Document:

ex10_1.htm

    
      
        

      

    

    EXHIBIT
      10.1

    

    

    OPERATING
      AGREEMENT

    

    OF

    

    LAYFIELD
      ENERGY, LLC

    

    

    DATED:  DECEMBER
      19, 2007

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    OPERATING
      AGREEMENT

    OF

    LAYFIELD
      ENERGY, LLC

    

    THIS
      OPERATING AGREEMENT (the “Agreement”), dated this 19th day of December 2007, is
      adopted by and between all Members listed in Exhibit A to this
      Agreement, and Layfield Energy, LLC, a Nevada limited liability company (the
      “Company”).

    

    ARTICLE
      I. FORMATION

    

    1.1           Organization. The
      Members have
      organized the Company as a Nevada limited liability company pursuant to the
      provisions of the Act.  The Members agree that it is in the best
      interest of the Company to change its organizational status to a C-Corporation
      before December 31, 2007 and that this Agreement shall remain in full force
      and
      effect until such change takes place.  The Members agree that such
      C-Corporation will follow as similar as possible a structure as established
      in
      this Operating Agreement.

    

    THE
      MEMBERSHIP INTEREST OF ANY MEMBER IN THE COMPANY IS SUBJECT TO THE RESTRICTIONS
      ON TRANSFER AND OTHER TERMS AND CONDITIONS SET FORTH IN ARTICLE XI OF THIS
      AGREEMENT. THE MEMBERSHIP INTERESTS HAVE BEEN ACQUIRED BY THE MEMBERS FOR
      INVESTMENT ONLY AND HAVE NOT BEEN REGISTERED UNDER ANY STATE SECURITIES LAWS
      OR
      UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED. NEITHER THE
      MEMBERSHIP INTERESTS NOR ANY PART THEREOF MAY BE OFFERED FOR SALE, PLEDGED,
      HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE
      WITH THE TERMS AND CONDITIONS OF ARTICLE XI OF THIS
      AGREEMENT.

    

    1.2           Agreement;
      Effect of Inconsistencies
      with Act. For and in
      consideration
      of the mutual covenants herein contained and for other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      the
      Members and the Company hereby agree to the terms and conditions of this
      Agreement, as it may from time to time be amended according to its terms. It
      is
      the express intention of the parties that this Agreement shall be the sole
      source of agreement of the parties, and, except to the extent a provision of
      this Agreement expressly incorporates federal income tax rules by reference
      to
      sections of the Code or Regulations or is expressly prohibited or ineffective
      under the Act, this Agreement shall govern, even when inconsistent with, or
      different than, the provisions of the Act or any other law or rule. To the
      extent any provision of this Agreement is prohibited or ineffective under the
      Act, this Agreement shall be considered amended to the smallest degree possible
      in order to make the Agreement effective under the Act. In the event the Act
      is
      subsequently amended or interpreted in such a way to make any provision of
      this
      Agreement that was formerly invalid valid, such provision shall be considered
      to
      be valid from the effective date of such interpretation or amendment. The
      Members shall be entitled to rely on the provisions of this Agreement, and
      the
      Members shall not be liable to the Company for any action or refusal to act
      taken in good faith reliance on the terms of this Agreement. The Members hereby
      agree that the duties and obligations imposed on the Members as such shall
      be
      those set forth in this Agreement, which is intended to govern the relationship
      between the Company and the Members, notwithstanding any provision of the Act
      or
      common law to the contrary.

    

    1.3           Name.
      The name of the Company
      shall be as set forth in Exhibit A and all
      business of the Company shall be conducted under that name with such variations
      and changes as the Members deem necessary, but in any case, only to the extent
      permitted by applicable law.

    

    1.4           Term.
      The term of the Company
      shall be perpetual and shall not expire except in accordance with the provisions
      of Article XI
      of this Agreement and in accordance with the Act.

    
      
        
        

      

      
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    1.5           Registered
      Agent and Office.
      The Company’s registered agent and the registered office shall be as set forth
      in Exhibit A.
      The Members may, from time to time, change the registered agent or office
      through appropriate filings with the Nevada Secretary of State. In the event
      the
      registered agent ceases to act as such for any reason or the registered office
      shall change, the Members shall promptly designate a replacement registered
      agent or file a notice of change of address as the case may be.

    

    1.6           Principal
      Office. The
      principal office of the Company shall be located as set forth in Exhibit A. The
      Company may locate its place of business and registered office at any other
      place or places, as the Members may from time to time deem
      advisable.

    

    ARTICLE
      II. BUSINESS PURPOSE

    

    2.1           The
      purpose of the Company is to engage in any lawful act or activity for which
      a
      limited liability company may be formed under the Act.

    

    ARTICLE
      III. NAME AND ADDRESS OF INITIAL MEMBERS

    

    3.1           The
      names and addresses of the initial Members are as set forth in Exhibit
      A.

    

    ARTICLE
      IV. MANAGEMENT

    

    4.1           Management
      -General. The
      overall business and affairs of the Company shall be managed by the Managers,
      working under direction and authority of the Board of Directors as set forth
      in
Exhibit A (the
“Board”). Except
      for situations or matters in which the approval of the Members
      is expressly required by this Agreement or the non-waiveable provisions of
      the
      Act, the Managers shall manage and control the business affairs and properties
      of the Company, make all decisions regarding those matters, and perform any
      and
      all other acts or activities customary or incident to the management of the
      Company’s business. The Managers shall act in good faith and in a manner that
      the Managers reasonably believe to be in the best interests of the Company
      and
      its Members. The Managers may delegate to any Person such powers and
      responsibilities as the Managers may deem appropriate for the efficient
      operation of the business of the Company.  Such persons will include
      co-Chief Executive Officers as described in Article 4.5.  The name and
      place of residence of each Manager is set forth in Exhibit
      A.  A vote of the Members holding a majority of the capital
      interests in the Company, as set forth in Exhibit C, as amended
      from time to time, shall elect so many Managers as the Members determine, but
      no
      fewer than three.

    

    4.2           Management
      Powers and
      Responsibilities. Without limiting the generality of Section 4.1,
      and
      subject to any limitations in this Agreement, the Managers shall have the power
      and authority, on behalf of the Company:

    

    (a)    to
      open accounts in
      the name of the Company with banks and other financial institutions, and
      designate and remove from time to time, at the discretion of the Managers,
      all
      signatories on such bank accounts;

    

    (b)    to
      execute on
      behalf of the Company all instruments and documents including, without
      limitation, checks, drafts, notes and other negotiable instruments, mortgages
      or
      deeds of trust, security agreements, financing statements, documents providing
      for the acquisition, mortgage or disposition of the Company’s Property,
      assignments, bills of sale, leases and any other instruments or documents
      necessary to conduct the business of the Company;

    

    (c)           
      to collect and receive all revenue, income and profits derived from the
      operation of the Company’s business, and to disperse Company funds for Company
      purposes to those Persons entitled to receive the same in accordance with this
      Agreement;

    
      
        
        

      

      
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    (d)           
      within the ordinary course of the Company’s business, to acquire, manage, hold,
      lease sell, exchange and otherwise dispose of real, personal or mixed Property,
      or interests therein, upon such terms and conditions as the Managers deem to
      be
      in the best interest of the Company;

    

    (e)           
      to pay, on behalf of the Company, any organizational expenses incurred in the
      organization of the Company;

    

    (f)           
      to make all reasonable and necessary expenditures with respect to the Property
      of the Company as the Managers deem to be in the best interest of the
      Company;

    

    (g)           
      to invest any Company funds temporarily in time deposits, short-term
      governmental obligations, commercial paper or other investments;

    

    (h)           
      to pay all taxes, licenses or assessments of whatever kind or nature imposed
      upon or against the Company, and for such purposes to file such returns and
      do
      all such other acts or things as may be deemed necessary or advisable by the
      Managers;

    

    (i)            
      to purchase commercial general liability insurance and such other insurance
      coverage as the Board shall determine to be necessary or desirable to insure
      the
      Members or to protect the Company’s assets;

    

    (j)            
      to employ, engage or contract with Persons in the operation and management
      of
      the Company’s business;

    

    (k)           
      to employ accountants, legal counsel, consultants or other experts to perform
      services for the Company and to compensate them from Company funds;

    

    (l)           
      to institute, prosecute, defend, settle, compromise and dismiss claims, lawsuits
      or other judicial or administrative proceedings, involving an amount in
      controversy of less than $50,000, brought by or on behalf of, or against the
      Company or the Members in connection with activities arising out of, or
      connected with, or incidental to this Agreement or the business of the Company;
      provided, however, that the Managers shall provide to the Board each calendar
      quarter or more often as requested by any Member, a description of any claim,
      lawsuit or judicial or administrative proceeding where the amount in controversy
      exceeds $10,000; and provided further that any Member may notify the Manager
      of
      a strategic interest in any claim, lawsuit or proceeding involving an amount
      in
      controversy of less than $50,000, in which case the institution, prosecution,
      defense, settlement, compromise or dismissal of the claim, lawsuit or proceeding
      and the engagement of legal counsel in connection therewith shall be subject
      to
Section 4.6
      below; and

    

    (m)           to
      do and perform all other acts as may be necessary or appropriate to the conduct
      of the Company’s business.

    

    4.3           Members.

    

    (a)           
      Liability. The liability of the Members shall be limited as provided under
      the
      laws of the Act.

    

    (b)           Power
      to Bind the Company. Members that are not Managers shall take no part whatever
      in the control, management, direction or operation of the Company’s affairs and
      shall have no power to bind the Company.  No Member or group of
      Members acting in their individual capacity, separate and apart from action
      as
      Members of the Company pursuant to this Agreement, shall have the authority
      to
      bind the Company to any third party with respect to such matter.  The
      Managers may from time to time seek advice from the Members, but they need
      not
      accept such advice, and at all times the Managers shall have the exclusive
      right
      to control and manage the Company.

    
      
        
        

      

      
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    (c)           
      No Member shall be an agent of any other Member of the Company solely by reason
      of being a Member.

    

    (d)           Members
      Who Are Not Individuals. Each Member who is an artificial entity or otherwise
      not an individual hereby represents and warrants to the LLC and each Member
      that
      such Member is:

    

    (i)
      duly
      incorporated or formed (as the case may be),

    

    (ii)
      validly existing and in good standing under the laws of the jurisdiction of
      its
      incorporation or formation, and

    

    (iii)
      has
      full power and authority to execute and deliver this Agreement and to perform
      its obligations hereunder.

    

    (e)           
      Reimbursement. The Company shall reimburse Members for all reasonable direct
      out-of-pocket expenses incurred by them in managing the Company.

    

    4.4           Other
      Activities by Managers and
      Members. The duty of the Managers and Members to act on behalf of the
      Company shall be non-exclusive. The Managers shall not be required to devote
      full-time attention to the business of the Company and may have other business
      interests and may engage in other activities in addition to those relating
      to
      the Company provided that the Managers will manage and operate the business
      of
      the Company separately from the Managers’ other business interests. Neither the
      Company nor any Member shall have any right, by virtue of this Agreement, to
      share or participate in such other investments or other activities of the
      Managers or Members or to the income or proceeds derived therefrom.

    

    4.5           CEO.
      Subject to the approval
      of the Board, the Managers shall appoint a CEO or co-CEOs of the Company who
      shall be compensated by the Company. The initial co-CEOs shall serve in such
      capacity until resignation or removal by action of a majority of the Board.
      The
      co-CEOs shall report to the Managers and shall supervise, administer and manage
      the day-to-day business affairs of the Company. John Layfield and Neil
      Reithinger shall be appointed co-CEOs upon execution of this
      Agreement.  The co- CEOs shall have the initial responsibilities
      described below:

    

    
      	
              Roles
                of
                Co-CEOs

            
	
              John
                Layfield

            	 	
              Neil
                Reithinger

            
	
              -

            	
              Promotions

            	 	
              -

            	
              Domestic
                Sales

            
	
              -

            	
              Marketing

            	 	
              -

            	
              Manufacturing

            
	
              -

            	
              Web
                Strategy

            	 	
              -

            	
              Product
                Formulation

            
	
              -

            	
              Oversight
                of Managers

            	 	
              -

            	
              Corporate
                Finance

            
	
              -

            	
              Assist
                with Domestic Sales

            	 	
              -

            	
              Accounting
                & Operations

            
	
              -

            	
              International
                Sales

            	 	
              -

            	
              Assist
                with International Sales

            
	
              -

            	
              Work
                closely with Neil Reithinger

            	 	
              -

            	
              Work
                closely with John Layfield

            

    

    

    In
      addition to such responsibilities, the co-CEOs such mutually agree to allocate
      such other responsibilities between each of them including the
      following:

    

    (a)           
      effectuate this Agreement and the regulations and decisions of the Members
      and
      the Board of Directors;

    
      
        
        

      

      
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    (b)           
      direct and supervise the day-to-day operations of the Company;

    

    (c)           
      within parameters set by a majority vote of the Board, establish such charges
      for services and products of the Company as may be necessary to provide adequate
      income for the efficient operation of the Company;

    

    (d)           
      within the budget established by the Board, set and adjust wages and rates
      of
      pay for all personnel of the Company and shall appoint, hire and dismiss all
      personnel and regulate their hours of work;

    

    (e)           
      set and adjust reimbursable rates and costs to be paid to the Members by the
      Company when such Member or its staff is engaged in Company
      business;

    

    (f)           
      keep the Board, the Managers and Members advised in all matters pertaining
      to
      the day-to-day operations of the Company, the services rendered, the products
      provided, operating income and expenses, the financial position of the Company,
      and, to this end, the CEO shall prepare and submit a report to the Board at
      each
      regular meeting and at other times as may be directed by the Board;

    

    (g)           within
      parameters set by the Managers, execute on behalf of the Company all instruments
      and documents, including checks, drafts, notes and other negotiable instruments
      and deposit the same into bank accounts approved by the Managers;

    

    (h)           
      specifically refer all issues of a legal nature that arise in the operation
      of
      the Company’s business immediately to legal counsel approved by the Board, so as
      not to compromise the position of the Company, Members or Board;

    

    (i)            
      refer all claims potentially covered by the Company’s insurance policies so as
      to not jeopardize insurance coverage on any such claims; and

    

    (j)            
      do and perform all other authorized acts as may be approved by the Board and
      as
      are necessary or appropriate to the conduct of the Company’s
      business.

    

    4.6           Consultants.  
      The
      Company shall hire or contract with such consultants as necessary to efficiently
      operate the business.

    

    4.7           Liability
      for Certain Acts.
      Each Manager shall exercise its business judgment in managing the business,
      operations and affairs of the Company. Unless fraud, deceit, gross negligence,
      willful or wanton misconduct, a wrongful taking by the Manager, or a breach
      of
      the Manager’s fiduciary duty, shall be proved by a non-appealable court order,
      judgment, decree or decision, the Manager shall not be liable or obligated
      to
      the Company or Members for any mistake of fact or judgment or for the doing
      of
      any act or the failure to do any act by the Manager in conducting the business,
      operations and affairs of the Company, which may cause or result in any loss
      or
      damage to the Company or its Members. The Manager does not, in any way,
      guarantee the return of the Members’ Capital Contributions or a profit for the
      Members from the operations of the Company. The Manager shall not be responsible
      to any Members because of a loss of their investments or a loss in operations,
      unless the loss shall have been the result of fraud, deceit, gross negligence,
      willful or wanton misconduct, a wrongful taking by the Manager, or a breach
      of
      the Manager’s fiduciary duty, provided as set forth in this Section 4.6. The
      Manager shall incur no liability to the Company or to any of the Members as
      a
      result of engaging in any other business or venture.

    

    4.8           Resignation.
      The Managers and
      the CEO of the Company may resign at any time by giving written notice to the
      Board. The resignation of the Manager or CEO shall take effect upon receipt
      of
      notice thereof or at such later time as shall be specified in such notice;
      and,
      unless otherwise specified therein, the acceptance of such resignation shall
      not
      be necessary to make it effective. The resignation of a Manager who is also
      a
      Member shall not affect the Manager’s rights as a Member and shall not
      constitute a withdrawal of the Member.

    
      
        
        

      

      
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    4.9           Removal.
      The Managers may be
      removed at any time by the affirmative vote of the Members holding no less
      than
      sixty-six percent (66%) of the Membership Interests of the Company. The CEO
      may
      be removed at any time upon the majority vote of the Board. The removal of
      the
      Manager who is also a Member shall not affect the Manager’s rights as a Member
      and shall not constitute a withdrawal of the Member.

    

    4.10         Compensation
      of Manager. The
      Managers shall be reimbursed all reasonable out-of-pocket expenses incurred
      in
      managing the Company and may be entitled to reasonable compensation for
      rendering services commensurate with the value of such services.

    

    ARTICLE
      V. BOARD OF DIRECTORS

    

    5.1           Number
      and Tenure. The Board
      shall initially consist of not less than three or more than five (5) persons
      initially (each a “Director”). The names of the initial Directors are set forth
      in Exhibit A.
      The number of directors may be fixed or changed by a majority of the existing
      Directors of the Board, subject to limitations imposed by
      law.  Subject to the limitations imposed by law or contained herein,
      the business and affairs of the Company shall be managed and all corporate
      powers shall be exercised by or under the ultimate direction of the
      Board.   Decisions of the Board shall be made by majority vote,
      with each member of the Board exercising one vote. In order to constitute a
      quorum, at least one representative of each Member must be present during Board
      meetings. Directors need not be residents of the State of Nevada.

    

    5.2           Chairman
      of the Board. One of
      the Directors serving on the Board shall serve as Chairperson. The Chairperson
      shall preside over all Board meetings. In the event of a deadlock concerning
      an
      issue to be resolved by the Board, the Chairperson shall cast the deciding
      vote.  Initially, John Layfield shall serve as the
      Chairperson.

    

    5.3           Committees
      of the
      Board.  The Board may designate one or more committees to serve
      at the pleasure of the Board. Each committee shall have and may exercise any
      and
      all powers as are conferred or authorized by the resolution appointing it.
      The
      Board shall have the power at any time to fill vacancies in, to change the
      size
      of membership of, and to discharge any committee.

    

    5.4           Meetings.
      The Board shall meet
      on a quarterly basis, or more often as necessary, at a time and place to be
      determined by the Members. Any Member, in its discretion, may call for a meeting
      of the Board upon ten (10) business days prior written Notice to the Directors
      and to all other Members.

    

    5.5           Telephone
      Meetings. Board
      representatives may participate in Board meetings by means of telephone
      conference or similar communications equipment, and such participation in a
      telephone conference shall constitute presence in person at such
      meeting.

    

    5.6           Action
      by Written Consent. Any
      action required or permitted to be taken by the Board, either at a meeting
      or
      otherwise, may be taken without a meeting provided that all representatives
      consent thereto in writing and the writing or writings are filed with the
      minutes of proceedings of the Board; and provided further that written notice
      of
      the action to be taken by written consent will be given to all Members at least
      2 business days prior to the intended effectiveness of any such
      action.

    

    5.7           Minutes
      of Meetings. The
      decisions and resolutions of the Board will be reported in minutes, which will
      state the date, time and place of the meeting (or the date of the written
      consent in lieu of a meeting), the Board members present at a meeting, the
      resolutions put to a vote (or the subject of a written consent) and the results
      of such voting (or written consent). The minutes will be entered in a minute
      book kept at the principal office of the Company and a copy of the minutes
      will
      be provided to each Member.

    
      
        
        

      

      
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    5.8           Business
      Plan. After
      soliciting input from the Members, the CEO shall prepare and submit to the
      Board
      (no later than October 1 of each year) for approval by unanimous vote of the
      Board an annual business plan (the “Business Plan”) for the succeeding year
      consistent with the purpose of the Company as set forth in Section 2.1. The
      Board shall review the draft Business Plan and offer any revisions thereto
      as
      promptly as commercially practicable after receipt and in any event prior to
      December 1. At a minimum, the Business Plan shall contain:

    

    (a)           
      the estimated receipts and expenditures (capital, operating and other) of the
      Company in sufficient detail to provide an estimate of cash flow, capital
      proceeds and other financial requirements of the Company for such
      year;

    

    (b)           
      information concerning the strategic direction of the Company;

    

    (c)           
      strategic and tactical marketing plans and initiatives;

    

    (d)           
      plans and initiatives to solicit new customers and accounts, and to retain
      existing customers and accounts;

    

    (e)           
      information on an overall Company basis respecting material proposed changes
      to
      the Company’s employee salaries, benefits and policies; and

    

    (f)           
      such other information or other matters necessary or desirable in order to
      inform the Board of the Company’s business and to enable the Board to make an
      informed decision with respect to approval of such Business Plan.

