Document:

Unassociated Document

    
      	
              NAME
                OF SUBSCRIBER:
                _______________________

            	
              SUBSCRIPTION
                AMOUNT: $________________

               

               

               

            

    

    
      	
              To:
                

            	
              Foldera,
                Inc. 

            

    

    c/o
      Brookstreet Securities Corporation

    2361
      Campus Drive - 2nd
      Floor

    Irvine,
      California 92612-1464

    Attn:
       Ms.
      Jeanne Rossean, Compliance Department

    

     

    SUBSCRIPTION
      AGREEMENT

     

    This
      Subscription Agreement (this “Agreement”) is being delivered to you in
      connection with your investment in Foldera, Inc. (the “Company”). Brookstreet
      Securities Corporation (the “Placement Agent”) shall serve as the placement
      agent of the Company in conducting a private placement (the “Offering”) of up to
      $45,000,000 in shares of common stock (the “Shares” or the “Common Stock”), at a
      purchase price of $2.25 per share and, for every two Shares purchased, a
      three-year warrant (the “Warrant” and, together with the Shares, the
“Securities”) to purchase one share of Common Stock at a price equal to 110% of
      the average closing bid price of the Common Stock for the five consecutive
      trading days prior to the initial closing of the Offering, plus an
      over-subscription right for an additional $6,750,000 in Securities. All funds
      received in the Offering shall be held by a chartered banking institution (the
      “Escrow Agent”) and, upon fulfillment of the conditions precedent set forth
      herein, shall be released and delivered to the Company at which time the
      Securities subscribed for as further described below shall be delivered, subject
      to Section 8 hereof, to you. The Company and the Placement Agent may continue
      to
      offer and sell the Securities and conduct additional closings (each along with
      the initial closing, a “Closing”) for the sale of additional Securities until
      the termination of the Offering. 

     

    1. Subscription
      and Purchase Price

     

    (a) Subscription.
      Subject
      to the conditions set forth in Section 2 hereof, the undersigned hereby
      subscribes for and agrees to purchase the number of Securities indicated on
      page
      13 hereof on the terms and conditions described herein. The minimum number
      of
      Securities that may be purchased is 20,000 ($45,000). Subscriptions for lesser
      amounts may be accepted at the discretion of the Company and the Placement
      Agent.

     

    (b) Purchase
      of Securities.
      The
      undersigned understands and acknowledges that the purchase price to be remitted
      to the Placement Agent in exchange for the Securities shall be $2.25 per Share,
      for an aggregate purchase price as set forth on page 13 hereof (the “Aggregate
      Purchase Price”). The undersigned’s delivery of this Agreement to the Placement
      Agent shall be accompanied by payment for the Securities subscribed for
      hereunder, payable in United States dollars, by check made payable to the order
      of “First
      Republic Trust Co., Escrow Agent for Foldera, Inc.,”
or
      by
      wire transfer of immediately available funds delivered contemporaneously with
      the undersigned’s delivery of this Agreement to the Placement Agent. The
      undersigned understands and agrees that, subject to Section 2 and applicable
      laws, by executing this Agreement, he, she or it is entering into a binding
      agreement. 

     

    2. Acceptance,
      Offering Term and Closing Procedures

     

    (a) Acceptance
      or Rejection.
      The
      obligation of the undersigned to purchase the Securities shall be irrevocable,
      and the undersigned shall be legally bound to purchase the Securities subject
      to
      the terms set forth in this Agreement. The undersigned understands and agrees
      that the Company and the Placement Agent reserve the right to reject this
      subscription for the Securities in whole or part in any order at any time prior
      to the closing (the “Closing”) of the purchase and sale of the Securities if, in
      their reasonable judgment, they deem such action to be in the best interest
      of
      the Company, notwithstanding the undersigned’s prior receipt of notice of
      acceptance of the undersigned’s subscription. In the event of rejection of this
      subscription by the Company or the Placement Agent in accordance with this
      Section 2, or the sale of the Securities is not consummated by the Placement
      Agent for any reason, this Agreement and any other agreement entered into
      between the undersigned and the Placement Agent relating to this subscription
      shall thereafter have no force or effect, and the Placement Agent shall promptly
      return or cause to be returned to the undersigned the purchase price remitted
      to
      the Escrow Agent, without interest thereon or deduction therefrom.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

     

    (b) Offering
      Term.
      The
      subscription period for the Offering will begin as of July 11, 2006, and will
      terminate upon the occurrence of the earlier of (a) 11:59 p.m., Pacific Standard
      Time, on Monday, July 31, 2006, unless extended by the Company and the Placement
      Agent for up to two additional one-week periods, or (b) the Company’s acceptance
      of subscriptions for $45,000,000 in Securities (or, if the Placement Agent
      requests the Company to offer and sell the over-subscription Securities,
      $51,750,000 in Securities) offered and the receipt of payment
      therefor.

     

    (c) Placement
      Agent.
      The
      Company has retained the Placement Agent to coordinate the Offering as the
      Company’s lead placement agent. See the Memorandum for a description of the
      compensation payable to the Placement Agent and other terms of the
      Offering.

     

    (d) Closing.
      Each
      Closing shall take place at the offices of Greenberg Traurig, LLP, counsel
      to
      the Placement Agent at 2450 Colorado Avenue, Suite 400E, Santa Monica,
      California 90404 or such other place as determined by the Placement Agent.
      Each
      Closing shall take place on a Business Day promptly following the satisfaction
      of the conditions set forth in Section 8 below. Each subsequent Closing shall
      take place at such times as determined by the Company (each closing date
      referred to as a “Closing Date”), or such other date as is mutually agreed to by
      the parties and the undersigned. “Business Day” shall mean from the hours of
      9:00 a.m. (P.S.T.) through 5:00 p.m. (P.S.T.) of a day other than a Saturday,
      Sunday or other day on which commercial banks in Los Angeles, California or
      New
      York, New York are authorized or required to be closed. The Securities purchased
      by the Subscriber will be delivered by the Company promptly following a
      Closing.

     

    3. Investor’s
      Representations and Warranties

     

    The
      undersigned hereby acknowledges, agrees with and represents and warrants to
      the
      Company and the Placement Agent and its affiliates, as follows:

     

    (a) The
      undersigned has full power and authority to enter into this Agreement, the
      execution and delivery of which has been duly authorized, if applicable, and
      this Agreement constitutes a valid and legally binding obligation of the
      undersigned.

     

    (b) The
      undersigned acknowledges his, her or its understanding that the offering and
      sale of the Securities is intended to be exempt from registration under the
      Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section
      4(2) of the Securities Act and the provisions of Regulation D promulgated
      thereunder (“Regulation D”). In furtherance thereof, the undersigned represents
      and warrants to the Company and the Placement Agent and its affiliates as
      follows:

     

    (i) The
      undersigned realizes that the basis for the exemption from registration may
      not
      be available if, notwithstanding the undersigned’s representations contained
      herein, the undersigned is merely acquiring the Securities for a fixed or
      determinable period in the future, or for a market rise, or for sale if the
      market does not rise. The undersigned does not have any such
      intention.

     

    (ii) The
      undersigned is acquiring the Securities solely for the undersigned’s own
      beneficial account, for investment purposes, and not with view to, or resale
      in
      connection with, any distribution of the Securities.

     

    (iii) The
      undersigned has the financial ability to bear the economic risk of his, her
      or
      its investment, has adequate means for providing for their current needs and
      contingencies, and has no need for liquidity with respect to the investment
      in
      the Company;

     

    (iv) The
      undersigned and the undersigned’s attorney, accountant, purchaser representative
      and/or tax advisor, if any (collectively, “Advisors”), have received the
      Confidential Private Placement Memorandum, dated July 11, 2006, together with
      all appendices thereto (as such documents may be amended or supplemented, the
      “Memorandum”), relating to the private placement by the Company of the
      Securities, and all other documents requested by the undersigned or Advisors,
      if
      any, have carefully reviewed them and understand the information contained
      therein, prior to the execution of this Agreement; and

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    (v) The
      undersigned (together with his, her or its Advisors, if any) has such knowledge
      and experience in financial and business matters as to be capable of evaluating
      the merits and risks of the prospective investment in the Securities. If other
      than an individual, the undersigned also represents it has not been organized
      solely for the purpose of acquiring the Securities.

     

    (c) The
      information in the Investor Questionnaire completed and executed by the
      undersigned (the “Investor Questionnaire”) is true and accurate in all respects,
      and the undersigned is an “accredited investor,” as that term is defined in Rule
      501(a) of Regulation D.

     

    (d) The
      undersigned (and his, her or its Advisors, if any) has been furnished with
      a
      copy of the Memorandum.

     

    (e) The
      undersigned is not relying on the Placement Agent or its affiliates or
      sub-agents with respect to economic considerations involved in this investment.
      The undersigned has relied on the advice of, or has consulted with, only his,
      her or its Advisors. Each Advisor, if any, is capable of evaluating the merits
      and risks of an investment in the Securities as such are described in the
      Memorandum, and each Advisor, if any, has disclosed to the undersigned in
      writing (a copy of which is annexed to this Agreement) the specific details
      of
      any and all past, present or future relationships, actual or contemplated,
      between the Advisor and the Placement Agent or any affiliate or sub-agent
      thereof.

     

    (f) The
      undersigned represents, warrants and agrees that he, she or it will not sell
      or
      otherwise transfer the Securities without registration under the Securities
      Act
      or an exemption therefrom, and fully understands and agrees that the undersigned
      must bear the economic risk of his, her or its purchase because, among other
      reasons, the Securities have not been registered under the Securities Act or
      under the securities laws of any state and, therefore, cannot be resold,
      pledged, assigned or otherwise disposed of unless they are subsequently
      registered under the Securities Act and under the applicable securities laws
      of
      such states, or an exemption from such registration is available. In particular,
      the undersigned is aware that the Securities are “restricted securities,” as
      such term is defined in Rule 144 promulgated under the Securities Act (“Rule
      144”), and they may not be sold pursuant to Rule 144 unless all of the
      conditions of Rule 144 are met. The undersigned also understands that, except
      as
      otherwise provided in Section 5 hereof, the Company is under no obligation
      to
      register the Securities on his, her or its behalf or to assist them in complying
      with any exemption from registration under the Securities Act or applicable
      state securities laws. The undersigned understands that any sales or transfers
      of the Securities are further restricted by state securities laws and the
      provisions of this Agreement.

     

    (g) No
      representations or warranties have been made to the undersigned by the Company
      or the Placement Agent, or any of their respective officers, employees, agents,
      sub-agents, affiliates or subsidiaries, other than any representations of the
      Company or the Placement Agent contained herein and in the Memorandum, and
      in
      subscribing for the Securities the undersigned is not relying upon any
      representations other than those contained herein or in the
      Memorandum.

     

    (h) The
      undersigned understands and acknowledges that his, her or its purchase of the
      Securities is a speculative investment that involves a high degree of risk
      and
      the potential loss of their entire investment and has carefully read and
      considered the matters set forth in the Memorandum and in particular the matters
      under the caption “Cautionary Language Regarding Forward-Looking Statements” and
“Risk Factors” therein, and, in particular, acknowledges that the Company has a
      limited operating history and is engaged in a highly competitive business.
      

     

    (i) The
      undersigned’s overall commitment to investments that are not readily marketable
      is not disproportionate to the undersigned’s net worth, and an investment in the
      Securities will not cause such overall commitment to become
      excessive.

     

    (j) The
      undersigned understands and agrees that the certificates for the Securities
      shall bear substantially the following legend until (i) such Securities shall
      have been registered under the Securities Act and effectively disposed of in
      accordance with a registration statement that has been declared effective or
      (ii) in the opinion of counsel for the Company such Securities may be sold
      without registration under the Securities Act, as well as any applicable “blue
      sky” or state securities laws:

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE
      STATE SECURITIES LAWS. SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT
      PURPOSES AND MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE,
      TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FILED BY THE ISSUER WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION
      COVERING SUCH SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL
      SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED.

     

    (k) Neither
      the U.S. Securities and Exchange Commission (the “SEC”) nor any state securities
      commission has approved the Securities or passed upon or endorsed the merits
      of
      the Offering or confirmed the accuracy or determined the adequacy of the
      Memorandum. The Memorandum has not been reviewed by any federal, state or other
      regulatory authority.

     

    (l) The
      undersigned and his, her or its Advisors, if any, have had a reasonable
      opportunity to ask questions of and receive answers from a person or persons
      acting on behalf of the Company concerning the offering of the Securities and
      the business, financial condition, results of operations and prospects of the
      Company, and all such questions have been answered to the full satisfaction
      of
      the undersigned and his, her or its Advisors, if any.

     

    (m) The
      undersigned is unaware of, is in no way relying on, and did not become aware
      of
      the offering of the Securities through or as a result of, any form of general
      solicitation or general advertising including, without limitation, any article,
      notice, advertisement or other communication published in any newspaper,
      magazine or similar media or broadcast over television or radio, or electronic
      mail over the Internet, in connection with the offering and sale of the
      Securities and is not subscribing for Securities and did not become aware of
      the
      offering of the Securities through or as a result of any seminar or meeting
      to
      which the undersigned was invited by, or any solicitation of a subscription
      by,
      a person not previously known to the undersigned in connection with investments
      in securities generally.

     

    (n) The
      undersigned has taken no action which would give rise to any claim by any person
      for brokerage commissions, finders’ fees or the like relating to this Agreement
      or the transactions contemplated hereby (other than commissions to be paid
      by
      the Company to the Placement Agent, its selected dealers or as otherwise
      described in the Memorandum).

     

    (o) The
      undersigned is not relying on the Company, the Placement Agent or any of their
      respective employees, agents or sub-agents with respect to the legal, tax,
      economic and related considerations of an investment in the Securities, and
      the
      undersigned has relied on the advice of, or has consulted with, only his, her
      or
      its own Advisors.

     

    (p) The
      undersigned acknowledges that any estimates or forward-looking statements or
      projections included in the Memorandum were prepared by the future management
      of
      the Company in good faith, but that the attainment of any such projections,
      estimates or forward-looking statements cannot be guaranteed by the Company
      or
      its management and should not be relied upon.

     

    (q) No
      oral
      or written representations have been made, or oral or written information
      furnished, to the undersigned or his, her or its Advisors, if any, in connection
      with the offering of the Securities which are in any way inconsistent with
      the
      information contained in the Memorandum.

     

    (r) The
      undersigned’s substantive relationship with the Placement Agent or selected
      dealers through which the undersigned is subscribing for Securities predates
      the
      Placement Agent’s or such selected dealers’ contact with the undersigned
      regarding an investment in the Securities.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    (s) (For
      ERISA plans only) The fiduciary of the ERISA plan (the “Plan”) represents that
      such fiduciary has been informed of an understands the Company’s investment
      objectives, policies and strategies, and that the decision to invest “plan
      assets” (as such term is defined in ERISA) in the Company is consistent with the
      provisions of ERISA that require diversification of plan assets and impose
      other
      fiduciary responsibilities. The Subscriber or Plan fiduciary (a) is responsible
      for the decision to invest in the Company; (b) is independent of the Company
      and
      any of its affiliates; (c) is qualified to make such investment decision; and
      (d) in making such decision, the Subscriber or Plan fiduciary has not relied
      primarily on any advice or recommendation of the Company or any of its
      affiliates.

