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NEITHER THE ISSUANCE
AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES
INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE
OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED
BY THE HOLDER), IN A
GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
(II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

      

      
        
          	 
      	
                  Right
      to Purchase ________ shares of Common Stock of GoEnergy,
      Inc. (subject to adjustment as provided
herein)

                

        

      

      

      SERIES
A COMMON STOCK PURCHASE WARRANT

      

      
        	
                No.
      2010-A-___

              	
                Issue
      Date: December __, 2010

              

      

      

      GOENERGY,
INC., a corporation organized under the laws of the State of Delaware (the
“Company”), hereby
certifies that, for value received, _______________ (the “Holder”), with an address at
___________________________________, or its assigns (the “Holder”), is entitled, subject
to the terms set forth below, to purchase from the Company at any time after the
Issue Date until 5:00 p.m., E.D.T on the five (5) year anniversary of the Issue
Date (the “Expiration
Date”), up to ____________ fully paid and
non-assessable shares of Common Stock at a per share purchase price of
$0.60.  The aforedescribed purchase price per share, as adjusted from
time to time as herein provided, is referred to herein as the “Purchase
Price.”  The number and character of such shares of Common
Stock and the Purchase Price are subject to adjustment as provided
herein.  The Company may reduce the Purchase Price for some or all of
the Warrants, temporarily or permanently, provided such reduction is
made as to all outstanding Warrants for all Holders of such
Warrants.  Capitalized terms used and not otherwise defined herein
shall have the meanings set forth in that certain Subscription Agreement (the
“Subscription
Agreement”), dated as of December 6, 2010, entered into by the Company,
the Holder and the other signatories thereto.

      

      As used
herein the following terms, unless the context otherwise requires, have the
following respective meanings:

       

      (a)         The
term “Company” shall
mean GoEnergy, Inc., a Delaware corporation, and any corporation which shall
succeed or assume the obligations of GoEnergy, Inc. hereunder.

       

      (b)         The
term “Common Stock”
includes (i) the Company's Common Stock, $0.0001 par value per share, as
authorized on the date of the Subscription Agreement, and (ii) any other
securities into which or for which any of the securities described in (i) may be
converted or exchanged pursuant to a plan of recapitalization, reorganization,
merger, sale of assets or otherwise.

       

      (c)         The
term “Other Securities”
refers to any stock (other than Common Stock) and other securities of the
Company or any other person (corporate or otherwise) which the holder of the
Warrant at any time shall be entitled to receive, or shall have received, on the
exercise of the Warrant, in lieu of or in addition to Common Stock, or which at
any time shall be issuable or shall have been issued in exchange for or in
replacement of Common Stock or Other Securities pursuant to Section 4 hereof
or otherwise.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      (d)         The term “Warrant
Shares” shall mean the Common Stock issuable upon exercise
of this Warrant.

       

      1.           Exercise of
Warrant.

       

      1.1.         Number of Shares Issuable
upon Exercise.  From and after the Issue Date through and
including the Expiration Date, the Holder shall be entitled to receive, upon
exercise of this Warrant in whole in accordance with the terms of Section 1.2
hereof or upon exercise of this Warrant in part in accordance with Section 1.3
hereof, shares of Common Stock of the Company, subject to adjustment pursuant to
Section 4
hereof and Sections 12(a) and 14(p) of
the Subscription Agreement.

       

      1.2.         Full
Exercise.  This
Warrant may be exercised in full by the Holder hereof by delivery to the Company
of an original or facsimile copy of the form of subscription attached as
Exhibit A hereto (the “Subscription
Form”) duly executed by such Holder and
delivered within two (2) business day thereafter of payment, in cash,
wire transfer or by certified or official bank check payable to the order of the
Company, in the amount obtained by multiplying the number of shares of Common Stock for which
this Warrant is then exercisable by the Purchase Price then in
effect.  The original Warrant is not required to be surrendered to the
Company until it has been fully exercised.

       

      1.3.         Partial
Exercise.  This
Warrant may be exercised in
part (but not for a fractional share) by delivery of a Subscription Form in the
manner and at the place provided in Section 1.2 hereof, except that the amount payable by the
Holder on such partial exercise shall be the amount obtained by multiplying (a) the number of
whole shares of Common Stock designated by the Holder in the Subscription Form
by (b) the Purchase Price then in effect.  On any such partial
exercise, upon the written
request of the Holder, provided the Holder has
surrendered the original
Warrant, the Company, at its expense, will forthwith issue and deliver to or
upon the order of the Holder a new Warrant of like tenor, in the name of the
Holder hereof or as such Holder (upon payment by such Holder of any applicable
transfer taxes) may request, the whole number
of shares of Common Stock for which such Warrant may still be
exercised.

       

      1.4.         Fair Market
Value.  For purposes of this Warrant, the Fair Market Value of a share
of Common Stock as of a particular date (the “Determination Date”) shall
mean:

       

      (a)           If
the Company's Common Stock is traded on an exchange or  on the NASDAQ
Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New
York Stock Exchange or the NYSE AMEX Equities, then the average of the closing sale prices of the Common Stock for
the five (5) trading days immediately prior to (but not
including) the Determination Date;

       

      (b)           If
the Company's Common Stock is not traded on an exchange or on the NASDAQ Global
Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York
Stock Exchange or the NYSE AMEX Equities, but is traded on the OTC Bulletin
Board or in the over-the-counter market or Pink Sheets, then the average of the
closing bid and ask prices reported for the five (5) trading days immediately prior to (but not
including) the Determination Date;

       

      (c)           Except
as provided in clause (d) below and Section 3.1 hereof,
if the Company's Common Stock is not publicly traded, then as the Holder and the
Company shall mutually agree, or in the absence of such an agreement after good
faith efforts of the Company and the Holder to reach an agreement, by
arbitration in accordance with the rules then standing of the American
Arbitration Association, before a single arbitrator to be chosen from a panel of
persons qualified by education and training to pass on the matter to be decided;
or

      
        
           

        

        
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      (d)           If
the Determination Date is the date of a liquidation, dissolution or winding up,
or any event deemed to be a liquidation, dissolution or winding up pursuant to
the Company's charter, then all amounts to be payable per share to holders of
the Common Stock pursuant to the charter in the event of such liquidation,
dissolution or winding up, plus all other amounts to be payable per share in
respect of the Common Stock in liquidation under the charter, assuming for the
purposes of this clause (d) that all of the shares of Common Stock then
issuable upon exercise of all of the Warrants are outstanding at the
Determination Date.

       

      1.5.         Company
Acknowledgment.  The Company will, at the time of the exercise
of the Warrant, upon the request of the Holder hereof, acknowledge in writing
its continuing obligation to afford to such Holder any rights to which such
Holder shall continue to be entitled after such exercise in accordance with the
provisions of this Warrant. If the Holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the Company to afford
to such Holder any such rights.

       

      1.6.         Delivery of
Stock Certificates, etc. on Exercise. The Company agrees that, provided the
purchase price listed in the Subscription Form is received as specified in
Section
2 hereof, the shares of Common Stock purchased
upon exercise of this Warrant shall be deemed to be issued to the Holder hereof
as the record owner of such
shares as of the close of business on the date on which delivery of a
Subscription Form shall have occurred and payment made for such shares as
aforesaid. As soon as practicable after the exercise of this Warrant in full or
in part and the payment is made, and in any event within five (5) business days thereafter
(“Warrant Share
Delivery Date”), the Company, at its expense (including the payment
by it of any applicable issue taxes), will cause to be issued in the name
of, and delivered to, the Holder hereof, or as such Holder (upon payment by
such Holder of any applicable transfer taxes) may direct in compliance with
applicable securities laws, a certificate or certificates for the number of duly
and validly issued, fully paid and non-assessable shares of Common Stock (or
Other Securities) to which such Holder shall be entitled on such exercise, plus,
in lieu of any fractional share to which such Holder would otherwise be
entitled, cash equal to such fraction multiplied by the then Fair Market Value of one full share of
Common Stock, together with any other stock or other securities and property (including cash,
where applicable) to which such Holder is entitled upon such exercise pursuant
to Section 1 hereof or otherwise.  The
Company understands that a
delay in the delivery of the Warrant Shares after the Warrant Share Delivery
Date could result in economic loss to the Holder.  As compensation to
the Holder for such loss, the Company agrees to pay (as liquidated damages and
not as a penalty) to the Holder for late issuance
of Warrant Shares upon exercise of this Warrant the proportionate amount of $100
per business day after the Warrant Share Delivery Date for each $10,000 of
Purchase Price of Warrant Shares for which this Warrant is exercised which are not timely
delivered.  The Company shall promptly pay any payments incurred under this
Section in immediately available funds upon demand.  Furthermore, in addition to
any other remedies which may be available to the Holder, in the
event that the Company
fails for any reason to effect delivery of the Warrant Shares by the Warrant
Share Delivery Date, the Holder may revoke all or part of the relevant Warrant
exercise by delivery of a written notice to such effect to the Company,
whereupon the Company and
the Holder shall each be restored to their respective positions immediately
prior to the exercise of the relevant portion of this Warrant, except that the
liquidated damages described above shall be payable through the date notice of
revocation or rescission is given to the
Company.

      
        
           

        

        
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      1.7.         Buy-In.   In addition to any
other rights available to the Holder, if the Company fails to deliver to a
Holder the Warrant Shares as required pursuant to this Warrant, and the Holder
or a broker on the Holder’s behalf, purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a
sale by such Holder of the Warrant Shares which the Holder was entitled to
receive from the Company (a “Buy-In”), then the Company shall pay in cash to the Holder (in
addition to any remedies available to or elected by the Holder) the amount by
which (A) the Holder's total purchase price (including brokerage commissions, if
any) for the shares of Common Stock so purchased exceeds (B)
the aggregate Purchase
Price of the Warrant Shares required to have been delivered together with
interest thereon at a rate of 15% per annum, accruing until such amount and any
accrued interest thereon is paid in full (which amount shall be paid as
liquidated damages and not as a penalty).  For purposes of illustration, if a Holder purchases shares of Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to
$10,000 of Purchase Price of Warrant Shares to have been received upon
exercise of this Warrant,
the Company shall be required to pay the Holder $1,000, plus interest. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In, which shall include evidence of
the price at which such Holder had to purchase the Common Stock in an
open-market transaction or otherwise.

       

      2.           Cashless
Exercise.

       

      (a)          Payment
upon exercise may be made at the written option of the Holder either in (i)
cash, wire transfer or by certified or official bank check payable to the order
of the Company equal to the applicable aggregate Purchase Price, (ii) by
delivery of Common Stock issuable upon exercise of the Warrants in accordance
with Section (b) below or (iii) by a combination of any of the
foregoing methods, for the number of Common Stock specified in such form (as
such exercise number shall be adjusted to reflect any adjustment in the total
number of shares of Common Stock issuable to the Holder per the terms of this
Warrant) and the Holder shall thereupon be entitled to receive the number of
duly authorized, validly issued, fully-paid and non-assessable shares of Common
Stock (or Other Securities) determined as provided
herein.  Notwithstanding the immediately preceding sentence, payment
upon exercise may be made in the manner described in Section 2(b) below
only with respect to Warrant Shares not included for
unrestricted public resale in an effective registration statement on the date
notice of exercise is given by the Holder.

       

      (b)          If
the Fair Market Value of one share of Common Stock is greater than the Purchase
Price (at the date of calculation as set forth below), in lieu of exercising
this Warrant for cash, the Holder may elect to receive shares equal to the value
(as determined below) of this Warrant (or the portion thereof being cancelled)
by delivery of a properly endorsed Subscription Form delivered to the Company by
any means described in Section 13 hereof, in
which event the Company shall issue to the holder a number of shares of Common
Stock computed using the following formula:

       

      
        
          	
                  X= 

                	
                  Y (A-B)

                
	 
      	
                  A

                

        

      

      

      
        	
                 
      

              	
                Where  X=         

              	
                the
      number of shares of Common Stock to be issued to the
  Holder

              

      

       

      
        	
                 
      

              	
                Y=

              	
                the
      number of shares of Common Stock purchasable under the Warrant or, if only
      a portion of the Warrant is being exercised, the portion of the Warrant
      being exercised (at the date of such
  calculation)

              

      

       

      
        	
                 
      

              	
                A=

              	
                Fair Market
      Value

              

      

       

      
        	
                 
      

              	
                B=

              	
                Purchase
      Price (as adjusted to the date of such
  calculation)

              

      

       

      For
purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood
and acknowledged that the Warrant Shares issued in a cashless exercise
transaction in the manner described above shall be deemed to have been acquired
by the Holder, and the holding period for the Warrant Shares shall be deemed to
have commenced, on the date this Warrant was originally issued pursuant to the
Subscription Agreement.

      
        
           

        

        
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      3.           Adjustment for
Reorganization, Consolidation, Merger, etc.

       

      3.1.         Fundamental Transaction. 
If, at any time while this Warrant is outstanding, (A) the Company 
effects any merger or  consolidation  of the Company with or into
another entity, (B) the Company effects any sale of all or
substantially all of its assets in one or
a series of related transactions,  (C)
any tender offer or exchange offer (whether by the
Company or another entity) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their
shares for other securities, cash or property, (D) the Company
consummates a stock purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, or spin-off) with one or
more persons or entities whereby such other persons or entities acquire more
than the 50% of the outstanding shares of Common Stock (not including any shares
of Common Stock held by such other persons or entities making or party to, or
associated or affiliated with the other persons or entities making or party to,
such stock purchase agreement or other business combination), (E) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of
the 1934 Act) is or shall become the “beneficial owner” (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate
Common Stock of the Company, or (F) the Company effects any
reclassification of the Common Stock or any compulsory share exchange
pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property (in any such
case, a "Fundamental 
Transaction"), then, upon any subsequent exercise of this
Warrant, the Holder shall have the right to receive, for each Warrant Share that
would have been issuable upon such exercise immediately prior to the occurrence
of such Fundamental Transaction, at the option of the Holder, (a) upon
exercise of this Warrant, the number of shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the
surviving corporation, and any additional consideration (the “Alternate
Consideration”) receivable upon or as a result of
such reorganization, reclassification, merger,
consolidation or disposition of assets by a Holder of the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) if the Company is
acquired in (1) a transaction where the consideration paid to the holders
of the Common Stock consists solely of cash, (2) a “Rule 13e-3 transaction” as
defined in Rule 13e-3 under the 1934 Act, or (3) a transaction involving a
person or entity not traded on a national securities exchange, the Nasdaq Global
Select Market, the Nasdaq Global Market or the Nasdaq Capital
Market, cash equal to the Black-Scholes Value (as defined
herein).  For purposes of any such exercise, the
determination of the Purchase Price shall
be appropriately adjusted to apply to such Alternate
Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall
apportion the Purchase Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of
the Alternate Consideration.  If holders of Common Stock are given any
choice as to the securities, cash or property to be received in a
Fundamental Transaction, then the Holder shall be given the same choice as to
the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction.  To the extent necessary to
effectuate the foregoing provisions, any successor to the Company or
surviving entity in such Fundamental Transaction shall issue to the Holder a
new warrant consistent with
the foregoing provisions and evidencing the
Holder's right to exercise such warrant into Alternate
Consideration.  The terms of any agreement pursuant to which a
Fundamental Transaction is effected include terms requiring any such successor
or surviving entity to comply with the provisions of
this Section
3.1 and insuring that this Warrant (or any such replacement
security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction.  “Black-Scholes Value” shall be
determined in accordance with the Black-Scholes Option Pricing Model obtained
from the “OV” function on Bloomberg L.P. using (i) a price per share of Common
Stock equal to the Volume Weighted Average Price of the Common Stock for the
Trading Day immediately preceding the date of consummation of the applicable
Fundamental Transaction, (ii) a risk-free interest rate corresponding to the
U.S. Treasury rate for a period equal to the remaining term of this Warrant as
of the date of such request and (iii) an expected volatility equal to the 100
day volatility obtained from the HVT function on Bloomberg L.P. determined as of
the Trading Day immediately following the public announcement of the applicable Fundamental
Transaction.

