Document:

Exhibit
10.1

    

    SECURITY
AGREEMENT

    

    THIS SECURITY AGREEMENT (this
“Agreement”) is dated as of September 28, 2009, and is entered into by and among
ThermoEnergy Corporation, a Delaware corporation having its principal place of
business in Little Rock, Arkansas (the “Debtor”), and Empire Capital Partners,
LP,  Empire Capital Partners, Ltd, Empire Capital Partners Enhanced
Master Fund, Ltd, Scott A. Fine, Peter J. Richards, Focus Fund, L.P., Robert S.
Trump (collectively, with The Quercus Trust, the “Secured Parties”) and The
Quercus Trust, for itself and as the agent for and for the benefit of the
Secured Parties (the “Agent”).  Capitalized terms not otherwise
defined herein are used as defined in the Delaware Uniform Commercial Code on
the date of this Agreement (the “UCC”).

    

    WHEREAS, the Debtor is, on or about the
date hereof, borrowing an aggregate of One Million, Six  Hundred
Eighty Thousand Dollars ($1,680,000) from the Secured Parties pursuant to a
series of 8% Secured Convertible Promissory Notes of even date herewith in favor
of  the Secured Parties as further identified on Schedule I hereto
(the “New Notes”); and

    

    WHEREAS, the Secured Parties have
agreed to surrender for cancellation outstanding promissory notes of the Debtor
in an aggregate principal amount of Four Million Dollars ($4,000,000) as further
identified on Schedule I hereto, in exchange for 8% Secured Convertible
Promissory Notes in form substantially identical to the New Notes (the “Exchange
Notes” and, together with the New Notes, the “Notes”); and

    

    WHEREAS, it is a condition precedent to
the Secured Parties’ making any advances to the Debtor under the New Notes and
to the Secured Parties’ surrender of the Exchange Notes that the Debtor execute
and deliver to the Secured Parties a security agreement in substantially the
form hereof; and

    

    WHEREAS, the Debtor wishes to grant a
security interest in favor of the Secured Parties as herein
provided.

    

    NOW, THEREFORE, in consideration of the
promises contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

    

    SECTION 1.  Grant of
Security.  As consideration for the Secured Parties’ loan to
the  Debtor pursuant to the Notes, the Debtor hereby grants to the
Secured Parties a security interest in the entirety of the Debtor’s Membership
Interest (representing an 85% beneficial ownership) in ThermoEnergy Power
Systems, LLC, a Delaware limited liability Debtor (“TEPS”) and any and all
proceeds from the transfer, assignment or other permitted disposition thereof
(the “Collateral”).

    

    SECTION 2.  Security for
Obligations.  This Agreement secures and the Collateral is
collateral security for the prompt payment or performance in full (including,
without limitation, amounts that would become due but for the filing of a
petition in bankruptcy), of all amounts when due under the Notes, as well as the
Debtor’s performance and observance of all covenants contained herein and in the
Notes (the “Obligations”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    SECTION 3.   Agent as Agent of
Investors.

    

    (a)           The
Agent shall serve and act as agent for all Secured Parties and shall take such
action on their behalf under the provisions of this Agreement and shall exercise
such powers and perform such duties as are expressly delegated to the Agent by
the terms of this Agreement, together with such powers as are reasonably
incidental thereto.  Notwithstanding any provision to the contrary
contained elsewhere in this Agreement, the Agent shall not have any duties or
responsibilities except those expressly set forth herein.

    

    (b)           The
Agent and the Debtor acknowledge and agree that each Note is secured by a
security interest in the Collateral and that the priorities of the security
interests which secure each  Secured Party’s  respective
Note or Notes and its or his rights in and to the Collateral which secures such
Notes shall at all times be equal and that each shall share and be equal in
priority and rights with the other Secured Parties.

    

    (c)           In
the event that an Event of Default occurs, and a Secured Party gives the Agent
notice thereof, the Agent shall immediately thereafter (i) give written notice
of the Event of Default to all Secured Parties, and (ii) commence enforcement,
collection (including judicial or nonjudicial foreclosure) or similar proceeding
with respect to the Collateral; provided that
while the Agent may take immediate action in its discretion in order to attempt
to preserve the rights of the Secured Parties hereunder, the Agent (a) shall not
be required to take any action hereunder unless and until, if requested by the
Agent, the Agent receives direction from a Majority in Interest of the Secured
Parties (determined on the basis of the principal amounts of the Notes), and (b)
shall take such all such actions to enforce this Agreement and to realize
upon, collect and dispose of the Collateral or any portion thereof as may be
directed by a Majority-in-Interest of the Secured Parties; provided that the
Agent shall not be required to take any action that is contrary to law or to the
terms of this Agreement, or that would subject it or any of its employees or
agents to liability.

    

    (d)           The
Agent acknowledges and agrees that this Agreement and the terms and provisions
hereof are solely for the benefit of the Secured Parties and shall not benefit
in any way any other person or entity, including, without limitation, the Debtor
or any of its guarantors.  Nothing in this Agreement is intended to
affect, limit or in any way diminish the security interests which the Secured
Parties claim in the assets of the Debtor insofar as the rights of the Debtor
and third parties are concerned.  The Agent, on behalf of all Secured
Parties, specifically reserves any and all of their respective rights, security
interests and rights to assert security interests against the Debtor and any
third parties, including guarantors.

    

    (e)           The
Debtor, the Secured Parties and the Agent acknowledge and agree that each
Secured Party’s respective rights and priorities with respect to the Collateral
shall exist and be enforceable against the Collateral only by the Agent on
behalf of all Secured Parties in accordance with the terms hereof, independent
of the time or order of attachment or perfection of such Secured Party’s
respective security interest, or the time or order of filing of financing
statements.  The subordinations, agreements and priorities set forth
in this Agreement shall remain in full force and effect regardless of whether
any Secured Party in the future seeks to rescind, amend, terminate or reform, by
liquidation or otherwise, its or his respective agreements with the
Debtor.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    (f)           The
Debtor, the Secured Parties and the Agent acknowledge and agree that the
indebtedness and payment obligations of the Debtor with respect to each Note
shall be of equal priority, no Note shall have a priority of payment over or be
subordinate to any other Note, and any and all property, Proceeds or other
payments received by the Agent in connection with its enforcement of the Secured
Parties’ security interests as contemplated herein shall be applied promptly by
the Agent to the payment to the Secured Parties pari passu of all outstanding
amounts owed under their respective Notes.

    

    (g)           Subject
to the shared priority and respective rights of the Secured Parties set forth in
this Agreement, the Agent, on behalf of the Secured Parties, shall be entitled
to obtain loss payee endorsements and additional insured status with respect to
any and all policies of insurance now or hereafter obtained by
the  Debtor insuring against casualty or other loss to any property of
the Debtor in which any Secured Party may have a security interest, and, in
connection therewith, may file claims, settle disputes, make adjustments and
take any and all other action otherwise then permitted to each Secured Party
with regard thereto, which it may deem advisable with respect to any assets of
the Debtor.

    

    (h)           Neither
the Agent  nor any officer or agent thereof shall be liable to the
Debtor or the Secured Parties for monetary damages for any action taken or
omitted to be taken by the Agent except for liability (i) for acts or omissions
not in good faith or which involve intentional misconduct or a knowing violation
of law or (ii) for any transaction from which the Agent or such officer or agent
thereof derived an improper personal benefit.

    

    (i)           The
Debtor shall indemnify and hold harmless the Agent for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements (including reasonable attorneys’ fees) of any kind
whatsoever which may be imposed on, incurred by or asserted against the Agent in
connection with or in any way arising out of this Agreement; provided, however,
that the Debtor shall not be liable to the Agent for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from the Agent’s gross negligence or
willful misconduct as determined by a final judgment of a court of competent
jurisdiction.   The Debtor shall upon demand pay to the Agent the
amount of any and all reasonable expenses, including the reasonable fees and
expenses of its counsel and of any experts and agents, that the Agent may incur
in connection with (i) the administration of this Agreement, (ii) the custody,
preservation, use or operation of, or the sale of, collection from or other
realization upon, any of the Collateral, (iii) the exercise or enforcement of
any of the rights of the Agent or the Secured Parties hereunder, or (iv) the
failure by the Debtor to perform or observe any of the provisions
hereof.   In the event the Debtor fails to comply with its
obligations under this Section 4(i), after commercially practicable efforts by
the Agent to obtain such compliance, each of the Secured Parties agrees to
contribute and pay to the Agent its or his pro rata share of all such
obligations

    

    SECTION
4.  Representations, Warranties
and Covenants. The Debtor represents, warrants and covenants as
follows:

     

    (a)           The
Debtor is a corporation existing and in good standing under the laws of the
State of Delaware.

    
      
         

      

      
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    (b)           TEPS
is a limited liability company existing and in good standing under the laws of
the State of Delaware.

     

    (c)           The
Debtor is duly empowered and authorized to enter into and perform its
obligations under this Agreement and all other instruments and transactions
contemplated hereby or relating hereto.  The Debtor is duly empowered
and authorized to own and to grant security interests in the
Collateral.  The execution, delivery and performance by the Debtor of
this Agreement, of the Notes and of all other instruments contemplated hereby do
not and will not violate any law or any provision of, nor be grounds for
acceleration under, any agreement, indenture, note or instrument which is
binding upon the Debtor, including without limitation, the Debtor’s Certificate
of Incorporation, By-Laws and any other loan or security agreements to which the
Debtor is a party or by which the Debtor or its property is bound.

