Document:

Unassociated Document

     

    
      SUBLEASE
AGREEMENT

      

      

                 THIS SUBLEASE AGREEMENT
(“Sublease”), is made by and between RELIANCE LIFE SCIENCES, INC., a Delaware
corporation having an address at 5 Caufield Place, Suite 101, Newtown,
Pennsylvania 18940 (“Sublandlord”) and PATIENT SAFETY TECHNOLOGIES, INC., a
Delaware corporation having an address at 43460 Ridge Park Drive, Suite 140,
Temecula, CA 92590 (“Subtenant”).

      

      WITNESSETH:

      

                 WHEREAS, Sublandlord’s
predecessor in interest, Ramtech Holdings Inc., entered into that certain Lease
Agreement dated February 5, 2007 (“Main Lease”) with Community Association
Realty, Inc., a predecessor in interest to the current landlord, Cricklewood
Realty Investments, LP (together with its successors and assigns hereinafter
referred to as “Master Landlord”).  A copy of the Main Lease, as
amended or otherwise modified, is attached to this Sublease as Exhibit A;
and

      

                 WHEREAS, Sublandlord desires
to sublease to Subtenant, and Subtenant desires to sublease from Sublandlord,
the premises leased by Sublandlord pursuant to the Main Lease consisting of
approximately 5,670 square feet located on the first floor of the office
building located a 5 Caufield Place, Newtown, PA, 18940 and known as Suite 102
(the “Sublease Premises”) upon the terms and conditions set forth in this
Sublease; and

      

                 WHEREAS, the Main Lease
requires the consent of Master Landlord to this Sublease.

      

                 NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Sublandlord and Subtenant agree as follows:

      

      1. Sublease Premises.
Subject to the terms hereof, Sublandlord hereby subleases to Subtenant, and
Subtenant hereby accepts and leases from Sublandlord, the approximately 5,670
square feet located on the first floor of the office building located at 5
Caufield Place, Newtown, PA, 18940 and known as Suite 102 (the “Sublease
Premises”), which Sublease Premises are more specifically shown on the attached
Exhibit
“B”.  Subtenant has inspected the Sublease Premises, is
familiar with the condition of same and accepts the Sublease Premises in its
present “AS-IS” condition. Subtenant acknowledges that Sublandlord is not
obligated to make any improvements or do any construction with respect to the
Sublease Premises.  Subtenant further acknowledges that Sublandlord
will not be obligated to perform any repairs or maintenance with respect to the
Sublease Premises during the Sublease Term (as hereinafter
defined).

      

      2. Sublease
Term.  The term of this Sublease (the “Sublease Term”) shall
commence on the date (the “Sublease Commencement Date”) which is the later to
occur of: (i) January 1, 2010 or (ii) the date Sublandlord and Subtenant receive
Master Landlord’s written consent to this Sublease, and shall expire on April
30, 2013, unless terminated earlier in accordance with the provisions
hereof.  Upon the expiration or earlier termination of this Sublease,
Subtenant shal immediately surrender possession of the Sublease Premise vacant,
in good order and repair, normal reasonable wear and tear and damage due to any
casualty for which Subtenant is not responsible to
repair excepted, and as otherwise
required by the terms of the Main Lease.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      3. Use.  The
Sublease Premises shall be used for general business office purposes and for no
other use whatsoever.  Subtenant shall comply with all laws,
ordinances, rules and regulations governing such use, whether the same are
issued by any governmental or quasi-governmental agency, including the for the
health, safety or well-being of the tenants in the Building.

      

      4. Rent.  Subtenant
shall pay to Sublandlord base rent (“Base Rent”) in the amount of $11,576.25 per
month for each month of the Sublease Term on or
before the first of each month in advance.  Base Rent shall be prorated for
the first month of the Sublease Term if the actual Sublease Commencement Date
does not occur on the first day of a month.  The Base Rent set forth
above includes: (a) all Landlord’s Operating Expenses (as defined in the Main
Lease), including but not limited to Landlord’s expenses to operate, service,
and maintain the systems of the Building, the common areas of the Building, and
the grounds, including such items as common area and landscaping maintenance,
snow removal, insurance, waste removal and property management fees, but
specifically excludes any increase in Landlord’s Operating Expenses which are
attributable to: (i) Subtenant’s breach of this Sublease or the terms of the
Master Lease as incorporated herein; (ii) any special or disproportionate use or
manner of use of the Premises, the Building or the Sublease Premises by
Subtenant; or (iii) any special or unique activities conducted in or about the
Premises, the Building or the Sublease Premises by Subtenant or on behalf of
Subtenant; or (iv) the negligence or omissions or intentional acts of Subtenant
or any of Subtenant’s agents, employees, contractors, subcontractors, invitees,
licensees, representatives, guests, officers, directors and partners, including
without limitation, any other person or entity hired by Subtenant to perform
services or deliver goods or materials (collectively, “Subtenant’s Agents”); or
(v) any violation by Subtenant or any of Subtenant’s Agents of any rule or
regulation established by Master Landlord with respect to the Premises, the
Building or the Sublease Premises pursuant to the terms of the Main Lease; or
(vi) any violation by Subtenant, or any of Subtenant’s Agents of any
requirements of the Planned Community Association (as such term is defined in
Main Lease Section 1.(i)), including but not limited to fines imposed for
violations of any declaration or rules and regulations, as well as costs of
repair  or replacement of damaged, destroyed or removed common
elements or common element improvements on the Land or Premises; or (vii) any
special assessments, allocations, budget amendments; adjustments or increases
made by the Planned Community Association to or for common expenses, expenses,
costs, fees, fines, late charges, interest, taxes, assessments, dues, legal fees
or other charges which are allocable or chargeable to the Building or the owner
of the Building or (viii) all increases in Taxes and/or all assessments or
impositions levied or assessed against or imposed upon the Premises, the
Building or the Sublease Premises or any part thereof which are attributable to
additions or improvements in, on or about the Sublease Premises made by or on
behalf of Subtenant or which in whole or in part belong to Subtenant; and (b)
Taxes (as such term is defined in the Main Lease).  The Base Rent set
forth above shall not include any of the following items for which the Subtenant
will be responsible for paying at all times during the Sublease Term: (a)
electric service, gas, or any other utility service to the Sublease Premises or
electric service, gas, or any other utility service to the HVAC or any other
systems of the Building that serve the Sublease Premises; (b) janitorial
cleaning of the Sublease Premises and removal off-site of any special waste or
an waste other than standard office waste; (c) telephone, cable, internet,
telecommunications, security, and other similar services; and (d) any other
costs, fees, or expenses not included in Landlord’s Operating
Expenses.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