     

    (t) The
      foregoing representations, warranties and agreements shall survive the
      Closing.

     

    4. The
      Company’s Representations and Warranties

     

    The
      Company hereby acknowledges, agrees with and represents and warrants to each
      of
      the undersigned, as follows:

     

    (a) The
      Company has the corporate power and authority to execute and deliver this
      Agreement and to perform its obligations hereunder. This Agreement has been
      duly
      authorized, executed and delivered by the Company and is valid, binding and
      enforceable against the Company in accordance with its terms. 

     

    (b) The
      Securities to be issued to the undersigned pursuant to this Agreement, when
      issued and delivered in accordance with the terms of this Agreement, will be
      duly and validly issued and will be fully paid and non-assessable. 

     

    (c) The
      shares of Common Stock to be issued upon exercise of the Warrants to be issued
      to the undersigned pursuant to this Agreement, when issued and delivered in
      accordance with this Agreement and the Warrants, will, upon receipt by the
      Company of the applicable exercise price therefor, be validly issued and fully
      paid and nonassessable.

     

    (d) Neither
      the execution and delivery nor the performance of this Agreement by the Company
      will conflict with the Company’s Articles of Incorporation or By-laws, as
      amended to date, or result in a breach of any terms or provisions of, or
      constitute a default under, any material contract, agreement or instrument
      to
      which the Company is a party or by which the Company is bound.

     

    (e) After
      giving effect to the transactions contemplated by this Agreement and immediately
      after the Closing, the Company will have the outstanding capital stock as
      described in the Memorandum.

     

    (f) The
      information contained in the Memorandum is true and correct in all material
      respects as of its date.

     

    5. Registration
      Rights

     

    (a) The
      Company shall prepare and file a registration statement (the “Registration
      Statement”) with the SEC covering the resale of the Securities by no later than
      45 days after the final Closing Date. The Company shall use its best efforts
      to
      have the Registration Statement declared effective by the SEC as soon as
      possible after the initial filing, and in any event no later than 120 days
      after
      the final Closing Date, and agrees to use its best efforts to respond to any
      SEC
      comments or questions regarding the Registration Statement on or prior to the
      date which is 20 business days from the date such comments or questions are
      received, but in any event not later than 30 business days from the date such
      comments or questions are received. The Company will maintain the effectiveness
      of the Registration Statement from the date of the effectiveness of the
      Registration Statement until 12 months after that date; provided,
      however,
      that,
      if at any time or from time to time after the date of effectiveness of the
      Registration Statement, the Company notifies the undersigned in writing of
      the
      existence of a Potential Material Event (as defined below), the undersigned
      shall not offer or sell any of the Securities, or engage in any other
      transaction involving or relating to the Securities, from the time of the giving
      of notice with respect to a Potential Material Event until the Company notifies
      the undersigned that such Potential Material Event either has been disclosed
      to
      the public or no longer constitutes a Potential Material Event; provided,
      further
      that,
      the Company may not suspend the right of the undersigned pursuant to this
      Section 5(a) for more than 60 days in the aggregate. “Potential Material Event”
means the possession by the Company of material information regarding a
      potential transaction not ripe for disclosure in a registration statement,
      which
      shall be evidenced by determinations in good faith by the Board of Directors
      of
      the Company that disclosure of such information in the registration statement
      would be detrimental to the business and affairs of the Company.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    (b) If
      the
      Company fails to (i) file the Registration Statement with the SEC on or prior
      to
      45 days after the final Closing Date, (ii) obtain effectiveness of the
      Registration Statement by the SEC on or prior to 120 days after the final
      Closing Date, or (iii) maintain effectiveness of the Registration Statement
      for
      12 months after the date of effectiveness, the Company shall be obligated to
      issue to the undersigned additional Shares computed as follows: on the first
      day
      that the Company has failed to file, or to obtain or maintain the effectiveness
      of, the Registration Statement, as the case may be (the “First Determination
      Date”), the Company shall determine the number of Shares entitled to the benefit
      of the registration rights set forth in this Section 5 that are held by the
      undersigned (the “Subject Shares”). Within 30 days following the First
      Determination Date, the Company shall issue to the undersigned such number
      of
      Shares equal to 1% of the number of Subject Shares (the “Penalty Shares”).
      Penalty Shares shall also be issuable upon the expiration of each week following
      the First Determination Date during which the Company has continued to fail to
      file, or to obtain or maintain the effectiveness of, the Registration Statement,
      as the case may be (the expiration date of each such week being a “Subsequent
      Determination Date”). The number of Penalty Shares issuable following each
      Subsequent Determination Date shall be determined and issued in accordance
      with
      this section on the same basis applicable to the First Determination Date;
      provided,
      however,
      that
      Penalty Shares previously issued to the undersigned shall be excluded from
      the
      calculation of Subject Shares. Notwithstanding the foregoing, the Company shall
      not be obligated to issue to the undersigned pursuant to this paragraph an
      aggregate number of Penalty Shares greater than 10% of the number of Subject
      Shares originally subscribed for and held by the undersigned.

     

    (c) If
      the
      Company fails to respond to the SEC, within 30 days after receipt, to any
      questions and comments from the SEC regarding the Registration Statement, the
      Company shall be obligated to issue Penalty Shares to the undersigned. The
      31st
      day that
      the Company has failed to respond to the SEC is termed the “Response
      Determination Date.” Within 30 days following the Response Determination Date,
      the Company shall issue to the undersigned Penalty Shares (which are equal
      to 1%
      of the number of Subject Shares). Penalty Shares shall also be issuable upon
      the
      expiration of each week following the Response Determination Date during which
      the Company has continued to fail to respond to the SEC (the expiration date
      of
      each such week being a “Subsequent Response Determination Date”). The number of
      Penalty Shares issuable following each Subsequent Response Determination Date
      shall be determined and issued in accordance with this section on the same
      basis
      applicable to the Response Determination Date; provided,
      however,
      that
      Penalty Shares previously issued to the undersigned shall be excluded from
      the
      calculation of Subject Shares. Notwithstanding the foregoing, the Company shall
      not be obligated to issue to the undersigned pursuant to this paragraph an
      aggregate number of Penalty Shares greater than 10% of the number of shares
      of
      Subject Shares originally subscribed for and held by the
      undersigned.

     

    (d) The
      Company shall notify the undersigned at any time when a prospectus relating
      thereto is required to be delivered under the Securities Act, upon discovery
      that, or upon the happening of any event as a result of which, the prospectus
      included in such registration statement, as then in effect, includes an untrue
      statement of a material fact or omits to state any material fact required to
      be
      stated therein or necessary to make the statements therein not misleading in
      light of the circumstances then existing. At the request of the undersigned,
      the
      Company shall also prepare, file and furnish to the undersigned a reasonable
      number of copies of a supplement to or an amendment of such prospectus as may
      be
      necessary so that, as thereafter delivered to the purchasers of such shares,
      such prospectus shall not include an untrue statement of a material fact or
      omit
      to state a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading in light of the circumstances then existing.
      The undersigned agrees not to offer or sell any shares covered by the
      Registration Statement after receipt of such notification until the receipt
      of
      such supplement or amendment.

     

    (e) The
      Company may request the undersigned to furnish the Company such information
      with
      respect to the undersigned and the undersigned’s proposed distribution of the
      Shares pursuant to the Registration Statement as the Company may from time
      to
      time reasonably request in writing or as shall be required by law or by the
      SEC
      in connection therewith, and the undersigned agrees to furnish the Company
      with
      such information.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

     

    (f) Each
      of
      the Company and the Subscriber shall indemnify the other party hereto and their
      respective officers, directors, employees and agents against all claims, losses,
      damages and liabilities (or actions in respect thereof) arising out of or based
      on any untrue statement (or alleged untrue statement) by the indemnifying party
      of a material fact contained in any prospectus or other document (including
      any
      related registration statement, notification or the like) incident to any
      registration of the type described in this Section 5, or any omission (or
      alleged omission) by the indemnifying party to state in any such document a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, and shall reimburse such indemnified party for any
      legal
      and any other expenses reasonably incurred in connection with investigating
      and
      defending any such claim, loss, damage, liability or action; provided
      that no
      party will be eligible for indemnification hereunder to the extent that any
      such
      claim, loss, damage, liability or expense arises out of or is based on any
      untrue statement or omission based upon written information furnished by such
      party for use in connection with such registration.

     

    6. Use
      of Proceeds

     

    The
      net
      proceeds of the Offering will be used in a manner consistent with the plan
      described in “Use of Proceeds” in the Memorandum. 

     

    7. Insider
      Trading Prohibition; Indemnity; Escrow Release

     

    (a) The
      undersigned agrees to indemnify and hold harmless the Company, the Placement
      Agent, the Escrow Agent and their respective officers and directors, employees,
      agents, sub-agents and affiliates and each other person, if any, who controls
      any of the foregoing, against any loss, liability, claim, damage and expense
      whatsoever (including, but not limited to, any and all expenses whatsoever
      reasonably incurred in investigating, preparing or defending against any
      litigation commenced or threatened or any claim whatsoever) arising out of
      or
      based upon any false representation or warranty by the undersigned, or the
      undersigned’s breach of, or failure to comply with, any covenant or agreement
      made by the undersigned herein or in any other document furnished by the
      undersigned to the Company, the Placement Agent, the Escrow Agent and their
      respective officers and directors, employees, agents, sub-agents and affiliates
      and each other person, if any, who controls any of the foregoing in connection
      with the Offering.

     

    (b) The
      Subscriber acknowledges that the Placement Agent may act on behalf of the
      Subscribers, solely for the sake of convenience, in connection with confirmation
      to the Escrow Agent that the closing has occurred and thereby direct the Escrow
      Agent to disburse the Subscribers’ subscription funds held in escrow to the
      Company at such time. In doing so, however, the Placement Agent makes no
      representation or warranty to the Subscribers as to the satisfaction of all
      conditions precedent to the closing or with respect to any due diligence
      investigations concerning the Company, all of which shall be and remain the
      Subscriber’s own responsibility.

     

    8. Conditions
      to Acceptance of Subscription

     

    The
      Company’s right to accept the subscription of the undersigned is conditioned
      upon satisfaction of the following conditions precedent on or before the date
      the Company accepts such subscription (any or all of which may be waived by
      the
      undersigned in his, her or its sole discretion):

     

    (a) On
      the
      Closing Date, no legal action, suit or proceeding shall be pending which seeks
      to restrain or prohibit the transactions contemplated by this
      Agreement.

     

    (b) The
      representations and warranties of the Company contained in this Agreement shall
      have been true and correct on the date of this Agreement and shall be true
      and
      correct on the Closing Date as if made on the Closing Date.

     

    9. Notices
      to Subscribers

     

    (a) THE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES
      LAWS OF ANY STATE AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS
      FROM
      THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THE
      SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE
      SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE
      FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR
      THE
      ACCURACY OR ADEQUACY OF THE MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY
      IS
      UNLAWFUL.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

     

    (b) THE
      SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
      NOT
      BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT, AND
      APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
      THEREFROM. SUBSCRIBERS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
      FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
      TIME.

     

    
      	
              10.

            	
              Miscellaneous
                Provisions

            

    

     

    (a) Modification.
      Neither
      this Agreement, nor any provisions hereof, shall be waived, modified, discharged
      or terminated except by an instrument in writing signed by the party against
      whom any waiver, modification, discharge or termination is sought.

     

    (b) Survival.
      The
      undersigned’s representations and warranties made in this Subscription Agreement
      shall survive the execution and delivery of this Agreement and the delivery
      of
      the Securities.

     

    (c) Notices.
      Any
      party may send any notice, request, demand, claim or other communication
      hereunder to the undersigned at the address set forth on the signature page
      of
      this Agreement or to the Company at the address set forth above using any means
      (including personal delivery, expedited courier, messenger service, fax,
      ordinary mail or electronic mail), but no such notice, request, demand, claim
      or
      other communication will be deemed to have been duly given unless and until
      it
      actually is received by the intended recipient. Any party may change the address
      to which notices, requests, demands, claims and other communications hereunder
      are to be delivered by giving the other parties written notice in the manner
      herein set forth.

     

    (d) Binding
      Effect.
      Except
      as otherwise provided herein, this Agreement shall be binding upon, and inure
      to
      the benefit of, the parties to this Agreement and their heirs, executors,
      administrators, successors, legal representatives and assigns. If the
      undersigned is more than one person or entity, the obligation of the undersigned
      shall be joint and several and the agreements, representations, warranties
      and
      acknowledgments contained herein shall be deemed to be made by, and be binding
      upon, each such person or entity and his or its heirs, executors,
      administrators, successors, legal representatives and assigns. This Agreement
      sets forth the entire agreement and understanding between the parties as to
      the
      subject matter thereof and merges and supersedes all prior discussions,
      agreements and understandings of any and every nature among them.

     

    (e) Assignability.
      This
      Agreement is not transferable or assignable by the undersigned. This Agreement
      shall be transferable or assignable by the Company to a proposed publicly-traded
      successor company.

     

    (f) Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California, without giving effect to conflicts of law
      principles.

     

    (g) Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    ANTI-MONEY
      LAUNDERING PROVISIONS

     

    

    
      	
               

              The
                USA PATRIOT Act

            	 	
               

              What
                is money laundering?

            	 	
              How
                big is the problem and why is it important?

            
	
              The
                USA PATRIOT Act is designed to detect, deter, and punish terrorists
                in the
                United States and abroad. The Act imposes new anti-money laundering
                requirements on brokerage firms and financial institutions. Since
                April
                24, 2002, all brokerage firms have been required to have new,
                comprehensive anti-money laundering programs.

              To
                help you understand theses efforts, we want to provide you with some
                information about money laundering and our steps to implement the
                USA
                PATRIOT Act.

            	 	
              Money
                laundering is the process of disguising illegally obtained money
                so that
                the funds appear to come from legitimate sources or activities. Money
                laundering occurs in connection with a wide variety of crimes, including
                illegal arms sales, drug trafficking, robbery, fraud, racketeering,
                and
                terrorism.

            	 	
              The
                use of the U.S. financial system by criminals to facilitate terrorism
                or
                other crimes could taint our financial markets. According to the
                U.S.
                State Department, one recent estimate puts the amount of worldwide
                money
                laundering activity at $1 trillion a
                year.

            

    

    

    

    
      	
              What
                are we required to do to eliminate money
                laundering?

            
	
              Under
                new rules required by the USA PATRIOT Act, our anti-money laundering
                program must designate a special compliance officer, set up employee
                training, conduct independent audits, and establish policies and
                procedures to detect and report suspicious transactions and ensure
                compliance with the new laws.

            	 	
              As
                part of our required program, we may ask you to provide various
                identification documents or other information. Until you provide
                the
                information or documents we need, we may not be able to effect any
                transactions for you.

            

    

    

    

    

    PATRIOT
      ACT REQUIREMENTS

    

    The
      Patriot Act requires us to obtain the following information from you to detect
      and prevent the misuse of the world financial system.

    

    1. In
      the
      space provided below, please provide details of where
      monies were transferred from
      to the
      Company in relation to your subscription for Securities.