     

    (d)           Assuming
the due filing of a financing statement in proper form with the Secretary of
State of the State of Delaware, the security interest granted to the Secured
Party pursuant to this Agreement is a valid, perfected first-priority security
interest in the that portion of the Collateral in which a security interest may
be perfected under the UCC.

     

    (e)           The
Debtor shall not hereafter transfer, assign or otherwise dispose of the
Collateral without the Agent’s prior written consent.  The Debtor
shall not create, permit or suffer to exist, and shall take such other action as
is necessary to remove, any claim to or interest in the Collateral, and shall
defend the right, title and interest of the Secured Parties in and to the
Collateral against all claims and demands of all persons and entities at any
time claiming the same or any interest therein.

     

    SECTION
5.  Agent’s
Appointment as Attorney-in-Fact.  The Debtor hereby irrevocably
constitutes and appoints, from and after the occurrence of a default by the
Debtor in its obligations under the Notes or under this Agreement, the Agent and
any officer or agent thereof, with full power of substitution, as the Debtor’s
true and lawful attorney-in-fact with full irrevocable power and authority in
the place and stead of the Debtor and in the name of the Debtor or in the
Agent’s own name as agent hereunder for the Secured Parties, from time to time
in the Agent’s discretion, for the purpose of carrying out the terms of this
Agreement, to take any and all appropriate action and to execute any and all
documents and instruments that may be necessary or desirable to accomplish the
purposes of this agreement and, without limiting the generality of the
foregoing, hereby grants to the Agent the power and right, on behalf of the
Debtor, without notice to or assent by Debtor to execute, file and record all
such financing statements, certificates of title and other certificates of
registration and operation and similar documents and instruments as the Agent
may deem necessary or desirable to protect, perfect and validate the Secured
Parties’ security interest.

     

    The
Debtor hereby ratifies all that such attorneys shall lawfully do or cause to be
done by virtue hereof.  This power of attorney is a power coupled with
an interest and shall be irrevocable so long as any amount of principal or
accrued interest under the Notes remains unpaid.

     

    The
powers conferred upon the Agent hereunder are solely to protect the interests of
the Secured Parties in the Collateral and shall not impose any duty upon the
Agent to exercise any such powers.  The Agent shall be accountable
only for amounts that the Agent actually receives as a result of the exercise of
such powers and neither the Agent nor any of its partners, officers, directors,
employees or agents shall be responsible to the Debtor or the other Secured
Parties for any act or failure to act, except for the Agent’s own gross
negligence or willful misconduct.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    SECTION 6.  
Remedies.  If a default by the Debtor in its Obligations shall
have occurred and be continuing (an “Event of Default”), the Agent shall have
all of the rights and remedies which secured parties may have under the UCC or
other applicable law or at equity, and may do, at its option, one or more of the
following, with or without further notice to the Debtor:

    

    (a)           Accelerate
and declare all or any part of the Obligations to be immediately due, payable
and performable;

    

    (b)           Appropriate,
set off and apply to any or all of the Obligations, any or all Collateral in
such manner as the Secured Party may determine; and/or

    

    (c)           Foreclose
the security interest created under this Agreement or under any other agreement
relating to the Collateral by any procedure permitted under the UCC, with or
without judicial process.

    

    SECTION  7.  Termination of Security
Interest.  The Secured Parties’ security interest in the
Collateral shall be extinguished when (a) the Debtor completes performance of
all Obligations.

    

    SECTION  8.  Governing
Law.  This Agreement and the rights of the parties shall be
construed and enforced in accordance with the laws of the State of Delaware
applicable to agreements executed and to be performed wholly within such state
and without regard to principles of conflicts of law.  Each party
irrevocably (a) consents to the jurisdiction of the federal and state courts
situated in or having jurisdiction over Wilmington, Delaware in any action that
may be brought for the enforcement of this Agreement, and (b) submits to and
accepts, with respect to its properties and assets, generally and
unconditionally, the in personam jurisdiction of the aforesaid courts, waiving
any defense that such court is not a convenient forum  In any such
litigation to the extent permitted by applicable law, each party waives personal
service of any summons, complaint or other process, and agrees that the service
thereof may be made either (i) in the manner for giving of notices provided in
the Notes or (ii) in any other manner permitted by law..

    

    SECTION  9.  Severability.  In
case any provision in or obligation under this Agreement shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations, or of such provision
or obligation and in any other jurisdiction, shall not in any way be affected or
impaired thereby.

    

    SECTION  10.     General.  No
Secured Party shall be deemed to have waived any of its respective rights
hereunder or under any other agreement, instrument or paper signed by the Debtor
unless such waiver be in writing and signed by the Agent (with respect to the
Secured Parties’ rights and interest under the Notes or under this Agreement) or
by such Secured Party (With respect to any other rights).  No delay or
omission on the part of the Agent in exercising any right shall operate as a
waiver of such right or any other right.  All of the Secured Parties’
rights and remedies, whether evidenced hereby or by any other agreement,
instrument or paper, shall be cumulative and may be exercised singularly or
concurrently.  The provisions hereof shall, as the case may require,
bind or inure to the benefit of, the respective heirs, successors, legal
representatives and assigns of the Debtor, the Agent and the Secured
Parties.

    
      
         

      

      
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    SECTION 11.  Amendments.  This
Agreement may be amended or modified only by a written instrument executed by
each party hereto.

    

    SECTION 12.  Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original and together shall constitute one and the same
instrument.

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Debtor, the Agent and the other Secured Parties have caused
this Agreement to be duly executed as of the date first above
written.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              	
                                                                                                                      Debtor:

                                                                                                                    	 	
                                                                                                                      Agent:

                                                                                                                    
	 
      	 	 
      
	
                                                                                                                      ThermoEnergy
      Corporation

                                                                                                                    	 	
                                                                                                                      The
      Quercus Trust

                                                                                                                    
	 
      	 	 
      
	By:	
                                                                                                                      /s/  Dennis C.
    Cossey

                                                                                                                    	 	By:	
                                                                                                                      /s/  David
  Gelbaum

                                                                                                                    
	 
      	 	 
      
	
                                                                                                                      Secured
      Party:

                                                                                                                    	 	
                                                                                                                      Secured
      Party:

                                                                                                                    
	 
      	 	 
      
	
                                                                                                                      Empire
      Capital Partners, lp

                                                                                                                    	 	
                                                                                                                      Empire
      Capital Partners, ltd

                                                                                                                    
	
                                                                                                                      By:
      Empire
      gp, llc, its General Partner

                                                                                                                    	 	
                                                                                                                      By:
      Empire
      Capital Management, llc,

                                                                                                                    
	 
      	 	
                                                                                                                      its
      Investment Manager

                                                                                                                    
	 
      	 	 
      
	By:	
                                                                                                                      /s/  Peter J.
      Richards

                                                                                                                    	 	 
      
	 
      	 	By:	
                                                                                                                      /s/  Peter J.
      Richards

                                                                                                                    
	 
      	 	 
      
	
                                                                                                                      Secured
      Party:

                                                                                                                    	 	
                                                                                                                      Secured
      Party:

                                                                                                                    
	 
      	 	 
      
	
                                                                                                                      Empire
      Capital Partners Enhanced Master Fund, ltd

                                                                                                                    	 	 
      
	
                                                                                                                      By:
      Empire
      Capital Management, llc,

                                                                                                                    	 	
                                                                                                                      /s/ 
      Scott A Fine

                                                                                                                    
	
                                                                                                                      its
      Investment Manager

                                                                                                                    	 	
                                                                                                                      Scott
      A. Fine

                                                                                                                    
	 
      	 	 
      
	By:	
                                                                                                                      /s/  Peter J.
      Richards

                                                                                                                    	 	 
      
	 
      	 	 
      
	
                                                                                                                      Secured
      Party:

                                                                                                                    	 	
                                                                                                                      Secured
      Party:

                                                                                                                    
	 
      	 	 
      
	
                                                                                                                      /s/ Peter J. Richards

                                                                                                                    	 	 
      
	
                                                                                                                      Peter
      J. Richards

                                                                                                                    	 	
                                                                                                                      /s/  Robert S.
    Trump

                                                                                                                    
	 
      	 	
                                                                                                                      Robert
      S. Trump

                                                                                                                    
	 
      	 	 
      
	 
      	 	
                                                                                                                      Secured
      Party:

                                                                                                                    
	 
      	 	 
      
	 
      	 	
                                                                                                                      Focus
      Fund, l.p.