                 Subtenant
shall pay to Sublandlord all other amounts billed by Master Landlord to
Sublandlord pursuant to the Main Lease with the next installment of Base
Rent.  Sublandlord agrees to provide copies to Subtenant of invoices
provided to Sublandlord containing the amount owed.  Subtenant and
Sublandlord agree that upon written notification from Master Landlord, Subtenant
shall pay such amounts directly to Master Landlord.  Subtenant’s
obligation for the payment of all sums owed to Sublandlord under this Sublease
shall survive the expiration or termination of this Sublease or the Main
Lease.

      

      5. Defaults. The
following events shall constitute events of default hereunder:

      

      (a) If
Subtenant shall (i) default in making payment when due of any Base Rent or other
amount payable by Subtenant hereunder and such default shall continue for five
(5) days after the payment due date; or (ii) fail to execute any estoppel
certificate or subordination document within the timeframes set forth herein; or
(iii) default in the observance or performance of any provision of this Sublease
other than those provisions covered by clauses (i) and (ii) of this Section 5(a)
and such default shall continue for ten (10) days after Sublandlord shall have
given notice to Subtenant specifying such default.  If any such
default covered by clause (iii) of this Section 5(a) cannot be wholly cured with
due diligence within such period of ten (10) days after Sublandlord’s notice,
Subtenant shall have such longer period as shall be reasonable necessary to cure
the default, so long as Subtenant proceeds promptly to cure the same within such
ten (10) day period, prosecutes the cure to completion with due diligence and
advises Sublandlord from time to time, upon Sublandlord’s request, of the
actions that Subtenant is taking and the progress being made; provided, further,
in no event shall Subtenant have more than thirty (30) days to effect such cure;
or

      

      (b) if
Subtenant shall file a petition in bankruptcy pursuant to the Bankruptcy Act or
under any similar federal or state law, or shall be adjudicated a bankrupt or
become insolvent, or shall commit any act of bankruptcy as defined in any such
law, or shall take any action in furtherance of any of the foregoing;
or

      

      (c) if a
petition or answer shall be filed proposing the adjudication of Subtenant as a
bankrupt pursuant to the Bankruptcy Act or any similar federal or state law, and
(i) Subtenant shall consent to the filing thereof, or (ii) such petition or
answer shall not be discharged or denied within forty-five (45) days after the
filing thereof; or

      

      (d) if a
receiver, trustee or liquidator (or other similar official) of Subtenant or of
all or substantially all of its business or assets or of the estate or interest
of Subtenant in the Sublease Premises shall be appointed and shall not be
discharged within thirty (30) days thereafter or if Subtenant shall consent to
or acquiesce in such appointment; or

      

      (e) if
the estate or interest of Subtenant in the Sublease Premises shall be levied
upon or attached in any proceeding and such process shall not be vacated or
discharged within forty-five (45) days after such levy or attachment;
or

      

      (f) if
Subtenant assigns this Sublease or sublets all or any portion of the Sublease
Premises without complying with all the provisions of this Sublease or the Main
Lease; or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (g) if
Subtenant shall refuse or otherwise fail to execute and deliver to Sublandlord
an estoppel certificate within five (5) days after notice from Sublandlord
requesting such estoppel certificate.  Refusal or failure to execute
and deliver requested estoppel certificate shall be an Event of Default
hereunder immediately upon expiration of the five (5) day notice, and the notice
and cure provisions contained in Section 5(a)(ii) do not apply in the case of
Subtenant’s refusal or failure to execute and deliver the estoppel
certificate.

      

      6. Parking.  During
the term, Subtenant shall have the right to use all of the twenty eight (28)
unreserved parking spaces which the Main Lease grants Sublandlord the right to
use, at no cost to Subtenant.  Sublandlord’s use of such spaces shall
be subject to the terms and conditions of the Main Lease.

      

      7. Signage.  Subject
to the terms and conditions of the Main Lease, Subtenant shall have the right to
be named on the identification sign in the first floor lobby at or near the
entrance to the Sublease Premises and to be identified on the existing
lawn-mounted sign near the entrance of the building.  Any costs
incurred in connection with Subtenant’s signage shall be borne by
Subtenant.  All signage must comply with the terms of the Main
Lease.