    

    After
      the
      final Business Plan has been approved by unanimous vote of the Board, the
      Managers shall implement the Business Plan. If the Board is not able to agree
      on
      a Business Plan for any year, then, until such time as the Board agrees on
      the
      Business Plan for such year, the Business Plan for the previous year shall
      continue to apply to the business and affairs of the Company.

    

    5.9           Dividends.
The
      Board reserves
      the right to distribute earnings to the extent the Company is able based on
      the
      Company’s growth plans.

    

    ARTICLE
      VI. RIGHTS AND DUTIES OF THE MEMBERS

    

    6.1           Liability
      of Members. Each
      Member’s liability shall be limited as set forth in the Act and other applicable
      law. A Member will not personally be liable for any debts or losses of the
      Company beyond the Member’s respective Capital Contributions, except as
      otherwise provided herein or required by law.

    

    6.2           Indemnification.
      The Company
      shall indemnify the Members, and their respective agents for all costs, losses,
      liabilities, and damages paid or accrued in connection with the business of
      the
      Company, to the fullest extent provided or allowed by the laws of the State
      of
      Nevada. In addition, upon written request, the Company may advance costs of
      defense of any legal proceeding to the Members or any other agent, prior to
      the
      conclusion of the matter and as such costs are incurred.

    

    6.3           Business
      Opportunities. Each
      Member and all affiliates of such Member may have other business interests
      and
      may engage in other activities in addition to those relating to the Company,
      including interests in or taking actions on behalf of one or more entities
      engaged in activities of a similar nature to or in competition with the Company
      or any joint venture, partnership or other entity in which the Company has
      a
      direct or indirect interest.  Each Member agrees that each other
      Member and any affiliate thereof may own, operate, engage in, invest in or
      possess an interest in any other business venture or ventures of any nature
      or
      description, independently or with others, whether or not the same is
      competitive with the purposes of the Company, and neither the Company nor the
      other Members shall have any rights by virtue of this Agreement in and to said
      independent ventures or to the income or profits derived therefrom. No Member
      or
      affiliate thereof or any of them shall be obligated to present any particular
      investment or business opportunity to the Company even if such opportunity
      is of
      a character which, if presented to the Company, could be taken by the Company,
      and each of them shall have the right to take for its own account or for any
      other person or entity, or to recommend to others any such particular investment
      or business opportunity.

    
      
        
        

      

      
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    6.4          
      Company Books. In
      accordance with Section 9.1 herein,
      the Chief Executive Manager shall maintain and preserve, during the term of
      the
      Company and for three (3) years after dissolution, all accounts, books and
      relevant Company records. Upon reasonable request, each Member shall have the
      right, during ordinary business hours, to inspect and copy such Company
      documents at the requesting Member’s expense.

    

    6.5           Voting.
      Except as otherwise
      provided in this Agreement, each Member shall have one vote for each one percent
      of the Member’s Membership Interest outstanding. Therefore, the total individual
      votes for all Members available to be cast at any one time will be one hundred
      (100). Fractional interests shall be rounded to the nearest whole percentage
      point for voting purposes, A majority vote consisting of over 50% will be
      required.

    

    6.6           Priority
      and Return of
      Capital. Except as may be expressly provided elsewhere in this Agreement,
      no Member shall have priority over any other Member, either as to the return
      of
      Capital Contributions or as to Net Profits, Net Losses or Distributions;
      provided, however, that this Section 6.6 shall not
      apply to operating and other loans (as distinguished from Capital Contributions
      and Member loans) which a Member has made to the Company or to another
      Member.

    

    6.7           Pledge
      Restriction. Each
      Member agrees that no Member shall be permitted to pledge their Membership
      Interest as collateral for any loan or financial obligation without the vote
      or
      consent of holders of eighty-five percent (85%) of the Membership Interests
      in
      the Company.

    

    ARTICLE
      VII. CONTRIBUTIONS

    

    7.1           Initial
      Contributions. The
      initial Members shall make the Initial Capital Contributions described on Exhibit B at the time
      and on the terms specified on Exhibit B and shall
      perform that Member’s Commitment. The value of the Initial Capital Contributions
      shall be as set forth on Exhibit B. No
      interest shall accrue on any Initial Capital Contribution and the Members shall
      not have the right to withdraw or be repaid any Initial Capital Contribution
      except as provided in this Agreement.

    

    7.2           Additional
      Capital
      Contributions.

    

    (a)           
      No Member shall be responsible for, or obligated to provide for, capital
      requirements and expenses of the Company in excess of their Initial Capital
      Contribution.

    

    (b)           
      Upon the vote of Members holding eighty-five percent (85%) of the Membership
      Interests of the Company, the Manager may request Additional Capital
      Contributions from each Member by way of written notice stating the amount
      of
      additional funds required, the purpose therefore, and the date upon which
      Additional Capital Contributions may be made by each Member. Each Member shall
      have the right to make their pro rata share of the Additional Capital
      Contribution in accordance with their Membership Interest at the time specified
      in such notice. If any Member does not make the full amount of their share
      of a
      requested Additional Capital Contribution within ten (10) days after the
      expiration of the time specified in such notice, the Manager shall send a
      written notice to each Member specifying the amount not contributed (the
“Non-Contribution Notice”). Each Member shall have the right to make the
      Additional Capital Contribution requested from the non-contributing Member
      on a
      pro rata basis in accordance with their Membership Interests or as they
      otherwise agree by sending a written notice to the Managers within (5) days
      of
      the Member’s receipt of the Non-Contribution Notice indicating the Member’s
      interest to contribute a portion of the non-contributing Member’s Additional
      Capital Contribution (the “Portion Notice”). The value of the Membership
      Interest for the Additional Capital Contribution made by a Member shall be
      based
      on the lower of the Company’s Net Book Value or its fair market value as
      reasonably determined by the Board in its sole discretion immediately preceding
      the Additional Capital Contribution. If the Board determines that the Company
      needs additional funds, but determines not to request Additional Capital
      Contributions, the Board may cause the Company to borrow such funds from any
      Person, including any Member, upon such terms and conditions as may be agreed
      to
      at the time. No such loan to the Company from a Member shall be deemed to
      constitute a Capital Contribution to the Company and shall not increase the
      Capital Account of the Member making the loan.

    
      
        
        

      

      
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    7.3           Capital
      Accounts.

    

    (a)           
      The Managers shall maintain separate Capital Accounts for each Member. Each
      Member’s Capital Account will be increased by (1) the amount of money
      contributed by such Member to the Company, including Additional Capital
      Contributions; (2) the value, as agreed by the Board, of Property contributed
      by
      such Member to the Company (net of liabilities secured by such contributed
      Property that the Company is considered to assume or take subject to under
      Section 752 of the Code); and (3) the amount of Net Profits allocated to such
      Member. Each Member’s Capital Account will be decreased by (1) the amount of
      money distributed to such Member by the Company; (2) the value, agreed by the
      Board, of Property distributed to such Member by the Company (net of liabilities
      secured by such distributed Property that such Member is considered to assume
      or
      take subject to under Section 752 of the Code); and (3) the amount of Net Losses
      allocated to such Member.

    

    (b)           
      In the event of a permitted sale or exchange of a Membership Interest in the
      Company pursuant to the terms of this Agreement, the Capital Account of the
      transferor shall become the Capital Account of the transferee to the extent
      it
      relates to the transferred Membership Interest.

    

    (c)           
      The manner in which Capital Accounts are to be maintained pursuant to this
Section 7.3 is
      intended to comply with the requirements of Code Section 704(b) and the
      Regulations promulgated thereunder and this Agreement shall be considered
      amended to the smallest degree possible in order to comply with Code Section
      704(b) and the Regulations thereunder.

    

    (d)           
      Upon liquidation of the Company (or any Member’s Membership Interest),
      liquidating distributions shall be made pursuant to Section 8.3(c).
      Liquidation proceeds will be paid as reasonably determined by the
      Manager.

    

    ARTICLE
      VIII. ACCOUNTING METHOD, ALLOCATIONS, DISTRIBUTIONS

    

    8.1           Method
      of Accounting. The Net
      Profits and/or Net Losses of the Company shall be determined in accordance
      with
      accounting principles applied on a consistent basis under the method of
      accounting as set forth in Exhibit
      A.

    

    8.2           Allocations.

    

    (a)           
      Net Profits and credits earned by the Company for each Fiscal Year attributable
      to the operations of the Company shall be allocated to the Members in accordance
      with the Membership Interest identified in Exhibit C and shall
      be credited to each Member’s Capital Account (exclusive of credits) in
      accordance with the following:

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    (i)          
        First, if the Capital Account of any Member has a negative balance,
      Net Profits shall be credited to each Member having a negative Capital Account
      balance in an amount equal to the negative Capital Account balance, in the
      ratio
      that the Member’s negative Capital Account balance bears to the aggregate
      negative Capital Account balances of the Members having negative Capital Account
      balances;

    

    (ii)           
      Second, if previous cumulative Net Losses have been incurred, Net Profits will
      be allocated pro rata in proportion to the amount of cumulative Net Losses
      allocated to each Member; and

    

    (iii)          
      Thereafter, to all Members pro rata in proportion to their relative Membership
      Interest in effect as of the effective date of the allocation, except that
      for
      any Fiscal Year which has any changes in the Membership Interests, the
      allocation will be calculated using the per share per day method as provided
      for
      in the Code.

    

    (b)           
      After giving effect to the allocations provided for in the provisions of this
      Agreement covering special allocations and curative losses, all Net Losses
      of
      the Company for each Fiscal Year shall be allocated first to the Members in
      an
      amount equal to the Net Profits previously credited to the Members (and not
      previously reduced by this Section) and second to all Members and shall be
      charged to the Members’ Capital Accounts pro rata in proportion to their
      relative Membership Interest in effect as of the effective date of the
      allocation, except that for any Fiscal Year which has any changes in the
      Membership Interests, the allocation will be calculated using the per share
      per
      day method as provided for in the Code. Notwithstanding the foregoing, in no
      event shall any such loss be allocated to a Member, to the extent that it would
      result in such Member having a negative Capital Account balance, if any other
      Member has a positive Capital Account balance. The foregoing reallocation of
      losses to a Member with a positive Capital Account balance shall remain in
      effect only until all Members have Capital Account balances of zero. If all
      Members have Capital Account balances of zero and any Member has made a loan
      to
      the Company which remains outstanding at the end of any Fiscal Year, net losses
      shall be allocated first, on a pro rata basis, to each Member whose loan remains
      outstanding up to the aggregate amount of the loan balance.

    

    8.3           
      Distributions.

    

    (a)           
      Except as provided in Section 8.3(d) and
      except as required in Section 8.3(a)(iii),
      distributions of Distributable Cash attributable to operations of the Company
      shall be made at such time as determined by the Board and which is not, in
      the
      reasonable opinion of the Board, necessary to conduct the Company’s business.
      Except as expressly provided herein, no Member shall have priority over any
      other Member, either as to distributions or the return of Capital Contributions
      other than what is provided by this Section 8.3. All
      amounts withheld pursuant to the Code or any provisions of state or local tax
      law with respect to any payment or distribution to the Members from the Company
      shall be treated as amounts distributed to the relevant Member or Members
      pursuant to this Section 8.3. All
      distributions of Distributable Cash attributable to operations of the Company
      shall be made as follows, unless otherwise agreed to by the
      Members:

    

    (i)           
      First, if cumulative Net Profits from inception of the Company exist at the
      end
      of any calendar year, to the Members, in proportion to their Membership
      Interests;

    

    (ii)            Second,
      to all Members pro rata to the amount of Net Profits allocated to the Members
      per Section 8.2
      net of the distribution made in Section
      8.3(a)(i);

    
      
        
        

      

      
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    (iii)           Third,
      to all Members pro rata in proportion to the sums of their respective Initial
      Capital Contributions and any Additional Capital Contributions, until the full
      amount of all Initial and Additional Capital Contributions shall have been
      returned to all Members; and

    

    (iv)           Thereafter,
      to all Members pro rata in proportion to the relative Membership Interest they
      hold, in effect as of the effective date of the distribution.

    

    (b)           
      Except as expressly provided in Section 8.3(a) or as
      a result of the application of Section 8.4, no
      distributions which are disproportionate to a Member’s Membership Interest are
      permitted without the approval of Members holding eighty-five percent (85%)
      of
      the Membership Interests, and then, only after the Members take into
      consideration the potential future impact on Sections 8.2 and
      8.3
      and concluding their consideration with a written summary of the Members’
decision.

    

    (c)           
      In the event of the liquidation of the Company, distributions to Members shall
      be made, after the allocations described in Section 8.2 and to
      the extent such distributions were not previously made pursuant to Section 8.3(a), on a
      pro rata basis to all Members based on the Membership Interest they hold, in
      effect as of the effective date of the distribution.

    

    (d)           
      No distribution shall be declared and paid unless, after the distribution is
      made, the book value of the assets of the Company is in excess of all
      liabilities of the Company, except liabilities to Members on account of their
      contributions. For any kind of distribution, a Member, irrespective of the
      nature of their Capital Contribution, has the right to demand and receive only
      cash as compared to demanding the distribution of any specific asset of the
      Company.

    

    8.4           Special
      Allocations.

    

    (a)           
      Except as otherwise provided in this Agreement, special allocations will be
      made
      as permitted and/or required by the Code.

    

    (b)           
      Items of income, gain, loss, deduction, credit and tax preference for state
      and
      local income tax purposes shall be allocated to and among the Members in a
      manner consistent with the allocation of such items for federal income tax
      purposes in accordance with the foregoing provisions of this Article
      VIII.

    

    ARTICLE
      IX.  RECORDS, TAX MATTERS, BANKING

    

    9.1           Books
      and Records. The
      Managers, at the expense of the Company, shall maintain the following books
      and
      records at the Company’s principal office:

    

    (a)           
      A list of the full name and the last known street address of each Member, both
      past and present;

    

    (b)           
      A copy of the Articles of Organization for the Company, and all amendments
      thereto;

    

    (c)           
      Copies of the currently effective Agreement and all amendments thereto, copies
      of any prior Agreement no longer in effect, and copies of any writings permitted
      or required with respect to a Member’s obligation to contribute cash, Property,
      or services;

    

    (d)           
      Copies of the Company’s federal, state and local income tax returns and reports
      (or the portions of the returns of others showing the taxable income deductions,
      gain, loss, and credits of the Company), if any, for the three most recent
      years;

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    (e)           
      Copies of the financial statements of the Company, if any, for the three (3)
      most recent years;

    

    (f)           
      Minutes of every meeting of the Board or the Members;

    

    (g)           
      Any written consents obtained from Members or the Board for actions taken by
      the
      CEO or actions taken by the Members or the Board of Directors without a meeting;
      and

    

    (h)           
      If not set forth in this Agreement, a writing or other data compilation from
      which information can be obtained through retrieval devices into a reasonably
      usable form setting forth the following:

    

    (i)           
      The amount of cash and a description and statement of the agreed value of the
      other Property or services contributed by the Members and which the Members
      have
      agreed to contribute;

    

    (i)            
      The times at which or events on the happening of which any additional
      Commitments agreed to be made by the Members are to be made;

    

    (ii)           
      Any right of a Member to receive, or of the Company to make, distributions
      to a
      Member which include a return of all or any part of the Member’s Capital
      Contribution or distributions in kind; and

    

    (iii)           Any
      events upon the happening of which the Company is to be dissolved and its
      affairs wound up.

    

    9.2           Bank
      Accounts. All funds of
      the Company shall be deposited in the name of the Company in an account or
      accounts maintained with such bank or banks selected by the Managers. Checks
      shall be drawn upon the Company account or accounts only for the purposes of
      the
      Company and shall be signed by authorized Persons on behalf of the
      Company.

    

    ARTICLE
      X.  SECURITIES LAWS MATTERS

    

    10.1         Representations.
      Each Member,
      by executing this Agreement, hereby represents and warrants to the Company
      and
      to each Member that such Member:

    

    (a)           
      Is aware that the acquisition of their Membership Interest in the Company has
      not been registered under the Securities Act of 1933, as amended, or registered
      or qualified under the securities laws of any state;

    

    (b)           
      Is acquiring the Membership Interest in their own name and solely for their
      own
      account (or for a trust account if a trustee) and not for the account of any
      other person;

    

    (c)           
      Is acquiring their Membership Interest for the purpose of investment only,
      and
      not with a view to or for sale in connection with any distribution of such
      Membership Interest;

    

    (d)           
      Understands that any Disposition of their Membership Interest is limited by
      this
      Agreement and in any event may not be effected unless the Disposition is
      registered and qualified under applicable securities laws, or is eligible for
      an
      exemption from registration and qualification, and, except as expressly provided
      otherwise herein, that no understanding has been made with regard to registering
      or qualifying such Membership Interest in the future;

    

    (e)           
      Understands that any certificate or other document which evidences their
      Membership Interest in the Company may bear one or more restrictive legends
      stating that the Membership Interest evidenced therein has not been registered
      under the Securities Act of 1933, as amended or qualified under any securities
      laws;

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (f)           
       Is capable of evaluating, through their own knowledge and experience in
      financial and business matters, the merits and risks of this investment and
      of
      protecting their own interest in connection with this investment;

    

    (g)           
      Is able to bear the economic risk of the loss of their Membership
      Interest;

    

    (h)           
      Has not seen or received any advertisement or general solicitation with respect
      to the sale of the Membership Interest;

    

    (i)           
      Acknowledges that the Company has given him the opportunity to obtain any
      information and ask questions concerning the Company, Membership Interest in
      the
      Company, and their investment, and to the extent that he or she availed himself
      or herself of that opportunity, he or she has received from the Company
      satisfactory information and answers; and

     

    (j)           
      Acknowledges that the Company and each Member are relying on the foregoing
      representations.

    

    10.2         Compliance
      with Securities Laws and
      Other State and Federal Law. Notwithstanding the other provisions of this
Article X,
      no
      Member may transfer their Membership Interest in the Company unless such Member
      provides to the remaining Members such evidence and assurances as the remaining
      Members, may reasonably request, including but not limited to an opinion of
      counsel satisfactory to the Members that the transfer of such Membership
      Interest:

    

    (a)           
      Shall not cause a termination of the Company under any applicable federal or
      state law;

    

    (b)           
      Shall not violate any applicable state or federal securities laws;
      and

    

    (c)           
      Shall be accomplished in compliance with the registration requirements of all
      applicable state and federal securities law or pursuant to an applicable
      exemption there from, and that all such filings or other actions necessary
      to
      effect any such transaction have been undertaken or will have been undertaken
      prior to, or concurrent with, the transfer.

    

    ARTICLE
      XI.  ADMISSION OF ADDITIONAL MEMBERS AND MEMBERSHIP INTEREST
      TRANSFERS

    

    11.1         Admission
      of Additional
      Members. The Members, by unanimous written consent may admit Additional
      Members and determine the Capital Contributions and/or Commitments and the
      corresponding allocated Membership Interest of such Additional Members. As
      a
      condition of admission, any Additional Member shall agree to be subject to
      all
      the terms and conditions of this Agreement by signing the original Agreement
      maintained by the Company.

    

    11.2         Disposition.
      The Membership
      Interest of any Member is transferable either voluntarily or by operation of
      law, subject to the provisions of this Article XI. Upon a
      transfer of a Member’s Membership Interest in compliance with this Article XI, the
      transferee shall be admitted as an Additional Member without further action
      at
      the time the transfer is completed, subject to the condition of admission
      required by Section
      11.1.

    

    11.3         General
      Restrictions on
      Transfers.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    (a)           
      Except as otherwise provided in this Agreement, no Member may, without the
      written consent of all Members, Dispose of a Membership Interest in the Company.
      For purposes of this Agreement, a transfer of a Membership Interest in the
      Company shall include any Disposition of all or a portion of a Membership
      Interest in the Company. Any purported Disposition or gift of all or a portion
      of a Membership Interest made in violation of this Agreement shall be void
      as
      against the Company and the other Member, and the transferring or gifting Member
      shall indemnify and hold the Company and the other Member harmless from and
      against any and all loss, damage or expense (including, without limitation,
      tax
      liabilities or loss of tax benefits) incurred or suffered by the Company or
      other Member and arising directly or indirectly as a result of any Disposition
      or gift, or purported Disposition or gift, in violation of this Article
      XI.

    

    (b)           
      Notwithstanding anything in this Agreement to the contrary, a Disposition shall
      be void if, in the opinion of counsel to the Company, the Disposition
      would:

     

    (i)             Cause
      a termination of the Company under any applicable federal or state law or deemed
      termination of the Company under any applicable federal or state income tax
      law;
      or

     

    (ii)            Not
      be accomplished in compliance with the registration requirements of all
      applicable state and federal securities laws or pursuant to an applicable
      exemption there from.