                                                                                                                    
	 
      	 	 
      
	 
      	 	By:	
                                                                                                                      /s/  J. Winder Hughes
      III

                                                                                                                    

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Schedule
I

    

    New
Notes

    

    
      
        
          
            
              	
                      Note
      Holder

                    	 	
                      Principal
      Amount

                    	 
	
                      Empire
      Capital Partners, LP

                    	 	$	133,333	 
	
                      Empire
      Capital Partners, Ltd

                    	 	$	133,333	 
	
                      Empire
      Capital Partners Enhanced Master Fund, Ltd

                    	 	$	133,333	 
	
                      Robert
      S. Trump

                    	 	$	1,000,000	 
	
                      The
      Quercus Trust

                    	 	$	250,000	 
	
                      The
      Quercus Trust

                    	 	$	30,000	 

            

          

        

      

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Schedule
II

    

    Exchanged
Notes

    

    
      
        
          
            
              
                
                  	
                          Note
      Holder

                        	 	
                          Date

                        	 	
                          Principal
      Amount

                        	 
	
                          Empire
      Capital Partners, LP

                        	 	
                          April
      24, 2009

                        	 	$	100,000	 
	
                          Empire
      Capital Partners, Ltd

                        	 	
                          April
      24, 2009

                        	 	$	100,000	 
	
                          Empire
      Capital Partners Enhanced Master Fund, Ltd

                        	 	
                          April
      24, 2009

                        	 	$	100,000	 
	
                          Scott
      A. Fine

                        	 	
                          April
      24, 2009

                        	 	$	100,000	 
	
                          Peter
      J. Richards

                        	 	
                          April
      24, 2009

                        	 	$	100,000	 
	
                          Robert
      S. Trump

                        	 	
                          December
      19, 2008

                        	 	$	500,000	 
	
                          Focus
      Fund, L.P.

                        	 	
                          July
      31, 2009

                        	 	$	600,000	 
	
                          The
      Quercus Trust

                        	 	
                          June
      25, 2009

                        	 	$	150,000	 
	
                          The
      Quercus Trust

                        	 	
                          February
      11, 2009

                        	 	$	250,000	 
	
                          The
      Quercus Trust

                        	 	
                          September
      15, 2008

                        	 	$	2,000,000	 

                

              

            

          

        

      

    

    
      
         

      

      
        9LICENSE
AGREEMENT

    

    This Patent License Agreement (“the
Agreement”) is effective this 28th day of
September, 2009 between:

    Altman Enterprises, LLC (“Owner”),
having an address at P.O. Box 1332, Hermitage, PA 16148; and

    Inverso Corp. (“Licensee”), a Delaware
corporation, having an office at P.O. Box 25, Jackson Center, PA
16133.

    

    The parties intending to be legally
bound agree as follows.

    

    ARTICLE 1
— GRANTS OF LICENSES

    

    
      	
              1.1

            	
              Grant.  Subject
      to the terms of this Agreement, Owner grants to Licensee exclusive,
      nontransferable licenses for:

            

    

    
      	
               
      

            	
              a)

            	
              the
      Applications and any non-provisionals, continuations,
      continuations-in-part, divisions, reissues, re-examinations or extensions
      thereof, and in and to any and all patents of the United States and
      foreign countries that may be issued and claim priority to the
      Applications; and

            

    

    
      	
               
      

            	
              b)

            	
              the
      Trademarks.

            

    

    

    
      	
              1.2

            	
              Duration.  Subject
      to the terms of this Agreement, all licenses granted
    herein:

            

    

    
      
        	
              	
                a)

              	
                under
      any Patents or Applications shall continue for the entire unexpired term
      of such patent or for as much of such term as the Owner has the right to
      grant; and

              

      

    

    
      	
            	
              b)

            	
              under
      any Trademark shall continue in perpetuity or for as much of such term as
      the Owner has the right to grant, except that the license shall revert to
      Owner if Licensee ceases commercial use of the Trademark for a continuous
      period of at least one year.

            

    

    

    1.3      Scope.  The
licenses granted herein are licenses to:

    
      	
            	
              a)

            	
              make,
      have made, use, lease, sell and import Licensed Products for the legal
      purposes of researching, developing, manufacturing, assembling,
      distributing, and selling the Licensed
Products;

            

    

    
      	
            	
              b)

            	
              make,
      have made, use and import machines, tools, materials and other
      instrumentalities, insofar as such machines, tools, materials and other
      instrumentalities are involved in or incidental to the research,
      development, manufacture, testing or repair of Licensed Products which are
      or have been made, used, leased, owned, sold or imported by the Licensee;
      and

            

    

    
      	
            	
              c)

            	
              convey
      to any customer of the Licensee, with respect to any Licensed Product
      which is sold or leased to such customer, rights to use and resell such
      Licensed Product as sold or leased by Licensee (whether or not as part of
      a larger combination); provided, however, that no rights may be conveyed
      to customers with respect to any Invention which is directed to (i) a
      combination of such Licensed Product (as sold or leased) with any other
      product, (ii) a method or process which is other than the inherent use of
      such Licensed Product itself (as sold or leased), or (iii) a method or
      process involving the use of a Licensed Product to manufacture (including
      associated testing) any other
product.

            

    

     

    
      
        
        

      

      
        Page 1 of
20

        
          

        

      

      
        
        

      

    

     

    Licenses
granted herein are solely for products in the form sold by the Licensee and are
not to be construed either (i) as consent by the Owner to any act which may be
performed by the Licensee, except to the extent impacted by a patent licensed
herein to the Licensee, or (ii) to include licenses to contributorily infringe
or induce infringement under U.S. law or a foreign equivalent
thereof.

    

    The grant
of each license hereunder includes the right to grant sublicenses to a Related
Company for so long as it remains a Related Company.  Any such
sublicense may be made effective retroactively, but not prior to the effective
date hereof, nor prior to the sublicensee's becoming a Related
Company.

    

    
      	
              1.4

            	
              Ability
      to Provide Licenses.  Owner warrants that, upon execution hereof
      by him and as of the effective date hereof, there are no known commitments
      or restrictions which limit the licenses and rights which are purported to
      be granted hereunder by him.

            

    

    

    
      	
              1.5

            	
              Publicity.  Nothing
      in this Agreement shall be construed as conferring upon either party or
      its Related Companies any right to include in advertising, packaging or
      other commercial activities related to a Licensed Product, any reference
      to the other party (or any of its Related Companies), its trade names,
      trademarks or service marks in a manner which would be likely to cause
      confusion or to indicate that such Licensed Product is in any way
      certified by the other party hereto or its Related
    Companies.

            

    

    

    
      	
              1.6

            	
              Good
      Faith.  Licensee understands that this Agreement is not
      predicated on any specific grant of patent or trademark
      registration.  Owner shall have no liability for a failure to
      pursue or obtain any specific patent or
  trademark.

            

    

     

    ARTICLE 2
— ROYALTY AND PAYMENTS

    

    2.1      Royalty
Calculation.  Licensee shall pay a royalty to Owner.

    
      	
               
      

            	
              a)

            	
              Within
      five (5) business days of the Effective Date:  Licensee shall
      issue to Owner 1,234,074 shares of its Series A Convertible Preferred
      Stock on the Effective Date. Licensee’s duly
      executed Certificate of Designation of the Rights, Preferences, Privileges
      and Restrictions of the Series A Convertible Preferred Stock of Inverso
      Corp. is attached hereto as Exhibit
A.

            

    

    
      	
            	
              b)

            	
              At  the
      end of every calendar quarter, Licensee shall pay Owner a royalty of 5% of
      Fair Market Value of:

            

    

    
      	
               
      

            	
              i.

            	
              Licensed
      Product that is sold, leased or put into use by the Licensee or any of its
      Related Companies in the preceding calendar quarter;
  and

            

    

    
      	
               
      

            	
              ii.

            	
              any
      service performed by Licensee or any of its Related Companies that
      directly or indirectly uses Licensed
Product.

            

    

    
      	
               
      

            	
              c)

            	
              This
      License does not include a minimum annual royalty payable by Licensee to
      Owner.

            

    

     

    
      
        
        

      

      
        Page 2 of
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    2.2      Accrual.

    
      	
            	
              a)

            	
              Obligations
      to pay royalties shall survive termination of this License and the
      expiration of any Patent.  The accrual of royalties shall cease
      upon termination of this License or the expiration of the subject
      Intellectual Property.

            

    

    
      	
            	
              b)

            	
              When
      a company ceases to be a Related Company of the Licensee, royalties which
      have accrued with respect to any products of such company, but which have
      not been paid, shall become payable with the Licensee's next scheduled
      royalty payment.

            

    

    
      	
            	
              c)

            	
              Notwithstanding
      any other provisions, royalty shall accrue and be payable only to the
      extent that enforcement of the Licensee's obligation to pay such royalty
      would not be prohibited by applicable
law.

            

    

    

    2.3      Records
and Adjustments.

    
      	
            	
              a)

            	
              The
      Licensee shall keep full, clear and accurate records with respect to all
      Licensed Products and shall furnish any information which Owner may
      reasonably request from time to time to enable Owner to ascertain the
      proper royalty due on account of (a) Licensed Products sold, leased and
      put into use by the Licensee or any of its Related Companies, and (b)
      services performed by Licensee or any of its Related Companies that
      directly or indirectly uses Licensed Product.  Owner shall have
      the right through its accredited auditors to make an examination, during
      normal business hours, of all records and accounts bearing upon the amount
      of royalty payable to him.  Prompt adjustment shall be made to
      compensate for any errors or omissions disclosed by such
      examination.

            

    

    
      	
            	
              b)

            	
              Independent
      of any such examination, Owner will credit to the Licensee the amount of
      any overpayment of royalties made in error which is identified and fully
      explained in a written notice to Owner delivered within twelve (12) months
      after the due date of the payment which included such alleged overpayment,
      provided that Owner is able to verify, to its own satisfaction, the
      existence and extent of the
overpayment.