      

      8. Assumption of
Obligations.  The Main Lease is hereby incorporated in this
Sublease by reference and shall apply as though set forth at length in this
Sublease, with, where applicable, “Sublandlord” being substituted for “Landlord”
and “Subtenant” being substituted for “Tenant”.  Subtenant shall
comply with all of the provisions of the Main Lease which are to be observed or
performed during the Sublease Term by the Sublandlord as tenant
thereunder.  Between Sublandlord and Subtenant, Sublandlord shall have
all of the rights, privileges and remedies accorded Master Landlord in the Main
Lease and Subtenant shall have with respect to the Sublease Premises all of the
rights, privileges, remedies and duties accorded tenant in the Main Lease,
subject to paragraph 9 below.  Notwithstanding the foregoing, the
following provisions of the Main Lease shall be deleted in their entirety from
this Sublease: Paragraphs 2.2, 2.3,
2.4, 2.5, 3.1, 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.8, 9.2,   13.1, 14.1, 14.2, 14.3, 14.4, 14.5, 14.6,
14.7,
14.10, 14.11, 14.12, 17.1, 21.1, 21.2, 21.3, 22.2, 24, 25, 27.1, 27.2,
28.4, 28.5 and Exhibit B.  In the
event of any conflict between the terms of this Sublease and the Main Lease,
this Sublease shall control the relationship between Sublandlord and
Subtenant.  Sublandlord and Subtenant agree that all services to be
provided by, and all obligations of, Master Landlord under the Main Lease remain
the obligations of Master Landlord and the only obligation of Sublandlord to
Subtenant with respect thereto under this Sublease is to use commercially
reasonable efforts, after receipt of written notice from Subtenant and at
Subtenant’s sole cost and expense, to cause Master Landlord to perform its
obligations thereunder.  Sublandlord shall not be liable to Subtenant
for the failure to perform any of Master Landlord’s obligations under the Main
Lease, or for Master Landlord’s failure to perform such
obligations.  Sublandlord does assign to Subtenant Sublandlord’s
rights to enforce Master Landlord’s obligations under the Main Lease, and will
make commercially reasonable efforts, after receipt of written notice from
Subtenant and at Subtenant’s sole cost and expense, and to cooperate with
Subtenant in enforcing the same.

      

      9. No Enlargement of
Rights.  To the extent Sublandlord is granted in the Main Lease
or otherwise any rights to extend the term of the Main Lease or to expand the
Sublease Premises pursuant to a renewal option, expansion option, right of first
refusal or otherwise, the same are not included in this Sublease and do not pass
to Subtenant and shall remain the right of Sublandlord.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      10.  Subordination and
Attornment.  This Sublease and all of Subtenant’s rights
hereunder are and shall remain in all respects subject and subordinate to: (i)
all of the terms, conditions and provisions of the Main Lease (as same may be
modified or amended); and (ii) any and all matters to which the tenancy of
Sublandlord, as tenant under the Main Lease, is or may be
subordinate.  The foregoing provisions shall be self-operative and no
further instrument of subordination shall be necessary to effectuate such
provisions.  In the event Subtenant, Master Landlord or any lender or
ground lessor desires a confirmation of the foregoing subordination, Subtenant
agrees to execute a subordination document within five (5) business days of
receipt of written request for same.    In the event of a
cancellation or termination of the Main Lease prior to the expiration date
thereof and prior to the expiration date of this Sublease, or in the event of
the surrender, whether voluntary, involuntary or by operation of law, of the
Main Lease, Subtenant shall, at the option of Master Landlord, make full and
complete attornment to Master Landlord for the balance of the Sublease Term upon
the terms and conditions of the Sublease.  Sublandlord covenants not
to voluntarily terminate the Main Lease or to agree to any modification to same
that would materially affect Subtenant’s rights hereunder or increase
Subtenant’s monetary obligations.  To the extent of any conflict
between the terms of this Sublease and the terms of the Main Lease, Master
Landlord shall be bound only to extent of the terms of the Main
Lease.

      

      11.  Estoppel
Certificates.  Subtenant will at any time and from time to time
upon not less than five (5) business days’ prior notice from Sublandlord
execute, acknowledge and deliver to Sublandlord a statement certifying that this
Sublease is unmodified and in full force and effect or if there have been
modifications, stating such modifications, and the dates to which Base Rent and
all other amounts payable hereunder have been paid and whether same has been
paid in advance, and stating that Subtenant is not in default of its obligations
hereunder and whether or not to the best knowledge of the signer of such certificate
if Sublandlord is in default of its obligations hereunder and, if so, specifying
such default.  It is intended that any such statement may be relied
upon by Master Landlord, Sublandlord, or any prospective purchaser or lender of
either.

      

      12. Insurance.  During
the Sublease Term, Subtenant shall, at its own cost and expense, for the benefit
and protection of Subtenant, Sublandlord and Master Landlord, maintain the
insurance required by the Main Lease in accordance with the terms and provisions
of the Main Lease and naming Master Landlord, Sublandlord  and any
mortgagee holding a lien on the Building as additional insureds.

      

      13. Limitation of
Liability.  Notwithstanding any provisions of the Main Lease or
this Sublease to the contrary, neither Master Landlord nor Sublandlord nor their
officers, directors, employees, or agents shall be liable to Subtenant, or any
of its agents, employees, servants, or invitees, for any damage to persons or
property due to the condition or design or any defect in the Building or
mechanical systems, which may exist or subsequently occur; and Subtenant with
respect to itself and its agents, employees, servants, and invitees, hereby
expressly assumes all risk and damage to persons and property, either proximate
or remote, by reason of the present or future condition of the Sublease Premises
or the Building.  Additionally, Sublandlord and Subtenant each hereby
waive any and all rights or recovery, claim, action or cross action, against the
other and against Master Landlord, its agents, directors, officers, and
employees, for loss or damage that may occur to the Sublease Premises, or any
improvements therein, or the Building, or any personal property of such party
therein, by reason of any cause other than the gross negligence or willful
misconduct of the parties.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      14. Holdover.  If
Subtenant should holdover at the Sublease Premises after the expiration of the
Sublease Term or after the earlier termination of the Main Lease or this
Sublease, such holdover shall not extend or renew the term of this Sublease, Subtenant shall be deemed a tenant at
sufferance and the amount to be
charged by the Sublandlord to the Subtenant for the period of holdover shall be
one hundred fifty percent (150%) of Base Rent and
all other amounts payable hereunder.  Subtenant shall indemnify, defend
and hold Sublandlord harmless from and
against any and all claims, losses,
damages or expenses incurred by Sublandlord as a result of Subtenant’s holding
over.  , including without limitation any amounts charged to
Sublandlord by Master Landlord.  Nothing contained in this Sublease
shall be construed as consent by Sublandlord to the occupancy or possession by
Subtenant of the Subleased Premises beyond the expiration or earlier termination
of the Sublease Term, and Sublandlord, upon the expiration or earlier
termination of the Sublease Term, shall be entitled to the benefit of all legal
remedies that now may be in force or may be hereafter enacted relating to the
immediate repossession of the Subleased Premises.  The provisions of
this Section 14 (including without limitation Subtenant’s indemnification obligations) shall survive the expiration or sooner
termination of this Sublease.