      
        
           

        

        
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      3.2.         Continuation of
Terms.  Upon any reorganization, consolidation, merger or
transfer (and any dissolution following any transfer) referred to in this Section 3
hereof, this Warrant shall continue in full force and effect and the terms
hereof shall be applicable to the Other Securities and property receivable on
the exercise of this Warrant after the consummation of such reorganization,
consolidation or merger or the effective date of dissolution following any such
transfer, as the case may be, and shall be binding upon the issuer of any Other
Securities, including, in the case of any such transfer, the person acquiring
all or substantially all of the properties or assets of the Company, whether or
not such person shall have expressly assumed the terms of this Warrant as
provided in Section 4
hereof.

       

      3.3          Share
Issuance.  Until
the Expiration Date, if the Company shall issue any Common Stock, except for the Excepted
Issuances (as defined
in the Subscription
Agreement), prior to the
complete exercise of this Warrant for a consideration less than the Purchase
Price that would be in effect at the time of such issuance, then, and thereafter
successively upon each such issuance, the Purchase Price shall be reduced to such other lower
price for then outstanding Warrants.  For purposes of this adjustment,
the issuance of any
security or debt instrument of the Company carrying the right to convert such
security or debt instrument into Common Stock or of any warrant to purchase Common Stock
shall result in an adjustment to the Purchase Price upon the issuance of the
of the above-described
security, debt instrument, warrant, right, or option if such issuance is at a price lower
than the Purchase Price in
effect upon such issuance and again at any time upon any actual, permitted,
optional, or allowed issuances of shares of Common Stock upon any actual,
permitted, optional, or allowed exercise of such conversion or purchase rights if such issuance is at a
price lower than the
Purchase Price in effect upon any actual, permitted, optional, or allowed such
issuance.  Common Stock issued or issuable by the Company for no
consideration will be deemed issuable or to have been issued for $0.0001 per
share of Common Stock.  The reduction of the
Purchase Price described in this Section
3.3 is in addition to the
other rights of the Holder described in the Subscription Agreement.  Upon any reduction of the
Purchase Price, the number of shares of Common Stock that the Holder of
this Warrant shall thereafter, on the exercise hereof, be entitled to receive
shall be adjusted to a number determined by multiplying the number of shares of
Common Stock that would otherwise (but for the provisions of this Section 3.3) be
issuable on such exercise by a fraction of which (a) the numerator is the
Purchase Price that would otherwise (but for the provisions of this Section 3.3) be in
effect, and (b) the denominator is the Purchase Price in effect on the date of
such exercise.

       

      4.           Extraordinary Events
Regarding Common Stock.  In the event that the Company shall
(a) issue additional shares of Common Stock as a dividend or other
distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of Common Stock, then, in each such event,
the Purchase Price shall, simultaneously with the happening of such event, be
adjusted by multiplying the then Purchase Price by a fraction, the numerator of
which shall be the number of shares of Common Stock outstanding immediately
prior to such event and the denominator of which shall be the number of shares
of Common Stock outstanding immediately after such event, and the product so
obtained shall thereafter be the Purchase Price then in effect. The Purchase
Price, as so adjusted, shall be readjusted in the same manner upon the happening
of any successive event or events described in this Section 4. The
number of shares of Common Stock that the Holder of this Warrant shall
thereafter, on the exercise hereof, be entitled to receive shall be adjusted to
a number determined by multiplying the number of shares of Common Stock that
would otherwise (but for the provisions of this Section 4) be
issuable on such exercise by a fraction of which (a) the numerator is the
Purchase Price that would otherwise (but for the provisions of this Section 4) be in
effect, and (b) the denominator is the Purchase Price in effect on the date of
such exercise.

      
        
           

        

        
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      5.           Certificate as to
Adjustments.  In each case of any adjustment or readjustment in
the shares of Common Stock (or Other Securities) issuable on the exercise of the
Warrants or in the Purchase Price, the Company at its expense will promptly
cause its Chief Financial Officer or other appropriate designee to compute such
adjustment or readjustment in accordance with the terms of the Warrant and
prepare a certificate setting forth such adjustment or readjustment and showing
in detail the facts upon which such adjustment or readjustment is based,
including a statement of (a) the consideration received or receivable by
the Company for any additional shares of Common Stock (or Other Securities)
issued or sold or deemed to have been issued or sold, (b) the number of
shares of Common Stock (or Other Securities) outstanding or deemed to be
outstanding, and (c) the Purchase Price and the number of shares of Common
Stock to be received upon exercise of this Warrant, in effect immediately prior
to such adjustment or readjustment and as adjusted or readjusted as provided in
this Warrant. The Company will forthwith mail a copy of each such certificate to
the Holder of the Warrant and any Warrant Agent (as defined herein) of the
Company (appointed pursuant to Section 10
hereof).  Holder will be entitled to the benefit of the adjustment
regardless of the giving of such notice.  The timely giving of such
notice to Holder is a material obligation of the Company.

       

      6.           Reservation of Stock, etc.
Issuable on Exercise of Warrant; Financial
Statements.   The Company will at all times reserve and
keep available, solely for issuance and delivery on the exercise of the
Warrants, all shares of Common Stock (or Other Securities) from time to time
issuable on the exercise of the Warrant.  This Warrant entitles the
Holder hereof, upon written request, to receive copies of all financial and
other information distributed or required to be distributed to the holders of
the Company's Common Stock.

       

      7.           Assignment; Exchange of
Warrant.  Subject to compliance with applicable securities
laws, this Warrant, and the rights evidenced hereby, may be transferred by any
registered holder hereof (a “Transferor”). On the surrender
for exchange of this Warrant, with the Transferor's endorsement in the form of
Exhibit B
attached hereto (the “Transferor Endorsement Form”)
and together with an opinion of counsel reasonably satisfactory to the Company
that the transfer of this Warrant will be in compliance with applicable
securities laws, the Company will issue and deliver to or on the order of the
Transferor thereof a new Warrant or Warrants of like tenor, in the name of the
Transferor and/or the transferee(s) specified in such Transferor Endorsement
Form (each a “Transferee”), calling in the
aggregate on the face or faces thereof for the number of shares of Common Stock
called for on the face or faces of the Warrant so surrendered by the
Transferor.

       

      8.           Replacement of
Warrant.  On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft or destruction of this Warrant, on delivery of
an indemnity agreement or security reasonably satisfactory in form and amount to
the Company or, in the case of any such mutilation, on surrender and
cancellation of this Warrant, the Company at its expense, twice only, will
execute and deliver, in lieu thereof, a new Warrant of like tenor.

       

      9.           Maximum
Exercise.  The
Holder shall not be entitled to exercise this Warrant on an exercise
date, in connection with that number of shares
of Common Stock which would be in excess of the sum of (i) the number of
shares of Common Stock beneficially owned by the Holder and its Affiliates on an exercise date, and
(ii) the number of shares of Common Stock issuable upon the exercise of this
Warrant with respect to which the determination of this limitation is being made
on an exercise date, which would result in beneficial ownership by the Holder
and its Affiliates of more than 4.99% of the
outstanding shares of
Common Stock on such date.  For the purposes of the immediately
preceding sentence, beneficial ownership shall be determined in accordance with
Section 13(d) of the 1934 Act and Rule 13d-3
thereunder.  Subject to the foregoing, the Holder shall not
be limited to aggregate exercises which
would result in the issuance of more than 4.99%.  The
restriction described in this paragraph may be waived, in whole or in part,
upon sixty-one (61) days’ prior notice from the Holder to the Company to
increase such percentage.  The Holder may decide whether to convert
the Preferred Stock or exercise this Warrant to achieve an actual 4.99% or
increase such ownership position as described above.

      
        
           

        

        
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      10.         Warrant
Agent.  The Company may, by written notice to the Holder,
appoint an agent (a “Warrant
Agent”) for the purpose of issuing Common Stock (or Other Securities) on
the exercise of this Warrant pursuant to Section 1
hereof, exchanging this Warrant pursuant to Section 7
hereof, and replacing this Warrant pursuant to Section 8
hereof, or any of the foregoing, and thereafter any such issuance, exchange or
replacement, as the case may be, shall be made at such office by such Warrant
Agent.

       

      11.         Transfer on the Company's
Books.  Until this Warrant is transferred on the books of the
Company, the Company may treat the registered holder hereof as the absolute
owner hereof for all purposes, notwithstanding any notice to the
contrary.

       

      12.         Registration
Rights.  The Holder has been granted certain registration
rights by the Company as set forth in the Subscription Agreement.  The
terms of the Subscription Agreement and such registration rights are
incorporated herein by this reference.

      

      13.         Notices.   All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received), or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur.  The
addresses for such communications shall be:  (i) if to the Company, to
GoEnergy, Inc., c/o Kick the Can Corp., 1010 Avenue of
the Americas, Suite 302, New York, NY 10018, Attn: Gareb Shamus, facsimile: (212) 765-5779, with
a copy by fax only to (which shall not constitute notice) Anslow & Jaclin,
LLP, 195 Route 9 South, Manalapan, NJ 07726, Attn: Joseph M. Lucosky, Esq.,
facsimile: (732) 577-1188, and (ii) if to the Holder, to the address and
facsimile number listed on the first paragraph of this Warrant, with a copy by
fax (which shall not constitute notice) only to Grushko & Mittman, P.C., 515
Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212)
697-3575.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      14.         Law Governing This
Warrant.  This Warrant shall be governed by and construed in
accordance with the laws of the State of New York without regard to its
principles of conflicts of laws or of any other State.  Any action
brought by either party hereto against the other concerning the transactions
contemplated by this Warrant shall be brought only in the state courts of New
York or in the federal courts located in the state and county of New
York.  The parties to this Warrant hereby irrevocably waive any
objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon
forum non
conveniens.  The Company and the Holder waive
trial by jury.  The prevailing party shall be entitled to
recover from the other party its reasonable attorney's fees and
costs.  In the event that any provision of this Warrant or any other
agreement delivered in connection herewith is invalid or unenforceable under any
applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with, such statute or rule of law.  Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of any
agreement.   Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any suit, action or
proceeding in connection with this Warrant or any other Transaction Document by
mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices
to it under this Warrant and agrees that such service shall constitute good and
sufficient service of process and notice thereof.  Nothing contained
herein shall be deemed to limit in any way any right to serve process in any
other manner permitted by law.

       

      [-Signature
Page Follows-]

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, the Company has
executed this Warrant as of the date first written above.

       

      
        
          	 
      	
                  GOENERGY,
      INC.

                
	 
      	 
      
	 
      	
                  By: 

                	
                    

                
	 
      	 
      	
                  Gareb
  Shamus

                
	 
      	 
      	
                  President and Chief Executive
      Officer

                

        

      

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      Exhibit A

      

      FORM OF
SUBSCRIPTION

      (to be
signed only on exercise of Warrant)

      TO:  GOENERGY,
INC.

        

      The
undersigned, pursuant to the provisions set forth in the attached Warrant
(No.____), hereby irrevocably elects to purchase (check applicable
box):

        

      
        	
                ___ 

              	
                ________
      shares of the Common Stock covered by such Warrant;
  or

              

      

       

      
        	
                ___

              	
                the
      maximum number of shares of Common Stock covered by such Warrant pursuant
      to the cashless exercise procedure set forth in Section 2 of the
      Warrant.

              

      

      

      The
undersigned herewith makes payment of the full purchase price for such shares at
the price per share provided for in such Warrant, which is
$___________.  Such payment takes the form of (check applicable box or
boxes):

      

      
        	
                ___ 

              	
                $__________
      in lawful money of the United States;
and/or

              

      

       

      
        	
                ___

              	
                the
      cancellation of such portion of the attached Warrant as is exercisable for
      a total of _______ shares of Common Stock (using a Fair Market Value of
      $_______ per share for purposes of this calculation);
    and/or

              

      

      

      
        	
                ___

              	
                the
      cancellation of such number of shares of Common Stock as is necessary, in
      accordance with the formula set forth in Section 2 of the Warrant, to
      exercise this Warrant with respect to the maximum number of shares of
      Common Stock purchasable pursuant to the cashless exercise procedure set
      forth in Section 2.

              

      

      

      After
application of the cashless exercise feature as described above, _____________
shares of Common Stock are required to be delivered pursuant to the instructions
below.

      

      The
undersigned requests that the certificates for such shares be issued in the name
of, and delivered to __________________________________________, whose address
is ___________________________ ____________________________________.

      

      The
undersigned represents and warrants that all offers and sales by the undersigned
of the securities issuable upon exercise of the within Warrant shall be made
pursuant to registration of the Common Stock under the Securities Act of 1933,
as amended (the “Securities Act”), or pursuant to an exemption from registration
under the Securities Act.

      

      
        
          	
                  Dated:___________________

                	
                    

                
	 
      	
                  (Signature
      must conform to name of holder as

                  specified
      on the face of the Warrant)

                
	 
      	 
      
	 
      	
                    

                
	 
      	
                    

                
	 
      	
                  (Address)

                

        

      

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      Exhibit B

      

      FORM OF
TRANSFEROR ENDORSEMENT

      (To be
signed only on transfer of Warrant)

       

      For value
received, the undersigned hereby sells, assigns, and transfers unto the
person(s) named below under the heading “Transferees” the right represented by
the within Warrant to purchase the percentage and number of shares of Common
Stock of GOENERGY, INC. to which the within Warrant relates specified under the
headings “Percentage Transferred” and “Number Transferred,” respectively,
opposite the name(s) of such person(s) and appoints each such person Attorney to
transfer its respective right on the books of GOENERGY, INC., with full power of
substitution in the premises.

      

      
        
          	
                  Transferees

                	 
      	
                  Percentage Transferred

                	 
      	
                  Number Transferred

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                    

                	 
      	
                    

                	 
      

        

      

      

      
        
          	
                  Dated:  __________________,
      _______

                	 
      	
                    

                
	 
      	 
      	
                  (Signature
      must conform to name of holder as specified on the face of the
      warrant)

                
	 
      	 
      	 
      
	
                  Signed
      in the presence of:

                	 
      	 
      
	 
      	 
      	 
      
	
                    

                	 
      	
                     

                
	
                  (Name)

                	
                     

                	
                     

                
	 
      	 
      	
                  (address)

                
	 
      	 
      	 
      
	
                  ACCEPTED
      AND AGREED:

                	 
      	
                    

                
	
                  [TRANSFEREE]

                	 
      	
                     

                
	 
      	 
      	
                  (address)

                
	 
      	 
      	 
      
	
                     

                	 
      	 
      
	
                  (Name)Unassociated Document

    SUBSCRIPTION
AGREEMENT

    

    THIS SUBSCRIPTION
AGREEMENT (this
“Agreement”) is dated as of December 6, 2010 by and between GoEnergy Inc., a Delaware
corporation (the
“Company”), and the subscribers identified
on Schedule
1 hereto (collectively, the “Subscribers” and each, a “Subscriber”).

    

    WHEREAS, the Company and the Subscribers are executing and
delivering this Agreement in reliance upon an exemption from securities
registration afforded by the provisions of Section 4(2), Section 4(6) and/or
Regulation D (“Regulation
D”), as promulgated by the
United States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as
amended (the “1933 Act”);

    

    WHEREAS, the parties hereto
desire that, upon the terms and subject to the conditions contained herein, the
Company shall issue and sell to the Subscribers, as provided herein, and the
Subscribers, in the aggregate, shall purchase up to $1,500,000 of shares of
Series A Cumulative Convertible Preferred
Stock of the Company, par value $.0001 per share (“Preferred Stock”), at a
purchase price (the “Purchase
Price”) equal to one hundred dollars ($100)  per share, which
Preferred Stock shall be convertible into shares of the Company’s common stock,
$.0001 par value per share (the “Common Stock”), subject to the
rights and preferences described in the form of Certificate of Designation
annexed hereto as Exhibit
A (“Certificate of
Designation”), and Series A common stock purchase warrants (the “Warrants”) in the form
attached hereto as Exhibit
B, to purchase shares of Common Stock (the “Warrant Shares”) (the “Offering”).  The
Preferred Stock, shares of Common Stock issuable upon conversion of the
Preferred Stock (the “Shares”), the Warrants and the
Warrant Shares are collectively referred to herein as the “Securities”; and

    

    WHEREAS, the aggregate proceeds of the sale of
the Preferred Stock and the Warrants contemplated hereby (“Purchase
Price”) shall be held in
escrow by Grushko
& Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581 (the “Escrow
Agent”) pursuant to the terms of an Escrow
Agreement to be executed by the parties hereto substantially in the form
attached hereto as Exhibit C (the “Escrow
Agreement”).