    

    11.4         Right
      of First
      Refusal.

    

    (a)           
      In the event that a Member (“Selling Member”) desires to Dispose of all (but not
      less than all) of its Membership Interest (the “Offered Interest”) to any Person
      other than a current Member (the “Offeror”), the proposed Disposition shall not
      be permitted unless the Selling Member shall afford the Company and the other
      Members a right of first refusal pursuant to this Section
      11.4.

    

    (b)           
      Before Disposing of its Offered Interest in the Company, the Selling Member
      must
      provide to the Company and other Members at least thirty (30) days (the “Notice
      Period”) prior written notice (the “Disposition Notice”) of its intention to
      Dispose the Offered Interest. In the Disposition Notice, the Selling Member
      shall specify: (i) the price at which the Offered Interest is proposed to be
      sold or transferred (the “Offering Price”), which may not consist of
      consideration other than cash and/or promissory notes, (ii) the portion of
      their
      Membership Interest to be sold, (iii) the identity of the proposed Offeror
      or
      transferee, and (iv) any other material terms of the proposed
      Disposition.

    

    (c)           
      The Managers may elect, on behalf of the Company, within the first five (5)
      days
      of the Notice Period, to purchase the Offered Interest to be disposed of by
      the
      Selling Member at the Offering Price. The terms and conditions of the purchase
      by the Company shall be the terms and conditions of the proposed Disposition
      as
      set forth in the Disposition Notice. If the Company elects not to purchase
      the
      Offered Interest, the Company shall notify each non-selling Member. The notice
      shall state that the Company did not exercise its option to purchase the Offered
      Interest.

    

    (d)           
      If the Company elects not to purchase the Offered Interest, the Offered
      Interest, may be purchased by the non-selling Member on the same terms and
      at
      the same price available to the Company. The non-selling Member must give
      written notice to the Disposing Selling Member of the exercise of their option
      to purchase the Offered Interest before the expiration of the Notice Period.
      Alternatively, each non-selling Member may within the same 30-day period, notify
      the Manager of its desire to participate in the sale of that Member’s Membership
      Interest on the terms set forth in the Disposition Notice.

    

    (e)           
      If neither the Company nor the non-selling Member shall have elected to purchase
      the entire Offered Interest covered by the Disposition Notice as provided in
      the
      foregoing subsections of this Section 11.4, the
      Selling Member may sell to Persons other than the Company and the non-selling
      Member, provided that any Disposition must be made on the terms and conditions
      and to the party specified in the Disposition Notice.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    (f)           
      Unless otherwise agreed, the closing of any sale of a Membership Interest shall
      take place at the Company’s principal office. Once transferred, the Membership
      Interest shall be subject to all of the terms and conditions of this Agreement,
      and any third party purchaser shall agree to be bound by the terms and
      conditions of the Agreement as a condition concurrent with the transfer of
      the
      Membership Interest by signing the original Agreement maintained by the
      Company.

    

    11.5         Failure
      to Fully Exercise Options;
      Co-Sale.

    

    (a)           
      If the Company and the non-selling Members do not exercise their options to
      purchase the Offered Interest within the period described in this Agreement
      (the
“Option Period”), then all options of the Company and the non-selling Members to
      purchase the Offered Interest, whether exercised or not, shall terminate, but
      each Member which has, pursuant to Section 11.4,
      expressed a desire to sell its Membership Interests in the transaction (a
“Participating Member”), shall be entitled to do so pursuant to this Section.
      The Company shall promptly, on expiration of the Option Period, notify the
      Selling Member of the Participating Members wishing to sell. The Selling Member
      shall use commercially reasonable efforts to interest the Offeror in purchasing,
      in addition to the Offered Interest, the Membership Interests of the
      Participating Members. If the Offeror does not wish to purchase, in addition
      to
      the Offered Interest, the Membership Interests made available by the
      Participating Members, then each Participating Member and the Selling Member
      shall be entitled to sell, at the price and on the terms and conditions set
      forth in the Disposition Notice, a portion of the Membership Interests being
      sold to the Offeror, in the same proportion as such Selling Member or
      Participating Member’s ownership of Membership Interests bears to the aggregate
      Membership Interests owned by the Selling Member and the Participating Members.
      The transaction contemplated by the Disposition Notice shall be consummated
      not
      later than sixty (60) days after the expiration of the Option
      Period.

    

    (b)           
      The proceeds of any sale made by the Selling Member without compliance with
      the
      provisions of this Section 11.5 shall be
      deemed to be held in constructive trust in such amount as would have been due
      the Participating Members if the Selling Member had complied with this
      Agreement.

    

    11.6         Drag
      Along
      Rights.

    

    (a)           
      In the event that an offer is made to all the Members of the Company which
      provides for the acquisition (either by way of a purchase, amalgamation,
      arrangement, corporate reorganization or other means of a merger or acquisition)
      by a Qualified Offeror (as defined below), of all (but not less than all) of
      the
      then outstanding Membership Interests upon the same terms and conditions
      (including price, if applicable) to all the Members; and the third party offer
      has been irrevocably accepted by Members in respect of not less than sixty-six
      and two thirds percent (66 2/3%) of the then issued and outstanding Membership
      Interests held by all Members, then any Member who has not accepted the offer
      (an “Objecting Member”) shall, subject to the provisions of this Section 11.6, be
      deemed to have done so upon being notified by such Qualified Offeror of the
      names of Members who have irrevocably accepted such offer and the number of
      Membership Interests in respect of which they have accepted the offer, provided
      that any Selling Member who has accepted such third party offer in respect
      of
      its Membership Interests has first complied with Section 11.4 of this
      Agreement. For purposes hereof, a “Qualified Offeror” shall be deemed a Person
      which (a) has no affiliation with, is not directly or indirectly materially
      owned or controlled by, does not directly or indirectly materially own or
      control, and has no interlocking directors with, a Member; (b) is not a material
      customer, supplier, distributor or creditor of or to a Member or an Affiliate
      thereof; and (c) has not engaged, is not currently engaged, and to such Member’s
      knowledge has no present intention to engage, in any material transaction with
      a
      Member within one year before or after the date such offer is
      made.

    
      
        
        

      

      
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    11.7         Termination
      of Transfer
      Restrictions. The restrictions on the transfer of Membership Interests
      set forth in this Article XI shall
      terminate upon the earlier of the following events:

    

    (a)           
      The sale of all or substantially all of the assets or business of the Company,
      by merger, sale of assets or otherwise (except a merger or consolidation in
      which the holders of Membership Interests of the Company immediately prior
      to
      such merger or consolidation continue to hold immediately following such merger
      or consolidation at least 80% by voting power of the Membership Interests of
      the
      surviving corporation); or

    

    (b)           
      The closing of the Company’s IPO.

    

    11.8         Insolvency.
      Upon the
      insolvency, as hereinafter defined, of any Member, the Company, or if the
      Company declines, any Member on a pro rata basis may, within ninety (90) days
      after such insolvency, elect to purchase the Membership Interest of the
      insolvent Member. The purchase price shall be the reasonable fair market value
      of the Company, as determined by the Board in their sole discretion, multiplied
      by the Membership Interest to be purchased, and adjusted for usual and customary
      discounts for lack of marketability and minority interest. Any liabilities
      or
      indebtedness of the insolvent Member to the Company or any other Member shall
      be
      paid by the insolvent Member at the closing. A Member shall be deemed to have
      become insolvent for purposes of this Section 11.8 if any
      of the following events shall occur:

    

    (a)           
      Said Member shall file a voluntary petition in bankruptcy or shall be
      adjudicated a bankrupt or insolvent, or shall file any petition or answer
      seeking any reorganization, arrangement, composition, readjustment, liquidation,
      dissolution or similar relief for himself under the present or any future
      federal bankruptcy act or any other present or future applicable federal, state
      or other statute or law relating to bankruptcy, insolvency or other relief
      for
      debtors, or shall seek or consent to or acquiesce in the appointment of any
      trustee, receiver, conservator or liquidator of said Member or of all or any
      substantial part of their properties or their Membership Interest in the Company
      (the phrase “acquiesce in the appointment” being deemed to include, without
      limitation, failure to file a petition or motion to vacate or to discharge
      any
      order, judgment or decree providing for such appointment within ten (10) days
      after such appointment); or

    

    (b)           
      A court of competent jurisdiction shall enter an order, judgment or decree
      approving a petition filed against said Member seeking any reorganization,
      arrangement, composition, readjustment, liquidation, dissolution or similar
      relief under the present or future applicable federal, state or other statute
      or
      law relating to bankruptcy, insolvency or other relief for debtors, and said
      Member shall acquiesce in the entry of such order, judgment or decree (the
      phrase “acquiesce in the appointment” being deemed to include, without
      limitation, failure to file a petition or motion to vacate or to discharge
      any
      order, judgment or decree within ten (10) days after the entry of such order,
      judgment or decree), or such order, judgment or decree shall remain unvacated
      and unstayed for an aggregate of ninety (90) days (whether or not consecutive)
      from the date of entry thereof, or any trustee, receiver, conservator or
      liquidator of said Member or all or any substantial part of their Property
      or
      their Membership Interest in said Company shall be appointed without the consent
      or acquiescence of said Member or such appointment shall remain unvacated and
      unstayed for an aggregate of ninety (90) days (whether or not consecutive);
      or

    

    (c)           
      Said Member shall admit in writing of their inability to pay their debts as
      they
      mature; or

    

    (d)            Said
      Member shall give notice to any governmental body of insolvency or pending
      insolvency; or

    

    (e)           
      Said Member shall make an assignment of their pro rata share of the assets
      and
      profits of the Company for the benefit of creditors or take any other similar
      action for the protection or benefit of creditors.

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      XII. DISSOLUTION AND WINDING UP

    

    12.1         Dissolution.
      The Company shall
      be dissolved and its affairs wound up upon the affirmative vote of Members
      whose
      capital interest, as defined in Exhibit C, exceeds
      75% or upon any other event causing dissolution of a Limited Liability Company
      under the Act.

    

    12.2         Effect
      of Dissolution. Upon
      dissolution, the Company shall cease carrying on its normal business operations.
      However, the Company will not be terminated until the winding up of the affairs
      of the Company is completed and the Articles of Dissolution have been filed
      with
      the Nevada Secretary of State in accordance with the Act.  Upon
      dissolution, the Company shall continue for the purpose of prosecuting and
      defending suits, actions, proceedings and claims of any kind or nature by or
      against it and of enabling it gradually to settle and close its business, to
      collect and discharge its obligations, to dispose of and convey its property,
      and to distribute its assets, but not for the purpose of continuing the business
      for which it was established.

    

    12.3         Distribution
      of Assets on
      Dissolution. Upon the winding up of the Company, the Company Property
      shall be distributed:

    

    (a)           
      To creditors, including any Member if it is a creditor, to the extent permitted
      by law, in satisfaction of Company liabilities;

    

    (b)           
      To all the Members, considering that such distribution may be in cash or
      Property or partly in both, as determined by the pro rata interest of each
      of
      the Members.

    

    12.4         Winding
      Up and Articles of
      Dissolution. The winding up of the Company shall be completed when all
      debts, liabilities and obligations of the Company have been paid and discharged
      or reasonably adequate provision therefore has been made, and all of the
      remaining Property and assets of the Company have been distributed to the
      Members. Upon the completion of winding up of the Company, Articles of
      Dissolution shall be executed and filed with the Nevada Secretary of State
      in
      accordance with the Act.

    

    ARTICLE
      XIII. PROTECTION OF CONFIDENTIAL INFORMATION

    

    13.1         Protection
      of Confidential
      Information. Without the express prior written approval of all Members,
      each Member agrees to hold in strict confidence and not to disclose to any
      Person any Confidential Information (whether during the term of the Company
      or
      after termination of the Member’s association with the Company).

    

    13.2         Exceptions.
Notwithstanding
      the limitation in Section 13.1 above,
      no Member shall be deemed to be in breach of this Article XIII if it
      discloses Confidential Information (a) in the course of any legal or regulatory
      proceeding pursuant to a lawful demand or if such disclosure is otherwise
      required by law; provided, that if a Member receives such demand or otherwise
      believes it is compelled by law to disclose Confidential Information sought
      by
      such demand or requirement, such Member shall give notice to the Company and
      all
      other Members so as to afford the Company and/or the other Member(s) an
      opportunity to contest the demand or legal requirement, or (b) to a prospective
      purchaser that requires such Confidential Information in order to evaluate
      whether or not to acquire a Membership Interest pursuant to the terms of this
      Agreement; provided, that such prospective purchaser is obligated by a
      confidentiality agreement with terms concerning the disclosure and use of
      Confidential Information at least as restrictive as those herein, and such
      Member obtains the prior written consent of the other Member, which consent
      shall not be unreasonably withheld or delayed.

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    13.3         Use
      of Confidential Information.
Each Member agrees to use Confidential Information to perform its
      obligations and functions under this Agreement only and for no other purposes.
      Notwithstanding the foregoing, information that is developed or otherwise in
      the
      possession of a Member and subsequently transmitted or contributed by such
      Member to the Company shall (unless otherwise agreed by such Member) continue
      to
      be the Property of such Member and may (unless otherwise agreed by such Member)
      continue to be used by such Member in the conduct of its business.

    

    13.4         Return
      of Confidential
      Information. At the dissolution of the Company or earlier termination of
      a Member’s Membership Interest, (a) any Confidential Information that has been
      received or acquired will remain subject to the terms of this Article XIII for a
      period of seven (7) years, and (b) any documents containing Confidential
      Information shall either be destroyed by the Receiving Party or returned to
      the
      Company or the Disclosing Party, upon request.

    

    13.5         Access
      to Confidential
      Information. Each Member shall use its reasonable best efforts to
      restrict access to the Confidential Information within its organization only
      to
      those employees, officers and directors, and advisors (“Recipients”) who have a
      clear need to know the same for the purpose of this Agreement and operation
      of
      the Company, provided that the Receiving Party advises the Recipients of their
      obligations under this Article XIII and
      guarantees the adherence of such Recipients to the terms of this Article
      XIII.

    

    13.6         Proprietary
      Nature of Information.
Any and all Confidential Information disclosed is proprietary and the
      Disclosing Party reserves full rights to the Confidential Information, remains
      the sole owner of the Confidential Information and does not assign to the
      Receiving Party any rights to the Confidential Information.

    

    13.7         Company-Developed
      Technology.

    

    (a)           
      The Members agree that in the event the Company, independently or in combination
      with a Member, conceives of any new idea, invention or discovery, excluding
      any
      Improvement on Technology licensed to the Company (“Company Intellectual
      Property”), shall be owned by the Company and the Members shall cooperate and do
      those things as may be required to vest in the Company as its sole Property
      all
      its Company Intellectual Property.

    

    (b)           
      Each Member shall disclose promptly and fully to the Company all inventions,
      improvements or discoveries made, conceived, developed, or first reduced to
      practice by the Member, either solely or in collaboration with others, during
      the period of the Member’s association with the Company in any capacity that
      relate to:

     

    (i)             Any
      products, research or business of the Company or to tasks assigned to the Member
      by or on behalf of the Company;

     

    (ii)            Any
      process, method, apparatus or article useful in connection with the manufacture
      or development of such products;

     

    (iii)           Anything
      done on the time or with the facilities of the Company; or

     

    (iv)           Any
      invention and discovery that relates directly or indirectly to the present
      or
      prospective business of the Company.

    

    (c)            Each
      Member shall assist and cooperate (at the expense of the Company) with the
      Company in any controversy or legal or administrative proceedings involving
      or
      relation to Company Intellectual Property or the registration or protections
      that might be issued.

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XIV. AMENDMENT

    

    14.1         This
      Agreement may be amended or modified from time to time only by a written
      instrument adopted and executed by the Members. No Member shall have any vested
      rights in this Agreement, which may not be modified through an amendment to
      this
      Agreement.

    

    ARTICLE
      XV. MISCELLANEOUS PROVISIONS

    

    15.1         Entire
      Agreement. This
      Agreement represents the entire agreement between the Members and the
      Company.

    

    15.2         Rights
      of Creditors and Third Parties
      under Operating Agreement. This Agreement is entered into between the
      Company and the Members for the exclusive benefit of the Company, its Members,
      and their successors and assignees. This Agreement is expressly not intended
      for
      the benefit of any creditor of the Company or any other Person. Except and
      only
      to the extent provided by applicable statute, no such creditor or third party
      shall have any rights under this Agreement or any agreement between the Company
      and the Members with respect to any Capital Contribution or
      otherwise.

    

    15.3         Notices.
      Any and all notices,
      designations, consents, offers, acceptances, or any other communication provided
      for herein shall be shall be in writing and shall be considered effective when
      delivered, if by personal delivery, upon receipt, if sent by facsimile, which
      facsimile has been telephonically confirmed, between the hours of 9:00 a.m.
      and
      5:00 p.m. local time of the recipient, on a business day, upon delivery, or
      if
      not, at 9:00 a.m., local time on the next business day, or upon first attempted
      delivery after mailing by certified mail, return receipt requested, postage
      prepaid, addressed to the Member’s and/or Company’s address as it appears in the
      Company’s records, as appropriate.

    

    Copies
      of
      any and all notices made pursuant to this Agreement shall be
      delivered:

    

    Trombly
      Business Law

    Attention:
      Amy M. Trombly

    1320
      Centre Street, Suite 202

    Newton,
      MA 02459

    Facsimile:
      (617) 243-0066

    

    15.4         Execution
      of Additional
      Instruments. Each Member hereby agrees to execute such other and further
      statements of interest and holdings, designations, powers of attorney and other
      instruments necessary to comply with any laws, rules or
      regulations.

    

    15.5         Construction.
      Whenever the
      singular number is used in this Agreement and when required by the context,
      the
      same shall include the plural, and the masculine gender shall include the
      feminine and neuter genders and vice versa.

    

    15.6         Headings.
      The headings in this
      Agreement are inserted for convenience only and are in no way intended to
      describe, interpret, define, or limit the scope, extent or intent of this
      Agreement or any provision hereof.

    

    15.7         Waivers.
      The failure of any
      party to seek redress for violation of or to insist upon the strict performance
      of any covenant or condition of this Agreement shall not prevent a subsequent
      act, which would have originally constituted a violation, from having the effect
      of an original violation.

    

    15.8         Rights
      and Remedies
      Cumulative. The rights and remedies provided by this Agreement are
      cumulative and the use of any one right or remedy by any party shall not
      preclude or waive the right to use any or all other remedies. Said rights and
      remedies are given in addition to any other rights and parties may have by
      law,
      statute, ordinance or otherwise.

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    15.9         Severability.
      If any provision
      of this Agreement or the application thereof to any person or circumstance
      shall
      be invalid, illegal or unenforceable to any extent, the remainder of this
      Agreement and the application thereof shall not be affected and shall be
      enforceable to the fullest extent permitted by law.

    

    15.10      Heirs,
      Successors and Assigns.
      Each and all of the covenants, terms, provisions and agreements herein contained
      shall be binding upon and inure to the benefit of the parties hereto and, to
      the
      extent permitted by this Agreement, their respective heirs, legal
      representatives, successors and assigns.

    

    15.11      Counterparts.
      This Agreement
      may be executed in counterparts, each of which shall be deemed an original
      but
      all of which shall constitute one and the same instrument.

    

    ARTICLE
      XVI. DEFINITIONS

    

    16.1         For
      purposes of this Agreement, unless the context clearly indicates otherwise,
      the
      following terms shall have the following meanings:

    

    (a)           
      “Act” means the Nevada
      Revised Statues, as amended from time to time.

    

    (b)           
      “Additional Capital
      Contributions” means contributions
      made based
      on the Manager’s determination that additional funds are required for operation
      of the Company, including capital expenditures and debt service.

    

    (c)           
      “Additional Member”
means a Member other
      than the initial Members listed in Exhibit A who has
      acquired a Membership Interest in the Company.

    

    (d)           
      “Affiliate” means any
      corporation or other entity which controls, is controlled by, or is under common
      control with a Party. A corporation or other entity shall be regarded as in
      control of another corporation or entity if it owns or directly or indirectly
      controls more than fifty percent (50%) of the voting stock or other ownership
      interest of the other corporation or entity, or if it possesses, directly or
      indirectly, the power to direct or cause the direction of the management and
      policies of the corporation or other entity or the power to elect or appoint
      more than fifty percent (50%) of the members of the governing body of the
      corporation or other entity.

    

    (e)           
      “Agreement” means this
      Operating Agreement including all amendments adopted in accordance with this
      Operating Agreement and the Act.

    

    (f)           
      “Articles” or “Articles
      of Organization”
means the Articles of Organization of the Company as properly adopted
      and
      amended from time to time by the Members and filed with the Nevada Secretary
      of
      State.

    

    (g)           
      “Board” or “Board
      of Directors” means the
      board established pursuant to Section 5.1 of this
      Agreement.