      

      15. Assignment and
Subletting.  Subtenant shall not sell or assign any portion or
all of this Sublease or resublet the Sublease Premises, in whole or in part,
without obtaining the express prior written consent of Sublandlord (which
consent shall not be unreasonably withheld, conditioned or delayed) and Master
Landlord in each instance.  Further, this Sublease shall not be
assigned by operation of law.  Any such attempted sublease or
assignment without the prior written consent of Sublandlord and Master Landlord
shall be null and void and of no force or effect.  If Sublandlord and
Master Landlord give their consent to any sublease or assignment of this
Sublease or of any interest in this Sublease, neither shall thereby be barred
from later refusing to consent to any further sublease or
assignment.  Any assignment or sublease must comply with the terms and
provisions of the Main Lease and Master Landlord
shall have all the rights reserved to Master Landlord as set forth in
the Lease. Each of the following
events shall be deemed to constitute and assignment of this Sublease and shall
require the prior written consent of Master Landlord and Sublandlord: (a) any
assignment or transfer by operation of law; (b) any involuntary assignment or
transfer of this Lease in connection with bankruptcy, insolvency, receivership,
or similar proceeding; or (c) any assignment or sublease to another person or
entity to which substantially all of Subtenant’s assets are transferred; or (d)
any assignment, transfer, disposition, sale or issuance of an interest or
interests in Subtenant (whether stock, partnership interest or otherwise) to any
person or entity, whether in a single transaction or in a series of related or
unrelated transactions, which results in such person or entity holding a
controlling interest in Subtenant.  For purposes of this section 15, a
“controlling interest” of Subtenant shall mean 50% or more of the aggregate
issued and outstanding equitable interests (whether stock, partnership interests
or otherwise) of Subtenant or the ability to direct the affairs of
Subtenant.  For purposes of this Sublease, Section 14.7 of the Main
Lease shall not be incorporated herein.  Subtenant shall reimburse Sublandlord for all fees,
costs and expenses (including reasonable attorneys’ fees) charged to Sublandlord
by Master Landlord in connection with any proposed assignment of this Sublease
or any sublease of the Subleased Premises or for any other work or thing done in
the Subleased Premises by Subtenant as well as any fees, costs and expenses
(including reasonable attorneys’ fees) incurred by Sublandlord in connection
with any of the foregoing.  Any assignment of the Sublease by
Subtenant or sublease of the Subleased Premises shall not relieve Subtenant of
its obligations hereunder.  

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      16.  Alterations.  Subtenant
shall have no right to make any additions, alterations or changes to the
Sublease Premises without the express prior written consent of (i) Sublandlord
in each instance, which consent shall not be unreasonably withheld or delayed
and (ii) Master Landlord, as required under the Main Lease.  All work
shall be carried out in accordance with the terms of the Main Lease, the terms
of which are incorporated herein by reference.

      

      17.  Indemnification.  Except
to the extent arising from the gross negligence or willful misconduct of
Sublandlord or its directors, employees and authorized agents, Subtenant hereby
indemnifies, and shall pay, defend, protect and hold Sublandlord harmless from
and against all liabilities, losses, claims, suits, demands, costs, expenses
(including reasonable attorneys’ fees and the costs of enforcing this indemnity)
arising, or alleged to arise, from or in connection with: (a) any injury to, or
death of, any person or loss or damage to property on or about the Sublease
Premises arising from or connected with the possession, use, occupation,
management or maintenance of the Sublease Premises; (b) any violation of this
Sublease (including the terms of the Main Lease
which are incorporated herein) or of
any legal or insurance requirement; (c) any violation of any requirement of any
Planned Community Association; or (d) any act or omission of Subtenant or
Subtenant’s agent. Subtenant will resist and
defend any action, suit or proceeding brought against Sublandlord by reason of
any such occurrence by independent counsel selected by Subtenant and reasonably
acceptable to Sublandlord.  The obligations of Subtenant under this
Section 17 shall survive the expiration or termination of this
Sublease.

      

      18.  Casualty.  If
the Sublease Premises or the Building are damaged or destroyed by fire or other
casualty, Sublandlord shall have no obligation to rebuild or restore the
Sublease Premises, and no liability whatsoever for loss of this Sublease should
Master Landlord elect not to rebuild or restore the Sublease Premises or any
part of the Building, or for loss of life, or injury to persons or property or
for lost profits.  The rebuilding or restoration of the Sublease
Premises and any abatement of rent, if any, shall be determined in accordance
with the terms and provisions of the Main Lease.

      

      19.  Eminent
Domain.  In the event that the Main Lease is terminated
pursuant to the terms of Article 16 of the Main Lease, the Sublease Term shall
terminate at the time that the Main Lease terminates.

      

      20. Master Landlord’s
Consent.  This Sublease is subject to the prior written consent
of Master Landlord and will not be effective until such consent is
received.