    

    NOW,
THEREFORE, in consideration
of the mutual covenants and other agreements contained in this Agreement, the
Company and each of the Subscribers hereby agree as follows:

    

    1. 
         Closing and
Special Conditions.

    

    (a)           Closing. 
 Subject to the satisfaction or waiver of the terms and conditions of this
Agreement, on the “Closing
Date,” the Subscribers shall purchase, and the Company shall sell to such
Subscribers in accordance with Schedule I hereto, the Preferred Stock and the
Warrants as described in Section 2 below.  The date the Escrow Agent
releases the funds received from one or more Subscribers to the Company and
releases the Escrow Documents (as defined in the Escrow Agreement) to the
parties hereto in accordance with the provisions of the Escrow Agreement shall
be the Closing Date with respect to such released funds and Escrow Documents,
and such releases are referred to herein as the “Closing.”  The
parties hereto may agree to have more than one Closing once funds are deposited
into the escrow account, in which case the first Closing shall be referred to
herein as the “Initial
Closing”).

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (b)           Special
Conditions.   The
Closing hereunder is specifically conditional on the closing of
the  share exchange contemplated by the Share Purchase and Share
Exchange Agreement, dated November 5, 2010 and annexed hereto as Exhibit D (the “Share Exchange
Agreement”), by and among
the Company, Strato Malamas, an individual and majority stockholder of the
Company,  Kick the Can Corp., a Nevada corporation (“KTC Corp.”), Kicking the Can, L.L.C., a Delaware
limited liability company and the majority shareholder of KTC Corp., and the
other shareholders of KTC Corp. who are signatories thereto, pursuant to which
KTC Corp. shall become a wholly owned subsidiary of the Company (the
“Share
Exchange”). 
The Share Exchange must close immediately prior to the
Closing and by conducting the Closing and
accepting the Purchase
Price from the Subscribers, the Company represents that the Share Exchange has
irrevocably closed in accordance with the terms of the Share Exchange Agreement
.  The representations, covenants,
warranties and undertakings of the Company herein are made as of subsequent to
the completion of the Share Exchange.  The Company represents and warrants
that the Form 8-K, substantially in the form annexed hereto as Exhibit E (“Super 8-K”), will be filed with the Commission
within four (4) business days after the Initial Closing, as is required under
the Securities Exchange Act of 1934, as amended (the “1934 Act”).  Provided that the Share
Exchange has occurred and all of terms and conditions applicable to the Company
have been met, the Closing shall occur as soon as practicable after the
occurrence of the Share Exchange, but in any event no later than one (1)
business day of such events.  Failure to timely file the Super 8-K is an
Event of Default under the Transaction Documents.

    

    (c)         Time
Effective Clauses. 
All time effective clauses not specifically related to an actual Closing Date
shall be deemed to have commenced as of the Initial Closing Date, if more than
one Closing, or the Closing Date, if only one Closing.

    

    2. 
         Series A Preferred Stock and
Series A Warrant.

    

    (a)           Series A Preferred
Stock.   On the Closing Date, each Subscriber shall purchase
and the Company shall sell to each such Subscriber, the number of shares of
Preferred Stock designated on such Subscriber’s signature page hereto for such
Subscriber’s Purchase Price indicated thereon.

    

    (b)           Series A
Warrants.  On the
Closing Date, the Company shall issue and deliver the Warrants to the
Subscribers as follows:  (i) one Warrant shall be issued for each Two
Dollars ($2.00) of Purchase Price paid by a Subscriber on the Closing
Date.  The exercise price to acquire a Warrant Share upon exercise of a
Warrant shall be $0.60,
subject to amendment as described in the Warrants.  The Warrants shall be
exercisable until five (5) years after the Closing Date.

    

    3. 
         Payment and
Allocation of Purchase Price.   In consideration of the
issuance of the Preferred Stock and Warrants on the Closing Date, each
Subscriber shall pay to or for the benefit of the Company such Subscriber’s
Purchase Price, as set forth on the signature pages hereto.  The number of
Warrant Shares eligible for purchase by each such Subscriber is set forth on the
signature pages hereto.  The Purchase Price will be allocated among
the components of the Preferred Stock and Warrants so that each component of
same will be fully paid and non-assessable.

    

    4. 
         Subscriber Representations
and Warranties.  Each of the Subscribers, severally but not jointly,
hereby represents and warrants to, and agrees with the Company that, with
respect only to such Subscriber:

    

    (a)           Organization and Standing of
Subscriber.  Subscriber is duly formed, validly existing and in good
standing under the laws of the jurisdiction of its formation.

    

    (b)           Authorization and
Power.  Such Subscriber has the requisite power and authority to
enter into and perform this Agreement and the other Transaction Documents (as
defined herein) and to purchase the Preferred Stock and Warrants being sold to
such Subscriber hereunder.  The execution, delivery and performance of this
Agreement and the other Transaction Documents by such Subscriber, and the
consummation by such Subscriber of the transactions contemplated hereby and
thereby, have been duly authorized by all necessary action, and no further
consent or authorization of Subscriber or its board of directors or
stockholders, if applicable, is required.  This Agreement and the other
Transaction Documents have been duly authorized, executed and delivered by such
Subscriber and constitutes, or shall constitute, when executed and delivered, a
valid and binding obligation of such Subscriber, enforceable against Subscriber
in accordance with the terms thereof.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (c)           No Conflicts. 
The execution, delivery and performance of this Agreement and the other
Transaction Documents and the consummation by such Subscriber of the
transactions contemplated hereby and thereby or relating hereto do not and will
not (i) result in a violation of such Subscriber’s charter documents, bylaws or
other organizational documents, if applicable; (ii) conflict with nor constitute
a default (or an event which with notice or lapse of time or both would become a
default) under any agreement to which such Subscriber is a party; or (iii)
result in a violation of any law, rule or regulation, or any order, judgment or
decree of any court or governmental agency applicable to such Subscriber or its
properties (except for such conflicts, defaults and violations as would not,
individually or in the aggregate, have a material adverse effect on
Subscriber).  Such Subscriber is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental agency in order for such Subscriber to execute, deliver or perform
any of such Subscriber’s obligations under this Agreement and the other
Transaction Documents, nor to purchase the Securities in accordance with the
terms hereof, provided
that for purposes of the representation made in this sentence, such Subscriber
is assuming and relying upon the accuracy of the relevant representations and
agreements of the Company herein.

    

    (d)           Information on
Company.   Such Subscriber has been furnished with or has had
access to the EDGAR Website of the Commission to the Company’s filings made with
the Commission through the tenth (10th)
business day preceding the Closing Date (hereinafter collectively referred to,
together with the Super 8-K, the “Reports”).  Such
Subscriber is not deemed to have any knowledge of any information not included
in the Reports, unless such information is delivered in the manner described in
the next sentence.  In addition, such Subscriber may have received in
writing from the Company such other information concerning its operations,
financial condition and other matters as such Subscriber has requested in
writing, identified thereon as OTHER WRITTEN INFORMATION (such other information
is collectively, the “Other
Written Information”), and considered all factors such Subscriber deems
material in deciding on the advisability of investing in the
Securities.

    

    (e)           Information on
Subscriber.   Such Subscriber is, and will be at the time of
the conversion of the Preferred Stock and exercise of the Warrants, an “accredited investor,” as such
term is defined in Regulation D promulgated by the Commission under the 1933
Act, is experienced in investments and business matters, has made investments of
a speculative nature and has purchased securities of United States
publicly-owned companies in private placements in the past and, with its
representatives, has such knowledge and experience in financial, tax and other
business matters as to enable such Subscriber to utilize the information made
available by the Company to evaluate the merits and risks of, and to make an
informed investment decision with respect to, the proposed purchase, which such
Subscriber hereby agrees represents a speculative investment.  Such
Subscriber has the authority and is duly and legally qualified to purchase and
own the Securities.  Such Subscriber is able to bear the risk of such
investment for an indefinite period and to afford a complete loss thereof. 
The information set forth on Schedule
1 hereto
regarding such Subscriber is accurate.

    

    (f)           Purchase of Preferred Stock
and Warrants.  On the Closing Date, such Subscriber will purchase
the Preferred Stock and Warrants as principal for its own account for investment
only and not with a view toward, or for resale in connection with, the public
sale or any distribution thereof.

    

    (g)           Compliance with Securities
Act.   Such Subscriber understands and agrees that the
Securities have not been registered under the 1933 Act or any applicable state
securities laws by reason of their issuance in a transaction that does not
require registration under the 1933 Act (based in part on the accuracy of the
representations and warranties of Subscriber contained herein), and that such
Securities must be held indefinitely unless a subsequent disposition is
registered under the 1933 Act or any applicable state securities laws or is
exempt from such registration. In any event, and subject
to compliance with applicable securities laws, Subscriber may enter into lawful
hedging transactions in the course of hedging the position they assume and the
Subscriber may also enter into lawful short positions or other derivative
transactions relating to the Securities, or interests in the Securities, and
deliver the Securities, or interests in the Securities, to close out their short
or other positions or otherwise settle other transactions, or loan or pledge the
Securities, or interests in the Securities, to third parties who in turn may
dispose of these Securities.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (h)           Conversion Shares and
Warrant Shares Legend.  The Conversion Shares and Warrant Shares
shall bear the following or similar legend:

    

    “THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, NOR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF
COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER AND REASONABLY
APPROVED BY THE COMPANY), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE
FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.”

    

    (i)        
   Preferred
Stock and Warrants
Legend.  The
Preferred Stock and Warrants shall bear the following
legend:

    

    “NEITHER THE ISSUANCE
AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES
INTO
WHICH THESE SECURITIES ARE [CONVERTIBLE -OR-  EXERCISABLE] HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF
COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER AND REASONABLY
APPROVED BY THE COMPANY), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE
FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.”

    

    (j)     
      Communication
of Offer.  The offer
to sell the Securities was directly communicated to such Subscriber by the Company.  At no time was
such Subscriber presented with or solicited by any
leaflet, newspaper or magazine article, radio or television advertisement, or
any other form of general advertising or solicited or invited to attend a
promotional meeting otherwise than in connection and concurrently with such
communicated offer.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (k)           Restricted
Securities. 
 Such
Subscriber understands that
the Securities have not been registered under the 1933 Act and such Subscriber shall not sell, offer to sell, assign,
pledge, hypothecate or otherwise transfer any of the Securities unless pursuant
to an effective registration statement under the 1933 Act, or unless an
exemption from registration is available.  Notwithstanding anything to the
contrary contained in this Agreement, such Subscriber may transfer (without restriction and
without the need for an opinion of counsel) the Securities to its Affiliates (as
defined below), provided that each such Affiliate is an
“accredited investor,” as such term is defined under Regulation D, and such Affiliate agrees in writing to be bound by the terms and conditions
of this Agreement. For the purposes of this Agreement, an “Affiliate” of any person or entity means any other person or entity directly or indirectly controlling,
controlled by or under direct or indirect common control with such person or entity. Without limiting the foregoing, each
Subsidiary (as defined herein) is an Affiliate of the Company.  For
purposes of this definition, “control” means the power to direct the
management and policies of such person, directly or indirectly, whether
through the ownership of voting securities, by contract or
otherwise.

    

    (l)          
No
Governmental Review. 
Such Subscriber understands that no United States
federal or state agency or any other governmental or state agency has passed on
or made recommendations or endorsement of the Securities or the suitability of
the investment in the Securities, nor have such authorities passed upon
or endorsed the merits of the offering of the Securities.

    

    (m)          Independent
Decision.  The decision of such Subscriber
to purchase Securities has been made by such Subscriber independently of any
other Subscriber and independently of any information, materials, statements or
opinions as to the business, affairs, operations, assets, properties,
liabilities, results of operations, condition (financial or otherwise) or
prospects of the Company which may have been made or given by any other
Subscriber or by any agent or employee of any other Subscriber, and no
Subscriber or any of its agents or employees shall have any liability to any
other Subscriber (or any other Person) relating to or arising from any such
information, materials, statements or opinions. 

    

    (n)           Correctness
of Representations. 
Subscriber represents that the foregoing
representations and warranties are true and correct as of the date hereof and,
unless Subscriber otherwise notifies the
Company in
writing prior to the
Closing Date, shall be true and correct as of the
Closing Date.

    

    (o)           Survival.  The foregoing representations
and warranties shall
survive the Closing Date.

    

    5. 
         Company
Representations and Warranties.  Except as set forth in the Schedules
hereto, the Company
represents and warrants to and agrees with each Subscriber
that:

    

    (a)           Due
Incorporation.  The
Company is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware and has the requisite corporate power
to own its properties and to carry on its business as presently conducted. 
The Company is duly qualified as a foreign corporation to do business and is in
good standing in each jurisdiction where the nature of the business conducted or
property owned by it makes such qualification necessary, other than those
jurisdictions in which the failure to so qualify would not have a Material
Adverse Effect (as defined
herein).  For purposes
of this Agreement, a “Material Adverse
Effect” shall mean a material adverse effect on
the financial condition, results of operations, prospects, properties or
business of the Company and its Subsidiaries taken as a whole. 
For purposes of this
Agreement, “Subsidiary” means, with respect to any entity at
any date, any direct or
indirect corporation,
limited or general partnership, limited liability company, trust, estate,
association, joint venture or other business entity of which (A) more than 30% of (i) the outstanding capital stock
having (in the absence of
contingencies) ordinary
voting power to elect a majority of the board of directors or other managing
body of such entity, (ii) in the case of a partnership or limited liability
company, the interest in
the capital or profits of such partnership or limited liability company or
(iii) in the case of a trust, estate, association, joint venture or other
entity, the beneficial interest in such trust, estate, association or other
entity business is, at the time of determination, owned or
controlled directly or indirectly through one or more intermediaries, by such
entity, or (B) is under the
actual control of the Company.  As of the Closing Date, all of the Company’s Subsidiaries and the Company’s other ownership interests therein are set forth on Schedule
5(a). The Company represents that it
owns all of the equity of the Subsidiaries and
rights to receive equity of the Subsidiaries set forth on Schedule
5(a), free and clear of all
liens, encumbrances and claims, except as set forth on Schedule
5(a).  No person or entity other than the Company has the right to
receive any equity interest in the Subsidiaries.  The Company further represents that
neither the Company nor the Subsidiaries have been known by any other names for
the five (5) years preceding the date of this Agreement.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (b)           Outstanding
Stock.  All issued and
outstanding shares of capital stock and equity interests in the Company have been duly authorized
and validly issued and are fully paid and non-assessable.

    

    (c)           Authority;
Enforceability.  This
Agreement, the Preferred
Stock, Warrants, the Escrow Agreement, and any other agreements delivered or required to be delivered
together with or pursuant to this Agreement or in connection herewith (collectively, the “Transaction
Documents”) have been duly authorized, executed
and delivered by the Company and/or the Subsidiaries, as the case
may be, and are valid and
binding agreements of the Company and/or the Subsidiaries, as the case
may be, enforceable in
accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights generally and to general
principles of equity.  Subject to the payment of the Debentures
(as defined in Section 13), the Company and/or the Subsidiaries, as the case
may be, have full corporate power and authority
necessary to enter into and deliver the Transaction Documents and to perform
their obligations
thereunder.

    

    (d)           Capitalization
and Additional
Issuances.   The
authorized and outstanding capital stock of the Company and the Subsidiaries on a fully diluted basis and all
outstanding rights to acquire or receive, directly or indirectly, any equity of
the Company and/or the Subsidiaries as of the date of this Agreement and the
Closing Date (not including the Securities) are set forth on Schedule
5(d).  Except as set
forth on Schedule
5(d), there are no options,
warrants or rights to subscribe to securities, rights, understandings or obligations convertible into or
exchangeable for or granting any right to subscribe for any shares of
capital stock or other
equity interest of the
Company or any of the
Subsidiaries. 
The only officer, director, employee and consultant stock option or stock
incentive plan or similar plan currently in effect or contemplated by the
Company is described on Schedule
5(d).  There are no outstanding agreements or preemptive or similar
rights affecting the Company’s Common Stock or equity.