    

    (h)           
      “Business Plan” means
      the business plan of the Company to be prepared by the Manager under the
      direction of and subject to the approval of the Board as described in Section 5.8 of this
      Agreement.

    

    (i)           
      “Capital Account” means
      as of any given date, the Capital Contribution to the Company by a Member as
      adjusted up to the date in question.

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    (j)            
      “Capital Contribution”
means a Member’s Initial Capital
      Contribution as provided in Section 7.1 of this
      Agreement and any Additional Capital Contribution made by any Member as provided
      in Section 7.2
      of this Agreement.

    

    (k)           
      “Code” means the
      Internal Revenue Code of 1986, as amended from time to time. All references
      herein to a section of the Code shall include any corresponding provision or
      provisions of succeeding law.

    

    (l)            
      “Commitment” means the
      obligation of a Member to make a Capital Contribution in the
      future.

    

    (m)           “Company
      Property” means any
      Property owned by the Company.

    

    (n)           “Confidential
      Information”
means, without limitation, any and all information, technical knowledge,
      know-how, business plans, pricing strategies, market designs, trade secrets,
      product specification, product compositions, data, drawings, sketches, flow
      sheets, manufacturing processes, quality control specification, communications
      of a sensitive or private nature relating to or useful in connection with the
      design, construction and/or operation of any of the Members’ facilities or
      business, and information that may be learned or acquired during a due diligence
      examination of a Member and its books, records and other assets or during any
      negotiation or discussion concerning the subject of this Agreement.

    

    (o)           
      “Contribution” means any
      contribution of Property made by or on behalf of a Member as consideration
      for a
      Membership Interest.

    

    (p)           
      “Disposition” or “Dispose”
means as it
      relates to the
      Membership Interest of any Member, any sale, assignment, transfer, exchange,
      mortgage, pledge, grant, hypothecation, or other transfer, absolute or as
      security or encumbrance (including dispositions by operation of
      law).

    

    (q)           
      “Distributable Cash”
means all cash, revenues
      and funds received by the Company from Company
      operations, less the sum of the following to the extent paid or set aside by
      the
      Company: (i) all principal and interest payments on indebtedness of the Company
      and all other sums paid to lenders; (ii) all cash expenditures incurred incident
      to the normal operation of the Company’s business; (iii) such cash Reserves as
      the Members deem reasonably necessary to the proper operation of the Company’s
      business; and (iv) such amounts as may be required to satisfy conditions imposed
      by lenders or other creditors.

    

    (r)           
      “Distribution” means a
      transfer of Property to a Member on account of a Membership Interest as
      described in Article
      VIII.

    

    (s)           
      Reserved.

    

    (t)           
      “Fiscal Year” means the
      calendar year ending on December 31 of any year.

    

    (u)           “Initial
      Capital Contribution”
means the Capital Contribution agreed to be made by the Members as
      described in Section
      7.1.

    

    (v)           “IPO”
means
      the initial public
      offering of Membership Interests, or equity securities into which such Member
      Interests are converted or for which such Membership Interests are exchanged,
      pursuant to an effective registration statement under the United States
      Securities Act of 1933, as amended, or pursuant to the foreign equivalent
      thereof, resulting in the Company, or the successor entity to the Company as
      the
      case may be, becoming listed on a public securities exchange.

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    (w)           “Manager”
or
“Managers”
means
      the person described in Section 4.1 or any
      other person or entity that succeeds him in that capacity. The initial Managers
      shall be identified on Exhibit A to this
      Agreement. References to the Manager as him, her, it, itself, or other like
      references shall also, where the context so requires, be deemed to include
      the
      masculine or feminine reference, as the case may be.

    

    (x)           
      “Member” means the
      Members executing this Agreement, any transferee of a Member, or any Additional
      Member. At any time there is more than one Member, the term “Member” shall mean
      all Members, and any action that may be taken under this Agreement by the
      Members may be taken by any Member, provided that any dispute with respect
      to
      any action shall be decided by the Members holding eighty-five percent (85%)
      of
      the Membership Interests of the Company.

    

    (y)           “Membership”
means
      all of the
      rights of Members including the right to share in Net Profits, Net Losses and
      Distributions and the right to participate in certain management decisions
      of
      the Company as identified in this Agreement.

    

    (z)           
      “Membership Interest”
means the term used
      to indicate a Member’s ownership percentage of the
      Company. The initial Membership Interest of each Member is set forth on Exhibit C
      hereof.

    

    (aa)         “Net
      Book Value” means at any
      point in time, the sum of all the assets and liabilities of the Company as
      recorded in the general ledger.

    

    (bb)       
       “Net Losses” means
      for each Fiscal Year, the losses and deductions of the Company determined in
      accordance with accounting principles consistently applied from year to year
      employed under the method of accounting identified in the Agreement, and as
      reported, separately or in the aggregate, as appropriate, on the Company’s
      information tax return filed for federal income tax purposes, plus any
      expenditures described in the Code.

    

    (cc)          “Net
      Profits” means for each
      Fiscal Year, the income and gains of the Company determined in accordance with
      accounting principles consistently applied from year to year employed under
      the
      method of accounting identified in the Agreement, and as reported, separately
      or
      in the aggregate, as appropriate, on the Company’s information tax return filed
      for federal income tax purposes, plus any income described in the
      Code.

    

    (dd)         “Person”
means
      an individual,
      trust, estate, firm, corporation, partnership, limited liability company,
      association or other legal entity.

    

    (ee)         “CEO”
means
      the Chief Executive
      Officer of the Company to be appointed by the Manager under the direction and
      approval of the Board as described in Section 4.5 of this
      Agreement.

    

    (ff)          “Property”
means
      any property,
      real or personal, tangible or intangible (including goodwill), including money
      and any legal or equitable interest in such property, but excluding services
      and
      promises to perform services in the future.

    

    (gg)         This
      section reserved.

    

    (hh)        “Regulations”
means
      the
      regulation promulgated or issued by the Treasury Department under the
      Code.

    

    (ii)           “Reserves”
means
      funds set
      aside or amounts allocated during such period to reserves which shall be
      maintained in amounts deemed sufficient by the Manager for working capital,
      to
      pay taxes, insurance, debt service or other costs or expenses incident to the
      ownership or operation of the Company’s business or as may be required to
      satisfy conditions imposed by lenders or other creditors.

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    (jj)           
      “Tax Matters Partner”
means the Person designated
      to be the Tax Matters Partner in accordance with
Section 9.2 of
      this Agreement.

    

    (SIGNATURE
      PAGE
      FOLLOWS)

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, this Operating Agreement of Layfield Energy, LLC has been
      signed and is effective as of December 19, 2007.

     

    
      
        	 	
                COMPANY:

              
	 	 
	 	
                Layfield
                  Energy, LLC, a Nevada Limited Liability Company

              
	 	 
	 	
                By:

              	
                /s/
                  Neil Reithinger

              	 
	 	 	
                Neil
                  Reithinger, Co-Chief Executive Manager

              	 

      

       

       

      
        	 	
                MEMBERS:

              	 
	 	 	 
	 	
                /s/
                  John Layfield

              	 
	 	
                Layfield,
                  Inc.

              	 
	 	
                By:
                  John Layfield, Co-Chief Executive Manager

              	 
	 	 	 
	 	
                /s/
                  John Sohigian

              	 
	 	
                John
                  Sohigian, Manager

              	 
	 	 	 
	 	
                /s/
                  Neil Reithinger

              	 
	 	
                Baywood
                  International, Inc.

              	 
	 	
                By:
                  Neil Reithinger, Co-Chief Executive Manager

              	 

      

    

     

     

    25SECURITIES
      PURCHASE AGREEMENT

     

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      dated as of December 27, 2007, between Marine Park Holdings, Inc., a Delaware
      corporation (the “Company”),
      and
      each purchaser identified on the signature pages hereto (each, including its
      successors and assigns, a “Purchaser”
and
      collectively the “Purchasers”).

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      Section 4(2) of the Securities Act of 1933, as amended (the “Securities
      Act”),
      and
      Rule 506 promulgated thereunder, the Company desires to issue and sell to each
      Purchaser, and each Purchaser, severally and not jointly, desires to purchase
      from the Company, securities of the Company as more fully described in this
      Agreement.

     

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration the receipt and adequacy of which
      are hereby acknowledged, the Company and each Purchaser agree as
      follows:

     

    ARTICLE
      I

    DEFINITIONS

     

    1.1 Definitions.
      In
      addition to the terms defined elsewhere in this Agreement: (a) capitalized
      terms
      that are not otherwise defined herein have the meanings given to such terms
      in
      the Certificate of Designation (as defined herein), and (b) the following terms
      have the meanings set forth in this Section 1.1:

     

    “Action”
shall
      have the meaning ascribed to such term in Section 3.1(j).

     

    “Affiliate”
means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person, as such
      terms are used in and construed under Rule 405 under the Securities Act. With
      respect to a Purchaser, any investment fund or managed account that is managed
      on a discretionary basis by the same investment manager as such Purchaser will
      be deemed to be an Affiliate of such Purchaser.

     

    “Board
      of Directors” means
      the
      board of directors of the Company.

     

    “Business
      Day”
means
      any day except any Saturday, any Sunday, any day which is a federal legal
      holiday in the United States or any day on which banking institutions in the
      State of New York are authorized or required by law or other governmental action
      to close.

     

    “Certificate
      of Designation”
means
      the Certificate of Designation to be filed prior to the Closing by the Company
      with the Secretary of State of Delaware, in the form of Exhibit
      A
      attached
      hereto.

     

    “Closing”
means
      the closing of the purchase and sale of the Securities pursuant to Section
      2.1.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Closing
      Date”
means
      the Trading Day when all of the Transaction Documents have been executed and
      delivered by the applicable parties thereto, and all conditions precedent to
      (i)
      the Purchasers’ obligations to pay the Subscription Amount and (ii) the
      Company’s obligations to deliver the Securities have been satisfied or
      waived.

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
means
      the common stock of the Company, par value $0.001 per share, and any other
      class
      of securities into which such securities may hereafter be reclassified or
      changed into.

     

    “Common
      Stock Equivalents”
means
      any securities of the Company or the Subsidiaries which would entitle the holder
      thereof to acquire at any time Common Stock, including, without limitation,
      any
      debt, preferred stock, rights, options, warrants or other instrument that is
      at
      any time convertible into or exercisable or exchangeable for, or otherwise
      entitles the holder thereof to receive, Common Stock.

     

    “Company
      Counsel”
means
      Sichenzia Ross Friedman Ference LLP, with offices located at 61 Broadway,
      32nd
      Floor,
      New York, NY 10006.

     

    “Conversion
      Price”
shall
      have the meaning ascribed to such term in the Certificate of
      Designation.

     

    “Disclosure
      Schedules”
shall
      have the meaning ascribed to such term in Section 3.1.

     

    “Effective
      Date”
means
      the date that the initial Registration Statement filed by the Company pursuant
      to the Registration Rights Agreement is first declared effective by the
      Commission.

     

    “Employee
      Stock Option Plan”
shall
      mean an employee stock option plan in which the underlying Common Stock
      Equivalents do not exceed 31% of the issued and outstanding Common Stock
      immediately following the Merger and the issuance of the Preferred
      Stock.

     

    “Escrow
      Agent”
means
      Signature Bank, having an address at 261 Madison Avenue, New York, NY
      10016.

     

    “Escrow
      Agreement”
means
      the escrow agreement entered into prior to the date hereof, by and among the
      Company and the Escrow Agent pursuant to which the Purchasers, shall deposit
      Subscription Amounts with the Escrow Agent to be applied to the transactions
      contemplated hereunder.

     

    “Evaluation
      Date”
shall
      have the meaning ascribed to such term in Section 3.1(r).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

    

    “Exempt
      Issuance”
means
      the issuance of (a) shares of Common Stock or options to employees, officers
      or
      directors of the Company pursuant to the Employee Stock Option Plan, (b)
      securities upon the exercise or exchange of or conversion of any Securities
      issued hereunder and/or other securities exercisable or exchangeable for or
      convertible into shares of Common Stock issued and outstanding on the date
      of
      this Agreement, provided that such securities have not been amended since the
      date of this Agreement to increase the number of such securities or to decrease
      the exercise, exchange or conversion price of such securities, and (c)
      securities issued pursuant to acquisitions or strategic transactions approved
      by
      a majority of the disinterested directors of the Company, provided that any
      such
      issuance shall only be to a Person which is, itself or through its subsidiaries,
      an operating company in a business synergistic with the business of the Company
      and in which the Company receives benefits in addition to the investment of
      funds, but shall not include a transaction in which the Company is issuing
      securities primarily for the purpose of raising capital or to an entity whose
      primary business is investing in securities.

    

    “FWS”
means
      Feldman Weinstein & Smith LLP with offices located at 420 Lexington Avenue,
      Suite 2620, New York, New York 10170-0002.

    

    “GAAP”
shall
      have the meaning ascribed to such term in Section 3.1(h).

    

    “Indebtedness”
shall
      have the meaning ascribed to such term in Section 3.1(aa).

    

    “Intellectual
      Property Rights”
shall
      have the meaning ascribed to such term in Section 3.1(o).

    

    “Legend
      Removal Date”
shall
      have the meaning ascribed to such term in Section 4.1(c). 

    

    “Liens”
means
      a
      lien, charge, security interest, encumbrance, right of first refusal, preemptive
      right or other restriction.

     

    “Material
      Adverse Effect”
shall
      have the meaning assigned to such term in Section 3.1(b).

    

    “Material
      Permits”
shall
      have the meaning ascribed to such term in Section 3.1(m).

    

    “Maximum
      Rate”
shall
      have the meaning ascribed to such term in Section 5.17.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Merger”
means
      the closing of the acquisition of 100% of the issued and outstanding capital
      stock of NewCardio, Inc., (the “New
      Cardio Subsidiary”),
      a
      Delaware corporation, by the Company pursuant to that certain Share Exchange
      Agreement among the Company, the New Cardio Subsidiary, and the shareholders
      of
      the New Cardio Subsidiary, dated December __, 2007. 

    

    “Merger
      8-K”
shall
      have the meaning ascribed to such term in Section 3.1(y). 

    

    “Merger
      Agreement”
means
      that certain Share Exchange Agreement among the Company, the New Cardio
      Subsidiary, and the shareholders of the New Cardio Subsidiary, dated December
      __, 2007. 

    

    “Merger
      Date”
means
      the date of the consummation of the Merger.

    

    “Participation
      Maximum”
shall
      have the meaning ascribed to such term in Section 4.12. 

    

    “Person”
means
      an individual or corporation, partnership, trust, incorporated or unincorporated
      association, joint venture, limited liability company, joint stock company,
      government (or an agency or subdivision thereof) or other entity of any
      kind.

    

    “Preferred
      Stock”
means
      the up to 12,000 shares of the Company’s 10% Series A Convertible Preferred
      Stock issued hereunder having the rights, preferences and privileges set forth
      in the Certificate of Designation, in the form of Exhibit
      A
      hereto.

    

    “Pre-Notice”
shall
      have the meaning ascribed to such term in Section 4.12. 

    

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an informal investigation or partial proceeding, such as a
      deposition), whether commenced or threatened.

    

    “Purchaser
      Party”
shall
      have the meaning ascribed to such term in Section 4.10.

    

    “Registration
      Rights Agreement”
means
      the Registration Rights Agreement, dated the date hereof, among the Company
      and
      the Purchasers, in the form of Exhibit
      B
      attached
      hereto.

    

    “Registration
      Statement”
means
      a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement and covering the resale of the Underlying Shares by each
      Purchaser as provided for in the Registration Rights Agreement.

    

    “Required
      Approvals”
shall
      have the meaning ascribed to such term in Section 3.1(e).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Required
      Minimum”
means,
      as of any date, the maximum aggregate number of shares of Common Stock then
      issued or potentially issuable in the future pursuant to the Transaction
      Documents, including any Underlying Shares issuable upon exercise or conversion
      in full of all Warrants and shares of Preferred Stock, ignoring any conversion
      or exercise limits set forth therein, and assuming that any previously
      unconverted shares of Preferred Stock are held until the third anniversary
      of
      the Closing Date and all dividends are paid in shares of Common Stock until
      such
      third anniversary. 

     

    “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    “SEC
      Reports”
shall
      have the meaning ascribed to such term in Section 3.1(h).

    

    “Securities”
means
      the Preferred Stock, the Warrants, the Warrant Shares and the Underlying
      Shares.

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder. 

    

    “Series
      A Warrants”
means,
      collectively, the Series A Common Stock purchase warrants delivered to the
      Purchasers at the Closing in accordance with Section 2.2(a) hereof, which
      Warrants shall be exercisable immediately and have a term of exercise equal
      to
      five years and an exercise price equal to $1.14, subject to adjustment therein,
      in the form of Exhibit
      C
      attached
      hereto.

    

    “Series
      J Warrants”
means,
      collectively, the Series J Common Stock purchase warrants delivered to the
      Purchasers at the Closing in accordance with Section 2.2(a) hereof, which
      Warrants shall be exercisable immediately and have a term of exercise equal
      to
      one year and an exercise price equal to $1.235, subject to adjustment therein,
      in the form of Exhibit
      E
      attached
      hereto.

    

    “Series
      J-A Warrants”
means,
      collectively, the Series J-A Common Stock purchase warrants delivered to the
      Purchasers at the Closing in accordance with Section 2.2(a) hereof, which
      Warrants shall be exercisable immediately to the extent set forth therein and
      have a term of exercise equal to one year and an exercise price equal to $1.425,
      subject to adjustment therein, in the form of Exhibit
      F
      attached
      hereto.

    

    “Short
      Sales”
means
      all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange
      Act (but shall not be deemed to include the location and/or reservation of
      borrowable shares of Common Stock).

    

    “Stated
      Value”
means
      $1,000 per share of Preferred Stock.

    

    “Subscription
      Amount”
shall
      mean, as to each Purchaser, the aggregate amount to be paid for the Preferred
      Stock purchased hereunder as specified below such Purchaser’s name on the
      signature page of this Agreement and next to the heading “Subscription Amount,”
in United States dollars and in immediately available funds.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Subsequent
      Financing”
shall
      have the meaning ascribed to such term in Section 4.12.

    

    “Subsequent
      Financing Notice”
shall
      have the meaning ascribed to such term in Section 4.12.

    

    “Subsidiary”
means
      any subsidiary of the Company as set forth on Schedule
      3.1(a)
      and
      shall, where applicable, also include any direct or indirect subsidiary of
      the
      Company formed or acquired after the date hereof.

    

    “Trading
      Day”
means
      a
      day on which the New York Stock Exchange is open for trading.

    

    “Trading
      Market”
means
      the following markets or exchanges on which the Common Stock is listed or quoted
      for trading on the date in question: the American Stock Exchange, the Nasdaq
      Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
      the
      New York Stock Exchange or the OTC Bulletin Board.

    

    “Transaction
      Documents”
means
      this Agreement, the Certificate of Designation, the Warrants, the Lock-Up
      agreements, the Registration Rights Agreement, all schedules and exhibits
      thereto and hereto and any other documents or agreements executed in connection
      with the transactions contemplated hereunder.

    

    “Transfer
      Agent”
means
      Action Stock Transfer Company, the current transfer agent of the Company, with
      a
      mailing address of 7069
      S.
      Highland Drive, Suite 30, Salt Lake City, UT 84121
      and a
      facsimile number of (801) 274-1099, and any successor transfer agent of the
      Company.

    

    “Underlying
      Shares”
means
      the shares of Common Stock issued and issuable upon conversion of the Preferred
      Stock, upon exercise of the Warrants and issued and issuable in lieu of the
      cash
      payment of dividends on the Preferred Stock in accordance with the terms of
      the
      Certificate of Designation.

    

    “VWAP”
means,
      for any date, the price determined by the first of the following clauses that
      applies: (a) if the Common Stock is then listed or quoted on a Trading Market,
      the daily volume weighted average price of the Common Stock for such date (or
      the nearest preceding date) on the Trading Market on which the Common Stock
      is
      then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day
      from
      9:30 a.m. (New York City time) to 4:02 p.m. (New York City time); (b)  if
      the OTC Bulletin Board is not a Trading Market, the volume weighted average
      price of the Common Stock for such date (or the nearest preceding date) on
      the
      OTC Bulletin Board; (c) if the Common Stock is not then quoted for trading
      on
      the OTC Bulletin Board and if prices for the Common Stock are then reported
      in
      the “Pink Sheets” published by Pink Sheets, LLC (or a similar organization or
      agency succeeding to its functions of reporting prices), the most recent bid
      price per share of the Common Stock so reported; or (d) in all other cases,
      the fair market value of a share of Common Stock as determined by an independent
      appraiser selected in good faith by the Purchasers of a majority in interest
      of
      the Securities then outstanding and reasonably acceptable to the
      Company.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    “Vision”
means
      Vision Opportunity Master Fund, Ltd. 