      

      21. No
Default.  Sublandlord represents and warrants to Subtenant that
Sublandlord is not in monetary default under the Main Lease and has no knowledge
that any non-monetary default thereunder exists.

      

      22. Brokerage.  Both
parties represent and warrant that neither it nor its officers or agents nor
anyone on its behalf has dealt with any real estate broker in the negotiation or
making of this Sublease other than Princeton Real Estate Group, LLC, doing
business as Henderson Sotheby’s International Realty.  Both parties
agrees to indemnify and hold the other harmless from the claims or claims of any
other broker or brokers claiming to have shown or interested Subtenant in the
Sublease Premises or claiming to have caused Subtenant to enter into this
Sublease.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      23.  Security
Deposit:  Upon execution of this Sublease, Subtenant shall pay
to Sublandlord the amount of $23,152.20 (the “Security Deposit”) as security for
Subtenant’s performance of all of Subtenant’s covenants and obligations under
this Sublease; provided, however, that the Security Deposit is not an advance
rent deposit or an advance payment of any other kind, nor a measure of
Sublandlord’s damages upon Subtenant’s default.  Sublandlord shall not
be required to segregate the Security Deposit from its other funds and no
interest shall accrue or be payable to Subtenant with respect
thereto.  Sublandlord may (but shall not be required to) use the
Security Deposit or any portion thereof to cure any event of default or to
compensate Sublandlord for any damage Sublandlord incurs as a result of
Subtenant’s failure to perform any of its covenants or obligations hereunder, it
being understood that any use of the Security Deposit shall not constitute a bar
or defense to any of Sublandlord’s remedies under this Sublease or at
law.  In such event and upon written notice from Sublandlord to
Subtenant specifying the amount of the Security Deposit so utilized by
Sublandlord and the particular purpose for which such amount was applied,
Subtenant shall immediately deposit with Sublandlord an amount sufficient to
return the Security Deposit to an amount equal to the amount required
hereunder.  Subtenant’s failure to make such payment to Sublandlord
within ten (10) Business Days of Sublandlord’s notice shall constitute an
immediate event of default.  If Subtenant is not in default at the
expiration or termination of this Lease, Sublandlord shall return to Subtenant
the Security Deposit or the balance thereof then held by Sublandlord; provided,
however, that in no event shall any such return be construed as an admission by
Sublandlord that Subtenant has performed all of its covenants and obligations
hereunder.

      

      24.  Notices.  Any
notice required or permitted to be given hereunder by one party to the other
shall be deemed to be given when personally delivered or mailed, postage prepaid
by certified, registered or overnight mail, addressed to the respective party to
whom notice is intended to be given at the following address:

      

      
        	
                If
      to Sublandlord;

              	
                Reliance Life Sciences,
      Inc.

              

      

      
        	
                 
      

              	 	
                5 Caufield
Place

              

      

      
        	
                 
      

              	 	
                Suite
      101

              

      

      
        	
                 
      

              	 	
                Newtown,
      PA 18940

              

      

      

      
        	
                 
      

              	
                With
      a copy to:

              	
                Drinker
      Biddle & Reath LLP

              

      

      
        	
                 
      

              	
                105
      College Road East

              

      

      
        	
                 
      

              	
                Princeton,
      New Jersey 08542

              

      

      
        	
                 
      

              	
                Attention:
      James E. Jeffers, Esq.

              

      

      

      
        	
                 
      

              	
                If
      to Subtenant;

              	
                Patient
      Safety Technologies, Inc.

              

      

      
        	
                 
      

              	 	
                4360
      Ridge Park Drive

              

      

      
        	
                 
      

              	 	
                Suite
      140

              

      

      
        	
                 
      

              	 	
                Temecula,
      CA 92590

              

      

      
        	
                 
      

              	 	
                Attn:
      Marc Rose, CFO

              

      

      

      
        	
                 
      

              	
                With
      a copy to:

              	
                Reed
      Smith LLP

              

      

      
        	
                 
      

              	 	
                101
      Second Street

              

      

      
        	
                 
      

              	 	
                Suite
      1800

              

      

      
        	
                 
      

              	 	
                San
      Francisco, CA 94105

              

      

      
        	
                 
      

              	 	
                Attention:
      Donald C. Reinke, Esq.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      25. Personal
Property.  Subtenant shall have the right at any time during
the Sublease Term to remove any of its personal property or trade fixtures from
the Sublease Premises and Sublandlord waives any right to any security interest
in the same.  Any personal property or trade fixtures left in the
Sublease Premises after the expiration or earlier termination of the Sublease
Term shall be deemed abandoned and may be disposed of by Sublandlord in its sole
and absolute discretion.  Any costs or damages incurred by Sublandlord
in the removal or storage of such property shall be reimbursed by Subtenant
immediately upon demand.  Subtenant’s obligations pursuant to this
Section 25 shall survive the expiration or sooner termination of this
Sublease.

      

      26. Permits, Etc.  At all times during the
Sublease Term, Subtenant shall maintain all permits, licenses and
authorizations required in connection with Subtenant’s business at the Subleased
Premises or any work performed by or on behalf of
Subtenant.  Subtenant shall deliver a copy of same to Sublandlord upon
request.

      

      27.  Planned Community
Association.  Subtenant hereby consent to the conversion of the
ownership of the Land into a Planned Community Association and agrees to execute
and deliver within five (5) business days of request any and all documents
requested by Master Landlord to be executed with respect to the formation of the
Planned Community Association.