    

    
      	
              COUNTRY

            	
              NAME
                OF BANK/FINANCIAL INSTITUTION

            	
              CONTACT
                NAME/PHONE NUMBER AT BANK/FINANCIAL INSTITUTION

            	
              NAME
                OF ACCOUNTHOLDER

            	
              ACCOUNT
                NUMBER

            
	 	 	 	 	 
	 	 	 	 	 

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    If
      the
      country from which the monies were transferred appears in the Approved Country
      List below, please go to number 3. If the country does not appear, please go
      to
      number 2.

    

    Approved
      Country List:

    

    
      	
              Argentina

              Australia

              Bermuda

              Belgium

              Brazil

              British
                Virgin Islands

              Canada

              Denmark

              Finland

              France

            	
              Germany

              Gibraltar

              Guernsey

              Hong
                Kong

              Iceland

              Ireland

              Isle
                of Man

              Italy

              Japan

              Jersey

            	
              Liechtenstein

              Luxembourg

              Mexico

              Netherlands

              New
                Zealand

              Norway

              Panama

              Portugal

              Singapore

            	
              Spain

              Switzerland

              Turkey

              United
                Kingdom

              United
                States

            

    

    

    2. If
      subscription monies were transferred to the Company from any country other
      than
      on the Approved Country List (see above), please provide the following
      documentation to the Company (all copies should be in English and certified
      as
      being “true and correct copies of the original” by a notary public of the
      jurisdiction of which you are resident).

    

    (a) For
      Individuals:

    

    
      	
            	(i)	
              evidence
                of name, signature, date of birth and photographic
                identification,

            

    

    

    
      	
            	(ii)	
              evidence
                of permanent address, and

            

    

    
      	 	
              (iii)

            	
              where
                possible, a reference from a bank with whom the individual maintains
                a
                current relationship and has maintained such relationship for at
                least two
                years

            

    

    

    (b) For
      Companies:

    

    
      	
            	(i)	
              a
                copy of its certificate of incorporation and any change of name
                certificate,

            

    

    

    
      	
            	(ii)	
              a
                certificate of good standing,

            

    

    

    
      	
            	(iii)	
              a
                register or other acceptable list of directors and
                officers,

            

    

    

    
      	 	
              (iv)

            	
              a
                properly authorized mandate of the company to subscribe in the form,
                for
                example, of a certified resolution which includes naming authorized
                signatories,

            

    

    

    
      	 	
              (v)

            	
              a
                description of the nature of the business of the
                company,

            

    

    

    
      	 	
              (vi)

            	
              identification,
                as described above for individuals, for at least two directors and
                authorized signatories,

            

    

    

    
      	 	
              (vii)

            	
              a
                register of members or list of shareholders holding a controlling
                interest, and

            

    

    

    
      	 	
              (viii)

            	
              identification,
                as described above, for individuals who are beneficial owners of
                corporate
                shareholders which hold 10% or more of the capital share of the
                company.

            

    

    

    (c) For
      Partnerships and Unincorporated Businesses:

    

    
      	 	
              (i)

            	
              a
                copy of any certificate of registration and a certificate of good
                standing, if registered,

            

    

    

    
      	 	
              (ii)

            	
              identification,
                as described above, for individuals and, where relevant, companies
                constituting a majority of the partners, owners or managers and authorized
                signatories,

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    
      	 	
              (iii)

            	
              a
                copy of the mandate from the partnership or business authorizing
                the
                subscription in the form, for example, of a certified resolution
                which
                includes naming authorized signatories,
                and

            

    

    

    
      	 	
              (iv)

            	
              a
                copy of constitutional documents (formation and partnership
                agreements).

            

    

    

    (d) For
      Trustees:

    

    
      	 	
              (i)

            	
              identification,
                as described above, for individuals or companies (as the case may
                be) in
                respect of the trustees,

            

    

    

    
      	 	
              (ii)

            	
              identification,
                as described above for individuals, of beneficiaries, any person
                on whose
                instructions or in accordance with whose wishes the trustee/nominee
                is
                prepared or accustomed to act and the settlor of the trust,
                and

            

    

    

    
      	 	
              (iii)

            	
              evidence
                of that nature of the duties or capacity of the
                trustee.

            

    

    

    3. The
      Company is also required to verify the source of funds. To this end, summarize
      the underlying source of the funds remitted to us (for example, where
      subscription monies were the profits of business (and if so please specify
      type
      of business), investment income, savings, etc.).

    

    
      	
              Source
                of Funds

            
	 
	 
	 
	 
	 

    

    

    ANTI-MONEY
      LAUNDERING ACT

    

    WIRING
      FUNDS: Due
      to
      the Anti-Money Laundering Act, Brookstreet Compliance must grant
      approval prior to funds being wired from any account other than National
      Financial Services (NFS) or an IRA Custodial Account.
      Thus,
      please adhere to the following procedure:

    

    
      	 	
              A.

            	
              Complete
                Sections 1 through 3 in the Patriot Act Requirements section above,
                as
                applicable, utilizing the information for the bank from which the
                wire
                will originate.

            

    

    

    
      	 	
              B.

            	
              Attach
                a copy of your “Letter of Instruction” or other wire instructions showing
                your name, financial institution name (where wire will originate),
                account
                number, wire amount, and wire instructions (escrow agent information
                such
                as ABA routing number, escrow account number etc) - this must be
                signed
                and dated.

            

    

    

    
      	 	
              C.

            	
              If
                monies will be wired from an account not matching the name on this
                Subscription Agreement, additional documentation is necessary (please
                contact Brookstreet Compliance @ (800) 297-2578 extension 141 for
                assistance).

            

    

    

    
      	 	
              D.

            	
              Submit
                Subscription Agreement to Compliance for processing and compliance
                approval.

            

    

    

    
      	 	
              E.

            	
              Upon
                notification of approval from Compliance, wire
                funds.

            

    

    

    
      	 	
              F.

            	
              Compliance
                will obtain wire confirmation from escrow agent. If wire confirmation
                does
                NOT show account number of wire origination, additional documentation
                will
                be required.

            

    

    

    

    WIRING
      FUNDS IN ADVANCE OF COMPLIANCE APPROVAL IS PROHIBITED

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    

     

    PRIVACY
      POLICY

     

    It
      is the
      policy of Brookstreet Securities Corporation (Brookstreet) to respect the
      privacy of customers who subscribe to transactions placed by
      Brookstreet.

     

    Whether
      its own brokers introduce Customers to Brookstreet or the introduction was
      made
      through selected dealers, (hereinafter referred to as “Subscribers”) non-public
      personal information is protected by Brookstreet. 

     

    Brookstreet
      does not disclose any non-public personal information about Subscribers to
      anyone, except as required or permitted by law and to effect, administer or
      enforce transactions requested by Subscribers in the ordinary processing,
      servicing or maintaining their accounts. Furthermore, Brookstreet does not
      reserve the right to disclose Subscriber’s non-public personal information in
      the future without first notifying the Subscriber of a change in privacy policy
      and providing a convenient opportunity for Subscriber to opt out of information
      sharing with non-affiliated third parties.

     

    Under
      the
      USA PATRIOT Act of 2001 (Public Law 107-56)(together with all rules and
      regulations promulgated hereunder, the “Patriot Act”), Brookstreet and/or your
      broker may be required or requested to disclose to one or more regulatory and/or
      law enforcement bodies certain information regarding transactions relating
      to
      your account involving transactions with foreign entitles and individuals,
      other
      transactions in your account as required in the Patriot Act and other activities
      described in the Patriot Act as “suspicious activities.” Neither Brookstreet nor
      your broker shall have any obligation to advise you of any such disclosures
      or
      reports made in compliance with the Patriot Act.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    ALL
      SUBSCRIBERS MUST COMPLETE THIS PAGE

     

    IN
      WITNESS WHEREOF, the undersigned has executed this Agreement on the ____ day
      of
      ____________ 2006.

     

    
      	
              ________________________

            	
              x
                $2.25 for each Share

            	
              =
                $_____________________.

            
	
              Shares
                subscribed for

            	 	
              Aggregate
                Purchase Price

            
	 	 	 
	
              (Checks
                should be made payable to:

            	 	
              o Initial
                Investment

            
	
              “First
                Republic Trust Co., Escrow Agent for Foldera,
                Inc.”)

            	 	
              o Additional
                Investment

            

    

    

    Manner
      in
      which Title is to be held (Please Check One):

     

    
      	
              1.

            	
              o

            	
              Individual

            	
              7.

            	
              o

            	
              Trust/Estate/Pension
                or Profit sharing Plan

              Date
                Opened:______________

            
	
              2.

            	
              o

            	
              Joint
                Tenants with Right of Survivorship

            	
              8.

            	
              o

            	
              As
                a Custodian for

              ________________________________

              Under
                the Uniform Gift to Minors Act of the State of

              ________________________________

            
	
              3.

            	
              o

            	
              Community
                Property

            	
              9.

            	
              o

            	
              Married
                with Separate Property

            
	
              4.

            	
              o

            	
              Tenants
                in Common

            	
              10.

            	
              o

            	
              Keogh

            
	
              5.

            	
              o

            	
              Corporation/Partnership/
                Limited Liability Company

            	
              11.

            	
              o

            	
              Tenants
                by the Entirety

            
	
              6.

            	
              o

            	
              IRA

            	 	 	 

    

    

    ALTERNATIVE
      DISTRIBUTION INFORMATION

     

    To
      direct
      distribution to a party other than the registered owner, complete the
      information below. YOU MUST COMPLETE THIS SECTION IF THIS IS AN IRA
      INVESTMENT.

     

    

      
        	
                Name
                  of Firm (Bank, Brokerage, Custodian): 

              	 
	 	 
	
                Account
                  Name: 

              	 
	 	 
	
                Account
                  Number: 

              	 
	 	 
	
                Representative
                  Name: 

              	 
	 	 
	
                Representative
                  Phone Number: 

              	 
	 	 
	
                Address:
                  

              	 
	 	 
	
                City,
                  State, Zip: 

              	 

      

     

    IF
      MORE
      THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.

    INDIVIDUAL
      SUBSCRIBERS MUST COMPLETE PAGE 14.

    SUBSCRIBERS
      WHICH ARE ENTITIES MUST COMPLETE PAGE 15.

     

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    EXECUTION
      BY NATURAL PERSONS

     

    
      	
              _____________________________________________________________________________

              Exact
                Name in Which Title is to be Held

            
	
              _________________________________

               Name
                (Please Print)

            	 	
              _________________________________

               Name
                of Additional Purchaser

            
	
              _________________________________

               Residence:
                Number and Street

            	 	
              _________________________________

               Address
                of Additional Purchaser

            
	
              _________________________________

               City,
                State and Zip Code

            	 	
              _________________________________

               City,
                State and Zip Code

            
	
              _________________________________

               Social
                Security Number

            	 	
              _________________________________

               
                Social Security Number

            
	
              _________________________________
                

              Telephone
                Number 

            	 	
              _________________________________

              Telephone
                Number

            
	
              _________________________________
                

              Fax
                Number (if available)

            	 	
              ________________________________

              Fax
                Number (if available)

            
	
              _________________________________
                

              E-Mail
                (if available) 

            	 	
              ________________________________
                

              E-Mail
                (if available)

            
	
              __________________________________

               (Signature)

            	 	
              ________________________________

               (Signature
                of Additional Purchaser)

            
	
               

              ACCEPTED
                this ___ day of _________ 2006, on behalf of the
                Company.

            
	 	
               

               

              By: _________________________________

                Name:

              Title:

            
	 	 

    

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    EXECUTION
      BY SUBSCRIBER WHICH IS AN ENTITY

    (Corporation,
      Partnership, LLC, Trust, Etc.)

     

    

    
      	
              _____________________________________________________________________________

              Name
                of Entity (Please Print)

            
	
              Date
                of Incorporation or Organization: 

            
	
              State
                of Principal Office: 

            
	
              Federal
                Taxpayer Identification Number: 

              ____________________________________________

              Office
                Address

              ____________________________________________

              City,
                State and Zip Code

              ____________________________________________

              Telephone
                Number

              ____________________________________________

              Fax
                Number (if available)

              ____________________________________________

              E-Mail
                (if available)

            
	 	
              By:
                _________________________________

              Name:

              Title:

            
	 	
               

               

              By:
                _________________________________

              Name:

              Title:

            
	
              [seal]

              Attest:
                _________________________________

                               
                (If Entity is a Corporation)

            	
               

              _________________________________

               

               

              _________________________________

              Address

            
	 	 
	
              ACCEPTED
                this ____ day of __________ 2006, on behalf of the
                Company.

            
	 	
               

               

               

              By:
                _________________________________

              Name:

              Title:

            

    

    

     

    

    
      
         

      

      
        15EXHIBIT
      10.1

    
 

    STOCK
      PURCHASE AGREEMENT

     

    STOCK
      PURCHASE AGREEMENT, dated as of August 18, 2006 (this “Agreement”),
      by
      and among Applied Medical Devices, Inc., a Colorado Corporation (the
“Company”),
      the
      persons listed on Schedule
      A
      to this
      Agreement (each a “Seller”
and
      collectively, the “Sellers”)
      and
      the persons listed on Schedule
      B
      to this
      Agreement (each a “Purchaser”
and
      collectively, the “Purchasers”).
      The
      Company, each Seller and each Purchaser are referred to herein as a
“Party”
and
      collectively, as the “Parties”.

     

    BACKGROUND

    

    The
      Sellers are the owners of 205,698,790
      shares of common stock of
      the
      Company and collectively desire to sell the number of shares of said stock
      set
      forth opposite their names on Schedule
      A
      (the
“Seller
      Shares”).
      The
      Seller Shares represent approximately 55% of the issued and outstanding capital
      stock of the Company as of the date hereof calculated on a fully-diluted basis.
      The Purchasers desire to purchase all of the Seller Shares by purchasing the
      number of Seller Shares set forth opposite his name on Schedule
      B.

     

    NOW,
      THEREFORE, in consideration of the foregoing and the mutual promises and
      covenants herein contained, the Company, the Sellers and the Purchasers hereby
      agree as follows: 

     

    1.     Purchase
      and Sale. 

     

    Each
      Seller shall sell, transfer, convey and deliver unto the Purchasers the number
      of Seller Shares set forth opposite each such Seller’s name on Schedule
      A
      to this
      Agreement, and each Purchaser shall acquire and purchase from the Sellers the
      Seller Shares set forth opposite each such Purchaser’s name on Schedule
      B
      to this
      Agreement.

     

    2.     Purchase
      Price. 

     

    (a) General.
      The
      purchase price (the “Purchase
      Price”)
      for
      the Seller Shares, in the aggregate, is Seven Hundred Thousand Dollars
      ($700,000) payable as specified in this Section
      2
      subject
      to the other terms and conditions of this Agreement.

     

    (b) Cash
      Deposit.
      Pursuant
      to a Letter of Intent entered into among the Parties, dated July 27, 2006 (the
      “Letter
      of Intent”),
      the
      Purchasers made a cash deposit into escrow in the amount of One Hundred Thousand
      Dollars ($100,000) (the “Cash
      Deposit”).
      This
      Cash Deposit shall be fully credited against the Purchase Price at the
      Closing.

