement]

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      EXHIBIT
A

       

      WIRE
INSTRUCTIONS

       

      

      

      Beneficiary
Name:

      

      Beneficiary
Acct:

      

      Beneficiary
Address:

      

      Beneficiary
Bank:

      

      Beneficiary
Bank Address:

      

      ABA#:

      

      FBO:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]