            

    

    
      	
            	
              c)

            	
              No
      refund, credit or other adjustment of royalty payments shall be made by
      Owner except as provided in this Section 2.3.  Rights conferred
      by this Section 2.3 shall not be affected by any statement appearing on
      any check or other document, except to the extent that any such right is
      expressly waived or surrendered by a party having such right and signing
      such statement.

            

    

    

    2.4      Reports
and Payments.

    
      	
            	
              a)

            	
              Within
      thirty (30) days after the end of each quarterly period ending on March
      31st,
      June 30th,
      September 30th,
      or December 31st,
      commencing with the quarterly period during which this Agreement becomes
      effective, the Licensee shall furnish to Owner at the address specified by
      Section 7.5 a statement certified by a responsible official of the
      Licensee showing in a manner acceptable to
  Owner:

            

    

    
      	
               
      

            	
              i.

            	
              all
      Licensed Products which were sold, leased or put into use during such
      quarterly period by the Licensee or any of its Related Companies, the
      gross sales received for the Licensed Products, and the Fair Market Values
      of such Licensed Products;

            

    

    
      	
               
      

            	
              ii.

            	
              all
      services performed by Licensee or any of its Related Companies that
      directly or indirectly used Licensed Product, the gross sales received by
      the services, and the Fair Market Value of such
  services;

            

    

    
      	
               
      

            	
              iii.

            	
              the
      amount of royalty payable thereon,
and

            

    

    
      	
               
      

            	
              iv.

            	
              if
      no Licensed Product has been so sold, leased or put into use or if no
      services have been performed, the statement shall show that
      fact.

            

    

     

    
      
        
        

      

      
        Page 3 of
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              b)

            	
              Within
      such thirty (30) days the Licensee shall pay in United States dollars to
      Owner at the address specified by Section 7.5 the royalties payable in
      accordance with such statement. Any conversion to United States dollars
      shall be at the prevailing rate for bank cable transfers as quoted for the
      last day of such quarterly period by leading United States banks in New
      York City dealing in the foreign exchange
  market.

            

    

    
      	
            	
              c)

            	
              Overdue
      payments hereunder shall be subject to a late payment charge calculated at
      an annual rate of three percent (3%) over the prime rate or successive
      prime rates (as posted in New York City) during delinquency. If the amount
      of such charge exceeds the maximum permitted by law, such charge shall be
      reduced to such maximum.

            

    

    

    
      	
              2.5

            	
              Intellectual
      Property Rights.  Owner shall have no obligation to license or
      assign any future patents, trademarks, or trade secrets except as
      specifically and explicitly granted by this
  Agreement.

            

    

    

    
      	
              2.6

            	
              Return
      of Royalty.  Owner shall have no duty to return to Licensee any
      prior payments, royalties, stock, stock options, or reimbursements unless
      such payments were made in error.  Error means a mutual mistake
      of fact, and shall not include the failure to obtain a patent or
      trademark, cancellation of a Patent or Trademark for any reason, or a
      successful challenge to the Intellectual Property by a third
      party.

            

    

     

    ARTICLE 3
– INTELLECTUAL PROPERTY PROSECUTION AND COSTS

    

    
      	
              3.1

            	
              Costs.  Licensee
      shall reimburse Owner for all IP Costs incurred on behalf of
      Licensee.  Licensee shall also be liable for pre-paid IP Costs
      incurred prior to the Effective Date of this Agreement, including the
      costs of provisional and non-provisional applications that are filed to
      preserve Intellectual Property.  Reimbursement for pre-paid IP
      Costs shall occur within 12 months of the Effective
  Date.

            

    

    

    
      	
              3.2

            	
              Extension
      of Application.  By written notice to Owner and at least ninety
      (90) days before the non-extendable due date for the filing of a national
      phase application of an Application, Licensee shall elect those countries
      or authorities in which it desires to file a patent application based on
      the Application.  Intellectual Property rights in an unelected
      country shall revert to Owner.

            

    

    

    
      	
              3.3

            	
              Notice
      to Licensee.  Before payment of any IP Cost, Owner shall notify
      Licensee for a time period being the lesser of (i) at least sixty (60)
      days before the IP Cost is due or (ii) as soon as is practicable after
      receiving knowledge of the IP Cost.  The notice will identify
      (i) the Application, Patent, or Trademark, (ii) the country, (iii) the
      reason for the IP Cost, and (iv) the Due Date for
      payment.  Licensee shall then affirm or deny
      payment.  Affirmation of payment must be received by Owner
      within fourteen (14) days of the mailing date of the notice or the
      Licensee shall be deemed to have denied
payment.

            

    

    
      	
            	
              a)

            	
              If
      Licensee affirms a payment, Licensee shall reimburse Owner for all IP
      Costs arising from the payment and shall then retain its license for the
      Application, Patent or Trademark in that
  country.

            

    

     

    
      
        
        

      

      
        Page 4 of
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              b)

            	
              If
      Licensee denies payment, License shall have no obligation to pay IP Costs
      associated with the Application, Patent or Trademark in that country, but
      the license and all associated rights for that Application, Patent or
      Trademark shall revert to Owner.

            

    

    

    
      	
              3.4

            	
              Reimbursement
      by Licensee.  Licensee shall prepay Owner for any affirmed IP
      Cost before payment is to be made by Owner.  Owner shall have no
      duty to pay an IP Cost for which Owner does not receive
      prepayment.  If Licensee does not pay Owner by the Due Date, the
      Application, Patent or Trademark shall revert to Owner as if Licensee had
      denied payment under section
3.3(b).

            

    

    

    
      	
              3.5

            	
              Reversion
      of License.  If a reversion occurs under this Article, the
      license in that country in which reversion has occurred will be
      terminated, and Licensee shall have no further right in the Application,
      Patent or Trademark for that country.  The right shall revert to
      Owner who will then have the right to pursue protection for the reverted
      Application, Patent or Trademark.  Owner has no further duty to
      Licensee for a reverted Application, Patent or
  Trademark.

            

    

    

    ARTICLE 4
– TRADEMARK

    

    
      	
              4.1

            	
              Use
      of Trademark.  Licensee shall prominently use the Trademark on
      Licensed Products.

            

    

    

    
      	
              4.2

            	
              Owner
      Approval.  In order to protect and preserve Owner’s rights in
      the Trademarks, Licensee understands, acknowledges, and agrees that (i)
      prior to the first date of Licensee's use of the Trademarks in connection
      with Licensed Product, Licensee shall obtain Owner’s approval of all
      aspects of such use; and (ii) once Licensee's use of the Trademarks in
      connection with the Licensed Products is initially approved by Owner, any
      subsequent alteration, modification, or change in such use must be
      reviewed and approved by Owner prior to implementation of such alteration,
      modification, or change.

            

    

    

    
      	
              4.3

            	
              Trademark
      Format.  Owner retains the right to specify, from time to time,
      the format in which Licensee shall use and display the Trademarks, and
      Licensee shall only use or display the Trademarks in a format approved by
      Owner.

            

    

    

    
      	
              4.4

            	
              Proper
      Notice and Acknowledgment.  Every use of the Trademarks by
      Licensee shall incorporate in an appropriate manner the legal status of
      the Trademarks, that is, a superscript “TM” for unregistered marks and an
      "R" enclosed by a circle or the phrase "Reg. U.S. Pat. & Tm Off." for
      registered marks.

            

    

    

    
      	
              4.5

            	
              Impairment
      of Owner's Rights.  Licensee shall not at any time, whether
      during or after the term of this Agreement, do or cause to be done any act
      or thing challenging, contesting, impairing, invalidating, or tending to
      impair or invalidate any of Owner's rights in the Trademarks or any
      registrations derived from such
rights.

            

    

    

    
      	
              4.6

            	
              Owner's
      Rights and Remedies.  Licensee acknowledges and agrees that
      Owner has, shall retain, and may exercise, both during the term of this
      Agreement and thereafter, all rights and remedies available to Owner,
      whether derived from this Agreement, from statute, or otherwise, as a
      result of or in connection with Licensee's breach of this Agreement,
      misuse of the Trademarks, or any other use of the Trademarks by Licensee
      which is not expressly permitted by this
  Agreement.

            

    

     

    
      
        
        

      

      
        Page 5 of
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              4.7

            	
              Owner’s
      Right to Inspect.  Owner shall have the right to inspect, upon
      reasonable notice, the use of the Trademarks by the Licensee and the
      quality and type of goods on which Licensee uses the
      Trademarks.  Owner may, at its sole discretion, require Licensee
      to remove the mark from the goods.

            

    

    

    ARTICLE 5
– INDEMNIFICATION AND VALIDITY

    

    
      	
              5.1 

            	
              Validity.  Licensee
      agrees that the Patents are valid and
  enforceable.

            

    

    

    
      	
              5.2

            	
              Enforceability.  Licensee
      and its Related Companies shall take no action, directly or indirectly,
      that challenges, contests, impairs, invalidates, or
      tends to impair or invalidate any of Owner's rights in the
      Patents.

            

    

    

    
      	
              5.3

            	
              Indemnification.  Licensee
      shall indemnify and hold harmless Owner, its managers, officers,
      directors, members, employees, agents, successors and assigns to the
      fullest extent permitted by law in any Lawsuit by Licensee, Related
      Company, or a third party.  Indemnification shall include any
      and all Litigation Costs.