     

    (c) Payment
      at Closing.
      At the
      Closing, the Purchasers shall pay to the Sellers Six Hundred Thousand Dollars
      ($600,000), which together with the Cash Deposit, shall be payable in the
      amounts set forth in Schedule
      A
      and
Schedule
      B
      and
      allocated as set forth therein.

     

    (d) Company
      Assets and Liabilities at the Closing..
      The
      Purchase Price is based upon the assumption that there will be exactly $170,000
      cash in the Company’s account at the Closing free and clear of any liabilities
      or claims of any description. The Purchase price shall be increased by the
      amount
      of
      any cash or cash equivalents on the Company’s balance sheet as of the Closing
      Date in excess of $170,000 and reduced by the amount of any outstanding
      liabilities (direct or contingent) on the Company’s balance sheet as of the
      Closing Date. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    3.     The
      Closing.

     

    (a) General.
      The
      closing of the transactions contemplated by this Agreement (the “Closing”)
      shall
      take place by exchange of documents among the Parties by fax or courier, as
      appropriate, following the satisfaction or waiver of all conditions to the
      obligations of the Parties to consummate the transactions contemplated hereby
      (other than conditions with respect to actions the respective Parties will
      take
      at the Closing itself) not later than August 15, 2006 or such other date as
      the
      Purchasers and the Sellers may mutually determine (the “Closing
      Date”),
      which
      date shall be not later than five days following Purchaser’s satisfactory
      completion of due diligence pursuant to Section
      8,
      below.

     

    (b) Delivery
      of Certificates in Escrow.
      Concurrent with the execution of the LOI, each Seller delivered certificates
      (the “Certificates”)
      evidencing all of the Seller Shares held by such Seller to Thelen Reid &
Priest LLP (“Law
      Firm”).
      The
      Law Firm shall hold such Certificates in escrow pursuant to the Escrow Agreement
      (the “Escrow
      Agreement”),
      which
      is attached as Exhibit
      A
      that was
      entered into on August __, 2006 by the Law Firm, the Seller Representative
      (as
      defined below) and the Purchaser Representative. Pursuant to the Escrow
      Agreement, the Certificates will be held in escrow until the Closing at which
      time the Law Firm shall deliver the Certificates to the Purchasers against
      delivery to the Sellers of the Purchase Price.

     

    (c) Deliveries
      at the Closing.
      At the
      Closing: (i) the Sellers shall deliver to the Purchasers the various
      certificates, instruments, and documents referred to in Section
      12(a)
      below,
      (ii) the Purchasers shall deliver to the Sellers the various certificates,
      instruments, and documents referred to in Section
      12(b)
      below,
      (iii) the Sellers shall deliver to the Purchasers the Certificates, endorsed
      in
      blank or accompanied by duly executed assignment documents and including a
      Medallion Guarantee, including delivery by releasing the Certificates from
      escrow and (iv) the Purchasers shall deliver to the Sellers the Purchase Price.
      

     

    4.     Appointment
      of Seller and Purchaser Representatives.

     

    (a) Appointment
      of Seller Representatives.
      The
      Sellers hereby irrevocably constitute and appoint, effective as of the date
      hereof, Gregory Pusey and Jeffrey McGonegal, each with the authority to act
      alone without the other (together
      with their permitted successors, the “Seller
      Representative”),
      as
      their true and lawful agent and attorney-in-fact to enter into any agreement
      in
      connection with the transactions contemplated by this Agreement and any
      transactions contemplated by the Escrow Agreement, to perform on behalf of
      the
      Sellers any obligations or undertakings thereunder, to exercise all or any
      of
      the powers, authority and discretion conferred on the Seller Representative
      under any such agreement, to waive any terms and conditions of any such
      agreement, to give and receive notices on the Sellers’ behalf and to be the
      Sellers’ exclusive representative with respect to any matter, suit, claim,
      action or proceeding arising with respect to any transaction contemplated by
      any
      such agreement and the Seller Representative agrees to act as, and to undertake
      the duties and responsibilities of, such agent and attorney-in-fact. This power
      of attorney is coupled with an interest and irrevocable. The Seller
      Representative shall not be liable for any action taken or not taken by the
      Seller Representative in connection with the Seller Representative’s obligations
      under this Agreement as long as such actions are taken or omitted in good faith
      and in the absence of willful misconduct or gross negligence. If the Seller
      Representative shall be unable or unwilling to serve in such capacity, the
      Seller Representative successor shall be named by those persons holding more
      than fifty percent (50%) in interest of the Seller Shares.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (b) Appointment
      of the Purchaser Representative.
      The
      Purchasers hereby irrevocably constitute and appoint, effective as of the date
      hereof, Fountainhead Capital Partners Limited (together
      with its permitted successors, the “Purchaser
      Representative”),
      as
      their true and lawful agent and attorney-in-fact to enter into any agreement
      in
      connection with the transactions contemplated by this Agreement and any
      transactions contemplated by the Escrow Agreement, to perform on behalf of
      the
      Purchasers any obligations or undertakings thereunder, to exercise all or any
      of
      the powers, authority and discretion conferred on it under any such agreement,
      to waive any terms and conditions of any such agreement (other than the amount
      of the Purchase Price), to give and receive notices on their behalf and to
      be
      their exclusive representative with respect to any matter, suit, claim, action
      or proceeding arising with respect to any transaction contemplated by any such
      agreement and the Purchaser Representative agrees to act as, and to undertake
      the duties and responsibilities of, such agent and attorney-in-fact. This power
      of attorney is coupled with an interest and irrevocable. The Purchaser
      Representative shall not be liable for any action taken or not taken by it
      in
      connection with its obligations under this Agreement as long as such actions
      are
      taken or omitted in good faith and in the absence of willful misconduct or
      gross
      negligence. If the Purchaser Representative shall be unable or unwilling to
      serve in such capacity, its successor shall be named by those persons agreeing
      to acquire more than fifty percent (50%) in interest of the Seller Shares
      pursuant to this Agreement. 

     

    5.     Representations
      and Warranties of the Sellers. 

     

    Each
      Seller jointly and severally represents and warrants to the Purchasers that
      the
      statements contained in this Section
      5
      are
      correct and complete as of the date of this Agreement and will be correct and
      complete as of the Closing Date (as though made then and as though the Closing
      Date were substituted for the date of this Agreement throughout this
Section
      5).

     

    (a) Each
      Seller has the power and authority to execute, deliver and perform such Seller’s
      obligations under this Agreement and to sell, assign, transfer and deliver
      to
      the Purchasers the Seller Shares as contemplated hereby. No permit, consent,
      approval or authorization of, or declaration, filing or registration with any
      governmental or regulatory authority or consent of any third party is required
      in connection with the execution and delivery any Seller of this Agreement
      and
      the consummation of the transactions contemplated hereby.

     

    (b) Neither
      the execution and delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby or compliance with the terms and conditions
      hereof by the Sellers will violate or result in a breach of any term or
      provision of any agreement to which any Seller is bound or is a party, or be
      in
      conflict with or constitute a default under, or cause the acceleration of the
      maturity of any obligation of any Seller under any existing agreement or violate
      any order, writ, injunction, decree, statute, rule or regulation applicable
      to
      any Seller or any properties or assets of any Seller. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (c) This
      Agreement has been duly and validly executed by each Seller, and constitutes
      the
      valid and binding obligation of each Seller and the Company, enforceable against
      each Seller and the Company in accordance with its terms, except as
      enforceability may be limited by bankruptcy, insolvency or other laws affecting
      creditors' rights generally or by limitations, on the availability of equitable
      remedies. The Seller Representative has been duly appointed herein by the
      Sellers and has complete authority to act on behalf of the Sellers in matters
      relating to this Agreement and the transactions contemplated hereby

     

    (d) The
      Seller Shares are owned beneficially and of record by each Seller in the amounts
      specified on Schedule
      A
      and are
      validly issued and outstanding, fully paid for and non-assessable with no
      personal liability attaching to the ownership thereof. Each Seller owns the
      number of Seller Shares set forth opposite such Seller’s name on Schedule
      A
      free and
      clear of all liens, charges, security interests, encumbrances, claims of
      others,
      options,
      warrants, purchase rights, contracts, commitments, equities or other claims
      or
      demands of any kind
      (collectively, “Liens”),
      and
      upon delivery of the Seller Shares to the Purchasers, the Purchasers will
      acquire good, valid and marketable title thereto free and clear of all Liens.
      No
Seller
      is
      a party to any option, warrant, purchase right, or other contract or commitment
      that could require the Seller to sell, transfer, or otherwise dispose of any
      capital stock of the Company (other than pursuant to this Agreement). No Seller
      is a party to any voting trust, proxy, or other agreement or understanding
      with
      respect to the voting of any capital stock of the Company. 

     

    (e) The
      dates
      of acquisition of the Seller Shares as specified on Schedule
      A
      is true
      and correct. 

     

    6.     Representations
      and Warranties of the Company. 

     

    (a) The
      Company is a corporation in good standing duly incorporated in the State of
      Colorado. The
      Company is duly authorized to conduct business and is in good standing under
      the
      laws of each jurisdiction where such qualification is required. The Company
      has
      full corporate power and authority and all licenses, permits, and authorizations
      necessary to carry on its business. The Company has no subsidiaries and does
      not
      control any other subsidiaries, directly or indirectly, or have any direct
      or
      indirect equity participation in any other entity.

     

    (b) Neither
      the execution and delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby or compliance with the terms and conditions
      hereof by the Company will violate or result in a breach of any term or
      provision of any agreement to which the Company is bound or is a party, or
      the
      Company’s Certificate of Incorporation or By-Laws, or be in conflict with or
      constitute a default under, or cause the acceleration of the maturity of any
      obligation of the Company under any existing agreement or violate any order,
      writ, injunction, decree, statute, rule or regulation applicable to the Company
      or any of its properties or assets. 

     

    (c) This
      Agreement has been duly and validly executed by the Company and constitutes
      the
      valid and binding obligation of the Company, enforceable against it in
      accordance with its terms, except as enforceability may be limited by
      bankruptcy, insolvency or other laws affecting creditors' rights generally
      or by
      limitations, on the availability of equitable remedies. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (d) The
      Company’s authorized capital stock, as of the date of this Agreement and as of
      the Closing, consists of 750,000,000 shares of Common Stock, no par value per
      share, of which 340,977,800
      shares are issued and outstanding. The Company has issued options to purchase
      33,000,000 shares of the Company’s common stock to certain option holders. All
      of said options shall be fully exercised prior to the Closing. Other than the
      foregoing, the Company has not reserved any shares of its Common Stock for
      issuance upon the exercise of options, warrants or any other securities that
      are
      exercisable or exchangeable for, or convertible into, Common Stock. All of
      the
      issued and outstanding shares of Common Stock are validly issued, fully paid
      and
      non-assessable and have been issued in compliance with applicable laws,
      including, without limitation, applicable federal and state securities laws.
      There are no outstanding options, warrants or other rights of any kind to
      acquire any additional shares of capital stock of the Company or securities
      exercisable or exchangeable for, or convertible into, capital stock of the
      Company, nor is the Company committed to issue any such option, warrant, right
      or security. There are no agreements relating to the voting, purchase or sale
      of
      capital stock (i) between or among the Company and any of its stockholders,
      (ii)
      between or among any Seller and any third party, or (iii) to the best knowledge
      of the Sellers between or among any of the Company’s stockholders. The Company
      is not a party to any agreement granting any stockholder of the Company the
      right to cause the Company to register shares of the capital stock of the
      Company held by such stockholder under the Securities Act. The stockholder
      list
      provided to the Purchasers is a current shareholder list generated by its
      transfer agent, and such list accurately reflects all of the issued and
      outstanding shares of the Company’s Common Stock.

     

    (e) The
      Company does not have any restrictions in place relative to its ability to
      implement any reverse split of its common stock 

     

    (f) As
      of the
      date hereof the Company has total Liabilities of no more than $1,000.00, which
      Liabilities will be paid off at or prior to the Closing and shall in no event
      become the Liability of the Purchasers or remain the Liabilities of the Company
      following the Closing.

     

    (g) There
      is
      no legal, administrative, investigatory, regulatory or similar action, suit,
      claim or proceeding which is pending or, to any Seller’s knowledge, threatened
      against the Company.

     

    (h) The
      Company has 11 market makers for its common shares and such market makers have
      obtained all permits and made all filings necessary in order for such market
      makers to continue as market makers of the Company.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    (i) During
      the period from April 30, 2003 through July 31, 2006, the Company has filed
      or
      furnished (i) all reports, schedules, forms, statements, prospectuses and
      other documents required to be filed with, or furnished to, the Securities
      and
      Exchange Commission (the “SEC”)
      by the
      Company (all such documents, as amended or supplemented, are referred to
      collectively as, the “Company
      SEC Documents”)
      and
      (ii) all certifications and statements required by (x) Rule 13a-14 or
      15d-14 under the Exchange Act, or (y) 18 U.S.C. §1350 (Section 906 of the
      Sarbanes-Oxley act of 2002) with respect to any applicable Company SEC Document
      (collectively, the “SOX
      Certifications”).
      The
      Company has made available to the Purchasers all SOX Certifications and comment
      letters received by the Company from the staff of the SEC and all responses
      to
      such comment letters by or on behalf of the Company. Through September 30,
      2003,
      the Company complied in all respects with its SEC filing obligations under
      the
      Exchange Act and the Securities Act.  Each of the audited financial
      statements and related schedules and notes thereto and unaudited interim
      financial statements of the Company (collectively, the “Company
      Financial Statements”)
      contained in the Company SEC Documents (or incorporated therein by reference)
      were prepared in accordance with United States generally accepted accounting
      principles applied on a consistent basis (“GAAP”)
      (except in the case of interim unaudited financial statements) except as noted
      therein, and fairly present in all respects the consolidated financial position
      of the Company and its consolidated subsidiaries as of the dates thereof and
      the
      consolidated results of their operations, cash flows and changes in
      stockholders’ equity for the periods then ended, subject (in the case of interim
      unaudited financial statements) to normal year-end audit adjustments (the effect
      of which will not, individually or in the aggregate, be adverse) and, such
      financial statements complied as to form as of their respective dates in all
      respects with applicable rules and regulations of the SEC. The financial
      statements referred to herein reflect the consistent application of such
      accounting principles throughout the periods involved, except as disclosed
      in
      the notes to such financial statements. No financial statements of any Person
      not already included in such financial statements are required by GAAP to be
      included in the consolidated financial statements of the Company.  As of
      their respective dates, each the Company SEC Document was prepared in accordance
      with and complied with the requirements of the Securities Act or the Exchange
      Act, as applicable, and the rules and regulations thereunder, and the Company
      SEC Documents (including all financial statements included therein and all
      exhibits and schedules thereto and all documents incorporated by reference
      therein) did not, as of the date of effectiveness in the case of a registration
      statement, the date of mailing in the case of a proxy or information statement
      and the date of filing in the case of other the Company SEC Documents, contain
      any untrue statement of a fact or omit to state a fact required to be stated
      therein or necessary to make the statements therein, in the light of the
      circumstances under which they were made, not misleading. Neither the Company
      nor, to the Company’s knowledge, any of its officers has received notice from
      the SEC or any other governmental authority questioning or challenging the
      accuracy, completeness, content, form or manner of filing or furnishing of
      the
      SOX Certifications.