    

    (e)           Consents. 
No consent, approval,
authorization or order of any court, governmental agency or body or arbitrator
having jurisdiction over the Company, the Subsidiaries or any of their Affiliates, any Principal Market as defined in Section 9(b) or the Company’s stockholders is required for the execution by the
Company of the Transaction Documents and compliance and performance by the
Company and the
Subsidiaries of
their respective
obligations under the
Transaction Documents, including, without limitation, the issuance and sale of
the Securities.  The Transaction Documents and the Company’s performance of its obligations
thereunder has been unanimously approved by the Company’s board of directors in accordance with the
Company’s Certificate of Incorporation and applicable law.  Any such qualifications and filings
will, in the case of qualifications, be effective upon Closing, and will, in the case of filings, be
made within the time prescribed by law.

    

    (f)           No Violation
or Conflict. 
Conditioned
upon the representations
and warranties of Subscriber in Section 4 hereof being materially true and correct, neither the issuance
nor the sale of the Securities nor the
performance of the Company’s obligations under this Agreement and the other
Transaction Documents by the Company, will:

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (i)           violate, conflict with, result in a
breach of, or constitute a default (or an event which with the giving of notice
or the lapse of time or both would be reasonably likely to constitute a default)
under (A) the certificate of incorporation or bylaws of the Company, (B) to the
Company’s knowledge, any decree, judgment,
order, law, treaty, rule, regulation or determination applicable to the Company
of any court, governmental agency or body, or arbitrator having jurisdiction
over the Company or over the properties or assets of the Company or any of its
Affiliates, (C) the terms of any bond, debenture, note or any other evidence of
indebtedness, or any agreement, stock option or other similar plan, indenture,
lease, mortgage, deed of trust or other instrument to which the Company or any
of its Affiliates
is a party, by which the
Company or any of its Affiliates is bound, or to which any of the
properties of the Company or any of its Affiliates is subject or (D) the terms of any
“lock-up” or similar provision of any
underwriting or similar agreement to which the Company, or any of its
Affiliates is a party, except the violation, conflict, breach
or default of which would not have a Material Adverse Effect;
or

    

    (ii)          result in the creation or imposition of
any lien, charge or encumbrance upon the Securities or any of the assets of the
Company or any of its Affiliates, except in favor of each Subscriber
as described herein;
or

    

    (iii)         except as set forth in Schedule
5(f) hereto, result in the activation of any
anti-dilution rights or a reset or repricing of any debt, equity or security instrument of any creditor
or equity holder of the Company, or the holder of the right to receive
any debt, equity or security instrument of the Company, nor result in the acceleration of the
due date of any obligation of the Company; or

    

    (iv)         except as set forth in Schedule
5(f) hereto, result in the
triggering of any piggy-back or other registration rights of any person or
entity holding securities of the Company or having the right to receive
securities of the Company.

    

    (g)          The
Securities.  The
Securities upon issuance:

    

    (i)           are, or will be, free and clear of any
security interests, liens, claims or other encumbrances, subject only to restrictions upon transfer under the
1933 Act and any applicable state securities laws;

    

    (ii)          have been, or will be, duly and validly
authorized and on the dates of issuance of the Preferred Stock and Warrants, the
Conversion Shares upon conversion of the Preferred Stock,
and the Warrant Shares upon exercise of the Warrants, such Preferred Stock,
Warrants, Conversion Shares and Warrant Shares will be duly and validly issued, fully
paid and non-assessable and if registered pursuant to the 1933 Act and resold
pursuant to an effective registration statement or an exemption from registration,
will be free
trading, unrestricted and unlegended;

    

    (iii)         will not have been issued or sold in
violation of any preemptive or other similar rights of the holders of any
securities of the Company
or rights to acquire securities or debt of the Company;

    

    (iv)         will not subject the holders thereof to
personal liability by reason of being such holders; and

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (v)          conditioned upon the representations and warranties of the Subscribers as set
forth in Section 4 hereof being materially true and correct, will not result in a
violation of Section 5 under the 1933 Act.

    

    (h)          Litigation.  There is no pending or, to the
best knowledge of the Company, threatened action, suit, proceeding or
investigation before any court, governmental agency or body, or arbitrator
having jurisdiction over the Company, or any of its Affiliates that would affect
the execution by the Company or the complete and timely performance by the Company of its
obligations under the Transaction Documents.  Except as disclosed in the Reports,
there is no pending or, to
the best knowledge of the Company, basis for or threatened action, suit,
proceeding or investigation before any court, governmental agency or body, or
arbitrator having
jurisdiction over the
Company, or any of its Affiliates which litigation if adversely determined would
have a Material Adverse Effect.

    

    (i)          
No
Market Manipulation. 
The Company and its Affiliates have not taken, and will not take, directly or
indirectly, any action designed to, or that might reasonably be expected to,
cause or result in stabilization or manipulation of the price of the Common
Stock to facilitate the sale or resale of the Securities or affect the price at
which the Securities may be issued or resold.

    

    (j)          
 Information
Concerning Company. 
The Reports and Other Written Information contain all material information
relating to the Company and its operations and financial condition as of their
respective dates which information is required to be disclosed therein. 
Since July 31,
2010, and except
as disclosed in the Reports or modified in the Reports and
Other Written Information
or in the Schedules hereto, there has been no Material Adverse Effect relating to the Company’s business, financial condition or
affairs. The Reports and Other Written Information including the financial statements
included therein do not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, taken
as a whole, not misleading in light of the circumstances and when made.

    

    (k)           Solvency.  Based
on the consolidated financial condition of the Company as of the Closing Date,
after giving effect to the receipt by the Company of the proceeds from the sale
of the Securities hereunder and the consummation of the Share Exchange, (i) the
Company’s fair saleable value of its assets exceeds the amount that will be
required to be paid on or in respect of the Company’s existing debts and other
liabilities (including known contingent liabilities) as they mature; (ii) the
Company’s assets do not constitute unreasonably small capital to carry on its
business for the current fiscal year as now conducted and as proposed to be
conducted, including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, and projected
capital requirements and capital availability thereof; and (iii) the current
cash flow of the Company, together with the proceeds the Company would receive,
were it to liquidate all of its assets, after taking into account all
anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its debt when such amounts are required to be paid.  The Company
does not intend to incur debts beyond its ability to pay such debts as they
mature (taking into account the timing and amounts of cash to be payable on or
in respect of its debt).

    

    (l)           Defaults.  The Company is not
in violation of its certificate of incorporation or bylaws. 
The Company is (i) not in default under
or in violation of any other material agreement or instrument to which it is a
party or by which it or any of its properties are bound or affected, which
default or violation would have a Material Adverse Effect, (ii) not in default
with respect to any order of any court, arbitrator or governmental body or
subject to or party to any order of any court or governmental authority arising
out of any action, suit or proceeding under any statute or other law respecting
antitrust, monopoly, restraint of trade, unfair competition or similar
matters which default would
have a Material Adverse Effect, or (iii) not in violation of any
statute, rule or regulation of any governmental authority which violation would
have a Material Adverse Effect.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (m)         No
Integrated Offering. Neither the Company, nor any of its
Affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales of any security of the Company nor solicited any offers to buy any
security of the Company
under circumstances that
would cause the offer of the Securities pursuant to this Agreement to be
integrated with prior offerings by the Company for purposes of the 1933 Act or
any applicable stockholder approval provisions, including, without limitation,
under the rules and regulations of the Bulletin Board.  No prior offering
will impair the exemptions relied upon in this Offering or the
Company’s ability to timely comply with its
obligations hereunder.  Neither the Company nor any of its Affiliates will
take any action or suffer
any inaction or conduct any
offering other than the transactions contemplated hereby that may be integrated with the offer or issuance
of the Securities or
that would impair the
exemptions relied upon in this Offering or the Company’s ability to timely comply with its
obligations hereunder.

    

    (n)          No General
Solicitation.  Neither
the Company, nor any of its Affiliates, nor to its knowledge, any person acting
on its or their behalf, has engaged in any form of general solicitation or
general advertising (within the meaning of Regulation D under the 1933 Act) in
connection with the offer or sale of the Securities.

    

    (o)          No
Undisclosed Liabilities.  The Company has no liabilities
or obligations which are material, individually or in the aggregate, other than
those incurred in the ordinary course of the Company’s business since July 31, 2010, and which, individually or in the
aggregate, would reasonably be expected to have a Material Adverse
Effect, except as disclosed
in the Reports or in Schedule
5(o).

    

    (p)          No
Undisclosed Events or Circumstances.  Since July 31, 2010, except as disclosed in the Reports, no
event or circumstance has occurred or exists with respect to the Company or its
businesses, properties, operations or financial condition, that, under
applicable law, rule or regulation, requires public disclosure or announcement
prior to the date hereof by the Company but which has not been so publicly
announced or disclosed in the Reports.

    

    (q)          Dilution.   The Company’s executive officers and directors
understand the nature of the Securities being sold hereby and recognize that the
issuance of the Securities will have a potential dilutive effect on the equity
holdings of other holders of the Company’s equity or rights to receive equity of
the Company.  The board of directors of the Company has concluded, in its
good faith business judgment, that the issuance of the Securities is
in the best interests of the Company.  The Company specifically
acknowledges that its obligation to issue the Conversion Shares upon conversion of
the Preferred Stock and the Warrant Shares upon exercise of the Warrants is binding upon the Company and
enforceable regardless of the dilution such issuance may have on the ownership
interests of other stockholders of the Company or parties entitled to
receive equity of the Company.

    

    (r)           No
Disagreements with Accountants and Lawyers. There are no material disagreements of
any kind presently existing, or reasonably anticipated by the Company to
arise, between the Company and the accountants
and lawyers previously and
presently employed by the
Company, including, but not limited to, disputes or conflicts over payment owed
to such accountants and lawyers, nor have there been any such disagreements
during the two years prior to the Closing Date.

    

    (s)           Investment
Company. 
 Neither the Company nor any Affiliate of the Company is an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (t)           Foreign Corrupt
Practices.  Neither the Company, nor to the knowledge of the
Company, any agent or other person acting on behalf of the Company, has (i)
directly or indirectly, used any funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political
parties or campaigns from corporate funds, (iii) failed to disclose fully any
contribution made by the Company (or made by any person acting on its behalf of
which the Company is aware) which is in violation of law, or (iv) violated in
any material respect any provision of the Foreign Corrupt Practices Act of 1977,
as amended.

    

    (u)           Reporting Company/Shell
Company.  The Company is a publicly-held company subject to
reporting obligations pursuant to Section 13 of the 1934 Act and has a class of
Common Stock registered pursuant to Section 12(g) of the 1934 Act. 
Pursuant to the provisions of the 1934 Act, the Company has timely filed all
reports and other materials required to be filed thereunder with the Commission
during the preceding twelve months.  As of the Closing Date, the Company is
not a “shell company” but is a “former shell company” as those terms are
employed in Rule 144 under the 1933 Act.

    

    (v)           Listing.  The
Company’s Common Stock is quoted on the OTC Bulletin Board (“Bulletin Board”) under the
symbol “GOEE”.  The Company has not received any pending oral or written
notice that its Common Stock is not eligible nor will become ineligible for
quotation on the Bulletin Board nor that its Common Stock does not meet all
requirements for the continuation of such quotation.

    

    (w)          DTC
Status.   The
Company’s transfer agent is a participant in,
and the Common Stock is or
shall be eligible for
transfer pursuant to, the Depository Trust Company Automated Securities Transfer
Program. The name, address, telephone number, fax number, contact person and
email address of the Company transfer agent is set forth on Schedule
5(w) hereto.

    

    (x)           Company
Predecessor and Subsidiaries.  The Company makes each of the
representations contained in Sections 5(a), (b), (c), (d), (e), (f),
(h), (j), (k), (l), (o), (p), (r), (s) and (t)
of this Agreement, as same
relate or could be
applicable to each Subsidiary.  All representations
made by or relating to the Company of a historical or prospective nature and all
undertakings described in Section 9 shall relate, apply and refer to the
Company and the
Subsidiaries and
their predecessors and successors.

    

    (y)          Correctness
of Representations. 
The Company represents that the foregoing representations and warranties are
true and correct as of the date hereof in all material respects, and, unless the
Company otherwise notifies the Subscribers prior to the Closing Date, shall be
true and correct in all material respects as of the Closing Date; provided that if such representation or warranty
is made as of a different date, such representation or warranty shall
be true as of such date.

    

    (z)           Survival.  The foregoing representations
and warranties shall survive the Closing Date.

    

    6. 
         Regulation D
Offering/Legal Opinion.  The offer and issuance of the
Securities to the Subscribers is being made pursuant to an exemption from the
registration provisions of the 1933 Act afforded by Section 4(2) or Section 4(6)
of the 1933 Act and/or Rule 506 of Regulation D promulgated thereunder.  On
the Closing Date, the Company will provide an opinion reasonably acceptable to
each Subscriber from the Company’s legal counsel in
substantially the form attached hereto as Exhibit F opining on the availability of an
exemption from registration under the 1933 Act as it relates to the offer and
issuance of the Securities and other matters reasonably requested by the
Subscribers.  The Company will provide, at the Company’s expense, to the
Subscribers such other legal opinions, if any, as are necessary in each
Subscriber’s opinion for the issuance and resale of the Conversion Shares and
Warrant Shares pursuant to an exemption from registration such as Rule 144 under
the 1933 Act.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    7. 
         Broker’s
Commission/Finder’s Fee.  The Company on the one
hand, and each Subscriber (for such Subscriber only) on the other hand, agrees
to indemnify the other against and hold the other harmless from any and all
liabilities to any Persons claiming brokerage commissions or similar fees on
account of services purported to have been rendered on behalf of the
indemnifying party in connection with this Agreement or the transactions
contemplated hereby and arising out of such party’s actions.  The Company
represents that to the best of its knowledge there are no parties entitled to
receive fees, commissions, finder’s fees, due diligence fees or similar payments
in connection with the Offering.  Anything in this Agreement to the
contrary notwithstanding, each Subscriber is providing indemnification only for
such Subscriber’s own actions and not for any action of any other
Subscriber.  The liability of the Company and each Subscriber’s liability
hereunder is several and not joint.

    

    8. 
         Subscriber’s Legal
Fees. 
 The Company shall pay
to Grushko & Mittman, P.C. a cash fee of $15,000 (“Legal
Fees”) as reimbursement for services rendered
in connection with the transactions described in the Transaction Documents. The
Legal Fees will be payable out of funds held pursuant to the Escrow
Agreement.  Grushko & Mittman, P.C. will be reimbursed at Closing or
Initial Closing, as the case may be, by the Company for all lien searches,
filing fees and reasonable printing and shipping costs for the closing
statements to be delivered to the Subscribers.

    

    9. 
         Covenants of the
Company.  The Company covenants and agrees with the Subscribers as
follows:

    

    (a)           Stop Orders. 
Subject to the prior notice requirement described in Section 9(n) hereof, the
Company will advise the Subscribers, within twenty-four (24) hours after it
receives notice of issuance by the Commission, any state securities commission
or any other regulatory authority of any stop order or of any order preventing
or suspending any offering of any securities of the Company, or of the
suspension of the qualification of the Common Stock of the Company for offering
or sale in any jurisdiction, or the initiation of any proceeding for any such
purpose.  The Company will not issue any stop transfer order or other order
impeding the sale, resale or delivery of any of the Securities, except as may be
required by any applicable federal or state securities laws, provided at least five (5)
business days prior notice of such instruction is given to the
Subscribers.

    

    (b)           Listing/Quotation. 
The Company shall promptly secure the quotation or listing of the Conversion
Shares and Warrant Shares upon each national securities exchange, or automated
quotation system upon which the Company’s Common Stock is quoted or listed and
upon which such Conversion Shares and Warrant Shares are or become eligible for
quotation or listing (subject to official notice of issuance) and shall maintain
same so long as any Preferred Stock and Warrants are outstanding.  The
Company will maintain the quotation or listing of its Common Stock on the NYSE
Amex Equities, Nasdaq Capital Market, Nasdaq Global Market, Nasdaq Global Select
Market, Bulletin Board, or New York Stock Exchange (whichever of the foregoing
is at the time the principal trading exchange or market for the Common Stock)
(the “Principal
Market”), and will comply in all respects with the Company’s reporting,
filing and other obligations under the bylaws or rules of the Principal Market,
as applicable. Subject to the limitation set forth in Section 9(n) hereof, the
Company will provide the Subscribers with copies of all notices it receives
notifying the Company of the threatened and actual delisting of the Common Stock
from any Principal Market.  As of the date of this Agreement and the
Closing Date, the Bulletin Board is the Principal Market.