     

    “Warrants”
means,
      collectively, the Series A Warrants, the Series J Warrants and the Series J-A
      Warrants. 

     

    “Warrant
      Shares”
means
      the shares of Common Stock issuable upon exercise of the Warrants.

     

    ARTICLE
      II

    PURCHASE
      AND SALE

     

    2.1 Closing.
      On the
      Closing Date, upon the terms and subject to the conditions set forth herein,
      substantially concurrent with the execution and delivery of this Agreement
      by
      the parties hereto, the Company agrees to sell, and the Purchasers agree,
      severally and not jointly, to purchase, up to an aggregate of $12,000,000 of
      shares of Preferred Stock with an aggregate Stated Value equal to such
      Purchaser’s Subscription Amount, and Warrants as determined by pursuant to
      Section 2.2(a). The aggregate number of shares of Preferred Stock sold hereunder
      shall be up to 12,000. Each Purchaser shall deliver to the Escrow Agent via
      wire
      transfer or a certified check of immediately available funds equal to their
      Subscription Amount and the Company shall deliver to each Purchaser their
      respective shares of Preferred Stock and Warrants as determined pursuant to
      Section 2.2(a) and the other items set forth in Section 2.2 issuable at the
      Closing. Upon satisfaction of the conditions set forth in Sections 2.2 and
      2.3,
      the Closing shall occur at the offices of FWS or such other location as the
      parties shall mutually agree.

     

    
      
        2.2
          Deliveries.

      

    

     

    (a) On
      the
      Closing Date, the Company shall deliver or cause to be delivered to each
      Purchaser the following:

     

    
      
        (i)
          this
          Agreement duly executed by the Company;

      

    

     

    (ii) a
      legal
      opinion of Company Counsel and/or Anslow & Jaclin, LLP, in connection with
      the Merger, in substantially the form of Exhibit
      D
      attached
      hereto;

     

    (iii) a
      certificate evidencing a number of shares of Preferred Stock equal to such
      Purchaser’s Subscription Amount divided by the Stated Value, registered in the
      name of such Purchaser;

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (iv) a
      Series
      A Warrant registered in the name of such Purchaser to purchase up to a number
      of
      shares of Common Stock equal to 60% of such Purchaser’s Subscription Amount
      divided by the Conversion Price; 

     

    (v) a
      Series
      J Warrant registered in the name of such Purchaser to purchase up to a number
      of
      shares of Common Stock equal to 70% of the number of Conversion Shares issuable
      upon conversion of the Preferred Stock purchased by such Purchaser, as set
      forth
      therein;

     

    (vi) 
      a Series
      J-A Warrant registered in the name of such Purchaser to purchase up to a number
      of shares of Common Stock equal to 60% of the number of shares of Common Stock
      issuable upon exercise of such Purchaser’s Series J Warrant; 

     

    (vii) a
      lock-up
      agreement (the “Lock-Up
      Agreement(s)”),
      substantially in the form of Exhibit
      G
      hereto,
      duly executed by Nenad Macvanin, Joseph Esposito, Kenneth L. Londoner, Robert
      N.
      Blair, Milic Petkovic, Bosko Bojovic, Samuel E. George, Pensco Trust FBO
      Branislav Vajdic and Branislav Vajdic;;

     

    (viii) evidence
      of the filing of the Certificate of Designation with the Secretary of State
      of
      Delaware; and

     

    (ix) the
      Registration Rights Agreement duly executed by the Company.

     

    (b) On
      the
      Closing Date, each Purchaser shall deliver or cause to be delivered to the
      Company (except as noted) the following:

     

    
      (i)
        this
        Agreement duly executed by such Purchaser;

    

     

    (ii) such
      Purchaser’s Subscription Amount as to the Closing by wire transfer to the Escrow
      Agent; and

     

    (iii) the
      Registration Rights Agreement duly executed by such Purchaser.

     

    
      
        2.3
          Closing
          Conditions.

      

    

     

    (a) The
      obligations of the Company hereunder in connection with the Closing are subject
      to the following conditions being met:

     

    (i) the
      accuracy in all material respects on the Closing Date of the representations
      and
      warranties of the Purchasers contained herein;

     

    (ii) the
      Merger shall have occurred;

     

    (iii) all
      obligations, covenants and agreements of each Purchaser required to be performed
      at or prior to the Closing Date shall have been performed; and

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (iv) the
      delivery by each Purchaser of the items set forth in Section 2.2(b) of this
      Agreement.

     

    (b) The
      respective obligations of the Purchasers hereunder in connection with the
      Closing are subject to the following conditions being met:

     

    (i) the
      accuracy in all material respects when made and on the Closing Date of the
      representations and warranties of the Company contained herein;

     

    (ii) all
      obligations, covenants and agreements of the Company required to be performed
      at
      or prior to the Closing Date shall have been performed;

     

    (iii) the
      Merger shall have occurred and the Company shall have (A) delivered the
      Purchasers (x) evidence thereof and (y) a copy of the legal opinion issued
      in
      connection therewith, which legal opinion shall provide that the Purchasers
      are
      third party beneficiaries thereof and (B) provided evidence that the Company
      is
      prepared to file the Merger 8-K with the Commission on or before the 4th Trading
      Day following the consummation of the Merger; 

     

    (iv) the
      minimum aggregate Subscription Amount hereunder shall be at least
      $8,000,000;

     

    (v) the
      delivery by the Company of the items set forth in Section 2.2(a) of this
      Agreement;

     

    (vi) there
      shall have been no Material Adverse Effect with respect to the Company since
      the
      date hereof; and

     

    (vii) from
      the
      date hereof to the Closing Date, trading in the Common Stock shall not have
      been
      suspended by the Commission or the Company’s principal Trading Market (except
      for any suspension of trading of limited duration agreed to by the Company,
      which suspension shall be terminated prior to the Closing), and, at any time
      prior to the Closing Date, trading in securities generally as reported by
      Bloomberg L.P. shall not have been suspended or limited, or minimum prices
      shall
      not have been established on securities whose trades are reported by such
      service, or on any Trading Market, nor shall a banking moratorium have been
      declared either by the United States or New York State authorities nor shall
      there have occurred any material outbreak or escalation of hostilities or other
      national or international calamity of such magnitude in its effect on, or any
      material adverse change in, any financial market which, in each case, in the
      reasonable judgment of each Purchaser, makes it impracticable or inadvisable
      to
      purchase the Securities at the Closing.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES

     

    3.1
      Representations
      and Warranties of the Company.
      Except
      as set forth in the Disclosure Schedules, which Disclosure Schedules shall
      be
      deemed a part hereof and shall qualify any representation or otherwise made
      herein to the extent of the disclosure contained in the corresponding section
      of
      the Disclosure Schedules, the Company hereby makes the following representations
      and warranties to each Purchaser with respect to the New Cardio Subsidiary.
      For
      purposes of this Section 3.1 only, references to the “Company” shall only mean
      the New Cardio Subsidiary except where Marine Park Holdings, Inc. is expressly
      referred to. The Purchasers are third-party beneficiaries of all representations
      and warranties of the Company contained in the Merger Agreement with respect
      to
      the pre-Merger Company:

     

    (a) Subsidiaries.
      All of
      the direct and indirect subsidiaries of the Company are set forth on
Schedule
      3.1(a).
      The
      Company owns, directly or indirectly, all of the capital stock or other equity
      interests of each Subsidiary free and clear of any Liens, and all of the issued
      and outstanding shares of capital stock of each Subsidiary are validly issued
      and are fully paid, non-assessable and free of preemptive and similar rights
      to
      subscribe for or purchase securities. If the Company has no subsidiaries, all
      other references to the Subsidiaries or any of them in the Transaction Documents
      shall be disregarded.

     

    (b) Organization
      and Qualification.
      The
      Company and each of the Subsidiaries is an entity duly incorporated or otherwise
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its incorporation or organization (as applicable), with the
      requisite power and authority to own and use its properties and assets and
      to
      carry on its business as currently conducted. Neither the Company nor any
      Subsidiary is in violation or default of any of the provisions of its respective
      certificate or articles of incorporation, bylaws or other organizational or
      charter documents. Each of the Company and the Subsidiaries is duly qualified
      to
      conduct business and is in good standing as a foreign corporation or other
      entity in each jurisdiction in which the nature of the business conducted or
      property owned by it makes such qualification necessary, except where the
      failure to be so qualified or in good standing, as the case may be, could not
      have or reasonably be expected to result in (i) a material adverse effect on
      the
      legality, validity or enforceability of any Transaction Document, (ii) a
      material adverse effect on the results of operations, assets, business,
      prospects or condition (financial or otherwise) of the Company and the
      Subsidiaries, taken as a whole, or (iii) a material adverse effect on the
      Company’s ability to perform in any material respect on a timely basis its
      obligations under any Transaction Document (any of (i), (ii) or (iii), a
“Material
      Adverse Effect”)
      and no
      Proceeding has been instituted in any such jurisdiction revoking, limiting
      or
      curtailing or seeking to revoke, limit or curtail such power and authority
      or
      qualification.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (c) Authorization;
      Enforcement.
      The
      Company has the requisite corporate power and authority to enter into and to
      consummate the transactions contemplated by each of the Transaction Documents
      and otherwise to carry out its obligations hereunder and thereunder. The
      execution and delivery of each of the Transaction Documents by the Company
      and
      the consummation by it of the transactions contemplated hereby and thereby
      have
      been duly authorized by all necessary action on the part of the Company and
      no
      further action is required by the Company, the Board of Directors or the
      Company’s stockholders in connection therewith other than in connection with the
      Required Approvals. Each Transaction Document has been (or upon delivery will
      have been) duly executed by the Company and, when delivered in accordance with
      the terms hereof and thereof, will constitute the valid and binding obligation
      of the Company enforceable against the Company in accordance with its terms,
      except (i) as limited by general equitable principles and applicable bankruptcy,
      insolvency, reorganization, moratorium and other laws of general application
      affecting enforcement of creditors’ rights generally, (ii) as limited by laws
      relating to the availability of specific performance, injunctive relief or
      other
      equitable remedies and (iii) insofar as indemnification and contribution
      provisions may be limited by applicable law.

     

    (d) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the other transactions contemplated
      hereby and thereby do not and will not: (i) conflict with or violate any
      provision of the Company’s or any Subsidiary’s certificate or articles of
      incorporation, bylaws or other organizational or charter documents, or (ii)
      conflict with, or constitute a default (or an event that with notice or lapse
      of
      time or both would become a default) under, result in the creation of any Lien
      upon any of the properties or assets of the Company or any Subsidiary, or give
      to others any rights of termination, amendment, acceleration or cancellation
      (with or without notice, lapse of time or both) of, any agreement, credit
      facility, debt or other instrument (evidencing a Company or Subsidiary debt
      or
      otherwise) or other understanding to which the Company or any Subsidiary is
      a
      party or by which any property or asset of the Company or any Subsidiary is
      bound or affected, or (iii) subject to the Required Approvals, conflict with
      or
      result in a violation of any law, rule, regulation, order, judgment, injunction,
      decree or other restriction of any court or governmental authority to which
      the
      Company or a Subsidiary is subject (including federal and state securities
      laws
      and regulations), or by which any property or asset of the Company or a
      Subsidiary is bound or affected; except in the case of each of clauses (ii)
      and
      (iii), such as could not have or reasonably be expected to result in a Material
      Adverse Effect.

     

    (e) Filings,
      Consents and Approvals.
      The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any court
      or
      other federal, state, local or other governmental authority or other Person
      in
      connection with the execution, delivery and performance by the Company of the
      Transaction Documents, other than (as to Marine Park Holdings, Inc.) (i) filings
      required pursuant to Section 4.6, (ii) the filing with the Commission of the
      Registration Statement, (iii) the notice and/or application(s) to each
      applicable Trading Market for the issuance and sale of the Securities and the
      listing of the Underlying Shares for trading thereon in the time and manner
      required thereby, and (iv) the filing of Form D with the Commission and such
      filings as are required to be made under applicable state securities laws and
      (v) (collectively, the “Required
      Approvals”).

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (f) Issuance
      of the Securities.
      The
      Securities are duly authorized and, when issued and paid for in accordance
      with
      the applicable Transaction Documents, will be duly and validly issued, fully
      paid and nonassessable, free and clear of all Liens imposed by the Company
      other
      than restrictions on transfer provided for in the Transaction Documents. The
      Underlying Shares, when issued in accordance with the terms of the Transaction
      Documents, will be validly issued, fully paid and nonassessable, free and clear
      of all Liens imposed by the Company other than restrictions on transfer provided
      for in the Transaction Documents. The Company has reserved from its duly
      authorized capital stock a number of shares of Common Stock for issuance of
      the
      Underlying Shares at least equal to the Required Minimum on the date hereof.
      

     

    (g) Capitalization.
      The
      capitalization of the Company immediately prior to Closing and of Marine Park
      Holdings, Inc. following the consummation of the Merger is as set forth on
      Schedule
      3.1(g),
      which
Schedule
      3.1(g)
      shall
      also include the number of shares of Common Stock owned beneficially, and of
      record, by Affiliates of the Company as of the date hereof. The Company has
      not
      issued any capital stock since its most
      recently filed periodic report under the Exchange Act,
      other
      than pursuant to the exercise of employee stock options under the Company’s
      stock option plans, the issuance of shares of Common Stock to employees pursuant
      to the Company’s employee stock purchase plans and pursuant to the conversion or
      exercise of Common Stock Equivalents outstanding as of the date of the most
      recently filed periodic report under the Exchange Act. No Person has any right
      of first refusal, preemptive right, right of participation, or any similar
      right
      to participate in the transactions contemplated by the Transaction Documents.
      Except as a result of the purchase and sale of the Securities, there are no
      outstanding options, warrants, scrip rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities, rights
      or
      obligations convertible into or exercisable or exchangeable for, or giving
      any
      Person any right to subscribe for or acquire, any shares of Common Stock, or
      contracts, commitments, understandings or arrangements by which the Company
      or
      any Subsidiary is or may become bound to issue additional shares of Common
      Stock
      or Common Stock Equivalents. The issuance and sale of the Securities will not
      obligate the Company to issue shares of Common Stock or other securities to
      any
      Person (other than the Purchasers) and will not result in a right of any holder
      of Company securities to adjust the exercise, conversion, exchange or reset
      price under any of such securities. All of the outstanding shares of capital
      stock of the Company are validly issued, fully paid and nonassessable, have
      been
      issued in compliance with all federal and state securities laws, and none of
      such outstanding shares was issued in violation of any preemptive rights or
      similar rights to subscribe for or purchase securities. No further approval
      or
      authorization of any stockholder, the Board of Directors or others is required
      for the issuance and sale of the Securities. There are no stockholders
      agreements, voting agreements or other similar agreements with respect to the
      Company’s capital stock to which the Company is a party or, to the knowledge of
      the Company, between or among any of the Company’s stockholders.

     

    (h) Not
      Used.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (i) Material
      Changes
      Since
      the date of the latest audited financial statements included in the Merger
      8-K,
      except as specifically disclosed on Schedule
      3.1(i),
      (i)
      there has been no event, occurrence or development that has had or that could
      reasonably be expected to result in a Material Adverse Effect, (ii) the Company
      has not incurred any liabilities (contingent or otherwise) other than (A) trade
      payables and accrued expenses incurred in the ordinary course of business
      consistent with past practice and (B) liabilities not required to be reflected
      in the Company’s financial statements pursuant to GAAP or disclosed in filings
      made with the Commission, (iii) the Company has not altered its method of
      accounting, (iv) the Company has not declared or made any dividend or
      distribution of cash or other property to its stockholders or purchased,
      redeemed or made any agreements to purchase or redeem any shares of its capital
      stock and (v) the Company has not issued any equity securities to any officer,
      director or Affiliate, except pursuant to existing Company stock option plans.
      The Company does not have pending before the Commission any request for
      confidential treatment of information. Except for the issuance of the Securities
      contemplated by this Agreement or as set forth on Schedule
      3.1(i),
      no
      event, liability or development has occurred or exists with respect to the
      Company or its Subsidiaries or their respective business, properties, operations
      or financial condition, that would be required to be disclosed by the Company
      under applicable securities laws at the time this representation is made or
      deemed made that has not been publicly disclosed at least 1 Trading Day prior
      to
      the date that this representation is made. 

     

    (j) Litigation.
      There
      is no action, suit, inquiry, notice of violation, proceeding or investigation
      pending or, to the knowledge of the Company, threatened against or affecting
      the
      Company, any Subsidiary or any of their respective properties before or by
      any
      court, arbitrator, governmental or administrative agency or regulatory authority
      (federal, state, county, local or foreign) (collectively, an “Action”)
      which
      (i) adversely affects or challenges the legality, validity or enforceability
      of
      any of the Transaction Documents or the Securities or (ii) could, if there
      were
      an unfavorable decision, have or reasonably be expected to result in a Material
      Adverse Effect. Neither the Company nor any Subsidiary, nor any director or
      officer thereof, is or has been the subject of any Action involving a claim
      of
      violation of or liability under federal or state securities laws or a claim
      of
      breach of fiduciary duty. There has not been, and to the knowledge of the
      Company, there is not pending or contemplated, any investigation by the
      Commission involving the Company or any current or former director or officer
      of
      the Company. The Commission has not issued any stop order or other order
      suspending the effectiveness of any registration statement filed by the Company
      or any Subsidiary under the Exchange Act or the Securities Act.

     

    (k) Labor
      Relations.
      No
      material labor dispute exists or, to the knowledge of the Company, is imminent
      with respect to any of the employees of the Company which could reasonably
      be
      expected to result in a Material Adverse Effect. None of the Company’s or its
      Subsidiaries’ employees is a member of a union that relates to such employee’s
      relationship with the Company or such Subsidiary, and neither the Company nor
      any of its Subsidiaries is a party to a collective bargaining agreement, and
      the
      Company and its Subsidiaries believe that their relationships with their
      employees are good. No executive officer, to the knowledge of the Company,
      is,
      or is now expected to be, in violation of any material term of any employment
      contract, confidentiality, disclosure or proprietary information agreement
      or
      non-competition agreement, or any other contract or agreement or any restrictive
      covenant in favor of any third party, and the continued employment of each
      such
      executive officer does not subject the Company or any of its Subsidiaries to
      any
      liability with respect to any of the foregoing matters. The Company and its
      Subsidiaries are in compliance with all U.S. federal, state, local and foreign
      laws and regulations relating to employment and employment practices, terms
      and
      conditions of employment and wages and hours, except where the failure to be
      in
      compliance could not, individually or in the aggregate, reasonably be expected
      to have a Material Adverse Effect.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (l) Compliance.
      Neither
      the Company nor any Subsidiary (i) is in default under or in violation of (and
      no event has occurred that has not been waived that, with notice or lapse of
      time or both, would result in a default by the Company or any Subsidiary under),
      nor has the Company or any Subsidiary received notice of a claim that it is
      in
      default under or that it is in violation of, any indenture, loan or credit
      agreement or any other agreement or instrument to which it is a party or by
      which it or any of its properties is bound (whether or not such default or
      violation has been waived), (ii) is in violation of any order of any court,
      arbitrator or governmental body, or (iii) is or has been in violation of any
      statute, rule or regulation of any governmental authority, including without
      limitation all foreign, federal, state and local laws applicable to its business
      and all such laws that affect the environment, except in each case as could
      not
      have or reasonably be expected to result in a Material Adverse Effect.

     

    (m) Regulatory
      Permits.
      The
      Company and the Subsidiaries possess all certificates, authorizations and
      permits issued by the appropriate federal, state, local or foreign regulatory
      authorities necessary to conduct their respective businesses, except where
      the
      failure to possess such permits could not reasonably be expected to result
      in a
      Material Adverse Effect (“Material
      Permits”),
      and
      neither the Company nor any Subsidiary has received any notice of proceedings
      relating to the revocation or modification of any Material Permit.