     

    (j) Except
      for tax returns relating to the fiscal year ended April 30, 2006, which tax
      returns are currently on extension, the Company has properly and timely filed
      all federal, state and local tax returns and has paid all taxes, assessments
      and
      penalties due and payable. All such tax returns were complete and correct in
      all
      respects as filed, and no claims have been assessed with respect to such
      returns. There are no present, pending, or threatened audit, investigations,
      assessments or disputes as to taxes of any nature payable by the Company or
      any
      of its subsidiaries, nor any tax liens whether existing or inchoate on any
      of
      the assets of the Company or any of its subsidiaries, except for current year
      taxes not presently due and payable. No IRS or foreign, state, county or local
      tax audit is currently in progress. Neither the Company nor any of its
      subsidiaries has waived the expiration of the statute of limitations with
      respect to any taxes. There are no outstanding requests by the Company or any
      of
      its Subsidiaries for any extension of time within which to file any tax return
      or to pay taxes shown to be due on any tax return.

     

    (k) Except
      for the 2005 Stock Option Plan, the Company does not have any ongoing operations
      and does not employ any employees and does not maintain any other employee
      benefit or stock option plans.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (l) Except
      as
      set forth in Schedule
      6(l),
      since
      April 30, 2006, there has not been any event or condition of any character
      which
      has adversely affected, or may be expected to adversely affect, the Company’s
      business or prospects, including, but not limited to any adverse change in
      the
      condition, assets, liabilities (existing or contingent) or business of the
      Company from that shown in the financial statements of the Company included
      in
      its annual report on Form 10-KSB filed for the fiscal year ended April 30,
      2006.

     

    (m) The
      Company has complied in all material respects with all applicable laws
      (including rules, regulations, codes, plans, injunctions, judgments, orders,
      decrees, rulings, and charges thereunder) of all governmental authorities,
      and
      no action, suit, proceeding, hearing, investigation, charge, complaint, claim,
      demand, or notice has been filed or commenced against the Company alleging
      any
      failure so to comply. To the knowledge of any Seller, neither the Company,
      nor
      any officer, director, employee, consultant or agent of the Company has made,
      directly or indirectly, any payment or promise to pay, or gift or promise to
      give or authorized such a promise or gift, of any money or anything of value,
      directly or indirectly, to any governmental official, customer or supplier
      for
      the purpose of influencing any official act or decision of such official,
      customer or supplier or inducing him, her or it to use his, her or its influence
      to affect any act or decision of a governmental authority or customer, under
      circumstances which could subject the Company or any officers, directors,
      employees or consultants of the Company to administrative or criminal penalties
      or sanctions.

     

    (n) No
      representation or warranty by the Company in this Agreement, nor in any
      certificate, schedule or exhibit delivered or to be delivered pursuant to this
      Agreement contains or will contain any untrue statement of material fact, or
      omits or will omit to state a material fact necessary to make the statements
      herein or therein, in light of the circumstances under which they were made,
      not
      misleading. 

     

    7.     Representations
      and Warranties of the Purchasers. 

     

    Each
      Purchaser represents and warrants to the Sellers as follows:

     

    (a) Each
      Purchaser has full power and authority to enter into this Agreement and to
      carry
      out the transactions contemplated hereby. This Agreement constitutes a valid
      and
      binding obligation of each Purchaser enforceable in accordance with its terms,
      except as (i) the enforceability hereof may be limited by bankruptcy, insolvency
      or similar laws affecting the enforceability of creditor's rights generally
      and
      (ii) the availability of equitable remedies may be limited by equitable
      principles of general applicability. 

     

    (b) Neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby, nor compliance by any Purchaser with any
      of
      the provisions hereof will: violate, or conflict with, or result in a breach
      of
      any provision of, or constitute a default (or an event which, with notice or
      lapse of time or both, would constitute a default) under, or result in the
      termination of, or accelerate the performance required by, or result in the
      creation of any Lien upon any of the properties or assets of Purchaser under
      any
      of the terms, conditions or provisions of any material note, bond, indenture,
      mortgage, deed or trust, license, lease, agreement or other instrument or
      obligation to which he is a party or by which he or any of his properties or
      assets may be bound or affected, except for such violations, conflicts, breaches
      or defaults as do not have, in the aggregate, any material adverse effect;
      or
      violate any material order, writ, injunction, decree, statute, rule or
      regulation applicable to Purchaser or any of its properties or assets, except
      for such violations which do not have, in the aggregate, any material adverse
      effect. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    (c) Each
      Purchaser is acquiring the Seller Shares for its own account for investment
      and
      not for the account of any other person and not with a view to or for
      distribution, assignment or resale in connection with any distribution within
      the meaning of the Securities Act. Each Purchaser agrees not to sell or
      otherwise transfer the Seller Shares unless they are registered under the
      Securities Act and any applicable state securities laws, or an exemption or
      exemptions from such registration are available. Each Purchaser has knowledge
      and experience in financial and business matters such that it is capable of
      evaluating the merits and risks of acquiring the Seller Shares. 

     

    (d) No
      permit, consent, approval or authorization of, or declaration, filing or
      registration with any governmental or regulatory authority or the consent of
      any
      third party is required in connection with the execution and delivery by
      Purchaser of this Agreement and the consummation of the transactions
      contemplated hereby. 

     

    8.     Due
      Diligence.

     

    Prior
      to
      the Closing, the Purchasers will conduct a due diligence investigation relative
      to the Company and the representations, warranties and covenants of the Sellers
      and the Company. Sellers and the Company agree to provide the Purchasers and
      its
      agents and representatives with any and all due diligence documents reasonably
      requested, including but not limited to financial statements and evidence of
      the
      Company’s good standing in all jurisdictions where it is authorized to do
      business. Purchaser shall have the right, in its sole discretion, to terminate
      this Agreement at any time prior to the Closing, without any liability therefor,
      should it determine that any representation, warranty or covenant of any Seller
      or the Company is untrue, misleading or cannot be verified through the due
      diligence process or if the Purchasers determine, in their sole discretion
      that
      the Company is unsuitable for use as a vehicle for a reverse acquisition
      transaction.

     

    9.     Payments
      at Closing; Brokers; Finders.

     

    At
      the
      Closing, in addition to the payment of the Purchase Price, the Purchasers shall
      make the following cash payments:

     

    a) Applebaum
      & Zouvas--$45,000.00

     

    b) Growth
      Direct, LLC--$35,000.00

     

    Other
      than the foregoing, there are no other finders and no parties shall be
      responsible for the payment of any finders’ fees other than as specifically set
      forth herein. Other than the foregoing, neither
      any Seller nor the Company, nor any of their respective directors, officers
      or
      agents on their behalf, have incurred any obligation or liability, contingent
      or
      otherwise, for brokerage or finders’ fees or agents’ commissions or financial
      advisory services or other similar payment in connection with this
      Agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    10.     Pre-Closing
      Covenants.

     

    The
      Parties agree as follows with respect to the period between the execution of
      this Agreement and the Closing.

     

    (a) General.
      Each of
      the Parties will use his or its best efforts to take all action and to do all
      things necessary, proper, or advisable in order to consummate and make effective
      the transactions contemplated by this Agreement (including satisfaction, but
      not
      waiver, of the closing conditions set forth in Section
      12
      below).

     

    (b) Form
      8-K Filing; Notices and Consents.
      Concurrent with the Closing of this Agreement, the Company shall cause a Form
      8-K to be filed with the U.S. Securities and Exchange Commission with respect
      to
      its having entered into a material definitive agreement. The Seller
      Representative will cause the Company to give any notices to third parties,
      and
      will cause the Company to use its best efforts to obtain any third party
      consents, that the Purchaser Representative may reasonably request. Each of
      the
      Parties will (and the Sellers will cause the Company to) give any notices to,
      make any filings with, and use its best efforts to obtain any authorizations,
      consents, and approvals of governmental authorities necessary in order to
      consummate the transactions contemplated hereby. The parties acknowledge that
      SEC Rule 14f-1 under the Securities Exchange Act requires that an information
      statement containing certain specified disclosures be filed with the Securities
      and Exchange Commission and mailed to the Company’s shareholders at least 10
      days before any person designated by the Purchasers can become a director of
      the
      Company. The Purchasers and the Sellers agree to cooperate fully with the
      Company in the preparation and filing of such information statement and to
      provide all information therefor respectively needed from them in a timely
      manner, so as not to cause undue delay in the filing of the information
      statement or any amendment thereto. Otherwise, neither the Company nor any
      Seller is aware of any third party consent nor other filing or notice to third
      parties that is necessary in respect of this Agreement. No Costs incurred in
      connection with such filings, notices and consents shall reduce the Purchase
      Price in any manner.

     

    (c) Operation
      of Business.
      The
      Seller will not cause or permit the Company to engage in any practice, take
      any
      action, or enter into any transaction except for ministerial matters necessary
      to maintain the Company in good standing and to arrange for the filing of all
      necessary reports required under the Securities Exchange Act to make the Company
      a reporting company. Without limiting the generality of the foregoing, the
      Sellers will not cause or permit the Company to (i) declare, set aside, or
      pay
      any dividend or make any distribution with respect to its capital stock or
      redeem, purchase, or otherwise acquire any of its capital stock except as
      otherwise expressly specified herein, (ii) issue, sell, or otherwise dispose
      of
      any of its capital stock, or grant any options, warrants, preemptive or other
      rights to purchase or obtain (including upon conversion, exchange, or exercise)
      any of its capital stock, (iii) make any capital expenditures, loans, or incur
      any other obligations or liabilities, (iv) enter into any agreements involving
      expenditures individually, or in the aggregate, of more than $1,000 (other
      than
      agreements for professional services which will be paid in full at or prior
      to
      the Closing), (v) enter into any agreement or incur any other commitment or
      (vi)
      otherwise engage in any practice, take any action, or enter into any transaction
      that is inconsistent with the transactions contemplated hereby. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    (d) Preservation
      of Business.
      The
      Sellers will cause the Company to keep its business and properties substantially
      intact. 

     

    (e) Notice
      of Developments.
      The
      Sellers will give prompt written notice to the Purchaser Representative of
      any
      material adverse development causing a breach of any of the representations
      and
      warranties in Section
      5
      above.
      No disclosure by any Party pursuant to this Section
      10,
      however, shall be deemed to amend or supplement the disclosures contained in
      the
      Schedules hereto or to prevent or cure any misrepresentation, breach of
      warranty, or breach of covenant.

     

    (f) Exclusivity.
      For so
      long as this Agreement has not been terminated in accordance with its terms,
      none of the Sellers or the Company shall, directly or indirectly, (i) solicit,
      initiate, or encourage the submission of any proposal or offer from any person
      relating to the acquisition of the Seller Shares or any capital stock or other
      voting securities, or any assets (including any acquisition structured as a
      merger, consolidation, or share exchange) of the Company or (ii) participate
      in
      any discussions or negotiations regarding, furnish any information with respect
      to, assist or participate in, or facilitate in any other manner any effort
      or
      attempt by any person to do or seek any of the foregoing. None of the Sellers
      will vote the shares of the Company’s Common Stock held by them in favor of any
      such acquisition structured as a merger, consolidation, or share exchange.
      The
      Sellers shall notify the Purchaser immediately if any person makes any proposal,
      offer, inquiry, or contact with respect to any of the foregoing.

     

    11.     Post-Closing
      Covenants.  The
      Parties agree as follows with respect to the period following the Closing.
      

     

    (a) General.
      In case
      at any time after the Closing any further action is necessary or desirable
      to
      carry out the purposes of this Agreement, each of the Parties will take such
      further action (including the execution and delivery of such further instruments
      and documents) as any other Party may reasonably request, all at the sole cost
      and expense of the requesting Party (unless the requesting Party is entitled
      to
      indemnification therefor under Section
      13
      below).
      The Sellers acknowledge and agree that from and after the Closing the Purchasers
      will be entitled to possession of all documents, books, records (including
      tax
      records), agreements, and financial data of any sort relating to the
      Company.

     

    (b) Litigation
      Support.
      In the
      event and for so long as any Party actively is contesting or defending against
      any action, suit, proceeding, hearing, investigation, charge, complaint, claim,
      or demand in connection with (i) any transaction contemplated under this
      Agreement or (ii) any fact, situation, circumstance, status, condition,
      activity, practice, plan, occurrence, event, incident, action, failure to act,
      or transaction on or prior to the Closing Date involving the Company, the other
      Party will cooperate with him or it and his or its counsel in the contest or
      defense, make available their personnel, and provide such testimony and access
      to their books and records as shall be necessary in connection with the contest
      or defense, all at the sole cost and expense of the contesting or defending
      Party (unless the contesting or defending Party is entitled to indemnification
      therefor under Section
      13
      below).

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    12.     Conditions
      to Obligation to Close. 

     

    (a) Conditions
      to Obligation of the Purchaser.

     

    The
      obligation of the Purchasers to consummate the transactions to be performed
      by
      the Purchasers in connection with the Closing are subject to satisfaction of
      the
      following conditions:

     

    (i) the
      representations and warranties set forth in Sections
      5
      and
6
      above
      shall be true and correct in all material respects at and as of the Closing
      Date;

     

    (ii) the
      Sellers shall have performed and complied with all of their covenants hereunder
      in all material respects through the Closing;

     

    (iii) the
      Company shall have procured all of the third party consents required in order
      to
      effect the Closing;

     

    (iv) no
      action, suit, or proceeding shall be pending or threatened before any court
      or
      quasi-judicial or administrative agency of any federal, state, local, or foreign
      jurisdiction or before any arbitrator wherein an unfavorable injunction,
      judgment, order, decree, ruling, or charge would (A) prevent consummation of
      any
      of the transactions contemplated by this Agreement, (B) cause any of the
      transactions contemplated by this Agreement to be rescinded following
      consummation, (C) affect adversely the right of the Purchasers to own the Seller
      Shares and to control the Company, or (D) affect adversely the right of the
      Company to own its assets and to operate its businesses (and no such injunction,
      judgment, order, decree, ruling, or charge shall be in effect);

     

    (v) the
      Sellers shall have delivered to the Purchasers a certificate to the effect
      that
      (A) each of the conditions specified above in Section
      12(a)(i)-(iv)
      is
      satisfied in all respects, and (B) as of the Closing, the Company has no
      Liabilities; 

     

    (vi) The
      Purchasers shall have received an opinion of counsel customary for transactions
      of this type that covers, among other things, that the Seller Shares were
      validly issued, are fully paid and non-assessable and were issued in compliance
      with all laws, including, without limitation, applicable federal and state
      securities law and that the transactions contemplated hereby are being effected
      in compliance with state and federal securities laws;

     

    (vii) The
      holders of all options to purchase shares of the Company’s Common Stock shall
      have fully exercised their options to purchase such shares. 