    

    (c)           Market
Regulations.  If
required, the Company shall notify the Commission, the Principal Market and
applicable state authorities, in accordance with their requirements, of the
transactions contemplated by this Agreement, and shall take all other necessary
action and proceedings as may be required and permitted by applicable law, rule
and regulation, for the legal and valid issuance of the Securities to the
Subscribers and promptly provide copies thereof to
the Subscribers.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (d)          Filing
Requirements. 
From the date of this Agreement and until the last to occur of (i) all
the Conversion Shares have been resold or transferred by the Subscribers
pursuant to a registration statement or pursuant to Rule 144(b)(1)(i), or (ii)
none of the Preferred Stock and Warrants are  outstanding (the date of
such latest occurrence being the “End Date”), the Company will
(A) comply in all respects with its reporting and filing obligations under the
1934 Act, (B) voluntarily comply with all reporting requirements that are
applicable to an issuer with a class of shares registered pursuant to Section
12(g) of the 1934 Act even if the Company is not subject to such reporting
requirements sufficient to permit the Subscribers to be able to resell the
Conversion Shares and Warrant Shares pursuant to Rule 144(b)(i) and (C) comply
with all requirements related to any registration statement filed pursuant to
this Agreement.  The Company will use its commercially reasonable best
efforts not to take any action or file any document (whether or not permitted by
the 1933 Act or the 1934 Act or the rules thereunder) to terminate or suspend
such registration or to terminate or suspend its reporting and filing
obligations under said acts until the End Date.  Until the End Date, the
Company will continue the listing or quotation of the Common Stock on a
Principal Market and will comply in all respects with the Company’s reporting,
filing and other obligations under the bylaws or rules of the Principal
Market.  The Company agrees to timely file a Form D with respect to the
Securities if required under Regulation D and to provide a copy thereof to each
Subscriber promptly after such filing.

    

    (e)          Use of
Proceeds.   The proceeds of the Offering will be substantially
employed by the Company for the purposes set forth on Schedule
9(e) hereto.  Except as described on Schedule
9(e), the Purchase Price may not and will not be used for accrued and
unpaid officer and director salaries, nor payment of financing related debt nor
redemption of outstanding notes or equity instruments of the Company nor
non-trade payables outstanding on the Closing Date.

    

    (f)           Reservation.   Prior to the
Closing or Initial Closing,
as the case may be, the
Company undertakes to reserve on behalf of the Subscribers from its authorized but unissued Common
Stock, a number of shares
of Common Stock equal to
150% of the amount of Common Stock
necessary to allow the
Subscribers to be able to
convert all of the
Preferred Stock and 100% of the amount of Warrant Shares issuable
upon exercise of the Warrants (“Required
Reservation”).   Failure to have sufficient
shares reserved pursuant to this Section 9(f) at any time prior to the End Date shall be a material default of the
Company’s obligations under this Agreement and
an Event of Default as
employed in the Certificate of Designation.  Without waiving the foregoing
requirement, if at any time the Preferred Stock and Warrants are outstanding the
Company has reserved on behalf of the Subscribers less than 125% of the amount
necessary for full conversion of the outstanding Preferred Stock and dividends
accrued on such Preferred Stock at the conversion price in effect on every such
date and 100% of the Warrant Shares issuable upon exercise of outstanding
Warrants (“Minimum Required
Reservation”), the Company
will promptly reserve the Minimum Required Reservation, or if there are
insufficient authorized and available shares of Common Stock to do reserve the
Minimum Required Reservation, the Company will take all action necessary to
increase its authorized capital to be able to fully satisfy its reservation
requirements hereunder, including the filing of a preliminary proxy with the
Commission not later than fifteen (15) days after the first day the Company has
reserved less than the Minimum Required Reservation.  The Company agrees to
provide notice to the Subscribers not later than five days after the date the
Company has less than the Minimum Required Reservation reserved on behalf of the
Subscribers.

    

    (g)           DTC
Program.  At all times that Preferred Stock or Warrants are outstanding, the
Company will employ as the transfer agent for the Common Stock, Conversion Shares and Warrant Shares a participant in the
Depository Trust Company Automated Securities Transfer
Program.

       

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (h)          Taxes.  From the date of this Agreement
and until the End Date, the Company will promptly pay and discharge, or cause to
be paid and discharged, when due and payable, all lawful taxes, assessments and
governmental charges or levies imposed upon the income, profits, property or
business of the Company; provided,
however, that any such tax,
assessment, charge or levy need not be paid if the validity thereof shall
currently be contested in good faith by appropriate proceedings and if the
Company shall have set aside on its books adequate reserves with respect
thereto, and provided, further, that the Company
will pay all such taxes, assessments, charges or levies forthwith upon the
commencement of proceedings to foreclose any lien which may have attached as
security therefore.
 

    (i)           Insurance.  As reasonably necessary as determined by
the Company, from the date
of this Agreement and until the End Date, the Company will keep its assets which
are of an insurable character insured by financially sound and reputable
insurers against loss or damage by fire, explosion and other risks customarily
insured against by companies in the Company’s line of business and location, in
amounts and to the extent and in the manner
customary for companies in similar businesses similarly situated and located and
to the extent available on commercially reasonable terms.

    

    (j)           Books and
Records.  From the date of this Agreement and
until the End Date, the Company will keep true records and books of account in
which full, true and correct entries in all material respects will be made of all dealings or
transactions in relation to its business and affairs in accordance with
United States generally accepted accounting principles
(“GAAP”) applied on a consistent
basis.

    

    (k)          Governmental
Authorities. 
 From the date of this
Agreement and until the End Date, the Company shall duly observe and conform in
all material respects to all valid requirements of governmental authorities
relating to the conduct of its business or to its properties or
assets.

    

    (l)           Intellectual
Property.  From the
date of this Agreement and until the End Date, the Company shall maintain in
full force and effect its corporate existence, rights and franchises and all
licenses and other rights to use intellectual property owned or possessed by it
and reasonably deemed to be necessary to the conduct of its business, unless it
is sold for value. Schedule
9(l) hereto identifies all
of the intellectual property owned by the Company and the Subsidiaries, which
schedule includes, but is not limited to, patents, patents pending, patent
applications, trademarks, tradenames, service marks and
copyrights.

    

    (m)         Properties.  From the date of this Agreement and
until the End Date, the Company will keep its properties in good repair, working
order and condition, reasonable wear and tear excepted, and from time to time
make all necessary and proper repairs, renewals, replacements, additions and
improvements thereto as the
Company shall reasonably determine; and the Company will at all times
comply with each provision of all leases and claims to which it is a party or under which
it occupies or has rights
to property if the breach
of such provision could reasonably be expected to have a Material Adverse
Effect.  The Company
will not abandon any of its assets, except for those assets which have
negligible or marginal value , are obsolete or for which it is prudent to do so
under the circumstances as reasonably determined by the
Company.

    

    (n)           Confidentiality/Public
Announcement.   From the date of this
Agreement  until the End Date, the Company agrees that except in
connection with a Form 8-K, Form 10-Q, Form 10-K and the registration statement
or statements regarding the Subscribers’ Securities or in correspondence with
the Commission regarding same, it will not disclose publicly or privately the
identity of a Subscriber unless expressly agreed to in writing by such
Subscriber or only to the extent required by law and then only upon not less
than two (2) business days prior notice to such Subscriber.  The Company
will specifically disclose the amount of Common Stock outstanding immediately
after the Closing in the Super 8-K.  The Company represents that the Super
8-K will contain the signed version of the audit opinion substantially in the
form attached as Exhibit
G hereto.  Upon  delivery by the Company to the
Subscribers after the Closing Date of any notice or information, in writing,
electronically or otherwise, and while Preferred Stock, Conversion Shares or
Warrants are held by the Subscribers, unless the  Company has in good
faith determined that the matters relating to such notice do not
constitute material, nonpublic information relating to
the Company or the Subsidiaries, the Company  shall, within
four (4) days after any such delivery, publicly disclose such 
material,  nonpublic  information on a
Report on Form 8-K.  In the event that
the Company believes that a notice or communication to the
Subscribers contains material, nonpublic information relating to the Company or
the Subsidiaries, except as required to be delivered in connection with this
Agreement, the Company shall so indicate to the Subscribers prior to delivery of
such notice or information.  A Subscriber will be granted five (5) days to
notify the Company that such Subscriber elects not to receive such
information.   In the case that a Subscriber elects not to receive
such information, the Company will not deliver such information to such
Subscriber.  In the absence of any such Company indication, the
Subscribers shall be allowed to presume that all matters relating to such notice
and information do not constitute material, nonpublic information relating
to the Company or the Subsidiaries.

    
      
         

      

      
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    (o)          Non-Public
Information.  The
Company covenants and agrees that except for the Reports, Other Written
Information and schedules and exhibits to this Agreement and the Transaction
Documents, which information the Company undertakes to publicly disclose on the
Form 8-K described in Section 9(n) above, neither it nor any other person acting
on its behalf will at any time provide any Subscriber or its agents or counsel
with any information that the Company believes constitutes material non-public
information, unless prior thereto such Subscriber, its agent or counsel shall
have agreed in writing to accept such information as described in Section 9(n)
above.  The Company
understands and confirms that the Subscribers shall be relying on the foregoing
representations in effecting transactions in securities of the Company. 
The Company agrees that any information known to Subscriber required to be make public by the
Company but not made public by the Company, not already made public by the Company
may be made public and disclosed by the Subscriber.

    

    (p)          Negative
Covenants.   So long as Preferred Stock is outstanding, without
the consent of the Subscribers, the Company will not and will not permit any of
its Subsidiaries to directly or indirectly:

    

    (i)           create,
incur, assume or suffer to exist any pledge, hypothecation, assignment, deposit
arrangement, lien, charge, claim, security interest, security title, mortgage,
security deed or deed of trust, easement or encumbrance, or preference, priority
or other security agreement or preferential arrangement of any kind or nature
whatsoever (including any lease or title retention agreement, any financing
lease having substantially the same economic effect as any of the foregoing, and
the filing of, or agreement to give, any financing statement perfecting a
security interest under the Uniform Commercial Code or comparable law of any
jurisdiction) (each, a “Lien”) upon any of its
property, whether now owned or hereafter acquired, except for:  (a)
Liens imposed by law for taxes that are not yet due or are being contested in
good faith and for which adequate reserves have been established in accordance
with GAAP; (b) carriers,’ warehousemen’s, mechanic’s, material men’s,
repairmen’s and other like Liens imposed by law, arising in the ordinary course
of business and securing obligations that are not overdue by more than thirty
(30) days or that are being contested in good faith and by appropriate
proceedings; (c) pledges and deposits made in the ordinary course of business in
compliance with workers’ compensation, unemployment insurance and other social
security laws or regulations; (d) deposits to secure the performance of bids,
trade contracts, leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature, in each case in the
ordinary course of business; (e) Liens created with respect to the financing of
the purchase of new property in the ordinary course of the Company’s business up
to the amount of the purchase price of such property; and (f) easements, zoning
restrictions, rights-of-way and similar encumbrances on real property imposed by
law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the
affected property (each of (a) through (f) hereof, a “Permitted Lien”);

    

    (ii)          amend its certificate of incorporation,
bylaws or its charter documents so as to materially and adversely affect any
rights of the Subscribers;
provided that an increase in the amount of
authorized shares will not be deemed adverse to the rights of the
Subscribers;

    
      
         

      

      
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    (iii)         repay, repurchase or offer to repay,
repurchase or otherwise acquire or make any dividend or distribution in respect
of any of its Common Stock,
preferred stock, or other
equity securities other than to the extent permitted or required under the Transaction
Documents;

    

    (iv)         engage in any transactions with any
officer, director, employee or any Affiliate of the Company, including any
contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from,
or otherwise requiring payments to or from any officer, director or such
employee or, to the knowledge of the Company, any entity in which any officer,
director or any such employee has a substantial interest or is an officer,
director, trustee or partner, in each case in excess of $100,000, other than (i) for payment of salary or
fees for services rendered,
pursuant to and on the terms of a written contract in effect at least one (1)
business day prior to the Closing Date, a copy of which has been provided to the
Subscriber at least one (1) business day prior to the Closing Date, (ii) reimbursement for authorized expenses incurred on behalf of the
Company or its
Affiliates, (iii) for other
employee benefits, including stock option agreements under any stock option plan
of the Company disclosed in
the Reports or (iv) other transactions disclosed in the Reports; or

    

    (v)          pay
or redeem any financing related debt or past due obligations or securities
outstanding as of the Closing Date, or past due obligations, except with respect
to vendor obligations, which in management’s good faith, reasonable judgment
must be paid to avoid disruption of the Company’s businesses.

     

    (q)           Offering
Restrictions. 
 Subject to the
consent of the Subscribers, for so long as the Preferred Stock and Warrants are outstanding, the Company will not
enter into or
exercise any Equity Line of
Credit (as defined
herein) or similar
agreement, nor issue nor agree to issue any floating or Variable Priced Equity
Linked Instruments (as
defined herein) nor any of
the foregoing or equity with price reset rights (collectively, the “Variable Rate
Restrictions”). 
 For purposes hereof, “Equity Line of Credit” shall
include any transaction involving a written agreement between the Company and an
investor or underwriter whereby the Company has the right to “put” its
securities to the investor or underwriter over an agreed period of time and at a
price formula, and “Variable
Priced Equity Linked Instruments” shall include: (A) any debt or equity
securities which are convertible into, exercisable or exchangeable for, or carry
the right to receive additional shares of Common Stock either (1) at any
conversion, exercise or exchange rate or other price that is based upon and/or
varies with the trading prices of or quotations for Common Stock at any time
after the initial issuance of such debt or equity security or (2) with a fixed
conversion, exercise or exchange price that is subject to being reset at some
future date at any time after the initial issuance of such debt or equity
security due to a change in the market price of the Company’s Common Stock since
date of initial issuance, and (B) any amortizing convertible security which
amortizes prior to its maturity date, where the Company is required or has the
option to (or any investor in such transaction has the option to require the
Company to) make such amortization payments in shares of Common Stock which are
valued at a price that is based upon and/or varies with the trading prices of or
quotations for Common Stock at any time after the initial issuance of such debt
or equity security (whether or not such payments in stock are subject to certain
equity conditions).

    

    (r)           Seniority. 
 Except for Permitted Liens, for so long as the Preferred Stock is
outstanding, without written consent of the Subscribers, the Company and
Subsidiaries shall not grant nor allow any security interest to be taken in any
assets of the Company or any Subsidiary or any Subsidiary’s assets; nor issue or
amend any debt, equity or other instrument which would give the holder thereof
directly or indirectly, a right in any equity of the Company or any Subsidiary
or any right to payment equal to or superior to any right of the Subscribers as
holders of the Preferred Stock in or to such equity or payment, nor issue or
incur any debt not in the ordinary course of business in an amount greater than
$500,000.

    
      
         

      

      
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    (s)           Notices.   For so long as the
Subscribers hold any Preferred Stock or Warrants, the Company will maintain a United
States address and United States fax number for notice purposes under the
Transaction Documents.

    

    (t)           Transactions with
Insiders.  So long as the Preferred Stock and Warrants are
outstanding, without consent of the Subscribers, the Company shall not, and
shall cause each of its Subsidiaries not to, enter into, materially amend,
materially modify or materially supplement, or permit any Subsidiary to enter
into, materially amend, materially modify or materially supplement, any
agreement, transaction, commitment, or arrangement relating to the sale,
transfer or assignment of any of the Company’s tangible or intangible assets
with any of its Insiders (as defined below) (or any persons who were Insiders at
any time during the previous two (2) years), or any Affiliates (as defined
below) thereof, or with any individual related by blood, marriage, or adoption
to any such individual.  “Affiliate,” for purposes of
this Section 9(t), means, with respect to any person or entity, another person
or entity that, directly or indirectly, (i) has a ten percent (10%) or more
equity interest in that person or entity, (ii) has ten percent (10%) or more
common ownership with that person or entity, (iii) controls that person or
entity, or (iv) shares common control with that person or entity. 
“Control” or “Controls” for purposes of the Transaction Documents means that a
person or entity has the power, direct or indirect, to conduct or govern the
policies of another person or entity.  For purposes hereof, “Insiders” shall mean any
officer, director or manager of the Company, including, but not limited to, the
Company’s president, chief executive officer, chief financial officer and chief
operations officer, and any of their Affiliates or family members.