            

    

    

    
      	
              5.4

            	
              At
      the request of Owner, Licensee shall procure a comprehensive business
      insurance policy for at least $5 million naming Owner as the
      insured.  Coverage shall protect at least against acts of
      Licensee’s employees; injuries to members of the public resulting from
      faulty products or services; contractual agreements under which liability
      of others is assumed; and comprehensive liability.  Licensee
      understands that indemnification shall not be limited to the amount of
      insurance.

            

    

    

    
      	
              5.5

            	
              Payment
      of Litigation Costs.  Owner may submit Litigation Costs to
      Licensee when paid by Owner and Licensee shall pay Owner the Litigation
      Costs within 30 days of receipt.  In the event Litigation Costs
      include a court ordered payment, Owner can submit the court order to
      Licensee and Licensee shall pay the court ordered payment to
      Owner.

            

    

    

    ARTICLE 6
— TERMINATION AND LEGAL FEES

    

    
      	
              6.1

            	
              Breach.  In
      the event of a breach of this Agreement by either party, the other party
      may, in addition to any other remedies that it may have, at any time
      terminate all licenses and rights granted by it hereunder by not less than
      one (1) month’s written notice specifying such breach, unless within the
      period of such notice all breaches specified therein shall have been
      remedied.  The failure of a party to notify a breaching party
      shall not be considered a waiver.

            

    

    

    
      	
              6.2

            	
              Insolvency
      or Dissolution.  Owner, at its sole discretion, may terminate
      this Agreement if:

            

    

    
      	
            	
              a)

            	
              Licensee
      becomes insolvent, declares bankruptcy, or fails to make any payment
      required by this Agreement within thirty (30) days of its due date;
      or

            

    

     

    
      
        
        

      

      
        Page 6 of
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              b)

            	
              Licensee
      dissolves or attempts to dissolve either voluntarily or
      involuntarily.

            

    

    

    
      	
              6.3

            	
              Devaluation
      of Stock.  Owner may terminate this Agreement if Licensee
      devalues or attempts to devalue the stock or any stock options
      (collectively, the “Stock”) derived from or issued under Article
      2.  Devalue means (a) cancelling the Stock, or (b) impairing the
      right to sell or leverage the
Stock.

            

    

    

    
      	
              6.4

            	
              Effect
      of Termination.  Upon any termination of this
      Agreement:

            

    

    
      	
            	
              a)

            	
              all
      rights shall immediately revert to Owner free of any lien, security
      interest, or other encumbrance;

            

    

    
      	
            	
              b)

            	
              Licensee
      may, for up to 60 days continue to sell and offer for sale its remaining
      inventory of Licensed Products, and on the 61st
      day destroy or offer for sale to Owner such remaining
      inventory;

            

    

    
      	
            	
              c)

            	
              Licensee
      shall pay royalties per Article 2, and shall pay all royalties within 90
      days of the termination date;

            

    

    
      	
            	
              d)

            	
              Licensee
      shall provide Owner with all copies of research data, records, notes,
      memorandum, and reports that were obtained from research or development
      efforts arising from the Applications, Patents, Intellectual Property, or
      Licensed Product.

            

    

    

    
      	
              6.5

            	
              Litigation
      Costs.  In the event of a dispute between Owner and Licensee,
      Licensee shall pay all costs arising from the dispute.  Dispute
      costs can include, but are not limited to, attorneys’ fees, travel
      expenses, court costs, expert witness fees, and any
      settlement.

            

    

    

    
      	
              6.6

            	
              Public
      Company.  Owner has the option of terminating this Agreement if
      Licensee’s stock is not publically traded by April 1,
      2011.  This termination option shall survive for so long as this
      condition persists.

            

    

    

    
      	
              6.7

            	
              Duty
      of Diligence.  Licensee shall exercise reasonable diligence to
      affect the introduction of Licensed Products into the commercial
      market.  Licensee further agrees to ensure proper, safe, fair,
      lawful and reasonable development and exploitation of the commercial
      market for Licensed Products.  Failure of Licensee to materially
      comply with the provisions of this paragraph shall be considered a
      material breach of this Agreement.

            

    

    

    ARTICLE 7
— MISCELLANEOUS PROVISIONS

    

    
      	
              7.1

            	
              Disclaimer.  Neither
      party makes any representations, extends any warranties of any kind,
      assumes any responsibility or obligations whatever, or confers any right
      by implication, estoppel or otherwise, other than the licenses, rights and
      warranties herein expressly granted.  Owner makes no warranties
      whether express, implied or statutory, written or
  oral.

            

    

    
      	
               
      

            	
              Owner
      expressly DISCLAIMS ANY
      WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR
      PURPOSE.  Owner also disclaims any warranty arising from
      (a) a claim against a Application, Patent or Trademark, or (b) a course of
      dealing or trade usage.

            

    

     

    
      
        
        

      

      
        Page 7 of
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                7.2 

              	
                Representations,
      Warranties, and Agreements by
Licensee.

              

      

    

    
      	
            	
              a)

            	
              Licensee
      is a corporation duly organized, validity existing and in good standing
      under the laws of Delaware, with full power and authority to own, lease,
      use, and operate its properties and to carry on its business as and where
      now owned, leased, used, operated and conducted.  Licensee has
      all requisite corporate power and authority to enter into and perform this
      Agreement and to consummate and effect the transactions contemplated by
      this Agreement.

            

    

     

    
      	
            	
              b)

            	
              All
      consents, approvals, orders, or authorizations of, or registrations,
      qualifications, designations, declarations, or filings with, any
      governmental authority required on the part of Licensee in connection with
      the valid execution and delivery of this Agreement, the offer, sale or
      issuance of the stock to Owner or the consummation of any other
      transactions contemplated hereby shall have been obtained, except for
      notices required or permitted to be filed with certain state and federal
      securities commissions, which notices shall be filed within thirty (30)
      days of the effective date of this
Agreement.

            

    

     

    
      	
            	
              c)

            	
              The
      shares of Licensee being issued to Owner pursuant to this Agreement will
      be validly and legally issued and not subject to any security interests,
      liens, pledges, charges, encumbrances or proxies of any
    kind.

            

    

     

    
      	
            	
              d)

            	
              Licensee
      will support the removal, subject to and in accordance with SEC and other
      legal regulations, of the restriction on all of Owner’s shares that are
      issued to Owner by Licensee.  Licensee will make a reasonable
      effort to provide within ten business days of Owner’s request, an opinion
      of corporate counsel and any other documentation required to remove the
      restriction.  Licensee will not in any way inhibit the lawful
      transfer of the Licensee stock held by
Owner.

            

    

     

    
      	
            	
              e)

            	
              Licensee
      agrees that Licensee will be and remain a reporting company to the
      Securities and Exchange Commission (SEC) that  is current in all
      of its reporting obligations at all times.  As of April 1, 2011
      and thereafter, Licensee agrees that Licensee will have filed with the
      SEC, and will continue to file with the SEC, all reports required under
      the Exchange Act for the preceding twelve months that meet the
      requirements under SEC Rule 144(i)(2) to cure its shell status or blank
      check company status, and Licensee will have filed with the SEC at least
      twelve months prior, and continue to file as necessary with the SEC,
      current “Form 10 information”, as defined in current SEC Rule 144(i)(3),
      reflecting that Licensee has ceased being a shell company and reflecting
      its status as an entity that is no longer an issuer as described in
      current SEC Rule 144 paragraph (i)(1)(i). As of April 1, 2011 and
      continuing thereafter, Licensee (a) must have ceased being a shell
      company, (b) must be subject to the 1934 Exchange Act, (c) must have filed
      Form 10-like information at least 12 months prior, (d) must have filed all
      reports required by Rule 144(c) during the prior 12 months, and (e) must
      have fulfilled all SEC requirements, in effect, on the part of Licensee,
      necessary to make the use of Rule 144 available. See Exhibit B attached
      for Rule 144(i).

            

    

     

    Licensee
will not file any form with the SEC that terminates Licensee’s registration
under Section 12(g)  of the Securities Exchange Act of 1934 or
suspends Licensee’s duty to file reports under Sections 13 and 15(d) of the
Securities Exchange Act of 1934, such as a Form 15.

     

    
      
        
        

      

      
        Page 8 of
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              f)

            	
              In
      order to prioritize the obligation of Licensee to remain a reporting
      company with the SEC and to remain current in its reporting obligations,
      Licensee agrees that  as of the Effective Date of this Agreement,
      Licensee will not pay any monetary salaries or other monetary compensation
      to any of its Officers, Directors, consultants, or managers or to
      anyone  or any business entity with an affiliation or a family
      relationship to such Officer(s), Director(s), manager(s), or consultant(s)
      unless Licensee first meets its obligation to remain a reporting company
      with the SEC that is current in its reporting obligations as described in
      Section 7.2 e) of the Agreement or unless provided for within the herein
      Agreement.. Licensee agrees that upon request Licensee will provide Owner
      with all documentation and financial information necessary to assure that
      this stipulation is complied with.

            

    

     

    
      	
            	
              g)

            	
              The
      authorized share capital of Licensee consists of 100 million shares of
      common stock, of which 47,864,883 are issued and outstanding, and 20
      million shares of preferred stock, none of which are issued and
      outstanding, and no other share capital of Licensee is issued and
      outstanding.

            

    

     

    
      	
            	
              h)

            	
              The
      representations and warranties of Licensee, contained in this Agreement,
      shall have been true in all material respects when made, and, in addition,
      shall be true and correct in all material respects as of the Effective
      Date, and except for changes contemplated and permitted by this Agreement,
      with the same force and effect as if made as of the Effective
      Date.