      

      28.  Miscellaneous.  Except
as otherwise expressly set forth herein, all defined terms contained herein
shall have the same meanings given to such terms in the Main
Lease.  This Sublease shall be governed by the laws of the State of
Pennsylvania, and in the event any legal action is filed to enforce this
Sublease, the prevailing party shall be entitled to recover reasonable
attorney’s fees, court costs, and other expenses incidental and necessary to the
enforcement of the Sublease.  Time is of the essence with respect to
each party’s performance of its obligations hereunder.  This Sublease
represents the entire agreement between the parties and may not be modified or
amended unless in writing and signed by the party to be bound
thereby.  The headings used herein are for ease of reference only and
do not define or limit any of the provisions of this Sublease.  This
Sublease may be executed in one or more counterparts, and when taken together
shall constitute one and the same.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

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

       

      
        
          
            
              
                
                  
                    	 
      	 
      	 
      	 
      
	
                            WITNESSES:   

                          	 
      	
                            SUBLANDLORD:

                             

                            RELIANCE
      LIFE SCIENCES, INC.,

                             

                             

                          	 
      
	 
      	 
      	
                            a
      Delaware Corporation

                          	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                            By:

                          	
                             

                          	 
      
	 
      	 
      	
                            Name 

                          	 
      
	 
      	 
      	
                            Title 

                          	 
      
	 
      	 
      	 
      	 
      	 
      

                  

                

              

            

          

        

      

      
        
          
            

               

              
                
                  
                    
                      
                        
                          
                            	 
      	 
      	 
      	 
      
	
                                  	 
      	
                                    SUBTENANT:

                                     

                                    PATIENT
      SAFETY TECHNOLOGIES, INC.,

                                     

                                  	 
      
	 
      	 
      	
                                    a
      Delaware Corporation

                                  	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                    By:

                                  	
                                     

                                  	 
      
	 
      	 
      	
                                    Name 

                                  	 
      
	 
      	 
      	
                                    Title 

                                  	 
      
	 
      	 
      	 
      	 
      	 
      

                          

                        

                      

                    

                  

                

              

               

            

          

        

      

      EXHIBITS

      

      Exhibit
“A” –  Main Lease

      Exhibit
“B” –  Sublease Premises

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      Master
Landlord hereby consents to the foregoing Sublease.  Such consent does
not release Sublandlord of any liability under the Main Lease or modify
Sublandlord’s obligations under the Main Lease, nor shall such consent be deemed
to modify the rights or obligations of Master Landlord under the Main
Lease.

      

      

      

       

      
        	 	 	CRICKLEWOOD REALTY
      INVESTMENTS, LP
	 	 	 
	WITNESS:	 	 
	 	 	By:_______________________________
	____________________________	 	 
	 	 	Name (print):________________________
	 	 	 
	 	 	Title (print):_________________________ 
      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
A

      

      MAIN
LEASE

      

    

     

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

    

    
      

    

     

    
      EXHIBIT
B

      

      SUBLEASE
PREMISESTHE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THE SECURITIES MAY
NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM,
SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

    

    SECOND
AMENDED AND RESTATED PROMISSORY NOTE

    

    
      
        	
                New
      York, New York

              	
                $___________

              

      

    

    

    Original
Issue Date: June ___, 2008

    Amended
As Of: December 31, 2008

    Further
Amended As Of: December 31, 2009

    

    THIS
SECOND AMENDED AND RESTATED PROMISSORY NOTE AMENDS AND RESTATES IN ITS ENTIRETY
THE AMENDED AND RESTATED PROMISSORY NOTE, DATED AS OF DECEMBER 31, 2008 (THE
“FIRST AMENDED NOTE”), ISSUED BY THE UNDERSIGNED TO THE HOLDER.  THE
EXECUTION AND DELIVERY OF THIS SECOND AMENDED AND RESTATED PROMISSORY NOTE IS
NOT INTENDED TO BE A REPAYMENT OR NOVATION OF THE INDEBTEDNESS EVIDENCED BY THE
FIRST AMENDED NOTE.

    

    FOR VALUE RECEIVED, EMERALD DAIRY INC., a Nevada
corporation (hereinafter called the “Borrower”), hereby
promises to pay to the order of ____________________, a __________, or its
registered assigns (the “Holder”) the sum of
__________________ Dollars ($______), on December 31, 2010 (the “Maturity Date”), and
to pay interest on the unpaid principal balance from December 31, 2009 (the
“Issue Date”)
at the rate of ten percent (10%) per annum (the “Interest Rate”) until
the same becomes due and payable, whether at maturity or upon acceleration or by
prepayment or otherwise.  Any amount of principal or interest on this
Second Amended and Restated Promissory Note (hereinafter, the “Note”) which is not
paid when due shall bear interest at the rate of twelve percent (12%) per annum
from the due date thereof until the same is paid (“Default
Interest”).  Interest shall commence accruing on the Issue
Date, shall be computed on the basis of a 365-day year and the actual number of
days elapsed and shall be payable, at the Maturity Date.  All payments
due hereunder shall be made in lawful money of the United States of America. All
payments shall be made at such address as the Holder shall hereafter give to the
Borrower by written notice made in accordance with the provisions of this
Note.  Whenever any amount expressed to be due by the terms of this
Note is due on any day which is not a business day, the same shall instead be
due on the next succeeding day which is a business day.  As used in
this Note, the term “business day” shall mean any day other than a Saturday,
Sunday or a day on which commercial banks in the city of New York, New York are
authorized or required by law or executive order to remain
closed.  This Note was originally issued pursuant to a Securities
Purchase Agreement entered into between the Borrower and Holder (the “Purchase Agreement”),
dated as of June __, 2008, as amended by an Amendment dated as of December 31,
2008, and further amended by an Amendment dated December 31,
2009.  Each capitalized term used herein, and not otherwise defined,
shall have the meaning ascribed thereto in the Purchase
Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    The following terms shall apply to this
Note:

    

    ARTICLE
I.