    

    (u)           Stock Splits. 
For so long as the Preferred Stock and Warrants are outstanding, the Company
will not enter into any stock splits without the consent of the
Subscribers.

    

    (v)           Notice of Event of
Default.  The Company agrees to notify Subscriber of the occurrence
of an Event of Default (as defined and employed in the Transaction Documents)
not later than ten (10) days after any of the Company’s officers or directors
becomes aware of such Event of Default.

    

    (w)          Further
Registration Statements.   Except for a registration
statement filed on behalf of the Subscribers and the parties listed on
Schedule
9(w), the Company will not, without the consent
of the Subscribers,
file with the Commission or
with state regulatory authorities any registration statement, including a registration statement on
Form S-8, or amend any already filed registration
statement to increase the amount of Common Stock registered therein, or reduce
the price of which securities of the Company are registered
therein, until the
expiration of the “Exclusion
Period,” which shall be defined as the sooner of
(i) the date all of the
Registrable Securities (as defined in Section 11.1) have been registered in an effective
registration statement that has been effective for not less than one year,
or (ii) until all
the Conversion Shares and Warrant Shares have been
resold by the Subscribers
pursuant to a registration
statement or Rule 144b(1)(i), without regard to volume
limitations.  The Exclusion Period will be tolled or reinstated, as the
case may be, during the pendency of an Event of Default as defined in the
Certificate of
Designation.

    

    10. 
       Covenants of the Company
Regarding Indemnification.

    

    (a)          The Company agrees to indemnify, hold
harmless, reimburse and defend the Subscribers, the Subscribers’ officers,
directors, agents, counsel, Affiliates, members, managers, control persons, and
principal shareholders, against any claim, cost, expense, liability, obligation,
loss or damage (including reasonable legal fees) of any nature, incurred by or
imposed upon the Subscribers or any such person which results, arises out of or
is based upon (i) any material misrepresentation by Company or breach of any
representation or warranty by Company in this Agreement or in any Exhibits or
Schedules attached hereto in any Transaction Document, or other agreement
delivered pursuant hereto or in connection herewith, now or after the date
hereof; or (ii) after any applicable notice and/or cure periods, any breach or
default in performance by the Company of any covenant or undertaking to be
performed by the Company hereunder, or any other agreement entered into by the
Company and Subscribers relating hereto.

    
      
         

      

      
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    (b)          In no event shall the liability of the
Subscribers or permitted successor hereunder or under any Transaction Document
or other agreement delivered in connection herewith be greater in amount than
the dollar amount of the net proceeds actually received by such Subscriber or
successor upon the sale of Registrable Securities (as defined
herein).

    

    11.1. 
    Registration
Rights.  The Company
hereby grants the following registration rights to holders of the
Securities.

    

    (i)           On one occasion, commencing ninety one (91) days after the Closing Date, but not later than
two years after the Closing Date, upon a written
request therefor from any record holder or holders of more than 50% of the
Conversion Shares issued and issuable upon conversion of the outstanding
Preferred Stock
and outstanding Warrant
Shares, the Company shall prepare and not later than sixty (60) days after
such request (“Filing
Date”) file, subject to
Section 11.1(iv) hereof, , with the Commission a registration
statement under the 1933 Act registering the Registrable Securities which are
the subject of such request, subject to applicable Commission rules
and regulations, for
unrestricted public resale by the holder thereof. For purposes of Sections 11.1(i) and
11.1(ii) hereof, the definition of Registrable Securities shall not include
Securities (A) which are registered for resale in an effective registration
statement, (B) which are included for registration in a pending registration
statement, (C) which have been issued without further transfer restrictions
after a sale or transfer pursuant to Rule 144 under the 1933 Act or (D) which
may be resold under Rule 144 without volume limitations but not giving effect to the cashless
exercise feature of the Warrants.  Upon the receipt of such
written request, the Company shall promptly give
written notice to all other record holders (as of the date of delivery of such
written notice) of the
Registrable Securities that such registration statement is to be filed and shall
include in such registration statement Registrable Securities for which it has
received written requests within ten (10) days after the Company gives such
written notice.  Such other requesting record holders shall be deemed to
have exercised their demand registration right under this Section
11.1(i).

    

    (ii)           If the Company at any time proposes to
register any of its securities under the 1933 Act for sale to the public,
whether for its own account or for the account of other security holders or
both, except with respect to registration statements on Forms S-4, S-8 or
another form not available for registering the Registrable Securities for sale
to the public, provided the Registrable Securities are not
otherwise registered for resale by the Subscribers or Holder pursuant to an
effective registration statement, each such time it will give at least ten (10)
days’ prior written notice to the record
holders (as of the date of delivery of such
written notice) of the
Registrable Securities of its intention so to do. Upon the written request of
the holder that
is received by the Company
within ten (10) days after the giving of any such notice by the Company to
register any of the Registrable Securities not previously registered, the
Company will cause such Registrable Securities as to which registration shall
have been so requested to be included with the securities to be covered by the
registration statement proposed to be filed by the Company, all to the extent
required to permit the sale or other disposition of the Registrable Securities
so registered by the holder of such Registrable Securities (each, a “Seller” and together, the “Sellers”). In the event that any registration
pursuant to this Section 11.1(ii) shall be, in whole or in part, an underwritten
public offering of common stock of the Company, the number of shares of
Registrable Securities to be included in such an underwriting may be
reduced on a pro rata basis
among the record holders so requesting registration by the managing underwriter if and to
the extent that the Company and the underwriter shall reasonably be of the
opinion that such inclusion would adversely affect the marketing of the
securities to be sold by the Company therein; provided,
however, that the Company
shall notify the Seller in writing of any such reduction. Unless the Holder notifies the Company
in writing that it elects to deem the registration statement filed or to be
filed pursuant to this Section 11.1(ii) as a registration statement filed or to
be filed pursuant to Section 11.1(ii), the Company may withdraw or delay or
suffer a delay of any registration statement referred to in this Section
11.1(ii) without thereby incurring any liability to the Sellers.

    
      
         

      

      
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    (iii)          If, at the time any written request for
registration is received by the Company pursuant to Section 11.1(i) hereof, the Company has determined to proceed
with the actual preparation and filing of a registration statement under the
1933 Act in connection with the proposed offer and sale for cash of any of its
securities for the Company’s own account and the Company actually
does file such other registration statement, such written request shall be
deemed to have been given pursuant to Section 11.1(ii) rather than Section
11.1(i), and the rights of the holders of Registrable Securities covered by such
written request shall be governed by Section 11.1(ii).

    

    (iv)         The Company shall file with the
Commission a registration statement on Form S-1 (the “Registration
Statement”) (or such other form that it is
eligible to use) in order to register the Registrable Securities for resale and
distribution under the 1933 Act within ninety (90) days after the Closing
Date or, if more than one
Closing, the last Closing Date (the “Filing
Date”), and use its commercially reasonable best efforts to cause the Registration
Statement to be declared effective not later than one hundred and eighty (180) days after such Closing Date (the “Effective
Date”).  The Company will register not
less than a number of shares of common stock in the aforedescribed registration
statement that is equal to 150% of the Conversion Shares issued and
issuable upon conversion of Preferred Stock including dividends at
the default rate and 100%
of the Warrant Shares issuable upon exercise of the Warrants and Bridge Warrants (collectively the “Registrable
Securities”). In the
event that the Company is required by the Commission to cutback the number of
shares being registered in the Registration Statement pursuant to Rule 415, the
Company shall reduce the Registrable Securities in the order and priority set
forth on Schedule
11.1(iv). The Registrable Securities
shall be reserved and set
aside exclusively for the benefit of each Subscriber and Warrant holder,
pro rata, and not issued, employed or reserved
for anyone other than each Subscriber and Warrant holder.  The Registration
Statement will immediately be amended or additional registration statements will
be immediately filed by the Company as necessary to register additional shares
of Common Stock to allow the public resale of all Common Stock included in and
issuable by virtue of the Registrable Securities.  Except as set forth on
Schedule
11.1(iv), without the written consent of the Subscribers, no
securities of the Company other than the Registrable Securities will be included
in the Registration Statement.  It shall be deemed a Non-Registration
Event (as defined
herein) if at any time
after the date the Registration Statement is declared effective by the
Commission (“Actual Effective
Date”) the Company has registered for
unrestricted resale on behalf of the Subscribers fewer than 110% of the amount
of Common Shares issuable upon full conversion of all sums due under the
Preferred Stock
and Warrant
Shares (the difference between such 110% and
the actual amount of shares registered being referred to herein as the “Shortfall”).  In such event, the Company
shall take all actions necessary to cause at least 150% of the amount of shares of Common
Stock issuable upon full conversion of all sums due under the Preferred Stock and 100% of the Warrant Shares to be
registered within sixty
(60) days after the first
day such Shortfall exists.  Failure to file the Registration Statement
within thirty (30) days after the first day such Shortfall first exists or
failure to cause such registration to become effective within  sixty (60) days after such Shortfall first exists
shall be a Non-Registration Event.

    

    11.2. 
    Registration
Procedures. If and whenever
the Company is required by the provisions of Section 11.1 to effect the
registration of any Registrable Securities under the 1933 Act, the Company
will, as expeditiously as
possible:

    

    (a)           subject to the timelines provided in
this Agreement, (i)
prepare and file with the
Commission a registration statement required by Section 11.1 with respect to such Registrable Securities and use its commercially reasonable best efforts to cause such registration
statement to become and remain effective for the period of the distribution
contemplated thereby (determined as herein provided), (ii) promptly provide to the holders of the Registrable Securities copies of
all filings and
Commission letters of
comment and notify the Sellers (by telecopier and by e-mail addresses provided
by the Subscribers) and Grushko & Mittman, P.C. (by telecopier and by email
to counslers@aol.com) on or before the second (2nd) business days thereafter that the Company receives
notice that (A) the Commission has no comments or no
further comments on the registration statement, and (B) the registration statement has been declared effective
(failure to timely provide
notice as required by this Section 11.2(a) shall be a material breach of the
Company’s obligation and an Event of Default as
defined in the Preferred
Stock and a
Non-Registration Event as defined in Section 11.4 of this
Agreement);

    
      
         

      

      
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    (b)          prepare and file with the Commission
such amendments and supplements to such registration statement and the
prospectus used in connection therewith as may be necessary to keep such
registration statement effective until such registration statement has been
effective for a period of one (1) year, and comply with the provisions of the
1933 Act with respect to the disposition of all of the Registrable Securities
covered by such registration statement in accordance with the
Sellers’ intended method of disposition set
forth in such registration statement for such period;

    

    (c)           furnish to the Sellers, at the
Company’s expense, such number of copies of the
registration statement and the prospectus included therein (including each
preliminary prospectus) as such persons reasonably may request in order to
facilitate the public sale or their disposition of the securities covered by
such registration statement, or make them electronically
available;

    

    (d)          use its commercially reasonable best efforts to register or
qualify the Registrable Securities covered by such registration statement under
the securities or “blue sky” laws of New York and such jurisdictions
as the Sellers shall request in writing, provided,
however, that the Company
shall not for any such purpose be required to qualify generally to transact
business as a foreign corporation in any jurisdiction where it is not so
qualified or to consent to general service of process in any such
jurisdiction;

    

    (e)          as applicable, list or make available for quotation
the Registrable Securities
covered by such registration statement with any securities exchange or quotation system on which the Common Stock of the Company is then listed or
quoted;

    

    (f)           notify the Sellers within two (2) business days of the happening of any event of which
the Company has knowledge as a result of which the prospectus contained in such
registration statement, as then in effect, includes an untrue statement of a
material fact or omits 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, or which becomes subject to a
Commission, state or other governmental order suspending the effectiveness of
the registration statement covering any of the Registrable
Securities;

    

    (g)          provided same would not be in violation
of the provision of Regulation FD under the 1934 Act, make available for
inspection during reasonable business hours by the Sellers and any attorney,
accountant or other agent retained by the Sellers, all publicly available,
non-confidential financial and other records, pertinent corporate documents and
properties of the Company, and cause the Company’s officers, directors and employees to
make available all publicly available,
non-confidential information reasonably requested by the Sellers, attorney,
accountant or agent in connection with such registration statement at
such requesting Seller’s expense;
and

    

    (h)           provide to the Sellers copies of the
Registration Statement and amendments thereto at least five (5) days prior to the filing
thereof with the Commission.  A Seller’s failure to comment on any registration
statement or other document provided to a Subscriber or its counsel shall be
construed to constitute approval thereof nor the accuracy
thereof.

    
      
         

      

      
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    11.3. 
    Provision of
Documents.  In
connection with each registration described in this Section 11, each Seller will
furnish to the Company in writing such information and representation letters
with respect to itself and the proposed distribution by it as reasonably shall be necessary in order to assure compliance with
federal and applicable
state securities laws.

    

    11.4. 
    Non-Registration
Events.  The Company
agrees that the Sellers will suffer damages if the Registration Statement is not
filed by the Filing Date and not declared effective by the Commission
within sixty (60) days
after the Effective Date,
and any registration statement required under Section 11.1(i) or 11.1(ii) is not
filed within ninety
(90) days after written request and declared
effective by the Commission within one hundred eighty (180 ) days after such request, and maintained
in the manner and within the time periods contemplated by Section 11 hereof, and
it would not be feasible to ascertain the extent of such damages with
precision.  Accordingly, if (A) the Registration Statement is not filed on
or before the Filing Date, (B) the Registration Statement is not declared
effective on or before sixty (60) days after the Effective Date, (C) due to the
intentional action or inaction of the Company the
Registration Statement is not declared effective within five (5) business days after receipt by the Company or its
attorneys of a written or oral communication from the Commission that the
Registration Statement will not be reviewed or that the Commission has no
further comments, (D) if the registration statement described in Section 11.1(i)
or 11.1(ii) is not filed within ninety (90) days after such written request, or is
not declared effective within one hundred eighty (180) days after such written request, or (E)
any registration statement described in Sections 11.1(i), 11.1(ii) or 11.1(iv)
is filed and declared effective but shall thereafter cease to be effective
without being succeeded within thirty (30) business days by an effective
replacement or amended registration statement or for a period of time which
shall exceed sixty (60) days in the aggregate per year
(defined as every rolling period of 365 consecutive days commencing on the
Actual Effective Date) (each such event referred to in clauses A through E of
this Section 11.4 is referred to herein as a “Non-Registration
Event”), then the Company shall pay to the holder of Registrable Securities,
as “Liquidated
Damages”, an amount equal to one percent (1%) for each thirty (30) days (or such
lesser pro-rata amount for any period of less than thirty (30) days) of the
lesser of the (i) purchase
price of the outstanding Preferred Stock and (ii) purchase price of the Conversion Shares and Warrant Shares
issued upon conversion of Preferred Stock and exercise (but excluding cashless
exercise) of
Warrants held by Subscribers which are subject to
such Non-Registration Event.  The Company may pay the Liquidated Damages in
cash or
securities.  The
Liquidated Damages must be paid within ten (10) business days after the end of each thirty (30)
day period or shorter part thereof for which Liquidated Damages are
payable.  In the event a Registration Statement is filed by the Filing Date
but is withdrawn prior to being declared effective by the Commission, then such
Registration Statement will be deemed to have not been filed and Liquidated
Damages will be calculated accordingly.  All oral or written comments
received from the Commission relating to a registration statement must be
responded to within twenty (20) business days after receipt of
comments from the Commission.  Failure to timely respond to Commission
comments is a Non-Registration Event for which Liquidated Damages shall accrue
and be payable by the Company to the holders of Registrable Securities at the
same rate and amounts set forth above, calculated from the date the response
was required to have been made.  Liquidated Damages shall not be payable
pursuant to this Section 11.4 in connection with Registrable Securities for such
times as such Registrable Securities may be sold by the holder
thereof without volume limitations or other
restrictions pursuant to Section 144(b)(1)(i) of the
1933 Act. The
Company shall not be liable for Liquidated Damages under this Agreement as to
any Registrable Securities which are not permitted by the Commission to be
included in a Registration Statement due solely to Commission guidance from the
time that it is determined that such Registrable Securities are not permitted to
be registered until such time as the provisions of this Agreement as to the
Registration Statements required to be filed hereunder are triggered, in which
case the provisions of this Section 11.4 shall once again apply.  In
such case, the Liquidated Damages shall be calculated to only apply to the
percentage of Registrable Securities which are permitted in accordance with
Commission guidance to be included in such Registration Statement.  The Company may
require, from time to time, information by a holder of the Securities that is
necessary to complete the Registration Statement
in accordance with the requirements of the 1933.  In the event of the
failure by such holder to comply with the Company’s request within seven (7)
business days from the date of such request, the Company shall be permitted to
exclude such holder from a Registration Statement without being subject to the
payment of any amount of Liquidated Damages to such holder. At such time that
such holder complies with the Company’s request, the Company shall use its
reasonable best efforts to include such holder in the Registration
Statement.