     

    (viii) the
      Purchasers shall have received the resignations, effective as of the
tenth
      (10th)
      day
      following the filing by the Company of a Schedule 14f-1 information statement
      with the Securities and Exchange Commission, of each director of the Company
      and
      the Purchasers shall have received the resignations, effective as of the
Closing,
      of each officer
      of the Company.
      The
      designees specified by the
      Purchasers shall have been appointed as officers
      of the
      Company and any designees of the Purchasers who may be lawfully appointed to
      the
      Board of Directors of the Company as of the Company shall have been appointed;
      

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    (ix) there
      shall not have been any occurrence, event, incident, action, failure to act,
      or
      transaction since July 31, 2006 which has had or is reasonably likely to cause
      a
      material adverse effect on the business, assets, properties, financial
      condition, results of operations or prospects of the Company;

     

    (x) the
      Purchasers shall have completed their business, accounting and legal due
      diligence review of the Company, and the results thereof shall be satisfactory
      to the Purchasers;

     

    (xi) the
      Purchasers shall have received such pay-off letters and releases relating to
      Liabilities as they shall have requested and such pay-off letters shall be
      in
      form and substance satisfactory to the Purchasers;

     

    (xii) the
      Purchasers shall have conducted UCC, judgment lien and tax lien searches with
      respect to the Company, the results of which indicate no liens on the assets
      of
      the Company;

     

    (xiii) the
      Company shall have delivered its Certificate of Incorporation and bylaws, both
      as amended to the Closing Date, certified by the Secretary of the Company,
      resolutions adopted by the Board of Directors of the Company authorizing this
      Agreement and the transactions contemplated hereby and the Company shall have
      delivered to the Purchasers the Company’s original minute book and corporate
      seal and all other original corporate documents and agreements;

     

    (xiv) the
      Company shall deliver to the Purchasers a Certificate of Good Standing in
      respect of the Company issued by the Colorado Secretary of State dated no
      earlier than 5 days prior to the closing.

     

    (xv) the
      Company shall have maintained at and immediately after the Closing its status
      as
      a company whose Common Stock is quoted on the OTB Bulletin Board;
      and

     

    (xvi) all
      actions to be taken by the Seller in connection with consummation of the
      transactions contemplated hereby and all certificates, opinions, instruments,
      and other documents required to effect the transactions contemplated hereby
      will
      be satisfactory in form and substance to the Purchasers.

     

    (xvii) Prior
      to
      the Closing, the Company shall cause to be prepared the Company’s unaudited
      financial statements for the period through the Closing Date, which shall be
      utilized by the Company in the preparation of its Form 10-QSB for the period
      ending July 31, 2006, to be filed with the U.S. Securities and Exchange
      Commission following the Closing. The costs of preparation, review and filing
      of
      said Form 10-QSB shall be at the sole expense of the Company and payable by
      the
      Sellers. Allan K. Lager shall remain an officer of the Company until the Form
      10-QSB has been completed and filed with the U.S. Securities and Exchange
      Commission and he agrees to execute the Form 10-QSB on behalf of the Company,
      together with all SOX certifications required to be submitted therewith and
      any
      management representation letters required in connection with the review thereof
      by the Company’s auditors.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    The
      Purchasers may waive any condition specified in this Section
      12(a)
      at or
      prior to the Closing in writing executed by the Purchasers.

    

    (b) Conditions
      to Obligation of the Seller.

     

    The
      obligations of the Sellers to consummate the transactions to be performed by
      it
      in connection with the Closing are subject to satisfaction of the following
      conditions:

     

    (i) the
      representations and warranties set forth in Section
      7
      above
      shall be true and correct in all material respects at and as of the Closing
      Date;

     

    (ii) the
      Purchasers shall have performed and complied with all of its covenants hereunder
      in all material respects through the Closing;

     

    (iii) no
      action, suit, or proceeding shall be pending or threatened before any court
      or
      quasi-judicial or administrative agency of any federal, state, local, or foreign
      jurisdiction or before any arbitrator wherein an unfavorable injunction,
      judgment, order, decree, ruling, or charge would (A) prevent consummation of
      any
      of the transactions contemplated by this Agreement or (B) cause any of the
      transactions contemplated by this Agreement to be rescinded following
      consummation (and no such injunction, judgment, order, decree, ruling, or charge
      shall be in effect);

     

    (iv) the
      Purchasers shall have delivered to the Sellers a certificate to the effect
      that
      each of the conditions specified above in Section
      12(b)(i)-(iii)
      is
      satisfied in all respects;

     

    (v) all
      actions to be taken by the Purchasers in connection with consummation of the
      transactions contemplated hereby and all certificates, opinions, instruments,
      and other documents required to effect the transactions contemplated hereby
      will
      be satisfactory in form and substance to the Sellers. 

     

    The
      Sellers may waive any condition specified in this Section
      12(b)
      at or
      prior to the Closing in writing executed by the Seller.

     

    13.     Remedies
      for Breaches of This Agreement.

     

    (a) Survival
      of Representations and Warranties.
      All of
      the representations and warranties of the Parties shall survive the Closing
      hereunder (even if a Party knew or had reason to know of any misrepresentation
      or breach of warranty by another Party at the time of Closing) and continue
      in
      full force and effect for a period of twenty four (24) months
      thereafter.

     

    (b) Indemnification
      Provisions for Benefit of the Purchasers.

     

    (i) In
      the
      event any Seller breaches (or in the event any third party alleges facts that,
      if true, would mean any Seller has breached) any of its representations,
      warranties, and covenants contained herein, and, if there is an applicable
      survival period pursuant to Section
      13(a)
      above,
      provided that the Purchasers make a written claim for indemnification against
      the Sellers within such survival period, then the Sellers shall jointly and
      severally indemnify the Purchasers from and against the entirety of any Adverse
      Consequences the Purchasers may suffer through and after the date of the claim
      for indemnification (including any Adverse Consequences the Purchasers may
      suffer after the end of any applicable survival period) resulting from, arising
      out of, relating to, in the nature of, or caused by the breach (or the alleged
      breach). For purposes of this Agreement, “Adverse
      Consequences”
means
      all actions, suits, proceedings, hearings, investigations, charges, complaints,
      claims, demands, injunctions, judgments, orders, decrees, rulings, damages,
      dues, penalties, fines, costs, amounts paid in settlement, Liabilities,
      obligations, taxes, Liens, losses, lost value, expenses, and fees, including
      court costs and attorneys' fees and expenses.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    (ii) The
      Sellers shall indemnify the Purchasers from and against the entirety of any
      Adverse Consequences the Purchasers may suffer resulting from, arising out
      of,
      relating to, in the nature of, or caused by any Liability of the Company
      (whether or not accrued or otherwise disclosed) (x) for any taxes of the Company
      with respect to any tax year or portion thereof ending on or before the Closing
      Date (or for any Tax year beginning before and ending after the Closing Date
      to
      the extent allocable to the portion of such period beginning before and ending
      on the Closing Date) and (y) for the unpaid taxes of any Person (other than
      the
      Company) under Section 1.1502-6 of the Regulations adopted under the Code (or
      any similar provision of state, local, or foreign law), as a transferee or
      successor, by contract, or otherwise.

     

    (iii) The
      Sellers shall indemnify the Purchasers from and against the entirety of any
      Liabilities arising out of the ownership of the Shares prior to the
      Closing.

     

    (c) Indemnification
      Provisions for Benefit of the Seller.
      In the
      event the Purchasers breach (or in the event any third party alleges facts
      that,
      if true, would mean the Purchasers has breached) any of its representations,
      warranties, and covenants contained herein, and, if there is an applicable
      survival period pursuant to Section
      13(a)
      above,
      provided that the Seller makes a written claim for indemnification against
      the
      Purchasers within such survival period, then the Purchasers shall indemnify
      the
      Seller from and against the entirety of any Adverse Consequences the Seller
      may
      suffer through and after the date of the claim for indemnification (including
      any Adverse Consequences the Seller may suffer after the end of any applicable
      survival period) resulting from, arising out of, relating to, in the nature
      of,
      or caused by the breach (or the alleged breach).

     

    (d) Matters
      Involving Third Parties.

     

    (i) If
      any
      third party shall notify any Party (the “Indemnified
      Party”)
      with
      respect to any matter (a “Third
      Party Claim”)
      which
      may give rise to a claim for indemnification against any other Party (the
“Indemnifying
      Party”)
      under
      this Section
      13,
      then
      the Indemnified Party shall promptly notify each Indemnifying Party thereof
      in
      writing; provided, however, that no delay on the part of the Indemnified Party
      in notifying any Indemnifying Party shall relieve the Indemnifying Party from
      any obligation hereunder unless (and then solely to the extent) the Indemnifying
      Party thereby is prejudiced.

     

    (ii) Any
      Indemnifying Party will have the right to defend the Indemnified Party against
      the Third Party Claim with counsel of its choice reasonably satisfactory to
      the
      Indemnified Party so long as (A) the Indemnifying Party notifies the Indemnified
      Party in writing within 10 days after the Indemnified Party has given notice
      of
      the Third Party Claim that the Indemnifying Party will indemnify the Indemnified
      Party from and against the entirety of any Adverse Consequences the Indemnified
      Party may suffer resulting from, arising out of, relating to, in the nature
      of,
      or caused by the Third Party Claim, (B) the Indemnifying Party provides the
      Indemnified Party with evidence reasonably acceptable to the Indemnified Party
      that the Indemnifying Party will have the financial resources to defend against
      the Third Party Claim and fulfill its indemnification obligations hereunder,
      (C)
      the Third Party Claim involves only money damages and does not seek an
      injunction or other equitable relief, (D) settlement of, or an adverse judgment
      with respect to, the Third Party Claim is not, in the good faith judgment of
      the
      Indemnified Party, likely to establish a precedential custom or practice adverse
      to the continuing business interests of the Indemnified Party, and (E) the
      Indemnifying Party conducts the defense of the Third Party Claim actively and
      diligently. 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

    (iii) So
      long
      as the Indemnifying Party is conducting the defense of the Third Party Claim
      in
      accordance with Section
      13(d)(ii)
      above,
      (A) the Indemnified Party may retain separate co-counsel at its sole cost and
      expense and participate in the defense of the Third Party Claim, (B) the
      Indemnified Party will not consent to the entry of any judgment or enter into
      any settlement with respect to the Third Party Claim without the prior written
      consent of the Indemnifying Party (not to be withheld unreasonably), and (C)
      the
      Indemnifying Party will not consent to the entry of any judgment or enter into
      any settlement with respect to the Third Party Claim without the prior written
      consent of the Indemnified Party (not to be withheld unreasonably).

     

    (iv) In
      the
      event any of the conditions in Section
      13(d)(ii)
      above is
      or becomes unsatisfied, however, (A) the Indemnified Party may defend against,
      and consent to the entry of any judgment or enter into any settlement with
      respect to, the Third Party Claim in any manner it reasonably may deem
      appropriate (and the Indemnified Party need not consult with, or obtain any
      consent from, any Indemnifying Party in connection therewith), (B) the
      Indemnifying Parties will reimburse the Indemnified Party promptly and
      periodically for the costs of defending against the Third Party Claim (including
      attorneys' fees and expenses), and (C) the Indemnifying Parties will remain
      responsible for any Adverse Consequences the Indemnified Party may suffer
      resulting from, arising out of, relating to, in the nature of, or caused by
      the
      Third Party Claim to the fullest extent provided in this Section
      13.
      

     

    (e) Other
      Indemnification Provisions.
      The
      Seller hereby indemnifies the Company against any and all claims that may be
      filed by a current or former officer, director or employee of the Seller by
      reason of the fact that such person was a director, officer, employee, or agent
      of the Company or was serving the Company at the request of the Seller or the
      Company as a partner, trustee, director, officer, employee, or agent of another
      entity, whether such claim is for accrued salary, compensation, indemnification,
      judgments, damages, penalties, fines, costs, amounts paid in settlement, losses,
      expenses, or otherwise and whether such claim is pursuant to any statute,
      charter document, bylaw, agreement, or otherwise) with respect to any action,
      suit, proceeding, complaint, claim, or demand brought against the Company
      (whether such action, suit, proceeding, complaint, claim, or demand is pursuant
      to an agreement, applicable law, or otherwise).

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    (f) Limitation
      on Indemnification.
      Notwithstanding any other provision of this Section 13, the aggregate
      indemnification to be paid by a Party hereunder with respect to breaches of
      representations and warranties hereunder shall not exceed the Purchase
      Price.

     

    14.     Limitation
      on Liability

     

    (a) Maximum
      Liability.
      Notwithstanding any language to the contrary in this Agreement, a Seller shall
      not be liable to the Purchasers in an aggregate amount greater than the Seller’s
      pro rata share of the Purchase Price for any cause arising out of or resulting
      from this Agreement. 

    

    15. 
Termination.

     

    (a) Termination
      of Agreement.
      The
      Parties may terminate this Agreement as provided below: 

     

    (b) the
      Purchasers and the Seller may terminate this Agreement by mutual written
      agreement at any time prior to the Closing; 

     

    (c) the
      Purchasers may terminate this Agreement by giving written notice to the Seller
      at any time prior to the Closing if (A) the aggregate of the Company’s
      Liabilities is equal to, or exceeds $1,000; (B) in
      the
      event the Seller has breached any material representation, warranty, or covenant
      contained in this Agreement in any material respect and the Purchasers has
      notified the Seller of the breach, and the breach has continued without cure
      for
      a period of 2 days after the notice of breach; (C)
      if the
      Closing shall not have occurred on or before August 15, 2006 by reason of the
      failure of any condition precedent under Section
      12(a)
      hereof
      (unless the failure results primarily from the Purchasers themselves breaching
      any representation, warranty, or covenant contained in this Agreement) or (D)
      the Purchasers determine, in their sole discretion, that the Company is
      unsuitable for use as a vehicle for a reverse acquisition transaction;
      and

     

    (d) the
      Sellers may terminate this Agreement by giving written notice to the Purchasers
      at any time prior to the Closing (A) in the event the Purchasers has breached
      any material representation, warranty, or covenant contained in this Agreement
      in any material respect, the Sellers have notified the Purchasers of the breach,
      and the breach has continued without cure for a period of 2 days after the
      notice of breach or (B) if the Closing shall not have occurred on or before
      August 15, 2006, by reason of the failure of any condition precedent under
      Section
      12(b)
      hereof
      (unless the failure results primarily from the Sellers themselves breaching
      any
      representation, warranty, or covenant contained in this Agreement).

     

    (e) Effect
      of Termination.
      The
      Seller shall in no event be permitted to terminate this Agreement unless prior
      to or accompanying any notice of termination delivered hereunder the Sellers
      (i)
      have delivered to the Purchasers the Cash Deposit and any portion of the
      Purchase Price theretofore paid by the Purchasers and (ii) have notified the
      Law
      Firm in writing that any amounts held in escrow by it may released to the
      Purchasers. If the Purchasers terminate this Agreement pursuant to this
Section
      14,
      then
      the Sellers shall immediately pay to the Purchasers any portion of the Purchase
      Price theretofore paid by the Purchasers and the Sellers shall immediately
      notify the Law Firm in writing that any amounts held in escrow by it may
      released to the Purchasers. Except as aforesaid, if this Agreement terminates
      pursuant to this Section
      14,
      all
      rights and obligations of the Parties hereunder shall terminate without
      any Liability of any Party to any other Party, except for any Liability of
      a
      Party that is then in breach.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

       

    

    (f) Termination
      for Cause.
      In the
      event that the transaction would have closed but for the failure of the other
      party to close, then the party at fault shall reimburse the not at fault party
      for its documented reasonable legal fees and related out-of-pocket expenses
      it
      has incurred in connection with the transaction not to exceed a maximum of
      $15,000.00. The parties agree that any damages payable on account of any breach
      of this Agreement shall be expressly limited to such amount. 