    PREPAYMENT

    

    1.1           Borrower’s
Prepayment Option.  Notwithstanding
anything to the contrary contained herein, at Borrower’s option at any time
following the Issue Date, upon fifteen (15) days prior written notice, the
Borrower shall have the right to prepay the entire principal amount of the Note
(the “Prepayment
Option”).  On the 16th day following such notice, the Borrower
shall make payment to the Holder of an amount in cash equal to the sum of (a)
the principal amount of the Note outstanding on such day plus (b) accrued and
unpaid interest on such unpaid principal amount plus (c) Default Interest, if
any, on the amounts referred to in clauses (a) and (b) plus (d) any amounts owed
to the Holder pursuant to this Note (the “Prepayment
Amount”).  If the Borrower fails to make such payment within
one (1) business day of such date the Borrower shall be subject to a penalty of
..005 multiplied by the Prepayment Amount for every additional business day on
which such payment is not made.

    

    1.2           Holder’s
Prepayment Option.  Notwithstanding
anything to the contrary contained herein, at Holder’s option, Holder shall have
the right at any time to be prepaid, in whole or in part, any amounts due under
the terms of this Note from the proceeds of any offering of the Borrower’s
securities resulting in gross proceeds of $4,500,000 or more, with the exception
of offerings where the proceeds will be used primarily in connection with the
expansion and/or equipping of the Borrower’s production facility located in
Hailun City, Heilongjiang Province, PRC.  In order to exercise such
right, Holder shall deliver a written notice of prepayment to the
Borrower.  The Borrower shall make payment to the Holder of an amount
in cash equal to the sum indicated in such notice within three (3) business days
following the date on which notice of prepayment is delivered.

    

    ARTICLE
II.

    CERTAIN
COVENANTS

    

    2.1           Distributions
on Capital Stock.  So long as the Borrower shall have any
obligation under this Note, the Borrower shall not without the Holder’s written
consent (a) pay, declare or set apart for such payment, any dividend or other
distribution (whether in cash, property or other securities) on shares of
capital stock other than dividends on shares of Common Stock solely in the form
of additional shares of Common Stock or (b) directly or indirectly or through
any subsidiary make any other payment or distribution in respect of its capital
stock except for distributions pursuant to any shareholders’ rights plan which
is approved by a majority of the Borrower’s disinterested
directors.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    2.2           Restriction
on Stock Repurchases.  So long as the Borrower shall have any
obligation under this Note, the Borrower shall not without the Holder’s written
consent redeem, repurchase or otherwise acquire (whether for cash or in exchange
for property or other securities or otherwise) in any one transaction or series
of related transactions any shares of capital stock of the Borrower or any
warrants, rights or options to purchase or acquire any such shares.

    

    2.3           Borrowings.  So
long as the Borrower shall have any obligation under this Note, the Borrower
shall not, without the Holder’s written consent, create, incur, assume or suffer
to exist any liability for borrowed money, except (a) borrowings in existence or
committed on the date hereof and of which the Borrower has informed Holder in
writing prior to the date hereof, (b) indebtedness to trade creditors or
financial institutions incurred in the ordinary course of business or (c)
borrowings from financial institutions where the primary purpose of the proceeds
is for the general corporate use of the Borrower (d) borrowings, the proceeds of
which shall be used to repay this Note, or (e) borrowings where the funds will
be used primarily in connection with the expansion and/or equipping of the
Borrower’s production facility located in Hailun City, Heilongjiang Province,
PRC.

    

    2.4           Sale of
Assets.  So long as the
Borrower shall have any obligation under this Note, the Borrower shall not,
without the Holder’s written consent, sell, lease or otherwise dispose
(collectively, a “Disposition”) of any
significant portion of its assets, other than to a wholly-owned subsidiary of
the Borrower, outside the ordinary course of business unless the proceeds of
such Disposition shall be used to repay this Note.  Any consent to the
disposition of any assets may be conditioned on a specified use of the proceeds
of disposition.

    

    2.5           Advances
and Loans.  So long as the Borrower shall have any obligation
under this Note, the Borrower shall not, without the Holder’s written consent,
lend money, give credit or make advances to any person, firm, joint venture or
corporation, including, without limitation, officers, directors, employees,
subsidiaries and affiliates of the Borrower, except loans, credits or advances
(a) in existence or committed on the date hereof and which the Borrower has
informed Holder in writing prior to the date hereof or (b) made in the ordinary
course of business.

    

    2.6           Contingent
Liabilities.  So long as the Borrower shall have any obligation
under this Note, the Borrower shall not, without the Holder’s written consent,
assume, guarantee, endorse, contingently agree to purchase or otherwise become
liable upon the obligation of any person firm, partnership, joint venture or
corporation, except by the endorsement of negotiable instruments for deposit or
collection and except assumptions, guarantees, endorsements and contingencies
(a) in existence or committed on the date hereof and which the Borrower has
informed Holder in writing prior to the date hereof, and (b) similar
transactions in the ordinary course of business.

    

    ARTICLE
III.  EVENTS OF DEFAULT

    

    3.1           Events of
Default.  Each of the
following events shall be deemed an “Event of Default” under this
Note:

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (a)           Failure
to Pay Principal or Interest.  The Borrower fails to pay the
principal hereof or interest thereon when due on this Note, whether at maturity,
upon acceleration, or otherwise.

    

    (b)           Breach of
Covenants.  The Borrower breaches any material covenant or
other material term or condition contained herein, or in the Purchase Agreement,
and such breach continues for a period of thirty (30) days after written notice
thereof to the Borrower from the Holder.

    

    (c)           Breach of
Representations and Warranties.  Any representation or warranty
of the Borrower made herein or in any agreement, statement or certificate given
in writing pursuant hereto or in connection herewith (including, without
limitation, the Purchase Agreement), shall be false or misleading in any
material respect when made and the breach of which has (or with the passage of
time will have) a material adverse effect on the rights of the Holder with
respect to this Note or the Purchase Agreement.