    
      
         

      

      
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    11.5. 
    Expenses.  All expenses incurred by the
Company in complying with Section 11, including, without limitation, all
registration and filing fees, printing expenses (if required), fees and
disbursements of Company
counsel and independent
public accountants for the Company, fees and expenses (including reasonable
counsel fees) incurred in connection with complying with state securities or
“blue sky” laws, fees of FINRA, and fees of
transfer agents and registrars are herein called “Registration
Expenses.” All underwriting discounts, selling commissions and transfer applicable to the sale of Registrable
Securities are herein
called “Selling
Expenses.”  The Company will pay all
Registration Expenses in connection with any registration statement described in
Section 11.  Selling Expenses in connection with each such registration
statement shall be borne by the Seller and may be apportioned among the Sellers
in proportion to the number of shares included on behalf of the Seller relative
to the aggregate number of shares included under such registration statement for
all Sellers, or as all Sellers thereunder may agree.

    

    11.6. 
    Indemnification
and Contribution.

    

    (a)           In the event of a registration of any
Registrable Securities under the 1933 Act pursuant to Section 11, the Company
will, to the extent permitted by law, indemnify and hold harmless the
Seller and each of the officers, directors, agents, Affiliates,
members, managers, control persons, and principal
shareholders of the Seller, each underwriter of such
Registrable Securities thereunder and each other person, if any, who controls
such Seller or underwriter within the meaning of the 1933 Act, against any losses, claims, damages or
liabilities to which such Seller or  person may become
subject under the 1933 Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
any untrue statement of any material fact contained in any registration
statement under which such Registrable Securities was registered under the 1933
Act pursuant to Section 11, any preliminary prospectus or final prospectus
contained therein, or any amendment or supplement thereof, or arise out of or
are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances when made, and will, subject to the provisions of Section
11.6(c), reimburse such Seller for any reasonable legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action; provided,
however, that the Company
shall not be liable to the
Seller to the extent that
any such damages arise out of or are based upon an untrue statement or omission
made in any preliminary prospectus if (i) the Seller failed to send or deliver a copy
of the final prospectus delivered by the Company to the Seller with or prior to the delivery of
written confirmation of the sale by the Seller to the person asserting the claim
from which such damages arise, (ii) the final prospectus would have corrected
such untrue statement or alleged untrue statement or such omission or alleged
omission, or (iii) to the extent that any such loss, claim, damage or liability
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission so made in conformity with information furnished
by any such Seller in writing specifically for use in such registration statement or
prospectus.

    
      
         

      

      
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    (b)           In the event of a registration of any of
the Registrable Securities under the 1933 Act pursuant to Section 11, each
Seller, severally but not jointly, will, to the extent permitted by law,
indemnify and hold harmless the Company, and each person, if any, who controls
the Company within the meaning of the 1933 Act, each officer of the Company who
signs the registration statement, each director of the Company, each underwriter and each person who
controls any underwriter within the meaning of the 1933 Act, against all losses, claims, damages or
liabilities, joint or several, to which the Company or such officer,
director,
underwriter or controlling
person may become subject under the 1933 Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in the registration statement under which such
Registrable Securities were registered under the 1933 Act pursuant to Section
11, any preliminary prospectus or final prospectus contained therein, or any
amendment or supplement thereof, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and will
reimburse the Company and each such officer, director, underwriter and controlling person for any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Seller will be liable hereunder in any such case if and only to the
extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in reliance upon and in conformity with information pertaining to
such Seller, as such, furnished in writing to the Company by such Seller
specifically for use in such registration statement or prospectus, and
provided, further,
however, that the liability
of the Seller hereunder shall be limited to the net proceeds actually received
by the Seller from the sale of Registrable Securities pursuant to such
registration statement.

    

    (c)         
Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect
thereof is to be made against the indemnifying party hereunder, notify the
indemnifying party in writing thereof, but the omission to so notify the
indemnifying party shall not relieve the indemnifying party from any liability
which it may have to such indemnified party other than under this Section
11.6(c), and shall only relieve it from any liability which it may have to such
indemnified party under this Section 11.6(c), except and only if and to the
extent the indemnifying party is materially prejudiced by such omission. In case
any such action shall be brought against any indemnified party and it shall
notify the indemnifying party of the commencement thereof, the indemnifying
party shall be entitled to participate in and, to the extent it shall wish, to
assume and undertake the defense thereof with counsel satisfactory to such
indemnified party, and, after notice from the indemnifying party to such
indemnified party of its election to so assume and undertake the defense
thereof, the indemnifying party shall not be liable to such indemnified party
under this Section 11.6(c) for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation and of liaison with counsel so selected, provided, however, that, if
the defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be reasonable defenses available to indemnified party which are
different from or additional to those available to the indemnifying party or if
the interests of the indemnified party reasonably may be deemed to conflict with
the interests of the indemnifying party, the indemnified parties, as a group,
shall have the right to select one separate counsel, reasonably satisfactory to
the indemnified and indemnifying party, and to assume such legal defenses and
otherwise to participate in the defense of such action, with the reasonable
expenses and fees of such separate counsel and other expenses related to such
participation to be reimbursed by the indemnifying party as
incurred.

    

    (d)           In
order to provide for just and equitable contribution in the event of joint
liability under the 1933 Act in any case in which either (i) a Seller, or any
controlling person of a Seller, makes a claim for indemnification pursuant to
this Section 11.6 but it is judicially determined (by the entry of a final
judgment or decree by a court of competent jurisdiction and the expiration of
time to appeal or the denial of the last right of appeal) that such
indemnification may not be enforced in such case notwithstanding the fact that
this Section 11.6 provides for indemnification in such case, or (ii)
contribution under the 1933 Act may be required on the part of the Seller or
controlling person of the Seller in circumstances for which indemnification is
not provided under this Section 11.6, then, and in each such case, the Company
and the Seller will contribute to the aggregate losses, claims, damages or
liabilities to which they may be subject (after contribution from others) in
such proportion so that the Seller is responsible only for the portion
represented by the percentage that the public offering price of its securities
offered by the registration statement bears to the public offering price of all
securities offered by such registration statement, provided, however, that, in
any such case, (y) the Seller will not be required to contribute any amount in
excess of the public offering price of all such securities sold by it pursuant
to such registration statement; and (z) no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) will be
entitled to contribution from any person or entity who was not guilty of such
fraudulent misrepresentation; and provided, further, however,
that the liability of the Seller hereunder shall be limited to the net proceeds
actually received by the Seller from the sale of Registrable Securities pursuant
to such registration statement.

    
      
         

      

      
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    11.7. 
    Unlegended
Shares and 144 Sales.

    

    (a)           Delivery of
Unlegended Shares. 
Within five (5)
days (such fifth (5th) day being the “Unlegended Shares
Delivery Date”) after the day on which the Company has
received (i) a notice that Conversion Shares, Warrant Shares or any other Common
Stock held by Subscriber has been sold pursuant to a registration statement or
Rule 144 under the 1933 Act, (ii) a representation that the prospectus delivery
requirements, or the requirements of Rule 144, as applicable and if required,
have been satisfied, (iii) the original share certificates representing the
shares of Common Stock that have been sold, and (iv) in the case of sales under
Rule 144, customary representation letters of Subscriber and, if required,
Subscriber’s broker regarding compliance with the
requirements of Rule 144, the Company, at its expense, (y) shall deliver, and
shall cause legal counsel selected by the Company to deliver to its transfer
agent (with copies to Subscriber) an appropriate instruction directing the
delivery of shares of Common Stock without any legends including the legend set forth
in Section 4(h) above (the “Unlegended
Shares”); and (z) cause the
transmission of the certificates representing the Unlegended Shares, together
with a legended certificate representing the balance of the submitted Common
Stock certificate, if any, to Subscriber at the address specified in the notice
of sale, via express courier, by electronic transfer or otherwise on or before
the Unlegended Shares Delivery Date.

    

    (b)           DWAC.   In lieu of delivering
physical certificates representing the Unlegended Shares, upon request of the
Subscribers, so long as the certificates therefor do not bear a legend and
Subscriber is not obligated to return such certificate for the placement of a
legend thereon, the Company shall cause its transfer agent to electronically
transmit the Unlegended Shares by crediting the account of Subscriber’s prime
broker with the Depository Trust Company through its Deposit Withdrawal Agent
Commission system, if such transfer agent participates in such DWAC
system.  Such delivery must be made on or before the Unlegended Shares
Delivery Date.

    

    (c)           Late
Delivery of Unlegended Shares.   The Company understands
that a delay in the delivery of the Unlegended Shares pursuant to Section 11.7
hereof later than the Unlegended Shares Delivery Date could result in economic
loss to a Subscriber.  As compensation to a Subscriber for such loss, the
Company agrees to pay late payment fees (as liquidated damages and not as a
penalty) to Subscriber for late delivery of Unlegended Shares in the amount of
$100 per business day after the Unlegended
Shares Delivery Date for each $10,000 of purchase price of the Unlegended
Shares, subject to the delivery default; provided that such delay is not the direct or
indirect result of Subscriber’s actions or omissions.  If during any three
hundred sixty (360) day period, the Company fails to deliver Unlegended Shares
as required by this Section 11.7 for an aggregate of thirty (30) days, then each
Subscriber or assignee holding Securities subject to such default may, at its
option, require the Company to redeem all or any portion of the Unlegended
Shares subject to such default at a price per share equal to the greater of (i)
110% of the Purchase Price paid by Subscriber for the Unlegended Shares that
were not timely delivered, or (ii) a fraction in which the numerator is the
highest closing price of the Common Stock during the aforedescribed thirty day
period and the denominator of which is the lowest conversion price or exercise
price, as the case may be, during such thirty (30) day period, multiplied by the price paid
by Subscriber for such Common Stock (“Unlegended Redemption
Amount”).  The Company
shall promptly pay any payments incurred under this Section in immediately
available funds upon demand.

    
      
         

      

      
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    (d)           Injunction.  In the event a Subscriber shall
request delivery of Unlegended Shares as described in Section 11 and the Company
is required to deliver such Unlegended Shares pursuant to Section 11.7, the
Company may not refuse to deliver Unlegended Shares based on any claim that such
Subscriber or any one associated or affiliated with such Subscriber has not
complied with Subscriber’s obligations under the Transaction Documents, or for
any other reason, unless, an injunction or temporary restraining order from a
court, on notice, restraining and or enjoining delivery of such Unlegended
Shares shall have been sought and obtained by the Company and the Company
has posted a surety bond for the benefit of such Subscriber in the amount of the
greater of (i) 125% of the amount of the aggregate purchase price of the Common
Stock which is subject to the injunction or temporary restraining order, (ii)
the closing price of the Common Stock on the trading day before the issue date
of the injunction multiplied by the number of Unlegended Shares to be subject to
the injunction, which bond shall remain in effect until the completion of
arbitration/litigation of the dispute and the proceeds of which shall be payable
to such Subscriber to the extent Subscriber obtains judgment in Subscriber’s
favor.

    

    (e)           Buy-In.   In addition to any other
rights available to Subscriber, if the Company fails to deliver to Subscriber
Unlegended Shares as required pursuant to this Agreement and after the
Unlegended Shares Delivery Date Subscriber, or a broker on Subscriber’s behalf,
purchases (in an open market transaction or otherwise) shares of common stock to
deliver in satisfaction of a sale by such Subscriber of the shares of Common
Stock which Subscriber was entitled to receive from the Company (a “Buy-In”), then the Company shall promptly pay
in cash to Subscriber (in addition to any remedies available to or elected by
Subscriber) the amount by which (A) Subscriber’s total purchase price (including
brokerage commissions, if any) for the shares of common stock so purchased
exceeds (B) the aggregate purchase price of the shares of Common Stock delivered
to the Company for reissuance as Unlegended Shares together with interest
thereon at a rate of 15% per annum accruing until such amount and any accrued
interest thereon is paid in full (which amount shall be paid as liquidated
damages and not as a penalty).  For purposes of illustration only, if
Subscriber purchases shares of Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to $10,000 of purchase price of shares of
Common Stock delivered to the Company for reissuance as Unlegended Shares, the
Company shall be required to pay the Subscriber $1,000, plus interest.
Subscriber shall promptly provide the Company written notice indicating the
amounts payable to Subscriber in respect of the Buy-In, including, evidence
regarding the purchase of common stock for which the Buy-In is
implemented.

    

    (e)           144
Default.   At any
time commencing six (6) months after the Closing Date, in the event Subscriber
is not permitted to sell any of the Conversion Shares or Warrant Shares without
any restrictive legend, or if such sales are permitted but subject to volume
limitations or further restrictions on resale as a result of the unavailability
to Subscriber of Rule 144(b)(1)(i) under the 1933 Act or any successor rule (a
“144
Default”), for any reason,
including, but not limited to, failure by the Company to file quarterly, annual
or any other filings required to be made by the Company by the required filing
dates (provided that any filing made within the time for a valid extension shall
be deemed to have been timely filed), or the Company’s failure to make
information publicly available which would allow Subscriber’s reliance on Rule
144 in connection with sales of Conversion Shares or Warrant Shares, except due
to a change in current applicable securities laws or because Subscriber is an
Affiliate (as defined under Rule 144) of the Company, then the Company shall pay
such Subscriber as liquidated damages and not as a penalty for each thirty (30)
days (or such lesser pro-rata amount for any period less than thirty (30) days)
an amount equal to one percent (1%) of the purchase price of the Conversion
Shares and Warrant Shares subject to such 144 Default.  Liquidated Damages
shall not be payable pursuant to this Section 11.7(e) in connection with
Conversion Shares or Warrant Shares for such times as such shares may be sold by
the holder thereof without any legend or volume or other restrictions pursuant
to Section 144(b)(1)(i) of the 1933 Act or pursuant to an effective registration
statement.

    
      
         

      

      
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    12. 
        (a)           Favored
Nations Provision. 
Other than in connection
with (i) full or partial
consideration in connection with a strategic merger, acquisition, consolidation
or purchase of substantially all of the securities or assets of a corporation or other entity,
so long as such issuances
are not for the purpose of raising capital and which holders of such securities
or debt are not at any time granted registration rights, (ii) the
Company’s issuance of securities in connection
with strategic license agreements and other partnering arrangements, so long as such issuances are not for
the purpose of raising capital and which holders of such securities or debt are
not at any time granted registration rights, (iii) the Company’s issuance of Common Stock
or the issuances or grants of options to purchase Common Stock to employees,
directors, and consultants, pursuant to plans described on Schedule
5(d) , (iv) securities upon
the exercise or exchange of or conversion of any securities exercisable or
exchangeable for or convertible into shares of Common Stock issued and
outstanding on the date of this Agreement on the terms disclosed in the Reports
and which securities are also described on
Schedule
12(a), and (v) as a result
of the exercise of Warrants or conversion of Preferred Stock which are granted
or issued pursuant to this Agreement on the unamended terms in effect on the
Closing Date (collectively, the foregoing (i) through (v) are “Excepted
Issuances”), if at any time
the Preferred Stock or Warrants are outstanding, the Company shall agree to or
issue (the “Lower Price
Issuance”) any Common Stock
or securities convertible into or exercisable for shares of Common Stock (or
modify any of the foregoing which may be outstanding) to any Person at a price
per share or conversion or exercise price per share which shall be less than the
Conversion Price in effect at such time or the Warrant exercise price in effect
at such time, as applicable, without the consent of the Subscribers, then
the Conversion Price and
Warrant exercise price, as applicable, shall automatically be reduced to such
other lower price.  The average Conversion Price of the Conversion Shares
and average exercise price in relation to the Warrant Shares shall be calculated
separately for the Conversion Shares and Warrant Shares. Common Stock issued or issuable by the Company for
no consideration or for consideration that cannot be determined at the time of
issue will be deemed issuable or to have been issued for $0.0001 per share of
Common Stock.  For purposes of the issuance and adjustments described in
this paragraph, the issuance of any security of the Company carrying the right
to convert such security into shares of Common Stock or any warrant, right or
option to purchase Common Stock shall result in the issuance of the additional
shares of Common Stock upon the sooner of (A) the agreement to or (B) actual
issuance of such convertible security, warrant, right or options and again at
any time upon any subsequent issuances of shares of Common Stock upon exercise
of such conversion or purchase rights if such issuance is at a price lower than
the Conversion Price or Warrant exercise price, as applicable, in effect upon
such issuance.  The rights of the Subscribers set forth in this Section 12
are in addition to any other rights the Subscribers have pursuant to this
Agreement, the Preferred Stock, Warrants or any other Transaction
Document.