     

    (n) Title
      to Assets.
      The
      Company and the Subsidiaries have good and marketable title in fee simple to
      all
      real property owned by them and good and marketable title in all personal
      property owned by them that is material to the business of the Company and
      the
      Subsidiaries, in each case free and clear of all Liens, except for Liens as
      do
      not materially affect the value of such property and do not materially interfere
      with the use made and proposed to be made of such property by the Company and
      the Subsidiaries and Liens for the payment of federal, state or other taxes,
      the
      payment of which is neither delinquent nor subject to penalties. Any real
      property and facilities held under lease by the Company and the Subsidiaries
      are
      held by them under valid, subsisting and enforceable leases with which the
      Company and the Subsidiaries are in compliance.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (o) Patents
      and Trademarks.
      Except
      as disclosed on Schedule
      3.1(o),
      The
      Company and the Subsidiaries have, or have rights to use, all patents, patent
      applications, trademarks, trademark applications, service marks, trade names,
      trade secrets, inventions, copyrights, licenses and other intellectual property
      rights and similar rights necessary or material for use in connection with
      their
      respective businesses and which the failure to so have could have a Material
      Adverse Effect (collectively, the “Intellectual
      Property Rights”).
      Neither the Company nor any Subsidiary has received a notice (written or
      otherwise) that any of the Intellectual Property Rights used by the Company
      or
      any Subsidiary violates or infringes upon the rights of any Person. To the
      knowledge of the Company, all such Intellectual Property Rights are enforceable
      and there is no existing infringement by another Person of any of the
      Intellectual Property Rights. The Company and its Subsidiaries have taken
      reasonable security measures to protect the secrecy, confidentiality and value
      of all of their intellectual properties, except where failure to do so could
      not, individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect.

     

    (p) Insurance.
      The
      Company and the Subsidiaries are insured by insurers of recognized financial
      responsibility against such losses and risks and in such amounts as are prudent
      and customary in the businesses in which the Company and the Subsidiaries are
      engaged, including, but not limited to, directors and officers insurance
      coverage at least equal to the aggregate Subscription Amount. Neither the
      Company nor any Subsidiary has any reason to believe that it will not be able
      to
      renew its existing insurance coverage as and when such coverage expires or
      to
      obtain similar coverage from similar insurers as may be necessary to continue
      its business without a significant increase in cost.

     

    (q) Transactions
      with Affiliates and Employees.
      None of
      the officers or directors of the Company and, to the knowledge of the Company,
      none of the employees of the Company is presently a party to any transaction
      with the Company or any Subsidiary (other than for services as employees,
      officers and directors), including any contract, agreement or other arrangement
      providing for the furnishing of services to or by, providing for rental of
      real
      or personal property to or from, or otherwise requiring payments to or from
      any
      officer, director or such employee or, to the knowledge of the Company, any
      entity in which any officer, director, or any such employee has a substantial
      interest or is an officer, director, trustee or partner, in each case in excess
      of $120,000 other than for (i) payment of salary or consulting fees for services
      rendered, (ii) reimbursement for expenses incurred on behalf of the Company
      and
      (iii) other employee benefits, including stock option agreements under any
      stock
      option plan of the Company.

     

    (r) Internal
      Accounting Controls.
      The
      Company and the Subsidiaries maintain a system of internal accounting controls
      sufficient to provide reasonable assurance that (i) transactions are executed
      in
      accordance with management’s general or specific authorizations, (ii)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with GAAP and to maintain asset accountability, (iii)
      access to assets is permitted only in accordance with management’s general or
      specific authorization, and (iv) the recorded accountability for assets is
      compared with the existing assets at reasonable intervals and appropriate action
      is taken with respect to any differences.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (s) Certain
      Fees.
      Except
      as set forth on Schedule
      3.1(s),
      no
      brokerage or finder’s fees or commissions are or will be payable by the Company
      to any broker, financial advisor or consultant, finder, placement agent,
      investment banker, bank or other Person with respect to the transactions
      contemplated by the Transaction Documents. The Purchasers shall have no
      obligation with respect to any fees or with respect to any claims made by or
      on
      behalf of other Persons for fees of a type contemplated in this Section that
      may
      be due in connection with the transactions contemplated by the Transaction
      Documents.

     

    (t) Private
      Placement.
      Assuming the accuracy of the Purchasers’ representations and warranties set
      forth in Section 3.2, no registration under the Securities Act is required
      for
      the offer and sale of the Securities by Marine Park holdings, Inc. to the
      Purchasers as contemplated hereby. The issuance and sale of the Securities
      hereunder does not contravene the rules and regulations of the Trading
      Market.

     

    (u) Investment
      Company.
      Marine
      Park Holdings, Inc. is not, and is not an Affiliate of, and immediately after
      receipt of payment for the Securities, will not be or be an Affiliate of, an
      “investment company” within the meaning of the Investment Company Act of 1940,
      as amended. Marine Park Holdings, Inc. shall conduct its business in a manner
      so
      that it will not become subject to the Investment Company Act of 1940, as
      amended.

     

    (v) Registration
      Rights.
      Except
      as set forth on Schedule
      3.1(v),
      other
      than each of the Purchasers, no Person has any right to cause the Company to
      effect the registration under the Securities Act of any securities of the
      Company or of Marine Park Holdings, Inc.

     

    (w)
      Not
      Used.

     

    (x)
      Application
      of Takeover Protections.
      The
      Company and the Board of Directors have taken all necessary action, if any,
      in
      order to render inapplicable any control share acquisition, business
      combination, poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Company’s certificate of
      incorporation (or similar charter documents) or the laws of its state of
      incorporation that is or could become applicable to the Purchasers as a result
      of the Purchasers and the Company fulfilling their obligations or exercising
      their rights under the Transaction Documents, including without limitation
      as a
      result of the Company’s issuance of the Securities and the Purchasers’ ownership
      of the Securities.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (y)
      Disclosure.
      Except
      with respect to the material terms and conditions of the transactions
      contemplated by the Transaction Documents, the Company confirms that neither
      it
      nor any other Person acting on its behalf has provided any of the Purchasers
      or
      their agents or counsel with any information that it believes constitutes or
      might constitute material, nonpublic information. The Company understands and
      confirms that the Purchasers will rely on the foregoing representation in
      effecting transactions in securities of the Company. Attached hereto as
Schedule
      3.1(y)
      is a
      copy of a substantially final Current Report on Form 8-K (the “Merger
      8-K”)
      that
      the Company will file with the Commission in connection with the Merger on
      or
      prior to the 4th
      Trading
      Day immediately following the date hereof (which Current Report contains, among
      other information, risk factors concerning the Company and financial statements
      required to be filed therewith). All disclosure furnished by or on behalf of
      the
      Company to the Purchasers regarding the Company, its business and the
      transactions contemplated hereby, including the Disclosure Schedules to this
      Agreement, is true and correct and does not contain any untrue statement of
      a
      material fact or omit to state any material fact necessary in order to make
      the
      statements made therein, in light of the circumstances under which they were
      made, not misleading. The press releases disseminated by the Company during
      the
      twelve months preceding the date of this Agreement taken as a whole do not
      contain any untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstances under which they were made and when
      made,
      not misleading. The Company acknowledges and agrees that no Purchaser makes
      or
      has made any representations or warranties with respect to the transactions
      contemplated hereby other than those specifically set forth in Section 3.2
      hereof.

     

    (z)
      No
      Integrated Offering.
      Assuming
      the accuracy of the Purchasers’ representations and warranties set forth in
      Section 3.2, neither the Company, nor any of its Affiliates, nor any Person
      acting on its or their behalf has, directly or indirectly, made any offers
      or
      sales of any security or solicited any offers to buy any security, under
      circumstances that would cause this offering of the Securities to be integrated
      with prior offerings by the Company for purposes of (i) the Securities Act
      which
      would require the registration of any such securities under the Securities
      Act,
      or (ii) any applicable shareholder approval provisions of any Trading Market
      on
      which any of the securities of the Company are listed or designated. 

     

    (aa)
      Solvency.
      Based
      on the consolidated financial condition of the Company as of the Closing Date
      after giving effect to the receipt by the Company of the proceeds from the
      sale
      of the Securities hereunder, (i) the fair saleable value of the Company’s assets
      exceeds the amount that will be required to be paid on or in respect of the
      Company’s existing debts and other liabilities (including known contingent
      liabilities) as they mature, (ii) the Company’s assets do not constitute
      unreasonably small capital to carry on its business as now conducted and as
      proposed to be conducted including its capital needs taking into account the
      particular capital requirements of the business conducted by the Company, and
      projected capital requirements and capital availability thereof, and (iii)
      the
      current cash flow of the Company, together with the proceeds the Company would
      receive, were it to liquidate all of its assets, after taking into account
      all
      anticipated uses of the cash, would be sufficient to pay all amounts on or
      in
      respect of its liabilities when such amounts are required to be paid. The
      Company does not intend to incur debts beyond its ability to pay such debts
      as
      they mature (taking into account the timing and amounts of cash to be payable
      on
      or in respect of its debt). The Company has no knowledge of any facts or
      circumstances which lead it to believe that it will file for reorganization
      or
      liquidation under the bankruptcy or reorganization laws of any jurisdiction
      within one year from the Closing Date. Schedule
      3.1(aa)
      sets
      forth as of the date hereof all outstanding secured and unsecured Indebtedness
      of the Company or any Subsidiary, or for which the Company or any Subsidiary
      has
      commitments. For the purposes of this Agreement, “Indebtedness”
means
      (a) any liabilities for borrowed money or amounts owed in excess of $50,000
      (other than trade accounts payable incurred in the ordinary course of business),
      (b) all guaranties, endorsements and other contingent obligations in respect
      of
      indebtedness of others, whether or not the same are or should be reflected
      in
      the Company’s balance sheet (or the notes thereto), except guaranties by
      endorsement of negotiable instruments for deposit or collection or similar
      transactions in the ordinary course of business; and (c) the present value
      of
      any lease payments
      in excess of $50,000 due under leases required to be capitalized in accordance
      with GAAP. Neither
      the Company nor any Subsidiary is in default with respect to any
      Indebtedness.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (bb)
      Tax
      Status.
      Except
      for matters that would not, individually or in the aggregate, have or reasonably
      be expected to result in a Material Adverse Effect, the Company and each
      Subsidiary has filed all necessary federal, state and foreign income and
      franchise tax returns and has paid or accrued all taxes shown as due thereon,
      and the Company has no knowledge of a tax deficiency which has been asserted
      or
      threatened against the Company or any Subsidiary.

     

    (cc)
      No
      General Solicitation.
      Neither
      the Company nor any person acting on behalf of the Company has offered or sold
      any of the Securities by any form of general solicitation or general
      advertising. The Company has offered the Securities for sale only to the
      Purchasers and certain other “accredited investors” within the meaning of Rule
      501 under the Securities Act.

     

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

     

    (ee)
      Accountants.
      The
      Company’s accounting firm is set forth on Schedule
      3.1(ee)
      of the
      Disclosure Schedule. To the knowledge and belief of the Company, such accounting
      firm (i) is a registered public accounting firm as required by the Exchange
      Act
      and (ii) shall express its opinion with respect to the financial statements
      to
      be included in the Company’s Annual Report for the year ending December 31,
      2007.

     

    (ff)
      Seniority.
      As of
      the Closing Date, no Indebtedness or other claim against the Company is senior
      to the Preferred Stock in right of payment, whether with respect to interest
      or
      upon liquidation or dissolution, or otherwise, other than indebtedness secured
      by purchase money security interests (which is senior only as to underlying
      assets covered thereby) and capital lease obligations (which is senior only
      as
      to the property covered thereby).

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (gg)
      No
      Disagreements with Accountants and Lawyers.
      Except
      as disclosed on Schedule
      3.1(gg),
      there
      are no disagreements of any kind presently existing, or reasonably anticipated
      by the Company to arise, between the Company and the accountants and lawyers
      formerly or presently employed by the Company and the Company is current with
      respect to any fees owed to its accountants and lawyers which could affect
      the
      Company’s ability to perform any of its obligations under any of the Transaction
      Documents.

     

    (hh)
      Acknowledgment
      Regarding Purchasers’ Purchase of Securities.
      The
      Company acknowledges and agrees that each of the Purchasers is acting solely
      in
      the capacity of an arm’s length purchaser with respect to the Transaction
      Documents and the transactions contemplated thereby. The Company further
      acknowledges that no Purchaser is acting as a financial advisor or fiduciary
      of
      the Company (or in any similar capacity) with respect to the Transaction
      Documents and the transactions contemplated thereby and any advice given by
      any
      Purchaser or any of their respective representatives or agents in connection
      with the Transaction Documents and the transactions contemplated thereby is
      merely incidental to the Purchasers’ purchase of the Securities. The Company
      further represents to each Purchaser that the Company’s decision to enter into
      this Agreement and the other Transaction Documents has been based solely on
      the
      independent evaluation of the transactions contemplated hereby by the Company
      and its representatives.

     

    (ii)
      Acknowledgement
      Regarding Purchasers’ Trading Activity.
      Notwithstanding anything in this Agreement or elsewhere herein to the contrary
      (except for Sections 3.2(f) and 4.15 hereof), it is understood and acknowledged
      by the Company that (i) none of the Purchasers has been asked to agree by the
      Company, nor has any Purchaser agreed, to desist from purchasing or selling,
      long and/or short, securities of the Company, or “derivative” securities based
      on securities issued by the Company or to hold the Securities for any specified
      term, (ii) past or future open market or other transactions by any Purchaser,
      specifically including, without limitation, Short Sales or “derivative”
transactions, before or after the closing of this or future private placement
      transactions, may negatively impact the market price of the Company’s
      publicly-traded securities, (iii) any Purchaser, and counter-parties in
“derivative” transactions to which any such Purchaser is a party, directly or
      indirectly, may presently have a “short” position in the Common Stock; and (iv)
      each Purchaser shall not be deemed to have any affiliation with or control
      over
      any arm’s length counter-party in any “derivative” transaction. The
      Company further understands and acknowledges that (a) one or more Purchasers
      may
      engage in hedging activities at various times during the period that the
      Securities are outstanding, including, without limitation, during the periods
      that the value of the Underlying Shares deliverable with respect to Securities
      are being determined, and (b) such hedging activities (if any) could reduce
      the
      value of the existing stockholders' equity interests in the Company at and
      after
      the time that the hedging activities are being conducted.  The Company
      acknowledges that such aforementioned hedging activities do not constitute
      a
      breach of any of the Transaction Documents.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (jj)
      Not
      Used.

     

    (kk)
      Manufacturing
      and Marketing Rights.
      Neither
      the Company nor its Subsidiaries have granted rights to manufacture, produce,
      assemble, license, market, or sell its products to any other Person and is
      not
      bound by any agreement that affects the Company’s or its Subsidiaries’ exclusive
      right to develop, manufacture, assemble, distribute, market or sell its
      respective products.

     

    (ll)
      Obligations
      of Management.
      Each
      officer and key employee of the Company and its Subsidiaries is currently
      devoting substantially all of his or her business time to the conduct of
      business of the Company and its Subsidiaries. Neither the Company nor any of
      its
      Subsidiaries is aware that any officer or key employee of the Company or any
      Subsidiary is planning to work less than full time at the Company or any
      Subsidiary, as applicable, in the future. No officer or key employee is the
      currently working or, to the Company’s knowledge, plans to work for a
      competitive enterprise, whether or not such officer of key employee is or will
      be compensated by such enterprise.

     

    (mm)
      Minute
      Books.
      The
      minute books of the Company and its Subsidiaries made available to the
      Purchasers contain a complete summary of all meetings of directors and
      stockholders since the time of incorporation.

     

    (nn)
      Elections.
      To the
      Company’s knowledge, all elections and notices permitted by Section 83(b) of the
      Internal Revenue Code and any analogous provisions of applicable state tax
      laws
      have been timely filed by all employees who have purchased shares of the Common
      Stock under agreements that provide for the vesting of such shares of Common
      Stock.

     

    (oo)
      Accounts
      Receivable.
      All
      accounts receivable of the Company and its Subsidiaries that are reflected
      on
      the Company’s and its Subsidiaries’ balance sheets or interim balance sheets or
      on the accounting records of the Company and its Subsidiaries as of the Closing
      Date (collectively, the “Accounts Receivable”) represent or will represent valid
      obligations arising from sales actually made or services actually performed
      in
      the ordinary course of business. Unless paid prior to the Closing Date, the
      Accounts Receivable are or will be as of the Closing Date current and
      collectible net of the respective reserves shown on the balance sheet or interim
      balance sheet or on the accounting records of the Company and its Subsidiaries
      as of the Closing Date (which reserves are adequate and calculated consistent
      with past practice and, in the case of the reserve as of the Closing Date,
      will
      not represent a greater percentage of the Accounts Receivable as of the Closing
      Date than the reserve reflected in the interim balance sheet represented of
      the
      Accounts Receivable reflected therein and will not represent a material adverse
      change in the composition of such Accounts Receivable in terms of aging).
      Subject to such reserves, each of the Accounts Receivable either has been or
      will be collected in full without any set-off, within ninety days after the
      day
      on which it must becomes due and payable. There is no contest, claim, or right
      of set-off, other than returns in the ordinary course of business, under any
      agreement and/or contract with any obligor of an Accounts Receivable relating
      to
      the amount or validity of such Accounts Receivable. Schedule
      3.1(oo)
      contains
      a complete and accurate list of all Accounts Receivable as of the date of the
      interim balance sheet, which list sets forth the aging of such Accounts
      Receivable.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (pp)
      Inventory.
      All
      inventory of the Company and the Subsidiaries, whether or not reflected in
      the
      balance sheet or interim balance sheet, consists of a quality and quantity
      usable and salable in the ordinary course of business, except for obsolete
      items
      and items of below standard quality, all of which have been written off or
      written down to net realizable value in the balance sheet or interim balance
      sheet or on the accounting records of the Company and the Subsidiaries as of
      the
      Closing Date, as the case may be. All inventories not written off have been
      priced at the lower of cost or market on the last in, first out basis. The
      quantities of each item of inventory (whether raw materials, work-in-process,
      or
      finished goods) are not excessive, but are reasonable in the present
      circumstances of the Company and the Subsidiaries.

     

    (qq)
      Returns
      and Complaints.
      Neither
      the Company nor any Subsidiary has received any customer complaints concerning
      its respective products and/or services, nor has it had any of its products
      returned by a purchaser thereof, other than minor, nonrecurring warranty
      problems. 

     

    (rr)
      Employee
      Benefits.
      Except
      as set forth on Schedule
      3.1(rr),
      neither
      the Company nor any Subsidiary has (nor for the two years preceding the date
      hereof has had) any plans which are subject to ERISA. “ERISA” means the Employee
      Retirement Income Security Act of 1974 or any successor law and the regulations
      and rules issued pursuant to that act or any successor law.

     

    3.2 Representations
      and Warranties of the Purchasers.
      Each
      Purchaser, for itself and for no other Purchaser hereby, represents and warrants
      as of the date hereof and as of the Closing Date to the Company as
      follows:

     

    (a) Organization;
      Authority.
      Such
      Purchaser is an entity duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its organization with full right,
      corporate or partnership power and authority to enter into and to consummate
      the
      transactions contemplated by the Transaction Documents and otherwise to carry
      out its obligations hereunder and thereunder. The execution and delivery of
      the
      Transaction Documents and performance by such Purchaser of the transactions
      contemplated by the Transaction Documents have been duly authorized by all
      necessary corporate or similar action on the part of such Purchaser. Each
      Transaction Document to which it is a party has been duly executed by such
      Purchaser, and when delivered by such Purchaser in accordance with the terms
      hereof, will constitute the valid and legally binding obligation of such
      Purchaser, enforceable against it in accordance with its terms, except (i)
      as
      limited by general equitable principles and applicable bankruptcy, insolvency,
      reorganization, moratorium and other laws of general application affecting
      enforcement of creditors’ rights generally, (ii) as limited by laws relating to
      the availability of specific performance, injunctive relief or other equitable
      remedies and (iii) insofar as indemnification and contribution provisions may
      be
      limited by applicable law.

     

    
      
        
        

      

      
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    (b) Own
      Account.
      Such
      Purchaser understands that the Securities are “restricted securities” and have
      not been registered under the Securities Act or any applicable state securities
      law and is acquiring the Securities as principal for its own account and not
      with a view to or for distributing or reselling such Securities or any part
      thereof in violation of the Securities Act or any applicable state securities
      law, has no present intention of distributing any of such Securities in
      violation of the Securities Act or any applicable state securities law and
      has
      no direct or indirect arrangement or understandings with any other persons
      to
      distribute or regarding the distribution of such Securities (this representation
      and warranty not limiting such Purchaser’s right to sell the Securities pursuant
      to the Registration Statement or otherwise in compliance with applicable federal
      and state securities laws) in violation of the Securities Act or any applicable
      state securities law. Such Purchaser is acquiring the Securities hereunder
      in
      the ordinary course of its business.

     

    (c) Purchaser
      Status.
      At the
      time such Purchaser was offered the Securities, it was, and at the date hereof
      it is, and on each date on which it converts any shares of Preferred Stock
      or
      exercises any Warrants, it will be either: (i) an “accredited investor” as
      defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities
      Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under
      the Securities Act. Such Purchaser is not required to be registered as a
      broker-dealer under Section 15 of the Exchange Act.