            

    

     

    
      	
              7.3 

            	
              Representations
      by Owner.

            

    

    
      	
            	
              a)

            	
              Owner
      is aware of Licensee’s business affairs and financial condition and has
      acquired sufficient information about Licensee to reach an informed and
      knowledgeable decision to acquire such shares of
  stock.

            

    

     

    
      	
            	
              b)

            	
              Owner
      has consulted with its own legal, accounting, and tax advisors with
      respect to the tax treatment, merits, and risks associated with the
      issuance of shares of stock by Licensee to
  Owner.

            

    

     

    
      	
            	
              c)

            	
              Owner
      acknowledges that an investment in the shares of Licensee’s common stock
      involves a high degree of risk.

            

    

     

    
      	
            	
              d)

            	
              Owner
      further acknowledges that the shares of stock are restricted securities
      under Rule 144 of the Securities Act of 1933 (the “Act”), and therefore,
      if Licensee, issues any certificates reflecting the ownership interest in
      the shares, those certificates will contain a restrictive legend
      substantially similar to the
following:

            

    

     

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”).  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE
SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.

     

    
      
        
        

      

      
        Page 9 of
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              e)

            	
              Owner
      is acquiring the shares solely for its own account and beneficial interest
      and not for sale, has no present intention of selling (in connection with
      a distribution or otherwise) or otherwise distributing the shares,
      granting any participation in, or otherwise distributing the same, and
      does not presently have reason to anticipate a change in such
      intention.

            

    

     

    
      	
              7.4

            	
              Nonassignability.  The
      parties have entered into this agreement in contemplation of personal
      performance, each by the other, and intend that the licenses and rights
      granted hereunder to a party not be extended to entities other than such
      party's Related Companies without the other party's express written
      consent. All of Owner's rights, title and interest in this agreement and
      any licenses and rights granted to it hereunder may be assigned to any
      direct or indirect successor to the business of Owner, which successor
      shall thereafter be deemed substituted for Owner as the party hereto,
      effective upon such assignment; but neither this agreement nor any
      licenses or rights hereunder shall be otherwise assignable or transferable
      (in insolvency proceedings, by reason of a corporate merger, or otherwise)
      by either party without the express written consent of the other
      party.

            

    

    

    
      	
              7.5

            	
              Addresses/Accounts.  Any
      notice, payments, or other communication shall be sufficiently given to a
      party when sent by:

            

    

    
      	
               
      

            	
              a)

            	
              Certified
      mail or overnight courier to the address written
  above.

            

    

    
      	
               
      

            	
              b)

            	
              Facsimile
      to Owner at ______________ or to Licensee at
      ___________________.

            

    

    
      	
               
      

            	
              c)

            	
              Email
      to Owner at ______________ or to Licensee at
      ___________________.

            

    

    A party
may change its address, facsimile number, or email address only by express
written notice to the other party.

    

    
      	
              7.6

            	
              Taxes.  Licensee
      shall pay any tax and any related interest or penalty, however designated,
      imposed as a result of the existence or operation of this Agreement,
      including any tax which the Licensee is required to withhold or deduct
      from payments to Owner, except any income tax imposed upon Owner by the
      United States or any governmental entity within the United States. Licensee shall
      furnish Owner with such evidence as may be required by United States
      taxing authorities to establish that any such tax has been
      paid.

            

    

    

    
      	
              7.7

            	
              Choice of
      Law.  Any dispute arising with respect to this
      Agreement shall be construed according to the law, exclusive of its
      conflict of law provisions, of the state in which the Owner is domiciled
      at the time the complaint is filed.  If such state cannot be
      determined, the law of the Commonwealth of Pennsylvania, exclusive of
      conflict of law provisions, shall govern this
  Agreement.

            

    

    

    
      	
              7.8

            	
              Integration. This
      Agreement sets forth the entire agreement and understanding between the
      parties as to the subject matter hereof and merges all prior discussions
      between them. Neither party shall be bound by any warranties,
      understandings or representations with respect to such subject matter
      other than as expressly provided herein or in a writing signed with or
      subsequent to execution hereof by an authorized representative of the
      party to be bound thereby.

            

    

     

    
      
        
        

      

      
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              7.9 

            	
              Outside
      the United States

            

    

    
      	
            	
              a)

            	
              There
      are countries in which the owner of an invention is entitled to
      compensation, damages or other monetary award for another's unlicensed
      manufacture, sale, lease, use or importation involving such invention
      prior to the date of issuance of a patent for such invention but on or
      after a certain earlier date, hereinafter referred to as the invention's
      “protection commencement date.”  For the purposes of this
      agreement, an invention which has a protection commencement date in any
      such country shall be deemed to have had a patent issued therefor in such
      country on such date.

            

    

    
      	
            	
              b)

            	
              There
      may be countries in which the Licensee may have, as a consequence of this
      Agreement, rights against an infringer of a Licensed Product. Licensee
      hereby waives any such right it may have by reason of any third party’s
      infringement or alleged infringement of Intellectual
    Property.

            

    

    
      	
            	
              c)

            	
              Licensee
      agrees to register or cause to be registered, to the extent required by
      applicable law, and without expense to Owner, any agreements wherein
      sublicenses are granted by it under the Applications or
      Patents.  Licensee waives any and all claims or defenses,
      arising by virtue of the absence of such registration, that might
      otherwise limit or affect its obligations to
  Owner.

            

    

    

    
      
        	
                7.10

              	
                Counterparts.  This
      Agreement is executed in one or more counterparts as the parties deem
      desirable, each of which shall be deemed an original, but all of which
      shall constitute the same instrument.  No action or suit shall
      require the production of all such
copies.

              

      

    

    

    
      	
              7.11

            	
              Export
      Control Laws.  Licensee shall observe all applicable United
      States and foreign laws with respect to the transfer of Licensed
      Product(s), and related technical data, to foreign countries, including,
      without limitation, export administration
  regulations.

            

    

    

    
      	
              7.12

            	
              Licensee
      Able to Perform.  Licensee has had full disclosure and had
      opportunity to do due diligence to the extent it determined to be
      necessary and reasonable in regard to the Owner's Applications, Patent(s),
      Trademarks, Licensed Product(s), technology and
      business.  Licensee acknowledges that Owner has made no
      representation other than is contained herein.  Licensee
      represents that it is capable of researching, developing, obtaining
      regulatory approvals, and manufacturing the Licensed Products, and is
      aware of the difficulties inherent in the regulatory aspects, research,
      development, manufacturing, sale and distribution of  the
      licensed products.  Licensee acknowledges that Owner shall have
      no liability in regard to Licensee's success or failure of the anticipated
      sales or sublicense.

            

    

    

    
      	
              7.13

            	
              Confidentiality.  Except
      as otherwise agreed in writing or as required by government statute or
      court order, Licensee shall not appropriate, use or disclose, directly or
      indirectly, for its own benefit or otherwise, any information, materials,
      trade secrets, documents, correspondence, or other tangible or intangible
      property of Owner, to which it shall have obtained access hereunder or in
      contemplation of this Agreement, or which shall otherwise in any way
      relate to the Intellectual Property.  Any of the aforesaid which
      is or comes into the possession of Licensee shall be held in trust for
      Owner and remain the sole and exclusive property of Owner, subject to the
      rights of License by Licensee as provided herein. The provisions of this
      Paragraph shall survive the termination of this
  Agreement.

            

    

     

    
      
        
        

      

      
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              7.14

            	
              No
      Joint Venture.  The parties acknowledge that nothing set forth
      in this Agreement nor the transactions contemplated herein shall
      constitute a joint venture, partnership, agency or any relationship other
      than Licensee as a licensee and Owner as a licensor of the Intellectual
      Property.

            

    

    

    
      	
              7.15

            	
              Unauthorized
      Use.  Licensee agrees to notify Owner immediately and in writing
      of all circumstances surrounding the unauthorized possession or use of the
      Intellectual Property by any entity including, but not limited to, an
      individual, governmental authority, corporation, limited liability
      company, partnership, or trust.  Owner shall have the sole right
      and discretion to institute and prosecute a claim against any third party
      for infringement of Intellectual Property.  This Agreement
      imposes no duty on Owner to file any
claim.

            

    

    

    
      
        	
                7.16 

              	
                Severability.  If
      any term or provision of this Agreement is held invalid or unenforceable
      by a court of competent jurisdiction, the remainder of the provisions
      shall continue in full force and effect as if this Agreement had been
      executed with the invalid or unenforceable portion thereof eliminated and
      the parties shall endeavor to replace such invalid or unenforceable
      portion with a similar but valid and enforceable
  provision.

              

      

    

    

    
      	
              7.17

            	
              Force
      Majeure.  No party shall be deemed to be in default of any
      provision of this Agreement, or for any failure in performance, resulting
      from acts or events beyond the reasonable control of such party, including
      acts of God, acts of civil or military authority, civil disturbance, war,
      strikes, natural catastrophes or other “force majeure”
    events.

            

    

     

    IN
WITNESS WHEREOF, each of the parties has caused this agreement to be executed in
duplicate originals by its duly authorized representatives on the Effective Date
written above.

    

    
      
        
          
            
              
                
                  	
                          Altman
      Enterprises LLC

                        	 
      	
                          Inverso
      Corp.