    

    (b)           Right of
First Refusal. 
Until one (1) year
following the Closing Date, the Subscribers shall be given not less than fifteen
(15) days prior written notice of any proposed sale by the Company of its common
stock or other securities or equity linked debt obligations (“Other
Offering”), except in
connection with the Excepted Issuances.  If the Subscribers elect to
exercise their rights pursuant to this Section 12(b), the Subscribers shall
have the right during the fifteen (15) days following receipt of the notice, to
purchase in the aggregate up to all of such offered common stock, debt or
other securities in accordance with the terms and conditions set forth in the
notice of sale, relative to each other in proportion to the amount of Preferred
Stock issued to them on the Closing Date.  Subscribers who participate in
such Other Offering shall be entitled at their option to purchase, in proportion
to each other, the amount of such Other Offering that could have been purchased
by Subscribers who do not exercise their rights hereunder until up to the entire
Other Offering is purchased by the Subscribers.  In the event such terms
and conditions are modified during the notice period, Subscribers shall be given
prompt notice of such modification and shall have the right during the fifteen
(15) days following the notice of modification to exercise such
right.

    

    (c)           Maximum
Exercise of Rights. 
 Notwithstanding the
foregoing, in the event the
exercise of the rights
described in Section 12(a) and Section 12(b) would or could result in the issuance of
an amount of Common Stock of the Company that would exceed the maximum amount
that may be issued to a
Subscriber as described in Section 2D of the
Certificate of Designation and Section 9 of the Warrant, then the issuance of such additional
shares of Common Stock of the Company to such Subscriber will be deferred in
whole or in part until such time as such Subscriber is able to beneficially own
such Common Stock without exceeding the applicable maximum amount set forth
and such Subscriber notifies the Company
accordingly.

    
      
         

      

      
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    13. 
       Special
Conditions.   On
November 5, 2010, the Company issued an aggregate of $200,000 in Convertible
Promissory Notes (“Bridge
Notes”) and Warrants to the
parties described on Schedule
13 hereto (“Bridge Lenders”).  The Bridge Lenders intend to
become Subscribers pursuant to this Agreement and pay for the Preferred Stock
and Warrants to be acquired hereunder by surrender of the Bridge Notes at an
agreed value of the $200,000 principal amount of the Bridge Notes and accrued
interest (“Interest”) on the Bridge Notes through the
Closing Date on the amounts as set forth on Schedule
1  and signature
pages hereto.  Together with such surrendered Bridge Notes and Interest,
the Bridge Lenders will deliver to the Escrow Agent, who shall accept same on
behalf of the Company pending Closing or Initial Closing, as the case may
be, the original Bridge
Notes.  Upon Closing or Initial Closing, as the case may
be, all of the Company’s
obligations to the Bridge Lenders pursuant to or in connection with the Bridge
Notes and any other agreement in connection with the issuance and/or amendment
of the Bridge Notes will be fully satisfied.

    

    14. 
       Miscellaneous.

    

    (a)           Notices.  All notices, demands, requests,
consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i)
personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier
service with charges prepaid, or (iv) transmitted by hand delivery, telegram,
or facsimile addressed as set forth below or to such
other address as such party shall have specified most recently by written
notice in accordance with
this Section 14(a). 
Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by
facsimile with accurate confirmation generated by
the transmitting facsimile machine at the address or number designated
below (if delivered on a business day during normal business hours where such
notice is to be received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours where such
notice is to be received, or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such
address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be: (i) if to the Company,
to: GoEnergy Inc., c/o Kick
the Can Corp., 1010 Avenue of the Americas, Suite 302, New York, NY 10018, Attn:
Gareb Shamus, facsimile: (212) 765-5779, with a copy by fax only to
(which shall not constitute notice): Anslow & Jaclin, LLP, 195 Route 9
South, Manalapan, NJ 07726, Attn: Joseph M. Lucosky, Esq., facsimile: (732)
577-1188, and (ii) if to a Subscriber, to: the addresses and fax numbers
indicated on Schedule
1 hereto, with an additional copy by fax only to (which shall not
constitute notice): Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley
Stream, New York 11581, facsimile: (212) 697-3575.

    

    (b)           Entire
Agreement; Assignment.  This Agreement and other
documents delivered in connection herewith represent the entire agreement
between the parties hereto with respect to the subject matter hereof and may be
amended only by a writing executed by all parties.  Neither the Company nor
the Subscribers has relied on any representations not
contained or referred to in this Agreement or the other Transaction
Documents.   No
right or obligation of the Company shall be assigned without prior notice to and
the written consent of the
Subscribers.

    

    (c)           Counterparts/Execution.  This Agreement may be executed
in any number of counterparts and by the different signatories hereto on
separate counterparts, each of which, when so executed, shall be deemed an
original, but all such counterparts shall constitute but one and the same
instrument.  This Agreement may be executed by facsimile transmission, PDF, electronic signature
or other similar electronic means with the same force and effect as if such
signature page were an original thereof.

    
      
         

      

      
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    (d)          Law
Governing this Agreement.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
without regard to principles of conflicts of laws thereof or any other State.
Any action brought by any party hereto against the other concerning the
transactions contemplated by this Agreement shall be brought only in the state
courts of New York or in the federal courts located in the state and county of
New York.  The parties to this Agreement hereby irrevocably waive any
objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon
forum non
conveniens.  The
parties executing this Agreement and other agreements referred to herein or
delivered in connection herewith on behalf of the Company agree to submit to the
in personam jurisdiction of such courts and hereby irrevocably waive trial by
jury.  The prevailing party shall be entitled to recover from the
other party its reasonable attorney’s fees and costs.  In the event that
any provision of this Agreement or any other agreement delivered in connection
herewith is invalid or unenforceable under any applicable statute or rule of
law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law.  Any such provision which may prove invalid or unenforceable
under any law shall not affect the validity or enforceability of any other
provision of any agreement.  Each party hereto hereby irrevocably waives
personal service of process and consents to process being served in any suit,
action or proceeding in connection with this Agreement or any other Transaction
Document by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof.  Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any other manner permitted by law.

    

    (e)           Specific
Enforcement, Consent to Jurisdiction.  The Company and each
Subscriber hereby irrevocably waives, and agrees not to assert in any such suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction in New York of such court, that the suit, action or proceeding is
brought in an inconvenient forum or that the venue of the suit, action or
proceeding is improper.  Nothing in this Section shall affect or limit any
right to serve process in any other manner permitted by law.  Subject to Section 13(d) hereof,
the Company and the Subscribers acknowledge and agree that irreparable
damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise
breached.  It is accordingly agreed that the parties hereto shall be
entitled to seek an injunction or injunctions to prevent or cure breaches of the
provisions of this Agreement and to enforce specifically the terms and
provisions hereof, this being in addition to any other remedy to which any of
them may be entitled by law or equity.  .

    

    (f)           Damages.   In the event the
Subscriber is entitled to receive any liquidated or other damages pursuant to
the Transactions Documents, the Subscriber may elect to receive the greater of
actual damages or such liquidated damages.  In the event the Subscriber is
granted rights under different sections of the Transaction Documents relating to
the same subject matter or which may be exercised contemporaneously, or pursuant
to which damages or remedies are different, Subscriber is granted the right in
Subscriber’s absolute discretion to proceed under such section as Subscriber
elects.

    

    (g)          Maximum
Payments.   Nothing contained herein or in any
document referred to herein or delivered in connection herewith shall be deemed
to establish or require the payment of a rate of interest or other charges in
excess of the maximum permitted by applicable law.  In the event that the
rate of interest or dividends required to be paid or other charges hereunder
exceed the maximum permitted by such law, any payments in excess of such maximum
shall be credited against amounts owed by the Company to the
Subscribers and thus refunded to the Company. 
The Company agrees that it
may not and actually waives any right to challenge the effectiveness or
applicability of this Section 14(g).

    

    (h)         
Calendar
Days. All references to
“days” in the Transaction Documents shall mean
calendar days unless otherwise stated. The terms “business days” and “trading days” shall mean days that the New York Stock
Exchange is open for trading for three or more hours. Time periods shall be
determined as if the relevant action, calculation or time period were occurring
in New York City. Any deadline that falls on a non-business day in any of the
Transaction Documents shall be automatically extended to the next business day
and interest, if any, shall be calculated and payable through such extended
period.

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    (i)
           Captions; Certain
Definitions.  The captions of the various sections and paragraphs of
this Agreement have been inserted only for the purposes of convenience; such
captions are not a part of this Agreement and shall not be deemed in any manner
to modify, explain, enlarge or restrict any of the provisions of this
Agreement.  As used in this Agreement the term “person” shall mean
and include an individual, a partnership, a joint venture, a corporation, a
limited liability company, a trust, an unincorporated organization and a
government or any department or agency thereof.

    

    (j)  
         Consent. 
 As used in this Agreement and the other Transaction Documents and any
other agreement delivered in connection herewith, “Consent of the Subscribers” or
similar language means the consent of all holders of the outstanding Preferred
Stock on the date consent is requested.  The Subscribers may consent to
take or forebear from any action permitted under or in connection with the
Transaction Documents, modify any Transaction Documents or waive any default or
requirement applicable to the Company, the Subsidiaries or the Subscribers under
the Transaction Documents, provided the effect of such
action does not waive any accrued interest or damages and further provided that
the relative rights of the Subscribers to each other remains
unchanged.

    

    (k)           Severability.  In the event that any term or
provision of this Agreement shall be finally determined to be superseded,
invalid, illegal or
otherwise unenforceable pursuant to applicable law by an authority having
jurisdiction and venue, that determination shall not impair or otherwise affect
the validity, legality or enforceability: (i) by or before that authority of the
remaining terms and provisions of this
Agreement, which shall be enforced as if the unenforceable term or provision
were deleted, or (ii) by or before any other authority of any of the terms and
provisions of this Agreement.

    

    (l)
           Successor
Laws.  References in
the Transaction Documents to laws, rules, regulations and forms shall also
include successors to and functionally equivalent replacements of such laws,
rules, regulations and forms.  A successor rule to Rule 144(b)(1)(i) shall
include any rule that would be available to a non-Affiliate of the Company for
the sale of Common Stock not subject to volume restrictions and after a six
month holding period.

    

    (m)          Maximum
Liability.   In
no event shall the liability of the Subscribers or permitted assign hereunder or under any Transaction
Document or other agreement delivered in connection herewith be greater in
amount than the dollar amount of the net proceeds actually received by such
Subscriber or successor upon the sale of Conversion Shares.

    

    (n)           Independent
Nature of Subscribers.    The Company
acknowledges that the obligations of each Subscriber under the Transaction
Documents are several and not joint with the obligations of any other
Subscriber, and no Subscriber shall be responsible in any way for the
performance of the obligations of any other Subscriber under the Transaction
Documents. The Company acknowledges that each Subscriber has represented
that the decision of each Subscriber to purchase Securities has been made by
such Subscriber independently of any other Subscriber and independently of any
information, materials, statements or opinions as to the business, affairs,
operations, assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company which may have been made or
given by any other Subscriber or by any agent or employee of any other
Subscriber, and no Subscriber or any of its agents or employees shall have any
liability to any other Subscriber (or any other person) relating to or arising
from any such information, materials, statements or opinions.  The Company acknowledges that nothing
contained in any Transaction Document, and no action taken by any Subscriber
pursuant hereto or thereto shall be deemed to constitute the Subscribers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Subscribers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by the
Transaction Documents.  The Company acknowledges that it has elected to
provide all Subscribers with the same terms and Transaction Documents for the
convenience of the Company and not because Company was required or requested to
do so by the Subscribers.  The Company acknowledges that such procedure
with respect to the Transaction Documents in no way creates a presumption that
the Subscribers are in any way acting in concert or as a group with respect to
the Transaction Documents or the transactions
contemplated thereby.

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    (o)          Equal
Treatment.   No consideration shall be offered or paid to any
person to amend or consent to a waiver or modification of any provision of the
Transaction Documents unless the same consideration is also offered and paid to
all the Subscribers and their permitted successors and assigns.

    

    (p)          Adjustments.   The conversion price, Warrant exercise price, amount of Conversion Shares and Warrant Shares, trading volume amounts,
price/volume amounts and similar figures in the Transaction Documents
shall be equitably adjusted
and as otherwise described in this Agreement, the Certificate of Designation and Warrants.

    

    [-SIGNATURE
PAGES FOLLOW-]

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     SIGNATURE PAGE TO
SUBSCRIPTION AGREEMENT (E)

    

    Please acknowledge your acceptance of
the foregoing Subscription Agreement by signing and returning a copy to the
undersigned whereupon it shall become a binding agreement between
us.

    

    
      
        	 
      	
                GOENERGY
    INC.

              
	 
      	
                a Delaware
      corporation

              
	 
      	 
      
	 
      	
                By: 

              	
                   

              
	 
      	 
      	
                Name:

              
	 
      	 
      	
                Title:

              
	 
      	 
      
	 
      	
                Dated: December ___,
      2010

              

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                SUBSCRIBER

                              	 	
                                PURCHASE

                                PRICE

                              	 	
                                PREFERRED

                                STOCK

                              	 	
                                WARRANTS

                              
	
                                Name
      of Subscriber:

                              	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      
	
                                  

                              	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      
	
                                Address:

                              	 	 
      	 	 
      	 	 
      
	
                                  

                              	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      
	
                                  

                              	 	 
      	 	 
      	 	 
      
	 
      	 
      	 	 
      	 	 
      	 	 
      
	
                                Fax No.: 

                              	 
        	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      
	
                                Taxpayer
      ID# (if applicable): ___________________________

                              	 	 
      	 	 
      	 	 
      
	
                                or
      Social Security #

                              	 	 
      	 	 
      	 	 
      
	
                                  

                              	 	 
      	 	 
      	 	 
      
	
                                (Signature)

                              	 	 
      	 	 
      	 	 
      
	
                                By:

                              	 	 
      	 	 
      	 	 
      

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    LIST OF
EXHIBITS AND SCHEDULES

    

    
      
        
          	
                  Exhibit A

                	
                  Certificate of
      Designation

                
	
                  Exhibit B

                	
                  Form of Series A
      Warrants

                
	
                  Exhibit C

                	
                  Escrow
      Agreement

                
	
                  Exhibit D

                	
                  Share Exchange
      Documents

                
	
                  Exhibit E

                	
                  Super
8-K

                
	
                  Exhibit F

                	
                  Form of Legal
      Opinion

                
	
                  Exhibit G

                	
                  Form of Audit
      Opinion

                
	
                  Schedule 1

                	
                  List of
      Subscribers

                
	
                  Schedule
    5(a)

                	
                  Subsidiaries

                
	
                  Schedule
    5(d)

                	
                  Capitalization and Additional
      Issuances

                
	
                  Schedule
    5(f)

                	
                  Violations and
      Conflicts

                
	
                  Schedule
    5(o)

                	
                  Undisclosed
      Liabilities

                
	
                  Schedule
    5(w)

                	
                  Transfer
    Agent

                
	
                  Schedule
    9(e)

                	
                  Use of
    Proceeds

                
	
                  Schedule
    9(w)

                	
                  Further Registration
      Statements

                
	
                  Schedule
    9(l)

                	
                  Intellectual
      Property

                
	
                  Schedule
      11.1(iv)

                	
                  Registrable
      Securities

                
	
                  Schedule
    12(a)

                	
                  Excepted
      Issuances

                
	
                  Schedule 13

                	
                  Bridge
    Lenders

                

        

      

    

    
      
         

      

      
        31

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