     

    (d) Experience
      of Such Purchaser.
      Such
      Purchaser, either alone or together with its representatives, has such
      knowledge, sophistication and experience in business and financial matters
      so as
      to be capable of evaluating the merits and risks of the prospective investment
      in the Securities, and has so evaluated the merits and risks of such investment.
      Such Purchaser is able to bear the economic risk of an investment in the
      Securities and, at the present time, is able to afford a complete loss of such
      investment.

     

    (e) General
      Solicitation.
      Such
      Purchaser is not purchasing the Securities as a result of any advertisement,
      article, notice or other communication regarding the Securities published in
      any
      newspaper, magazine or similar media or broadcast over television or radio
      or
      presented at any seminar or any other general solicitation or general
      advertisement.

     

    
      
        
        

      

      
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    (f) Short
      Sales and Confidentiality Prior To The Date Hereof.
      Other
      than consummating the transactions contemplated hereunder, such Purchaser has
      not directly or indirectly, nor has any Person acting on behalf of or pursuant
      to any understanding with such Purchaser, executed any purchases or sales,
      including Short Sales, of the securities of the Company during the period
      commencing from
      the time
      that such Purchaser first received a term sheet (written or oral) from the
      Company or any other Person representing the Company setting forth the material
      terms of the transactions contemplated hereunder until the date hereof
(“Discussion
      Time”).
      Notwithstanding
      the foregoing, in the case of a Purchaser that is a multi-managed investment
      vehicle whereby separate portfolio managers manage separate portions of such
      Purchaser's assets and the portfolio managers have no direct knowledge of the
      investment decisions made by the portfolio managers managing other portions
      of
      such Purchaser's assets, the representation set forth above shall only apply
      with respect to the portion of assets managed by the portfolio manager that
      made
      the investment decision to purchase the Securities covered by this Agreement.
      Other than to other Persons party to this Agreement, such Purchaser has
      maintained the confidentiality of all disclosures made to it in connection
      with
      this transaction (including the existence and terms of this
      transaction).

     

    ARTICLE
      IV.

    OTHER
      AGREEMENTS OF THE PARTIES

     

    4.1 Transfer
      Restrictions.

     

    (a) The
      Securities may only be disposed of in compliance with state and federal
      securities laws. In connection with any transfer of Securities other than
      pursuant to an effective registration statement or Rule 144, to the Company
      or
      to an Affiliate of a Purchaser or in connection with a pledge as contemplated
      in
      Section 4.1(b), the Company may require the transferor thereof to provide to
      the
      Company an opinion of counsel selected by the transferor and reasonably
      acceptable to the Company, the form and substance of which opinion shall be
      reasonably satisfactory to the Company, to the effect that such transfer does
      not require registration of such transferred Securities under the Securities
      Act. As a condition of transfer, any such transferee shall agree in writing
      to
      be bound by the terms of this Agreement and shall have the rights of a Purchaser
      under this Agreement and the Registration Rights Agreement. Upon a cashless
      exercise of the Warrants, the holdings period for purpose of Rule 144 shall
      tack
      back to the original date issuance of such Warrants.

     

    (b) The
      Purchasers agree to the imprinting, so long as is required by this Section
      4.1,
      of a legend on any of the Securities in the following form: 

     

    [NEITHER]
      THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE]
      [CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
      COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
      EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
      TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT
      TO
      AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
      APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
      TO
      THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
      ACCEPTABLE TO THE COMPANY. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON
      [EXERCISE] [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH
      A
      BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

     

    
      
        
        

      

      
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    The
      Company acknowledges and agrees that a Purchaser may from time to time pledge
      pursuant to a bona fide margin agreement with a registered broker-dealer or
      grant a security interest in some or all of the Securities to a financial
      institution that is an “accredited investor” as defined in Rule 501(a) under the
      Securities Act and who agrees to be bound by the provisions of this Agreement
      and the Registration Rights Agreement and, if required under the terms of such
      arrangement, such Purchaser may transfer pledged or secured Securities to the
      pledgees or secured parties. Such a pledge or transfer would not be subject
      to
      approval of the Company and no legal opinion of legal counsel of the pledgee,
      secured party or pledgor shall be required in connection therewith. Further,
      no
      notice shall be required of such pledge. At the appropriate Purchaser’s expense,
      the Company will execute and deliver such reasonable documentation as a pledgee
      or secured party of Securities may reasonably request in connection with a
      pledge or transfer of the Securities, including, if the Securities are subject
      to registration pursuant to the Registration Rights Agreement, the preparation
      and filing of any required prospectus supplement under Rule 424(b)(3) under
      the
      Securities Act or other applicable provision of the Securities Act to
      appropriately amend the list of Selling Stockholders thereunder.

     

    (c) Certificates
      evidencing the Underlying Shares shall not contain any legend (including the
      legend set forth in Section 4.1(b) hereof): (i) while a registration statement
      (including the Registration Statement) covering the resale of such security
      is
      effective under the Securities Act, or (ii) following any sale of such
      Underlying Shares pursuant to Rule 144, or (iii) if such Underlying Shares
      are
      eligible for sale under Rule 144, or (iv) if such legend is not required under
      applicable requirements of the Securities Act (including judicial
      interpretations and pronouncements issued by the staff of the Commission).
      The
      Company shall cause its counsel to issue a legal opinion to the Transfer Agent
      promptly after the Effective Date if required by the Transfer Agent to effect
      the removal of the legend hereunder. If all or any shares of Preferred Stock
      or
      any portion of a Warrant is converted or exercised (as applicable) at a time
      when there is an effective registration statement to cover the resale of the
      Underlying Shares, or if such Underlying Shares may be sold under Rule 144
      or if
      such legend is not otherwise required under applicable requirements of the
      Securities Act (including judicial interpretations and pronouncements issued
      by
      the staff of the Commission) then such Underlying Shares shall be issued free
      of
      all legends. The Company agrees that following the Effective Date or at such
      time as such legend is no longer required under this Section 4.1(c), it will,
      no
      later than three Trading Days following the delivery by a Purchaser to the
      Company or the Transfer Agent of a certificate representing Underlying Shares,
      as applicable, issued with a restrictive legend (such third Trading Day, the
      “Legend
      Removal Date”),
      deliver or cause to be delivered to such Purchaser a certificate representing
      such shares that is free from all restrictive and other legends. The Company
      may
      not make any notation on its records or give instructions to the Transfer Agent
      that enlarge the restrictions on transfer set forth in this Section.
      Certificates for Underlying Shares subject to legend removal hereunder shall
      be
      transmitted by the Transfer Agent to the Purchaser by crediting the account
      of
      the Purchaser’s prime broker with the Depository Trust Company System as
      directed by such Purchaser.

     

    
      
        
        

      

      
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    (d) In
      addition to such Purchaser’s other available remedies, the Company shall pay to
      a Purchaser, in cash, as partial liquidated damages and not as a penalty, for
      each $1,000 of Underlying Shares (based on the VWAP of the Common Stock on
      the
      date such Securities are submitted to the Transfer Agent) delivered for removal
      of the restrictive legend and subject to Section 4.1(c), $10 per Trading Day
      (increasing to $20 per Trading Day 5 Trading Days after such damages have begun
      to accrue) for each Trading Day after the Legend Removal Date until such
      certificate is delivered without a legend. Nothing herein shall limit such
      Purchaser’s right to pursue actual damages for the Company’s failure to deliver
      certificates representing any Securities as required by the Transaction
      Documents, and such Purchaser shall have the right to pursue all remedies
      available to it at law or in equity including, without limitation, a decree
      of
      specific performance and/or injunctive relief.

    

    (e) 
      Each
      Purchaser, severally and not jointly with the other Purchasers, agrees that
      such
      Purchaser will sell any Securities pursuant to either the registration
      requirements of the Securities Act, including any applicable prospectus delivery
      requirements, or an exemption therefrom, and that if Securities are sold
      pursuant to a Registration Statement, they will be sold in compliance with
      the
      plan of distribution set forth therein, and acknowledges that the removal of
      the
      restrictive legend from certificates representing Securities as set forth in
      this Section 4.1 is predicated upon the Company’s reliance upon this
      understanding.

     

    4.2
      Acknowledgment
      of Dilution.
      The
      Company acknowledges that the issuance of the Securities may result in dilution
      of the outstanding shares of Common Stock, which dilution may be substantial
      under certain market conditions. The Company further acknowledges that its
      obligations under the Transaction Documents, including, without limitation,
      its
      obligation to issue the Underlying Shares pursuant to the Transaction Documents,
      are unconditional and absolute and not subject to any right of set off,
      counterclaim, delay or reduction, regardless of the effect of any such dilution
      or any claim the Company may have against any Purchaser and regardless of the
      dilutive effect that such issuance may have on the ownership of the other
      stockholders of the Company.

     

    4.3
      Furnishing
      of Information.
      Until
      the time that no Purchaser owns Securities, the Company covenants to timely
      file
      (or obtain extensions in respect thereof and file within the applicable grace
      period) all reports that are required to be filed by the Company pursuant to
      Section 15(d) the Exchange Act, even if the Company is not then otherwise
      subject to the reporting requirements of the Exchange Act. The Company further
      covenants that it will take such further action as any holder of Securities
      may
      reasonably request, to the extent required from time to time to enable such
      Person to sell such Securities without registration under the Securities Act
      within the requirements of the exemption provided by Rule 144.

     

    
      
        
        

      

      
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    4.4
      Integration.
      The
      Company shall not sell, offer for sale or solicit offers to buy or otherwise
      negotiate in respect of any security (as defined in Section 2 of the Securities
      Act) that would be integrated with the offer or sale of the Securities to the
      Purchasers in a manner that would require the registration under the Securities
      Act of the sale of the Securities to the Purchasers or that would be integrated
      with the offer or sale of the Securities for purposes of the rules and
      regulations of any Trading Market.

     

    4.5
      Conversion
      and Exercise Procedures.
      The
      form of Notice of Exercise included in the Warrants and the form of Notice
      of
      Conversion included in the Certificate of Designation set forth the totality
      of
      the procedures required of the Purchasers in order to exercise the Warrants
      or
      convert the Preferred Stock. No additional legal opinion or other information
      or
      instructions shall be required of the Purchasers to exercise their Warrants
      or
      convert their Preferred Stock. The Company shall honor exercises of the Warrants
      and conversions of the Preferred Stock and shall deliver Underlying Shares
      in
      accordance with the terms, conditions and time periods set forth in the
      Transaction Documents.

     

    4.6
      Securities
      Laws Disclosure;
      Publicity.
      The
      Company shall, by 8:30 a.m. (New York City time) on the 4th
      Trading
      Day immediately following the date hereof, issue a Current Report on Form 8-K,
      disclosing the material terms of the transactions contemplated hereby and
      including the Transaction Documents as exhibits thereto. The Company and each
      Purchaser shall consult with each other in issuing any other press releases
      with
      respect to the transactions contemplated hereby, and neither the Company nor
      any
      Purchaser shall issue any such press release or otherwise make any such public
      statement without the prior consent of the Company, with respect to any press
      release of any Purchaser, or without the prior consent of each Purchaser, with
      respect to any press release of the Company, which consent shall not
      unreasonably be withheld or delayed, except if such disclosure is required
      by
      law, in which case the disclosing party shall promptly provide the other party
      with prior notice of such public statement or communication. Notwithstanding
      the
      foregoing, the Company shall not publicly disclose the name of any Purchaser,
      or
      include the name of any Purchaser in any filing with the Commission or any
      regulatory agency or Trading Market, without the prior written consent of such
      Purchaser, except (i) as required by federal securities law in connection with
      (A) any registration statement contemplated by the Registration Rights Agreement
      and (B) the filing of final Transaction Documents (including signature pages
      thereto) with the Commission and (ii) to the extent such disclosure is required
      by law or Trading Market regulations, in which case the Company shall provide
      the Purchasers with prior notice of such disclosure permitted under this clause
      (ii).

     

    4.7 Shareholder
      Rights Plan.
      No
      claim will be made or enforced by the Company or, with the consent of the
      Company, any other Person, that any Purchaser is an “Acquiring Person” under any
      control share acquisition, business combination, poison pill (including any
      distribution under a rights agreement) or similar anti-takeover plan or
      arrangement in effect or hereafter adopted by the Company, or that any Purchaser
      could be deemed to trigger the provisions of any such plan or arrangement,
      by
      virtue of receiving Securities under the Transaction Documents or under any
      other agreement between the Company and the Purchasers.

     

    
      
        
        

      

      
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    4.8
       Non-Public
      Information.
      Except
      with respect to the material terms and conditions of the transactions
      contemplated by the Transaction Documents, the Company covenants and agrees
      that
      neither it nor any other Person acting on its behalf, will provide any Purchaser
      or its agents or counsel with any information that the Company believes
      constitutes material non-public information, unless prior thereto such Purchaser
      shall have executed a written agreement regarding the confidentiality and use
      of
      such information. The Company understands and confirms that each Purchaser
      shall
      be relying on the foregoing covenant in effecting transactions in securities
      of
      the Company.

     

    4.9 Use
      of
      Proceeds.
      Except
      as set forth on Schedule
      4.9
      attached
      hereto, the Company shall use the net proceeds from the sale of the Securities
      hereunder for working capital purposes and shall not use such proceeds for
      (a)
      the satisfaction of any portion of the Company’s debt (other than payment of
      trade payables in the ordinary course of the Company’s business and prior
      practices), (b) the redemption of any Common Stock or Common Stock Equivalents,
      or (c) the settlement of any outstanding litigation. 

     

    4.10 Indemnification
      of Purchasers.
      Subject
      to the provisions of this Section 4.10, the Company will indemnify and hold
      each
      Purchaser and its directors, officers, shareholders, members, partners,
      employees and agents (and any other Persons with a functionally equivalent
      role
      of a Person holding such titles notwithstanding a lack of such title or any
      other title), each Person who controls such Purchaser (within the meaning of
      Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
      directors, officers, shareholders, agents, members, partners or employees (and
      any other Persons with a functionally equivalent role of a Person holding such
      titles notwithstanding a lack of such title or any other title) of such
      controlling person (each, a “Purchaser
      Party”)
      harmless from any and all losses, liabilities, obligations, claims,
      contingencies, damages, costs and expenses, including all judgments, amounts
      paid in settlements, court costs and reasonable attorneys’ fees and costs of
      investigation that any such Purchaser Party may suffer or incur as a result
      of
      or relating to (a) any breach of any of the representations, warranties,
      covenants or agreements made by the Company in this Agreement or in the other
      Transaction Documents or (b) any action instituted against a Purchaser in any
      capacity, or any of them or their respective Affiliates, by any stockholder
      of
      the Company who is not an Affiliate of such Purchaser, with respect to any
      of
      the transactions contemplated by the Transaction Documents (unless such action
      is based upon a breach of such Purchaser’s representations, warranties or
      covenants under the Transaction Documents or any agreements or understandings
      such Purchaser may have with any such stockholder or any violations by the
      Purchaser of state or federal securities laws or any conduct by such Purchaser
      which constitutes fraud, gross negligence, willful misconduct or malfeasance).
      If any action shall be brought against any Purchaser Party in respect of which
      indemnity may be sought pursuant to this Agreement, such Purchaser Party shall
      promptly notify the Company in writing, and the Company shall have the right
      to
      assume the defense thereof with counsel of its own choosing reasonably
      acceptable to the Purchaser Party. Any Purchaser Party shall have the right
      to
      employ separate counsel in any such action and participate in the defense
      thereof, but the fees and expenses of such counsel shall be at the expense
      of
      such Purchaser Party except to the extent that (i) the employment thereof has
      been specifically authorized by the Company in writing, (ii) the Company has
      failed after a reasonable period of time to assume such defense and to employ
      counsel or (iii) in such action there is, in the reasonable opinion of such
      separate counsel, a material conflict on any material issue between the position
      of the Company and the position of such Purchaser Party, in which case the
      Company shall be responsible for the reasonable fees and expenses of no more
      than one such separate counsel. The Company will not be liable to any Purchaser
      Party under this Agreement (i) for any settlement by a Purchaser Party effected
      without the Company’s prior written consent, which shall not be unreasonably
      withheld or delayed; or (ii) to the extent, but only to the extent that a loss,
      claim, damage or liability is attributable to any Purchaser Party’s breach of
      any of the representations, warranties, covenants or agreements made by such
      Purchaser Party in this Agreement or in the other Transaction
      Documents.

     

    
      
        
        

      

      
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    4.11 Reservation
      and Listing of Securities.

     

    (a) The
      Company shall maintain a reserve from its duly authorized shares of Common
      Stock
      for issuance pursuant to the Transaction Documents in such amount as may be
      required to fulfill its obligations in full under the Transaction Documents.
      

     

    (b) If,
      on
      any date, the number of authorized but unissued (and otherwise unreserved)
      shares of Common Stock is less than 130% of (i) the Required Minimum on
      such date, minus (ii) the number of shares of Common Stock previously issued
      pursuant to the Transaction Documents, then the Board of Directors shall use
      commercially reasonable efforts to amend the Company’s certificate or articles
      of incorporation to increase the number of authorized but unissued shares of
      Common Stock to at least the Required Minimum at such time (minus the number
      of
      shares of Common Stock previously issued pursuant to the Transaction Documents),
      as soon as possible and in any event not later than the 75th day after such
      date; provided that the Company will not be required at any time to authorize
      a
      number of shares of Common Stock greater than the maximum remaining number
      of
      shares of Common Stock that could possibly be issued after such time pursuant
      to
      the Transaction Documents.

     

    (c) The
      Company shall, if applicable: (i) in the time and manner required by the
      principal Trading Market, prepare and file with such Trading Market an
      additional shares listing application covering a number of shares of Common
      Stock at least equal to the Required Minimum on the date of such application,
      (ii) take all steps necessary to cause such shares of Common Stock to be
      approved for listing on such Trading Market as soon as possible thereafter,
      (iii) provide to the Purchasers evidence of such listing, and (iv) maintain
      the
      listing of such Common Stock on any date at least equal to the Required Minimum
      on such date on such Trading Market or another Trading Market. 

     

    4.12 Right
      of First Negotiation for Future Financing.
      

     

    (a) From
      the
      date hereof until the date that the Preferred Stock is no longer outstanding,
      upon any proposed issuance by the Company or any of its Subsidiaries of Common
      Stock or Common Stock Equivalents for cash consideration (a “Subsequent
      Financing”),
      each
      Purchaser (and if more than one such Purchaser expresses interest, then all
      such
      Purchasers together, pro rata) shall have the first right of negotiation with
      the Company to provide such Subsequent Financing.

     

    
      
        
        

      

      
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    (b) The
      Company shall deliver to each Purchaser a written notice of its intention to
      effect a Subsequent Financing (“Pre-Notice”),
      which
      Pre-Notice shall ask such Purchaser if it wants to discuss the possibility
      of
      providing additional financing to the Company. 

    

    (c) Any
      Purchaser desiring to participate in such Subsequent Financing must provide
      written notice to the Company by not later than 5:30 p.m. (New York City time)
      on the 5th
      Trading
      Day after all of the Purchasers have received the Pre-Notice that the Purchaser
      is willing to participate in the Subsequent Financing and the proposed terms
      which such Purchaser is prepared to offer. If the Company receives no notice
      from a Purchaser as of such 5th
      Trading
      Day, such Purchaser shall be deemed to have notified the Company that it does
      not elect to participate.

    

    (d) The
      Company and the interested Purchasers shall then negotiate a final term sheet
      for a period of up to 20 calendar days from the end of the notice period. If
      the
      parties are unable to negotiate a mutually satisfactory term sheet within such
      period, then the Company shall be free to seek to complete its Subsequent
      Financing with other persons on terms no less favorable to the Company than
      those which the Purchasers last offered. 

    

    (e) If
      the
      Company negotiates acceptable terms with Purchasers seeking to purchase more
      than the aggregate amount of the Subsequent Financing, each such Purchaser
      shall
      have the right to purchase its Pro Rata Portion (as defined below) of the
      Participation Maximum. “Pro Rata Portion” means the ratio of (x) the
      Subscription Amount of Securities purchased on the Closing Date by a Purchaser
      participating under this Section 4.12 and (y) the sum of the aggregate
      Subscription Amounts of Securities purchased on the Closing Date by all
      Purchasers participating under this Section 4.12.

    

    (f) Notwithstanding
      the foregoing, this Section 4.12 shall not apply in respect of (i) an Exempt
      Issuance, or (ii) an underwritten public offering of Common Stock. 