                        
	 
      	 
      	 
      	 
      	 
      
	
                          Signature:

                        	 
      	 
      	
                          Signature:

                        	 
      
	 
      	 
      	 
      	 
      	 
      
	
                          Name:

                        	 
      	 
      	
                          Name:

                        	
                          William A. Hartman

                        
	 
      	 
      	 
      	 
      	 
      
	
                          Title:

                        	 
      	 
      	
                          Title:

                        	 
      

                

              

            

          

        

      

    

     

    
      
        
        

      

      
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    APPENDIX

    

    “Applications”
means US provisional applications:

    
      	
               
      

            	
              1.

            	
              US
      61/111,830, entitled Treatment of Auto-immune Diseases;
  and

            

    

    
      	
               
      

            	
              2.

            	
              US
      61/148,431, entitled Treatment for
Disease.

            

    

    

    “Due
Date” means a date set by the Owner that would permit it a reasonable time
period to respond to an official action.  The Due Date will be at
least two (2) business days before any official due date exclusive of any
permitted extensions of time.

    

    “Effective
Date” means the date indicated as the effective date at the top of page 1 of
this Agreement.

    

    “Fair
Market Value” means, with respect to any Licensed Product sold, leased or put
into use, the Selling Price actually obtained in an arm’s length transaction for
a product comprising a Licensed Product in the form in which the product is
sold, whether or not assembled and without excluding any components or
subassemblies thereof which are included in such Selling
Price.  “Selling price" shall exclude:

    
      	
            	
              (a)

            	
              usual
      trade discounts actually allowed to unaffiliated persons or
      entities;

            

    

    
      	
            	
              (b)

            	
               packing
      costs;

            

    

    
      	
            	
              (c)

            	
              costs
      of transportation and transportation insurance;
  and

            

    

    
      	
            	
              (d)

            	
              import,
      export, excise, sales and value added taxes, and custom
      duties.

            

    

    

    “Intellectual
Property” means any and all Applications, Patents, Trademarks, and any and all
copyrights and trade secrets owned in whole or in part by Owner and arising from
the Applications, Patents or Trademarks.

    

    “IP Cost”
means any and all expenses arising from obtaining or maintaining Intellectual
Property in the U.S. and foreign countries, including, but not limited to,
government fees, attorneys’ fees, translation fees, maintenance fees, annuities,
penalties, and interests.

    

     “Lawsuit”
means any action at law or equity arising from (a) the manufacture, use,
license, research, sale, offer for sale, or regulatory action involving the
Intellectual Property, or (b) any challenge by a third party to the ownership or
other rights of Owner in the Intellectual Property.

    

    “Licensed
Product” means any product that incorporates the Intellectual
Property.

    

    “Litigation
Cost” means any and all expenses and business losses arising from a Lawsuit,
including, but not limited to, prosecution fees, attorneys’ fees, loss of
anticipated royalties or profits, any other business losses, litigation fees,
fines, penalties, interests, travel expenses, court costs, expert witness fees,
settlements, personal injuries, and government fees.

    

     “Patents”
means all patents (including utility models but excluding design patents and
design registrations) issued in any country that (a) claim substantially the
same subject matter as at least one Application and (b) claim priority to that
Application.

     

    
      
        
        

      

      
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    “Related
Company” means (a) a subsidiary of the Licensee that Licensee owns more than 80%
of the subsidiary’s outstanding common stock, and (b) any other company so
designated in a writing signed by Owner and the Licensee.

    

    “Trademarks”
mean FeldetrexTM, including US Trademark Application No. 77/601,101 and any
identical marks later filed in countries other than the United States of
America.

     

    
      
        
        

      

      
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    Exhibit
A

     

    CERTIFICATE
OF DESIGNATION

    OF
THE RIGHTS, PREFERENCES, PRIVILEGES

    AND
RESTRICTIONS, WHICH HAVE NOT BEEN SET

    FORTH
IN THE CERTIFICATE OF INCORPORATION

    OR
IN ANY AMENDMENT THERETO,

    OF
THE

    SERIES
A CONVERTIBLE PREFERRED STOCK

    OF

    INVERSO
CORP.

    

    (Pursuant
to Section 151 of the General Corporation Law of Delaware)

    

    The undersigned Directors, William
Hartman, Bonnie Hartman, and Heidi Carl, hereby certify that:

    

    A.           We are
the duly elected and acting Directors of INverso Corp., a Delaware corporation
(the “Corporation”).

    

    B.           
Pursuant to the Unanimous Written Consent of the Board of Directors of the
Corporation dated May 5, 2009, the Board of Directors duly adopted the following
resolutions:

    

    WHEREAS, the Certificate of
Incorporation of the Corporation, as amended, authorizes a class of stock
designated as Preferred Stock, with a par value of $0.001 per share (the
“Preferred Class”), comprising Twenty Million (20,000,000) shares, none of which
have been designated in a series or issued, and provides that the Board of
Directors of the Corporation may fix the terms, including any dividend rights,
dividend rates, conversion rights, voting rights, rights and terms of any
redemption, redemption, redemption price or prices, and liquidation preferences,
if any, of the Preferred Class;

    

    WHEREAS, the Board of Directors
believes it in the best interests of the Corporation to create a series of
preferred stock consisting of Four Million (4,000,000) shares and designated as
the “Series A Convertible Preferred Stock” having certain rights, preferences,
privileges, restrictions and other matters relating to the Series A Convertible
Preferred Stock.

    

    NOW, THEREFORE, BE IT RESOLVED, that
the Board of Directors does hereby fix and determine the rights, preferences,
privileges, restrictions and other matters relating to the Series A Convertible
Preferred Stock as follows:

    

    1.            Definitions.  For
purposes of this Certificate of Designation, the following definitions shall
apply:

    

    1.1            
“Board” shall mean the Board of Directors of the Corporation.

     

    
      
        
        

      

      
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    1.2            
“Corporation” shall mean INverso Corp., a Delaware Corporation.

    

    1.3            
“Common Stock” shall mean the common stock, $0.001 par value per share, of the
Corporation.

    

    1.4            
“Common Stock Dividend” shall mean a stock dividend declared and paid on the
Common Stock that is payable in shares of Common Stock.

    

    1.5            
“Conversion Date” shall have the meaning set forth in Section 4(b).

    

    1.6            
“Distribution” shall mean the transfer of cash or property by the Corporation to
one or more of its stockholders without consideration, whether by dividend or
otherwise (except a dividend in shares of Corporation's stock).

    

    1.7            
“Holder” shall mean a holder of the Series A Convertible Preferred
Stock.

    

    1.8            
“Original Issue
Date” shall mean the date on which the first share of Series A
Convertible Preferred Stock is issued by the Corporation.

    

    1.9            
“Original Issue Price” shall mean $1.00 per share for the Series A Convertible
Preferred Stock.

    

    1.10         
“Person” shall mean an individual, a corporation, a partnership, an association,
a limited liability company, an unincorporated business organization, a trust or
other entity or organization, and any government or political subdivision or any
agency or instrumentality thereof.

    

    1.11          
“Series A Convertible Preferred Stock” shall mean the Series A Convertible
Preferred Stock, $0.001 par value per share, of the Corporation.

    

    1.12          
“Subsidiary” shall mean any corporation or limited liability company or
corporation of which at least fifty percent (50%) of the outstanding voting
stock or membership interests, as the case may be, is at the time owned directly
or indirectly by the Corporation or by one or more of such subsidiary
corporations.

    

    2.              Dividend
Rights.

    

    2.1   
        In each calendar year, the
holders of the then outstanding Series A Convertible Preferred Stock shall be
entitled to receive, when, as and if declared by the Board, out of any funds and
assets of the Company legally available therefore, noncumulative dividends in an
amount equal to any dividends or other Distribution on the Common Stock in such
calendar year (other than a Common Stock Dividend).  No dividends
(other than a Common Stock Dividend) shall be paid, and no Distribution shall be
made, with respect to the Common Stock unless dividends in such amount shall
have been paid or declared and set apart for payment to the holders of the
Series A Convertible Preferred Stock simultaneously.  Dividends on the
Series A Convertible Preferred Stock shall not be mandatory or cumulative, and
no rights or interest shall accrue to the holders of the Series A Convertible
Preferred Stock by reason of the fact that the Company shall fail to declare or
pay dividends on the Series A Convertible Preferred Stock, except for such
rights or interest that may arise as a result of the Company paying a dividend
or making a Distribution on the Common Stock in violation of the terms of this
Section 2.

     

    
      
        
        

      

      
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    2.2     
      Participation Rights. Dividends shall be
declared pro rata on the Common Stock and the Series A Convertible Preferred
Stock on a pari passu basis according to the number of shares of Common Stock
held by such holders, where each holder of shares of Series A Preferred Stock is
to be treated for this purpose as holding the number of shares of Common Stock
to which the holders thereof would be entitled if they converted their shares of
Series A Convertible Preferred Stock at the time of such dividend in accordance
with Section 4 hereof.

    

    2.3       
     Non-Cash Dividends. Whenever a dividend or
Distribution provided for in this Section 2 shall be payable in property other
than cash (other than a Common Stock Dividend), the value of such dividend or
Distribution shall be deemed to be the fair market value of such property as
determined in good faith by the Board.