    

    (d)           Receiver
or Trustee.  The Borrower or any subsidiary of the Borrower
shall make an assignment for the benefit of creditors, or apply for or consent
to the appointment of a receiver or trustee for it or for a substantial part of
its property or business, or such a receiver or trustee shall otherwise be
appointed;

    

    (e)           Judgments.  Any
money judgment, writ or similar process shall be entered or filed against the
Borrower or any subsidiary of the Borrower or any of its property or other
assets for more than $250,000, and shall remain un-vacated, un-bonded or
un-stayed for a period of twenty (20) days unless otherwise consented to by the
Holder, which consent will not be unreasonably withheld;

    

    (f)           Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for
relief under any bankruptcy law or any law for the relief of debtors shall be
instituted by or against the Borrower or any subsidiary of the Borrower and if
instituted against Borrower is not dismissed within sixty (60) days;
or

    

    (g)           Delisting
of Common Stock.  The Borrower shall fail to maintain the
listing of the Common Stock on at least one of the OTCBB, the Nasdaq National
Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the NYSE
Alternext.

    

    3.2         Effect of
Event of Default.  Upon the
happening of any Event of Default, as set forth in Section 3.1 above, then, or
at any time thereafter, and in each and every such case, unless such Event of
Default shall have been waived in writing by the Holder (which waiver shall not
serve as a waiver of any subsequent default) at the option of the Holder and in
the Holder’s sole discretion, the Holder may consider this Note immediately due
and payable, without presentment, demand, protest or notice of any kind, all of
which are hereby expressly waived, anything herein notwithstanding, and the
Holder may immediately enforce any and all of the Holder’s rights and remedies
provided herein or any other right or remedy afforded by law.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    ARTICLE
IV.  MISCELLANEOUS

    

    4.1           Failure
or Indulgence Not Waiver.  No failure or delay on the part of
the Holder in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or privilege preclude other or further exercise thereof or of
any other right, power or privileges.  All rights and remedies
existing hereunder are cumulative to, and not exclusive of, any rights or
remedies otherwise available.

    

    4.2           Notices.  Any
notice herein required or permitted to be given shall be in writing and may be
personally served or delivered by courier or sent by United States mail and
shall be deemed to have been given upon receipt if personally served (which
shall include telephone line facsimile transmission) or sent by courier or three
(3) days after being deposited in the United States mail, certified, with
postage pre-paid and properly addressed, if sent by mail.  For the
purposes hereof, the address of the Holder shall be as shown on the records of
the Borrower; and the address of the Borrower shall be 11990 Market Street,
Suite 205, Reston, VA 20190, Fax #: (678) 868-0633.  Both the Holder
and the Borrower may change the address for service by service of written notice
to the other as herein provided.

    

    4.3           Amendments.  This
Note and any provision hereof may only be amended by an instrument in writing
signed by the Borrower and the Holder.  The term “Note” and all
reference thereto, as used throughout this instrument, shall mean this
instrument (and the other Notes issued pursuant to the Purchase Agreement) as
originally executed, or if later amended or supplemented, then as so amended or
supplemented.

    

    4.4           Assignability.  This
Note shall be binding upon the Borrower and its successors and assigns, and
shall inure to the benefit of the Holder and its successors and
assigns.  Each transferee of this Note must be an “accredited
investor” (as defined in Rule 501(a) of the 1933
Act).  Notwithstanding anything in this Note to the contrary, this
Note may be pledged as collateral in connection with a bona fide margin account
or other lending arrangement.

    

    4.5           Cost of
Collection.  If default is made in the payment of this Note,
the Borrower shall pay the Holder hereof costs of collection, including
reasonable attorneys’ fees.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    4.6           Governing
Law.  THIS NOTE SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE
AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES
OF CONFLICT OF LAWS.  THE BORROWER HEREBY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK
WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS NOTE, THE AGREEMENTS ENTERED INTO
IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH
PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES FURTHER AGREE
THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING.  NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.  BOTH PARTIES AGREE THAT
A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT
OR IN ANY OTHER LAWFUL MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN
ANY DISPUTE ARISING UNDER THIS NOTE SHALL BE RESPONSIBLE FOR ALL FEES AND
EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN
CONNECTION WITH SUCH DISPUTE.

    

    4.7           Denominations.  At
the request of the Holder, upon surrender of this Note, the Borrower shall
promptly issue new Notes in the aggregate outstanding principal amount hereof,
in the form hereof, in such denominations as the Holder shall
request.

    

    4.8           Purchase
Agreement.  By its acceptance of this Note, each Holder agrees
to be bound by the applicable terms of the Purchase Agreement.

    

    4.9           Remedies.  The Borrower
acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder, by vitiating the intent and purpose of the
transaction contemplated hereby. Accordingly, the Borrower acknowledges that the
remedy at law for a breach of its obligations under this Note will be inadequate
and agrees, in the event of a breach or threatened breach by the Borrower of the
provisions of this Note, that the Holder shall be entitled, in addition to all
other available remedies at law or in equity, and in addition to the penalties
assessable herein, to an injunction or injunctions restraining, preventing or
curing any breach of this Note and to enforce specifically the terms and
provisions thereof, without the necessity of showing economic loss and without
any bond or other security being required.

    

    [THE
REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY]

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, Borrower
has caused this Note to be signed in its name by its duly authorized
representative this 31st day of December, 2009.

    

    
      
        
          
            	 
      	
                    EMERALD
      DAIRY INC.

                  
	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	 
      	
                    Name:
      Shu Kaneko

                  
	 
      	 
      	
                    Title:
      Chief Financial
Officer

                  

          

        

      

    

    
      
         

      

      
        7

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