     

    16.     Miscellaneous.

     

    (a) Facsimile
      Execution and Delivery.
      Facsimile execution and delivery of this Agreement is legal, valid and binding
      execution and delivery for all purposes.

     

    (b) Confidentiality;
      Press Releases and Public Announcements.
      Except
      as and to the extent required by law, no Party will disclose or use and will
      direct its representatives not to disclose or use any information with respect
      to the transaction which is the subject to this Agreement, without the consent
      of the other Parties. Neither the Sellers nor the Company shall issue any press
      release or make any public announcement relating to the subject matter of this
      Agreement without the prior written approval of the Purchasers; provided,
      however, that the Company may make any public disclosure it believes in good
      faith is required by applicable law or any listing or trading agreement
      concerning its publicly-traded securities (in which case the Sellers and the
      Company will use their best efforts to advise the other Parties prior to making
      the disclosure).

     

    (c) No
      Third-Party Beneficiaries.
      This
      Agreement shall not confer any rights or remedies upon any person other than
      the
      Parties and their respective successors and permitted assigns.

     

    (d) Entire
      Agreement.
      This
      Agreement (including the documents referred to herein) constitutes the entire
      agreement among the Parties and supersedes any prior understandings, agreements,
      or representations by or among the Parties, written or oral, to the extent
      they
      related in any way to the subject matter hereof.

     

    (e) Succession
      and Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties named
      herein and their respective successors and permitted assigns. No Party may
      assign either this Agreement or any of his or its rights, interests, or
      obligations hereunder without the prior written approval of the Purchasers
      and
      the Sellers; provided, however, that the Purchasers may (i) assign any or all
      of
      its rights and interests hereunder to one or more of its Affiliates, and (ii)
      designate one or more of its Affiliates to perform its obligations hereunder,
      but no such assignment shall operate to release Purchasers or a successor from
      any obligation hereunder unless and only to the extent that Seller agrees in
      writing.

     

    (f) Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original but all of which together will constitute one and the same
      instrument.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    (g) Headings.
      The
      Section headings contained in this Agreement are inserted for convenience only
      and shall not affect in any way the meaning or interpretation of this
      Agreement.

     

    (h) Notices.
      All
      notices, requests, demands, claims, and other communications hereunder will
      be
      in writing. Any notice, request, demand, claim, or other communication hereunder
      shall be deemed duly given if (and then two business days after) it is sent
      by
      registered or certified mail, return receipt requested, postage prepaid, and
      addressed to the intended recipient as set forth below:

     

    If
      to the
      Seller (or the Company prior to the Closing):

     

    106
      S.
      University Blvd.

    #14

    Denver,
      CO 80209

    Tel:
      (303) 722-4008

    

    If
      to the
      Purchasers:

     

    Fountainhead
      Capital Partners Limited

    c/o
      Robert L. B. Diener

    122
      Ocean
      Park Blvd.

    Suite
      307

    Santa
      Monica, CA 90405

    (310)
      396-1691

    Fax
      (310)
      362-8887

    

    Any
      Party
      may send any notice, request, demand, claim, or other communication hereunder
      to
      the intended recipient at the address set forth above using any other means
      (including personal delivery, expedited courier, messenger service, telecopy,
      telex, ordinary mail, or electronic mail), but no such notice, request, demand,
      claim, or other communication shall be deemed to have been duly given unless
      and
      until it actually is received by the intended recipient. Any Party may change
      the address to which notices, requests, demands, claims, and other
      communications hereunder are to be delivered by giving the other Parties notice
      in the manner herein set forth.

     

    (i) Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the domestic
      laws of the State of New
      York
      without
      giving effect to any choice or conflict of law provision or rule (whether of
      the
      State of New
      York
      or any
      other jurisdiction) that would cause the application of the laws of any
      jurisdiction other than the State of New
      York.
      

     

    (j) Amendments
      and Waivers.
      No
      amendment of any provision of this Agreement shall be valid unless the same
      shall be in writing and signed by the Purchasers and the Sellers or their
      respective representatives. No waiver by any Party of any default,
      misrepresentation, or breach of warranty or covenant hereunder, whether
      intentional or not, shall be deemed to extend to any prior or subsequent
      default, misrepresentation, or breach of warranty or covenant hereunder or
      affect in any way any rights arising by virtue of any prior or subsequent such
      occurrence. 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

       

    

    (k) Severability.
      Any
      term or provision of this Agreement that is invalid or unenforceable in any
      situation in any jurisdiction shall not affect the validity or enforceability
      of
      the remaining terms and provisions hereof or the validity or enforceability
      of
      the offending term or provision in any other situation or in any other
      jurisdiction.

     

    (l) Expenses.
      Each of
      the Parties and the Company will bear his or its own costs and expenses
      (including legal fees and expenses) incurred in connection with this Agreement
      and the transactions contemplated hereby. The Sellers agree that the Company
      has
      not borne or will not bear any of the Sellers’ costs and expenses (including any
      of his legal fees and expenses) in connection with this Agreement or any of
      the
      transactions contemplated hereby. Notwithstanding the foregoing, the Company
      shall be permitted to pay expenses incurred by it out of cash held by the
      Company so long as at least $170,000 is held by the Company at the
      Closing.

     

    (m) Construction.
      The
      Parties have participated jointly in the negotiation and drafting of this
      Agreement. In the event an ambiguity or question of intent or interpretation
      arises, this Agreement shall be construed as if drafted jointly by the Parties
      and no presumption or burden of proof shall arise favoring or disfavoring any
      Party by virtue of the authorship of any of the provisions of this Agreement.
      Any reference to any federal, state or local statute or law shall be deemed
      also
      to refer to all rules and regulations promulgated thereunder, unless the context
      requires otherwise. The word “including” shall mean including without
      limitation. The Parties intend that each representation, warranty, and covenant
      contained herein shall have independent significance. If any Party has breached
      any representation, warranty, or covenant contained herein in any respect,
      the
      fact that there exists another representation, warranty, or covenant relating
      to
      the same subject matter (regardless of the relative levels of specificity)
      which
      the Party has not breached shall not detract from or mitigate the fact that
      the
      Party is in breach of the first representation, warranty, or covenant. Nothing
      in the disclosure Schedules attached hereto shall be deemed adequate to disclose
      an exception to a representation or warranty made herein, however, unless the
      disclosure Schedules identifies the exception with particularity and describes
      the relevant facts in detail. Without limiting the generality of the foregoing,
      the mere listing (or inclusion of a copy) of a document or other item in the
      disclosure Schedules or supplied in connection with the Purchasers’ due
      diligence review, shall not be deemed adequate to disclose an exception to
      a
      representation or warranty made herein (unless the representation or warranty
      has to do with the existence of the document or other item itself).

     

    (n) Incorporation
      of Exhibits and Schedules.
      The
      Exhibits and Schedules identified in this Agreement are incorporated herein
      by
      reference and made a part hereof.

     

    (o) Specific
      Performance.
      Each of
      the Parties acknowledges and agrees that the other Parties would be damaged
      irreparably in the event any of the provisions of this Agreement are not
      performed in accordance with their specific terms or otherwise are breached.
      Accordingly, each of the Parties agrees that the other Parties shall be entitled
      to an injunction or injunctions to prevent breaches of the provisions of this
      Agreement and to enforce specifically this Agreement and the terms and
      provisions hereof in any action instituted in any court of the United States
      or
      any state thereof having jurisdiction over the Parties and the matter (subject
      to the provisions set forth in Section
      15(p)
      below),
      in addition to any other remedy to which they may be entitled, at law or in
      equity.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

       

    

    (p) Submission
      to Jurisdiction.
      Each of
      the Parties submits to the jurisdiction of any state or federal court sitting
      in
      New York County, New York, in any action or proceeding arising out of or
      relating to this Agreement and agrees that all claims in respect of the action
      or proceeding may be heard and determined in any such court. Each of the Parties
      waives any defense of inconvenient forum to the maintenance of any action or
      proceeding so brought and waives any bond, surety, or other security that might
      be required of any other Party with respect thereto. Any Party may make service
      on any other Party by sending or delivering a copy of the process to the Party
      to be served at the address and in the manner provided for the giving of notices
      in Section
      15(h)
      above.
      Nothing in this Section
      15(p),
      however, shall affect the right of any Party to bring any action or proceeding
      arising out of or relating to this Agreement in any other court or to serve
      legal process in any other manner permitted by law or at equity. Each Party
      agrees that a final judgment in any action or proceeding so brought shall be
      conclusive and may be enforced by suit on the judgment or in any other manner
      provided by law or at equity.

     

    [signature
      pages follow]

     

     

     

     

    
 

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    [Sellers
      Signature Page]

    

    IN
      WITNESS WHEREOF, each of the undersigned Sellers
      has
      duly
      executed this Agreement the date first above written. 

     

    
      	 	 	 
	 	
              For
                Entities:

               

              Growth Ventures, Inc., PSP&T

            
	 
 	 
 	 
 
	 	By:  	/s/ Gary
              McAdam
	 	
              
Name:
              Gary McAdam
	 	Title: 

    
      	 	 	 
	 	Mathis
              Family
              Partners Ltd
	 
 	 
 	 
 
	 	By:  	/s/ Earnest
              Mathis
	 	
              
Name:
              Earnest Mathis
	 	Title: 

    

     

    
      	 	 	 
	 	
               
                For Individuals (all addresses on Schedule A):

               

               

            
	 
 	 
	 
 
	 	 	/s/ Gregory
              Pusey
	 	
              
Gregory
              Pusey

    

    
      
        	 	
                 

              
	 	 	 
	 	 	/s/ Carrie
                Bell
	 	
                
Carrie
                Bell
	 

      

    

    
      
        	 	
                 

              
	 	 	 
	 	 	/s/ J.
                Dan
                Bell
	 	
                
J.
                Dan Bell
	 

      

    

    
      
        	 	
                 

              
	 	 	 
	 	 	/s/ Henry
                Fong
	 	
                
Henry
                Fong
	 

      

    

    
      
        	 	
                 

              
	 	 	 
	 	 	/s/ Jeffrey
                G. McGonegal
	 	
                
Jeffrey
                G. McGonegal
	 

      

    

    
      
        	 	
                 

              
	 	 	 
	 	 	/s/ Allan
                K.
                Lager
	 	
                
Allan
                K. Lager
	 

      

    

    
       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

         

      

      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Warren
                  Ehrlich
	 	
                  
Warren
                  Ehrlich
	 

        

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Tom
                  Olson
	 	
                  
Tom
                  Olson
	 

        

      

    

    
      
        	 	
                 

              
	 	 	 
	 	 	/s/ Steve
                Bathgate
	 	
                
Steve
                Bathgate
	 

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Jeff
                  Peierls
	 	
                  
Jeff
                  Peierls
	 

        

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Jill
                  Pusey
	 	
                  
Jill
                  Pusey
	 

        

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Bob
                  Neider
	 	
                  
Bob
                  Neider
	 

        

      

    

    
      
        	 	
                 

              
	 	 	 
	 	 	/s/ Tom
                Marinelli
	 	
                
Tom
                Marinelli
	 

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Jill
                  Pusey C/F Jackie Pusey UTMACO
	 	
                  
Jill
                  Pusey C/F Jackie Pusey UTMACO
	 

        

      

    

    
      
        	 	
                 

              
	 	 	 
	 	 	/s/ Chris
                Pusey
	 	
                
Chris
                Pusey
	 

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ John
                  O’Shea
	 	
                  
John
                  O’Shea
	 

        

      

    

    
      
        	 	
                 

              
	 	 	 
	 	 	/s/ Tom
                Weinberger
	 	
                
Tom
                Weinberger
	 

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Doug
                  Hepler
	 	
                  
Doug
                  Hepler
	 

        

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Brian
                  Peierls
	 	
                  
Brian
                  Peierls
	 

        

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Henry
                  Daniel Bell
	 	
                  
Henry
                  Daniel Bell
	 

        

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Kathleen
                  Bell
	 	
                  
Kathleen
                  Bell
	 

        

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Carylyn
                  K. Bell c/f Ian Bell
	 	
                  
Carylyn
                  K. Bell c/f Ian Bell
	 

        

      

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      
        	 	
                 

              
	 	 	 
	 	 	/s/ Carylyn
                K
                Bell c/f Caithlyn Bell UTMACO
	 	
                
Carylyn
                K Bell c/f Caithlyn Bell UTMACO
	 

      

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Michael
                  & Mary Siemens JTWROS
	 	
                  
Michael
&
Mary
                  Siemens JTWROS
	 

        

        
          
            	 	
                     

                  
	 	 	 
	 	 	/s/ Kenneth
                    Shearer
	 	
                    
Kenneth
                    Shearer
	 

          
            
              
              

            

            
              23

              
                

              

            

            
              
              

            

          

        

      

    

    [Purchaser
      Signature Page]

    

    IN
      WITNESS WHEREOF, each of the undersigned Purchasers
      has
      duly
      executed this Agreement the date first above written. 

     

    
      	 	 	 
	 	FOUNTAINHEAD
              CAPITAL PARTNERS LIMITED
	 
 	 
 	 
 
	 	By:  	/s/ Gisele
              Le
              Miere
	 	
              
Gisele
              Le Miere
	 	Director

    

    
      	 	 	 
	 	 
	 	 	 
	 	By:  	/s/ Eileen
              O’Shea
	 	
              
Eileen
              O’Shea
	 	Director

    

     

    
      	 	 	 
	 	
              Address:

              Jordans
                (C.I.) Limited

              PO
                Box 456

              Portman
                House

              Hue
                Street

              St
                Helier, Jersey JE4 5RP

            
	 
 	 
 
              	 
 
	 	       
                  	 
	 	
            
	 	 

    

     

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    [Company
      Signature Page]

    

    IN
      WITNESS WHEREOF, the Company
      has duly
      executed this Agreement the date first above written. 

     

    
      	 	 	 
	 	APPLIED
              MEDICAL
              DEVICES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Allan
              K.
              Lager
	 	
              
Name:
              Allan K. Lager
	 	Title:
              President 

      	 	 	 
	 	
              Address:
                 

              106
                South University Boulevard

              Suite
                14,

              Denver,
                CO 80209

            
	 
 	 
 	 
 
	 	       
                	 
	 	
            
	 	 

    

     

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    [Signature
      Page for Seller Representative and Purchaser
      Representative]

    

    IN
      WITNESS WHEREOF, each of the undersigned representatives
      has duly
      executed this Agreement with
      respect to the obligations set forth in Section
      4
      of this Agreement only
      as of
      the date first above written. 