    

    3.            Liquidation
Rights.  In the event of any liquidation, dissolution or
winding up of the Company; whether voluntary or involuntary, the funds and
assets of the Company that may be legally distributed to the Company’s
shareholders (the “Available Funds and Assets”) shall be distributed to
shareholders in the following manner:

    

    3.1       
     Series A Convertible Preferred Stock. The holders
of each share of Series A Convertible Preferred Stock then outstanding shall be
entitled to be paid, out of the Available Funds and Assets, and prior and in
preference to any payment or distribution (or any setting apart of any payment
or distribution) of any Available Funds and Assets on any shares of Common Stock
or subsequent series of preferred stock, an amount per share equal to the
Original Issue Price of the Series A Convertible Preferred Stock plus all
declared but unpaid dividends on the Series A Convertible Preferred
Stock.  If upon any liquidation, dissolution or winding up of the
Company, the Available Funds and Assets shall be insufficient to permit the
payment to holders of the Series A Convertible Preferred Stock of their full
preferential amount as described in this subsection, then all of the remaining
Available Funds and Assets shall be distributed among the holders of the then
outstanding Series A Convertible Preferred Stock pro rata, according to the
number of outstanding shares of Series A Convertible Preferred Stock held by
each holder thereof.

    

    3.2             Participation
Rights.  If there are any Available Funds and Assets remaining after
the payment or distribution (or the setting aside for payment or distribution)
to the holders of the Series A Convertible Preferred Stock of their full
preferential amounts described above in this Section 3, then all such remaining
Available Funds and Assets shall be distributed among the holders of the then
outstanding Common Stock and Preferred Stock pro rata according to the number
and preferences of the shares of Common Stock and Preferred Stock (as converted
to Common Stock) held by such holders.

     

    
      
        
        

      

      
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    3.3            Merger
or Sale of Assets.  A reorganization or any other consolidation or
merger of the Company with or into any other corporation, or any other sale of
all or substantially all of the assets of the Company, shall not be deemed to be
a liquidation, dissolution or winding up of the Company within the meaning of
this Section 3, and the Series A Convertible Preferred Stock shall be entitled
only to (i) the right provided in any agreement or plan governing the
reorganization or other consolidation, merger or sale of assets transaction,
(ii) the rights contained in the General Corporation Law of the State of
Delaware and (iii) the rights contained in other Sections hereof.

    

    3.4    
        Non-Cash
Consideration.  If any assets of the Company distributed to
shareholders in connection with any liquidation, dissolution or winding up of
the Company are other than cash, then the value of such assets shall be their
fair market value as determined by the Board

    

    4.            Conversion
Rights.

    

    (a)             Conversion of Preferred
Stock.  Each share of Series A Convertible Preferred Stock
shall be convertible, at the option of the holder thereof, at any time which the holder may
elect, in whole or in part, into One Hundred (100) shares of Common Stock
of the Company.

    

    (b)             Procedures
for Exercise of Conversion Rights.  The holders of any shares of
Series A Convertible Preferred Stock may exercise their conversion rights as to
all such shares or any part thereof by delivering to the Company during regular
business hours, at the office of any transfer agent of the Company for the
Series A Convertible Preferred Stock, or at the principal office of the Company
or at such other place as may be designated by the Company, the certificate or
certificates for the shares to be converted, duly endorsed for transfer to the
Company (if required by the Company), accompanied by written notice stating that
the holder elects to convert such shares.  Conversion shall be deemed
to have been effected on the date when such delivery is made, and such date is
referred to herein as the “Conversion Date.”  As promptly as
practicable after the Conversion Date, but not later than ten (10) business days
thereafter, the Company shall issue and deliver to or upon the written order of
such holder, at such office or other place designated by the Company, a
certificate or certificates for the number of full shares of Common Stock to
which such holder is entitled.  The holder shall be deemed to have
become a shareholder of record on the Conversion Date.

    

    (c)             No
Fractional Shares.  No fractional shares of Common Stock or scrip
shall be issued upon conversion of shares of Series A Convertible Preferred
Stock.  The number of full shares of Common Stock issuable upon
conversion thereof shall be computed on the basis of the aggregate number of
shares of Series A Convertible Preferred Stock.  Any fractional shares
of Common Stock which would otherwise be issuable upon conversion of the shares
of Series A Convertible Preferred Stock will be rounded up to the next whole
share.

    

    (d)             Payment
of Taxes for Conversions. The Company shall pay any and all issue and other
taxes that may be payable in respect of any issue or delivery of shares of
Common Stock on conversion pursuant hereto of Series A Convertible Preferred
Stock.  The Company shall not, however, be required to pay any tax
which may be payable in respect of any transfer involved in the issue and
delivery of shares of Common Stock in a name other than that in which the shares
of Series A Convertible Preferred Stock so converted were registered, and no
such issue or delivery shall be made unless and until the person requesting such
issue has paid to the Company the amount of any such tax, or has established, to
the satisfaction of the Company, that such tax has been paid.

     

    
      
        
        

      

      
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    (e)             Status
of Common Stock Issued Upon Conversion.  All shares of Common Stock
which may be issued upon conversion of the shares of Series A Convertible
Preferred Stock will upon issuance by the Company be validly issued, fully paid
and nonassessable and free from all taxes, liens and charges with respect to the
issuance thereof.

    

    (f)             Status
of Converted Preferred Stock.  In case any shares of Series A
Convertible Preferred Stock shall be converted pursuant to this Section 4, the
shares so converted shall be canceled and shall not be issuable by the
Company.

    

    5.            Adjustment of Conversion
Price.

    

    (a)             General
Provisions.  In case, at any time after the date hereof, of any
capital reorganization, or any reclassification of the stock of the Company
(other than a change in par value or as a result of a stock dividend or
subdivision, split-up or combination of shares), or the consolidation or merger
of the Company with or into another person (other than a consolidation or merger
in which the Company is the continuing entity and which does not result in any
change in the Common Stock), or of the sale or other disposition of all or
substantially all the properties and assets of the Company as an entirety to any
other person, the shares of Series A Convertible Preferred Stock shall, after
such reorganization, reclassification, consolidation, merger, sale or other
disposition, be convertible into the kind and number of shares of stock or other
securities or property of the Company or of the entity resulting from such
consolidation or surviving such merger or to which such properties and assets
shall have been sold or otherwise disposed to which such holder would have been
entitled if immediately prior to such reorganization, reclassification,
consolidation, merger, sale or other disposition it had converted its shares of
Series A Convertible Preferred Stock into Common Stock.  The
provisions of this section 5(a) shall similarly apply to successive
reorganizations, reclassifications, consolidations, mergers, sales or other
dispositions.  The provisions of this section 5 shall not affect the
conversion of the Class A Convertible Preferred Stock in the event of a forward
or reverse stock split.

    

    (b)             No
Impairment.  The Company will not, through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, including amending this Certificate of
Designation, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all the provisions of this
section 5 and in the taking of all such action as may be necessary or
appropriate in order to protect the conversion rights of the holders of Series A
Convertible Preferred Stock against impairment.  This provision shall
not restrict the Company from amending its Articles of Incorporation in
accordance with the General Corporation Law of
the State of Delaware and the terms
hereof.

     

    
      
        
        

      

      
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    6.             Notices.  Any
notices required by the provisions of this Certificate of Designation to be
given to the holders of shares of Series A Convertible Preferred Stock shall be
deemed given if sent via facsimile or reputable overnight courier with a
confirmation receipt and addressed to each holder of record at its address
appearing on the books of the Company.

    

    7. 
           Voting
Provisions.  Each outstanding share of Series A Convertible
Preferred Stock shall be entitled to One Hundred (100) votes per share on all
matters to which the shareholders of the Company are entitled or required to
vote.

    

    8.  
          Protective
Provisions.  The Company
may not take any of the following actions without the approval of a
majority of the holders of the outstanding Series A Convertible Preferred
Stock:  (i) effect a sale of all or substantially all of the Company’s
assets or which results in the holders of the Company’s capital stock prior to
the transaction owning less than fifty percent (50%) of the voting power of the
Company’s capital stock after the transaction, (ii) alter or change the
rights, preferences, or privileges of the Series A Convertible Preferred Stock,
(iii) increase or decrease the number of authorized shares of Series A
Convertible Preferred Stock, (iv) authorize the issuance of securities having a
preference over or on par with the Series A Convertible Preferred Stock, or (v)
effectuate a forward or reverse stock split or dividend of the Company’s common
stock.  Further, the
Company agrees to effectuate a reverse stock split as soon as reasonably
possible following the issuance of any shares of Series A Convertible Preferred
Stock  so as to create enough authorized but unissued common stock to
allow for the conversion of the Series A Convertible Preferred
Stock.

    

    IN WITNESS WHEREOF, the Corporation has
caused this Certificate of Designation of Series A Convertible Preferred Stock
to be duly executed by Board of Directors and attested to this 28th day of
September, 2009.

    

    
      
        
          
            
              
                
                  	 
      	 	 
      	 
	
                          By:          William
      Hartman

                        	 	
                          By:          Bonnie
      Hartman

                        	 
	
                          Its:           Director

                        	 	
                          Its:           Director

                        	 

                

              

            

          

        

      

    

    

    
      
        
          
            
              	 
      	 
      
	
                      By:          Heidi
      Carl

                    	 
      
	
                      Its:           Director

                    	 
      

            

          

        

      

    

     

    
      
        
        

      

      
        Page 20
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]