    

    4.13 Subsequent
      Equity Sales.
      

    

    (a) From
      the
      date hereof until 90 days after the Effective Date, neither the Company nor
      any
      Subsidiary shall issue shares of Common Stock or Common Stock Equivalents;
      provided, however, the 90 day period set forth in this Section 4.13 shall be
      extended for the number of Trading Days during such period in which (i) trading
      in the Common Stock is suspended by any Trading Market, or (ii) following the
      Effective Date, the Registration Statement is not effective or the prospectus
      included in the Registration Statement may not be used by the Purchasers for
      the
      resale of the Underlying Shares.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

    (b) From
      the
      date hereof until such time as no Purchaser holds any of the Securities, the
      Company shall be prohibited from effecting or entering into an agreement to
      effect any Subsequent Financing involving a Variable Rate Transaction.
“Variable
      Rate Transaction”
means
      a
      transaction in which the Company issues or sells (i) any debt or equity
      securities that are convertible into, exchangeable or exercisable for, or
      include the right to receive additional shares of Common Stock either (A) at
      a
      conversion, exercise or exchange rate or other price that is based upon and/or
      varies with the trading prices of or quotations for the shares of Common Stock
      at any time after the initial issuance of such debt or equity securities, or
      (B)
      with a conversion, exercise or exchange price that is subject to being reset
      at
      some future date after the initial issuance of such debt or equity security
      or
      upon the occurrence of specified or contingent events directly or indirectly
      related to the business of the Company or the market for the Common Stock or
      (ii) enters into any agreement, including, but not limited to, an equity line
      of
      credit, whereby the Company may sell securities at a future determined price.
      

    

    (c) Notwithstanding
      the foregoing, this Section 4.13 shall not apply in respect of an Exempt
      Issuance, except that no Variable Rate Transaction shall be an Exempt
      Issuance.

    

    4.14 Equal
      Treatment of Purchasers.
      No
      consideration shall be offered or paid to any Person to amend or consent to
      a
      waiver or modification of any provision of any of the Transaction Documents
      unless the same consideration is also offered to all of the parties to the
      Transaction Documents. For clarification purposes, this provision constitutes
      a
      separate right granted to each Purchaser by the Company and negotiated
      separately by each Purchaser, and is intended for the Company to treat the
      Purchasers as a class and shall not in any way be construed as the Purchasers
      acting in concert or as a group with respect to the purchase, disposition or
      voting of Securities or otherwise.

     

    4.15 Short
      Sales and Confidentiality After The Date Hereof.
      Each
      Purchaser, severally and not jointly with the other Purchasers, covenants that
      neither it, nor any Affiliate acting on its behalf or pursuant to any
      understanding with it, will execute any Short Sales during the period commencing
      at the Discussion Time and ending at the time that the transactions contemplated
      by this Agreement are first publicly announced as described in Section
      4.6. 
      Each
      Purchaser, severally and not jointly with the other Purchasers, covenants that
      until such time as the transactions contemplated by this Agreement are publicly
      disclosed by the Company as described in Section 4.6, such Purchaser will
      maintain the confidentiality of the existence and terms of this transaction
      and
      the information included in the Disclosure Schedules.  Each Purchaser
      severally and not jointly with any other Purchaser, acknowledges the positions
      of the Commission as set forth in Item 65, Section A, of the Manual of Publicly
      Available Telephone Interpretations, dated July 1997, compiled by the Office
      of
      Chief Counsel, Division of Corporation Finance. Notwithstanding
      the foregoing, no Purchaser makes any representation, warranty or covenant
      hereby that it will not engage in Short Sales in the securities of the Company
      after the time that the transactions contemplated by this Agreement are first
      publicly announced as described in Section 4.6; provided,
      however, each Purchaser agrees, severally and not jointly with any other
      Purchasers, that they will not enter into any Net Short Sales (as hereinafter
      defined) from the period commencing on the Closing Date and ending on the
      earlier of (i) the 12 month anniversary of the Effective Date or (ii) the 12
      month anniversary of the Effectiveness Date (as defined in the Registration
      Rights Agreement) of the initial Registration Statement. 
      For
      purposes of this Section 4.15, a “Net
      Short Sale”
by
      any
      Purchaser shall mean a sale of Common Stock by such Purchaser that is marked
      as
      a short sale and that is made at a time when there is no equivalent offsetting
      long position in Common Stock held by such Purchaser.  For purposes of
      determining whether there is an equivalent offsetting long position in Common
      Stock held by the Purchaser, Underlying Shares that have not yet been converted
      pursuant to the shares of Preferred Stock and Warrant Shares that have not
      yet
      been exercised pursuant to the Warrants shall be deemed to be held long by
      the
      Purchaser, and the amount of shares of Common Stock held in a long position
      shall be all unconverted Underlying
      Shares and
      unexercised Warrant Shares (ignoring any exercise limitations included therein)
      issuable to such Purchaser on such date, plus any shares of Common Stock or
      Common Stock Equivalents otherwise then held by such Purchaser. 
      Notwithstanding
      the foregoing, in the case of a Purchaser that is a multi-managed investment
      vehicle whereby separate portfolio managers manage separate portions of such
      Purchaser’s assets and the portfolio managers have no direct knowledge of the
      investment decisions made by the portfolio managers managing other portions
      of
      such Purchaser’s assets, the covenant set forth above shall only apply with
      respect to the portion of assets managed by the portfolio manager that made
      the
      investment decision to purchase the Securities covered by this
      Agreement.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    4.16 Form
      D; Blue Sky Filings.
      The
      Company agrees to timely file a Form D with respect to the Securities as
      required under Regulation D and to provide a copy thereof, promptly upon request
      of any Purchaser. The Company shall take such action as the Company shall
      reasonably determine is necessary in order to obtain an exemption for, or to
      qualify the Securities for, sale to the Purchasers at the Closing under
      applicable securities or “Blue Sky” laws of the states of the United States, and
      shall provide evidence of such actions promptly upon request of any
      Purchaser.

     

    4.17 Capital
      Change.
      Until
      the one year anniversary of the Effective Date, the Company shall not undertake
      a reverse or forward stock split or reclassification of the Common Stock without
      the prior written consent of the Purchasers holding a majority in interest
      of
      the shares of Preferred Stock.

     

    ARTICLE
      V

    MISCELLANEOUS

     

    5.1
      Termination. 
      This Agreement may be terminated by any Purchaser, as to such Purchaser’s
      obligations hereunder only and without any effect whatsoever on the obligations
      between the Company and the other Purchasers, by written notice to the other
      parties, if the Closing has not been consummated on or before December [___,
      2007; provided,
      however,
      that
      such termination will not affect the right of any party to sue for any breach
      by
      the other party (or parties).

     

    5.2
      Fees
      and Expenses.
      At the
      Closing, the Company has agreed to reimburse (i) Vision the non-accountable
      sum
      of $65,000 for its legal fees and expense and due diligence fees and expenses
      and (ii) [NAME OF PLATINUM MONTAUR ENTITY] the non-accountable sum of $10,000
      for its due diligence fees and expenses. The Company shall deliver to each
      Purchaser, prior to the Closing, a completed and executed copy of the Closing
      Statement, attached hereto as Annex
      A.
      Except
      as expressly set forth in the Transaction Documents to the contrary, each party
      shall pay the fees and expenses of its advisers, counsel, accountants and other
      experts, if any, and all other expenses incurred by such party incident to
      the
      negotiation, preparation, execution, delivery and performance of this Agreement.
      The Company shall pay all transfer agent fees, stamp taxes and other taxes
      and
      duties levied in connection with the delivery of any Securities to the
      Purchasers.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    5.3
      Entire
      Agreement.
      The
      Transaction Documents, together with the exhibits and schedules thereto, contain
      the entire understanding of the parties with respect to the subject matter
      hereof and supersede all prior agreements and understandings, oral or written,
      with respect to such matters, which the parties acknowledge have been merged
      into such documents, exhibits and schedules.

     

    5.4 Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (a) the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile number set forth on the signature
      pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading
      Day,
      (b) the next Trading Day after the date of transmission, if such notice or
      communication is delivered via facsimile at the facsimile number set forth
      on
      the signature pages attached hereto on a day that is not a Trading Day or later
      than 5:30 p.m. (New York City time) on any Trading Day, (c) the second Trading
      Day following the date of mailing, if sent by U.S. nationally recognized
      overnight courier service, or (d) upon actual receipt by the party to whom
      such
      notice is required to be given. The address for such notices and communications
      shall be as set forth on the signature pages attached hereto.

     

    5.5 Amendments;
      Waivers.
      No
      provision of this Agreement may be waived, modified, supplemented or amended
      except in a written instrument signed, in the case of an amendment, by the
      Company and the Purchasers holding 67% in interest of the Securities then
      outstanding or, in the case of a waiver, by the party against whom enforcement
      of any such waived provision is sought. No waiver of any default with respect
      to
      any provision, condition or requirement of this Agreement shall be deemed to
      be
      a continuing waiver in the future or a waiver of any subsequent default or
      a
      waiver of any other provision, condition or requirement hereof, nor shall any
      delay or omission of any party to exercise any right hereunder in any manner
      impair the exercise of any such right.

     

    5.6 Headings.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    5.7 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. The Company may not assign this
      Agreement or any rights or obligations hereunder without the prior written
      consent of each Purchaser (other than by merger). Any Purchaser may assign
      any
      or all of its rights under this Agreement to any Person to whom such Purchaser
      assigns or transfers any Securities, provided that such transferee agrees in
      writing to be bound, with respect to the transferred Securities, by the
      provisions of the Transaction Documents that apply to the
“Purchasers.”

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    5.8 No
      Third-Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person, except as otherwise set
      forth
      in Section 4.10.

     

    5.9 Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of the Transaction Documents shall be governed by and construed and enforced
      in
      accordance with the internal laws of the State of New York, without regard
      to
      the principles of conflicts of law thereof. Each party agrees that all legal
      proceedings concerning the interpretations, enforcement and defense of the
      transactions contemplated by this Agreement and any other Transaction Documents
      (whether brought against a party hereto or its respective affiliates, directors,
      officers, shareholders, employees or agents) shall be commenced exclusively
      in
      the state and federal courts sitting in the City of New York. Each party hereby
      irrevocably submits to the exclusive jurisdiction of the state and federal
      courts sitting in the City of New York, borough of Manhattan for the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein (including with respect
      to
      the enforcement of any of the Transaction Documents), and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is improper or is an inconvenient venue for
      such
      proceeding. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof via registered or certified mail or overnight delivery
      (with evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute good
      and sufficient service of process and notice thereof. Nothing contained herein
      shall be deemed to limit in any way any right to serve process in any other
      manner permitted by law. If either party shall commence an action or proceeding
      to enforce any provisions of the Transaction Documents, then the prevailing
      party in such action or proceeding shall be reimbursed by the other party for
      its reasonable attorneys’ fees and other costs and expenses incurred with the
      investigation, preparation and prosecution of such action or
      proceeding.

     

    5.10 Survival.
      The
      representations and warranties shall survive the Closing and the delivery of
      the
      Securities for the applicable statute of limitations. 

     

    5.11 Execution.
      This
      Agreement may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission or by e-mail delivery of a “.pdf” format data file, such signature
      shall create a valid and binding obligation of the party executing (or on whose
      behalf such signature is executed) with the same force and effect as if such
      facsimile or “.pdf” signature page were an original thereof.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    5.12 Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their commercially reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

     

    5.13 Rescission
      and Withdrawal Right.
      Notwithstanding anything to the contrary contained in (and without limiting
      any
      similar provisions of) any of the other Transaction Documents, whenever any
      Purchaser exercises a right, election, demand or option under a Transaction
      Document and the Company does not timely perform its related obligations within
      the periods therein provided, then such Purchaser may rescind or withdraw,
      in
      its sole discretion from time to time upon written notice to the Company, any
      relevant notice, demand or election in whole or in part without prejudice to
      its
      future actions and rights; provided,
      however,
      that in
      the case of a rescission of a conversion of the Preferred Stock or exercise
      of a
      Warrant, the Purchaser shall be required to return any shares of Common Stock
      subject to any such rescinded conversion or exercise notice.

     

    5.14 Replacement
      of Securities.
      If any
      certificate or instrument evidencing any Securities is mutilated, lost, stolen
      or destroyed, the Company shall issue or cause to be issued in exchange and
      substitution for and upon cancellation thereof (in the case of mutilation),
      or
      in lieu of and substitution therefor, a new certificate or instrument, but
      only
      upon receipt of evidence reasonably satisfactory to the Company of such loss,
      theft or destruction. The applicant for a new certificate or instrument under
      such circumstances shall also pay any reasonable third-party costs (including
      customary indemnity) associated with the issuance of such replacement
      Securities.

     

    5.15 Remedies.
      In
      addition to being entitled to exercise all rights provided herein or granted
      by
      law, including recovery of damages, each of the Purchasers and the Company
      will
      be entitled to specific performance under the Transaction Documents. The parties
      agree that monetary damages may not be adequate compensation for any loss
      incurred by reason of any breach of obligations contained in the Transaction
      Documents and hereby agrees to waive and not to assert in any action for
      specific performance of any such obligation the defense that a remedy at law
      would be adequate.

     

    5.16 Payment
      Set Aside.
      To the
      extent that the Company makes a payment or payments to any Purchaser pursuant
      to
      any Transaction Document or a Purchaser enforces or exercises its rights
      thereunder, and such payment or payments or the proceeds of such enforcement
      or
      exercise or any part thereof are subsequently invalidated, declared to be
      fraudulent or preferential, set aside, recovered from, disgorged by or are
      required to be refunded, repaid or otherwise restored to the Company, a trustee,
      receiver or any other person under any law (including, without limitation,
      any
      bankruptcy law, state or federal law, common law or equitable cause of action),
      then to the extent of any such restoration the obligation or part thereof
      originally intended to be satisfied shall be revived and continued in full
      force
      and effect as if such payment had not been made or such enforcement or setoff
      had not occurred.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    5.17
      Usury.
      To the
      extent it may lawfully do so, the Company hereby agrees not to insist upon
      or
      plead or in any manner whatsoever claim, and will resist any and all efforts
      to
      be compelled to take the benefit or advantage of, usury laws wherever enacted,
      now or at any time hereafter in force, in connection with any claim, action
      or
      proceeding that may be brought by any Purchaser in order to enforce any right
      or
      remedy under any Transaction Document. Notwithstanding any provision to the
      contrary contained in any Transaction Document, it is expressly agreed and
      provided that the total liability of the Company under the Transaction Documents
      for payments in the nature of interest shall not exceed the maximum lawful
      rate
      authorized under applicable law (the “Maximum
      Rate”),
      and,
      without limiting the foregoing, in no event shall any rate of interest or
      default interest, or both of them, when aggregated with any other sums in the
      nature of interest that the Company may be obligated to pay under the
      Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum
      contract rate of interest allowed by law and applicable to the Transaction
      Documents is increased or decreased by statute or any official governmental
      action subsequent to the date hereof, the new maximum contract rate of interest
      allowed by law will be the Maximum Rate applicable to the Transaction Documents
      from the effective date forward, unless such application is precluded by
      applicable law. If under any circumstances whatsoever, interest in excess of
      the
      Maximum Rate is paid by the Company to any Purchaser with respect to
      indebtedness evidenced by the Transaction Documents, such excess shall be
      applied by such Purchaser to the unpaid principal balance of any such
      indebtedness or be refunded to the Company, the manner of handling such excess
      to be at such Purchaser’s election.

     

    5.18 Independent
      Nature of Purchasers’ Obligations and Rights.
      The
      obligations of each Purchaser under any Transaction Document are several and
      not
      joint with the obligations of any other Purchaser, and no Purchaser shall be
      responsible in any way for the performance or non-performance of the obligations
      of any other Purchaser under any Transaction Document. Nothing contained herein
      or in any other Transaction Document, and no action taken by any Purchaser
      pursuant thereto, shall be deemed to constitute the Purchasers as a partnership,
      an association, a joint venture or any other kind of entity, or create a
      presumption that the Purchasers are in any way acting in concert or as a group
      with respect to such obligations or the transactions contemplated by the
      Transaction Documents. Each Purchaser shall be entitled to independently protect
      and enforce its rights, including without limitation, the rights arising out
      of
      this Agreement or out of the other Transaction Documents, and it shall not
      be
      necessary for any other Purchaser to be joined as an additional party in any
      proceeding for such purpose. Each Purchaser has been represented by its own
      separate legal counsel in their review and negotiation of the Transaction
      Documents. For reasons of administrative convenience only, Purchasers and their
      respective counsel have chosen to communicate with the Company through FWS.
      FWS
      does not represent all of the Purchasers but only Vision. The Company has
      elected to provide all Purchasers with the same terms and Transaction Documents
      for the convenience of the Company and not because it was required or requested
      to do so by the Purchasers.

     

    5.19 Liquidated
      Damages.
      The
      Company’s obligations to pay any partial liquidated damages or other amounts
      owing under the Transaction Documents is a continuing obligation of the Company
      and shall not terminate until all unpaid partial liquidated damages and other
      amounts have been paid notwithstanding the fact that the instrument or security
      pursuant to which such partial liquidated damages or other amounts are due
      and
      payable shall have been canceled.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    5.20 Saturdays,
      Sundays, Holidays, etc. If
      the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall not be a Business Day, then such action
      may be taken or such right may be exercised on the next succeeding Business
      Day.

     

    5.21 Construction.
      The
      parties agree that each of them and/or their respective counsel has reviewed
      and
      had an opportunity to revise the Transaction Documents and, therefore, the
      normal rule of construction to the effect that any ambiguities are to be
      resolved against the drafting party shall not be employed in the interpretation
      of the Transaction Documents or any amendments hereto.

     

    5.22 Waiver
      of Jury Trial.
      In any
      action, suit or proceeding in any jurisdiction brought by any party against
      any
      other party, the parties each knowingly and intentionally, to the greatest
      extent permitted by applicable law, hereby absolutely, unconditionally,
      irrevocably and expressly waives forever trial by jury.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
      Agreement to be duly executed by their respective authorized signatories as
      of
      the date first indicated above.

    

    
      	
              Marine
                Park Holdings, Inc.

            	
              Address/Facsimile
                Number/E-mail

              Address
                for Notice:

            

    

    

    
      	
              By:

            	
              /s/
                Branislav Vajdic

            
	
              Name:
                  Branislav Vajdic

            
	
              Title: 
                   President

            

    

    

    
      	
              With
                a copy to (which shall not constitute
                notice):

            

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGE FOR PURCHASER FOLLOWS]

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    [PURCHASER
      SIGNATURE PAGES TO NEW CARDIO SECURITIES PURCHASE AGREEMENT]

    

    IN
      WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    Name
      of
      Purchaser: ____________________________________________________

     

    Signature
      of Authorized Signatory of Purchaser:
      __________________________

     

    Name
      of
      Authorized Signatory: ____________________________________

     

    Title
      of
      Authorized Signatory: _____________________________________

     

    Email
      Address of Authorized Signatory:
      ___________________________________________

     

    Fax
      Number of Authorized Signatory:
      _________________________________________

    

    Address
      for Notice of Purchaser:

    

    Address
      for Delivery of Securities for Purchaser (if not same as address for
      notice):

    

    Subscription
      Amount:____________

     

    Shares
      of
      Preferred Stock:____________

    

    EIN
      Number: [PROVIDE
      THIS UNDER SEPARATE COVER]

    

    [SIGNATURE
      PAGES CONTINUE]

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    Annex
      A 

    

    CLOSING
      STATEMENT

    

    Pursuant
      to the attached Securities Purchase Agreement, dated as of the date hereto,
      the
      purchasers shall purchase up to $12,000,000 of Preferred Stock and Warrants
      from
      Marine Park Holdings, Inc., a ________corporation (the “Company”).
      All
      funds will be wired into an account maintained by the Company. All funds will
      be
      disbursed in accordance with this Closing Statement. 

    

    Disbursement
      Date: December
      ___, 2007

     

      
        

      

    

     

    
      	
              I.
                PURCHASE PRICE

            	 	 	 	 
	 	 	 	 	 
	
              Gross
                Proceeds to be Received

            	 	
              $

            	
               

            	 
	 	 	 	 	 
	
              II. DISBURSEMENTS

            	 	 	 	 
	 	 	 	 	 
	
               

            	 	
              $ 

            	
               

            	 
	 	 	
              $

            	
               

            	 
	 	 	
              $

            	
               

            	 
	 	 	
              $

            	
               

            	 
	 	 	
              $

            	
               

            	 
	 	 	 	 	 
	
              Total
                Amount Disbursed:

            	 	
              $

            	
               

            	 
	 	 	 	 	 
	
              WIRE
                INSTRUCTIONS:

            	 	 	 	 
	 	 	 	 	 
	
              To:
                _____________________________________

            	 	 	 	 
	 	 	 	 	 
	
              To:
                _____________________________________

            	 	 	 	 

    

     

    
      
        
        

      

      
        39

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