     

    
      	 	 	 
	 	 
	 
 	 
	
              SELLER
                REPRESENTATIVE:

            
	 	 	 
	 	 	/s/ Gregory
              Pusey
	 	
              
Gregory
              Pusey
	 	 

    

    
      
        
          	 	
                   

                
	 	 	 
	 	 	/s/ Kenneth
                  Shearer
	 	
                  
Kenneth
                  Shearer
	 

        

      

    

    
      	 	 	 
	 	
               PURCHASER
                REPRESENTATIVE:

               

               FOUNTAINHEAD CAPITAL PARTNERS
                LIMITED

            
	 
 	 
 	 
 
	 	 By:  	/s/ Gisele
              Le
              Miere
	 	
              
Gisele
              Le Miere
	 	Director 

      	 	 	 
	 	 
	 	 	 
	 	 By:  	/s/ Eileen
              O’Shea
	 	
              
Eileen
              O’Shea
	 	Director

      	 	 	 
	 	
               Address:

               Jordans
                (C.I.) Limited

               PO
                Box 456

               Portman
                House

               Hue
                Street

               St
                Helier, Jersey JE4 5RP

            
	 
 	 
 	 
 
	 	        
               	 
	 	
            
	 	 

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    [Signature
      Page for Principal Executive Officer of the Company]

    

    IN
      WITNESS WHEREOF, the undersigned being the Principal
      Executive Officer of the Company
      has duly executed this Agreement as of the date first above written.

     

    
      	 	 	 
	 	PRINCIPAL
              EXECUTIVE OFFICER:
	 
 	 
 	 
 
	 	By:  	/s/ Allan
              K.
              Lager
	 	
              
Name:
              Allan K. Lager
	 	Executing
              this Agreement in his individual capacity in order to induce the
              Purchasers to enter into this
              Agreement

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

    
      SCHEDULE
        A

       

      SELLERS

    

     

    

    
      	
              Applied
                Medical Devices, Inc.

            	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Selling
                Shareholders

            	 	 	 	
               

            	 	
               

            	 	
               

            	 	
               

            	 	
               

            	 	
               

            	 
	
              Exhibit
                A

            	 	 	 	
               

            	 	
               

            	 	
               

            	 	
               

            	 	
               

            	 	
               
                

            	 
	
              Shareholder

            	 	
              Contact

            	 	
              Address

            	 	
              Shares

              Acquired

              4-Mar-05

            	 	
              Options

              Exercised

              7-Aug-06

            	 	
              Total

              Shares

              Held
                

            	 	
              Shares

              Being

              Sold
                

            	 	
              
                Proceeds
                  to
Selling

              Shareholder
                

            	 	
              Shares

              Retained

              Post

              Closing
                

            	 
	
              Greg
                Pusey

            	 	 	
              Greg
                Pusey

            	 	 	
              106
                S. University Blvd., #14, Denver, CO 80209

            	 	 	
              38,500,000
                

            	 	 	
              -
                

            	 	 	
              38,500,000
                

            	 	 	
              25,712,349
                

            	 	
              $

            	
              87,500.00

            	 	 	
              12,787,651
                

            	 
	
              Carrie
                Bell

            	 	 	
              Carrie
                Bell

            	 	 	
              3200
                Cherry Creek Dr. South, Ste 430, Denver, CO 80209

            	 	 	
              16,500,000
                

            	 	 	
              -
                

            	 	 	
              16,500,000
                

            	 	 	
              11,019,578
                

            	 	
              $

            	
              37,500.00

            	 	 	
              5,480,422
                

            	 
	
              J.
                Dan Bell

            	 	 	
              Dan
                Bell

            	 	 	
              81
                Glenmoor Drive, Cherry Hills Village, CO 80113

            	 	 	
              16,500,000
                

            	 	 	
              -
                

            	 	 	
              16,500,000
                

            	 	 	
              11,019,578
                

            	 	
              $

            	
              37,500.00

            	 	 	
              5,480,422
                

            	 
	
              Henry
                Fong

            	 	 	
              Henry
                Fong

            	 	 	
              319
                Clematis Street, Suite 803,West Palm Beach, FL 33401

            	 	 	
              8,250,000
                

            	 	 	
              -
                

            	 	 	
              8,250,000
                

            	 	 	
              5,509,789
                

            	 	
              $

            	
              18,750.00

            	 	 	
              2,740,211
                

            	 
	
              Growth
                Ventures, Inc., PSP&T 

            	 	 	
              Gary
                McAdam

            	 	 	
              6399
                S. Fiddler's Green Circle, Greenwood, CO 80111

            	 	 	
              16,500,000
                

            	 	 	
              -
                

            	 	 	
              16,500,000
                

            	 	 	
              11,019,578
                

            	 	
              $

            	
              37,500.00

            	 	 	
              5,480,422
                

            	 
	
              Mathis
                Family Partners Ltd.

            	 	 	
              Earnest
                Mathis

            	 	 	
              2560
                West Main Street, Ste 200, Littleton, CO 80120

            	 	 	
              11,000,000
                

            	 	 	
              -
                

            	 	 	
              11,000,000
                

            	 	 	
              7,346,385
                

            	 	
              $

            	
              25,000.00

            	 	 	
              3,653,615
                

            	 
	
              Jeff
                McGonegal

            	 	 	
              Jeff
                McGonegal

            	 	 	
              1905
                W. Valley Vista Drive, Castle Rock, CO 80109

            	 	 	
              16,500,000
                

            	 	 	
              11,000,000
                

            	 	 	
              27,500,000
                

            	 	 	
              18,365,963
                

            	 	
              $

            	
              62,500.00

            	 	 	
              9,134,037
                

            	 
	
              Al
                Lager

            	 	 	
              Al
                Lager

            	 	 	
              1040
                S FRANKLIN, Denver, CO 80209

            	 	 	
              11,000,000
                

            	 	 	
              11,000,000
                

            	 	 	
              22,000,000
                

            	 	 	
              14,692,771
                

            	 	
              $

            	
              50,000.00

            	 	 	
              7,307,229
                

            	 
	
              Warren
                Ehrlich

            	 	 	
              Warren
                Ehrlich

            	 	 	
              9600
                E POUNDSTONE RD, Englewood, CO 80111

            	 	 	
              11,000,000
                

            	 	 	
              -
                

            	 	 	
              11,000,000
                

            	 	 	
              7,346,385
                

            	 	
              $

            	
              25,000.00

            	 	 	
              3,653,615
                

            	 
	
              Tom
                Olson

            	 	 	
              Tom
                Olson

            	 	 	
              7315
                E. Peakview Ave., Centennial, CO 80111

            	 	 	
              2,750,000
                

            	 	 	
              -
                

            	 	 	
              2,750,000
                

            	 	 	
              1,836,596
                

            	 	
              $

            	
              6,250.00

            	 	 	
              913,404
                

            	 
	
              Steve
                Bathgate

            	 	 	
              Steve
                Bathgate

            	 	 	
              5350
                S. Roslyn Street, STE 400, Greenwood Village, CO
                80111-2124

            	 	 	
              5,500,000
                

            	 	 	
              -
                

            	 	 	
              5,500,000
                

            	 	 	
              3,673,193
                

            	 	
              $

            	
              12,500.00

            	 	 	
              1,826,807
                

            	 
	
              Jeff
                Peierls

            	 	 	
              Jeff
                Peierls

            	 	 	
              73
                SO HOLMAN WAY, Golden, CO 80401

            	 	 	
              11,000,000
                

            	 	 	
              -
                

            	 	 	
              11,000,000
                

            	 	 	
              7,346,385
                

            	 	
              $

            	
              25,000.00

            	 	 	
              3,653,615
                

            	 
	
              Jill
                Pusey

            	 	 	
              Jill
                Pusey

            	 	 	
              106
                S. University Blvd., #14, Denver, CO 80209

            	 	 	
              33,000,000
                

            	 	 	
              -
                

            	 	 	
              33,000,000
                

            	 	 	
              22,039,156
                

            	 	
              $

            	
              75,000.00

            	 	 	
              10,960,844
                

            	 
	
              Bob
                Neider

            	 	 	
              Bob
                Neider

            	 	 	
              8
                GLENMOOR CIRCLE, Englewood CO 80110

            	 	 	
              11,000,000
                

            	 	 	
              -
                

            	 	 	
              11,000,000
                

            	 	 	
              7,346,385
                

            	 	
              $

            	
              25,000.00

            	 	 	
              3,653,615
                

            	 
	
              Tom
                Marinelli

            	 	 	
              Tom
                Marinelli

            	 	 	
              7932
                Bridge Valley, Clarkston, MI 48348

            	 	 	
              5,500,000
                

            	 	 	
              -
                

            	 	 	
              5,500,000
                

            	 	 	
              3,673,193
                

            	 	
              $

            	
              12,500.00

            	 	 	
              1,826,807
                

            	 
	
              Jill
                Pusey C\F Jackie Pusey UTMACO

            	 	 	
              Jackie
                Pusey

            	 	 	
              106
                S. University Blvd., #14, Denver, CO 80209

            	 	 	
              5,500,000
                

            	 	 	
              -
                

            	 	 	
              5,500,000
                

            	 	 	
              3,673,193
                

            	 	
              $

            	
              12,500.00

            	 	 	
              1,826,807
                

            	 
	
              Chris
                Pusey

            	 	 	
              Chris
                Pusey

            	 	 	
              106
                S. University Blvd., #14, Denver, CO 80209

            	 	 	
              5,500,000
                

            	 	 	
              -
                

            	 	 	
              5,500,000
                

            	 	 	
              3,673,193
                

            	 	
              $

            	
              12,500.00

            	 	 	
              1,826,807
                

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      

      
        	
                Applied
                  Medical Devices, Inc.

              	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Selling
                  Shareholders

              	 	 	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	 
	
                Exhibit
                  A

              	 	 	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 
                  

              	 
	
                Shareholder

              	 	
                Contact

              	 	
                Address

              	 	
                Shares

                Acquired

                4-Mar-05

              	 	
                Options

                Exercised

                7-Aug-06

              	 	
                Total

                Shares

                Held
                  

              	 	
                Shares

                Being

                Sold
                  

              	 	
                
                  Proceeds
                    to
Selling

                Shareholder
                  

              	 	
                Shares

                Retained

                Post

                Closing
                  

              	 
	
                 

              	 	 	
                 

              	 	 	
                 

              	 	 	
                 

              	 	 	
                 

              	 	 	
                 

              	 	 	
                 

              	 	
                 

              	
                 

              	 	 	
                 

              	 

      

    

    
      	
              John
                O’Shea

            	 	 	
              John
                O’Shea

            	 	 	
              100
                Wall Street 7th floor, New York, NY 10005

            	 	 	
              11,000,000
                

            	 	 	
              -
                

            	 	 	
              11,000,000
                

            	 	 	
              7,346,385
                

            	 	
              $

            	
              25,000.00

            	 	 	
              3,653,615
                

            	 
	
              Tom
                Weinberger

            	 	 	
              Tom
                Weinberger

            	 	 	
              11661
                San Vicente Blvd., Suite 820, Los Angeles, CA 90049-5116

            	 	 	
              5,500,000
                

            	 	 	
              -
                

            	 	 	
              5,500,000
                

            	 	 	
              3,673,193
                

            	 	
              $

            	
              12,500.00

            	 	 	
              1,826,807
                

            	 
	
              Doug
                Hepler

            	 	 	
              Doug
                Hepler

            	 	 	
              815
                Cliff Dr., McLeansville, NC 27301

            	 	 	
              5,500,000
                

            	 	 	
              -
                

            	 	 	
              5,500,000
                

            	 	 	
              3,673,193
                

            	 	
              $

            	
              12,500.00

            	 	 	
              1,826,807
                

            	 
	
              Brian
                Peierls

            	 	 	
              Brian
                Peierls

            	 	 	
              7808
                Harvestman Cove, Austin, TX 78731-1243

            	 	 	
              11,000,000
                

            	 	 	
              -
                

            	 	 	
              11,000,000
                

            	 	 	
              7,346,385
                

            	 	
              $

            	
              25,000.00

            	 	 	
              3,653,615
                

            	 
	
              Henry
                Daniel Bell

            	 	 	
              Danny
                Bell

            	 	 	
              3200
                Cherry Creek Dr. South, Ste 430, Denver, CO 80209

            	 	 	
              2,750,000
                

            	 	 	
              -
                

            	 	 	
              2,750,000
                

            	 	 	
              1,836,596
                

            	 	
              $

            	
              6,250.00

            	 	 	
              913,404
                

            	 
	
              Kathleen
                Bell

            	 	 	
              Kathleen
                Bell

            	 	 	
              3200
                Cherry Creek Dr. South, Ste 430, Denver, CO 80209

            	 	 	
              2,750,000
                

            	 	 	
              -
                

            	 	 	
              2,750,000
                

            	 	 	
              1,836,596
                

            	 	
              $

            	
              6,250.00

            	 	 	
              913,404
                

            	 
	
              Carylyn
                K. Bell c/f Ian Bell

            	 	 	
              Carrie
                c/f Ian Bell

            	 	 	
              3200
                Cherry Creek Dr. South, Ste 430, Denver, CO 80209

            	 	 	
              2,750,000
                

            	 	 	
              -
                

            	 	 	
              2,750,000
                

            	 	 	
              1,836,596
                

            	 	
              $

            	
              6,250.00

            	 	 	
              913,404
                

            	 
	
              Carylyn
                K. Bell c/f Caitlyn Bell UTMACO

            	 	 	
              Carrie
                c/f Kaitlan Bell

            	 	 	
              3200
                Cherry Creek Dr. South, Ste 430, Denver, CO 80209

            	 	 	
              2,750,000
                

            	 	 	
              -
                

            	 	 	
              2,750,000
                

            	 	 	
              1,836,596
                

            	 	
              $

            	
              6,250.00

            	 	 	
              913,404
                

            	 
	
              Michael
                & Marie Siemens JTWROS

            	 	 	
              Michael
                & Marie Siemens

            	 	 	
              5313
                Taylor Lane, Fort Collins, CO 80528

            	 	 	
              5,500,000
                

            	 	 	
              -
                

            	 	 	
              5,500,000
                

            	 	 	
              3,673,193
                

            	 	
              $

            	
              12,500.00

            	 	 	
              1,826,807
                

            	 
	
              Kenneth
                Shearer

            	 	 	
              Kenneth
                Shearer

            	 	 	
              1175
                EMERSON STR #208, Denver, CO 80218

            	 	 	
              -
                

            	 	 	
              11,000,000
                

            	 	 	
              11,000,000
                

            	 	 	
              7,346,385
                

            	 	
              $

            	
              25,000.00

            	 	 	
              3,653,615
                

            	 
	
              Totals

            	 	 	 	 	 	 	 	 	
              275,000,000
                

            	 	 	
              33,000,000
                

            	 	 	
              308,000,000
                

            	 	 	
              205,698,790
                

            	 	
              $

            	
              700,000.00

            	 	 	
              102,301,210
                

            	 

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      	
              SCHEDULE
                B

               

              PURCHASERS

            
	 	 	 	 	 
	
              NAME
                AND ADDRESS OF PURCHASER

            	 	 	 	
              NUMBER
                OF SELLER   

              SHARES 

              (including
                acquisition date) 

            
	 	 	 	 	 
	
              Fountainhead
                Capital Partners Limited 

              Jordans
                (C.I.) Limited, PO Box 456

              Portman
                House, Hue Street

              St
                Helier, Jersey JE4 5RP

            	 	 	 	
              205,698,790

            
	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6(l) 

    

    

    (See
      Attached)

     

     

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    Escrow
      Agreement

    

    (See
      Attached)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]