Document:

Exhibit
      4.15

     

    INSIDER
      PLEDGE AND ESCROW AGREEMENT

     

    THIS
      INSIDER PLEDGE AND ESCROW AGREEMENT
      (the
“Agreement”)
      is
      made and entered into as of July 10, 2006 (the “Effective
      Date”)
      by and
      among NEW
      CREATION OUTREACH
      (the
“Pledgor”),
      CORNELL
      CAPITAL PARTNERS, LP
      (the
“Pledgee”),
      SAVI
      CORP.,
      a Nevada
      corporation (the “Company”),
      and
DAVID
      GONZALEZ,
      ESQ.,
      as
      escrow agent (“Escrow
      Agent”).
      

     

    RECITALS:

     

    WHEREAS,
      the
      Company shall issue and sell to the Pledgee, as provided in the Securities
      Purchase Agreement of even date herewith between the Company and the Pledgee
      (the “Securities
      Purchase Agreement”),
      and
      the Pledgee shall purchase up to Two Million Nine Hundred Seventy Thousand
      Dollars ($2,970,000) of secured convertible debentures (the “Convertible
      Debentures”),
      which
      shall be convertible into shares of the Company’s common stock, par value $0.001
      per share (the “Common
      Stock”)
      (as
      converted, the “Conversion
      Shares”);

     

    WHEREAS,
      to
      induce
      the Pledgee to enter into the transaction contemplated by the Securities
      Purchase Agreement, the Convertible Debentures, the Investor Registration Rights
      Agreement of even date herewith between the Company and the Pledgee (the
“Investor
      Registration Rights Agreement”),
      and
      the Irrevocable Transfer Agent Instructions among the Company, the Pledgee,
      the
      Transfer Agent, and the Escrow Agent (the “Transfer
      Agent Instructions”)
      (collectively referred to as the “Transaction
      Documents”),
      the
      Pledgor has agreed to irrevocably pledge to the Pledgee Four Million shares
      of
      Series A Preferred Stock, which shall be convertible into 400,000,000 Million
      (400,000,000) shares (the “Pledged
      Shares”)
      of
      Common Stock beneficially owned by the Pledgor in accordance with this
      Agreement, which shall be delivered with medallion guarantees no later than
      by
      July 14, 2006.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants, agreements, warranties, and
      representations herein contained, and for other good and valuable consideration,
      the receipt and sufficiency of which is hereby acknowledged, the parties hereto
      agree as follows:

     

    TERMS
      AND CONDITIONS

     

    1.  Obligations
      Secured. The
      obligations secured hereby are any and all obligations of the Company now
      existing or hereinafter incurred to the Pledgee under the Transaction Documents
      and any other amounts now or hereafter owed to the Pledgee by the Company
      thereunder (collectively, the “Obligations”).

     

    2.  Pledge
      and Transfer of Pledged Shares.
      The
      Pledgor hereby grants to Pledgee an irrevocable, first priority security
      interest in all Pledged Shares as security for the Company’s Obligations.
      Simultaneously with the execution of the Transaction Documents, the Pledgor
      shall deliver to the Escrow Agent stock certificates made out in favor of the
      Pledgor representing the Pledged Shares, together with duly executed stock
      powers or other appropriate transfer documents with medallion bank guarantees
      and executed in blank by the Pledgor (the “Transfer
      Documents”),
      and
      such stock certificates and Transfer Documents shall be held by the Escrow
      Agent
      until the full payment of all Obligations due to the Pledgee, including the
      repayment or conversion of all amounts owed by the Company to the Pledgee under
      the Convertible Debentures (whether outstanding principal, interest, legal
      fees,
      or any other amounts owed to the Pledgee by the Company).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.  Rights
      Relating to Pledged Shares.
      Upon
      the occurrence of an Event of Default (as defined herein), the Pledgee shall
      be
      entitled to vote the Pledged Shares, receive dividends and other distributions
      thereon, and enjoy all other rights and privileges incident to the ownership
      of
      the number of Pledged Shares actually released from escrow in accordance with
      Section 6.1 hereof. 

     

    4.  Release
      of Pledged Shares from Pledge.
      Upon
      the full payment of all Obligations due to the Pledgee under the Transaction
      Documents, including the repayment or conversion of all amounts owed by the
      Company to the Pledgee under the Convertible Debentures (whether outstanding
      principal, interest, legal fees, and any other amounts owed to the Pledgee
      by
      the Company), the parties hereto shall notify the Escrow Agent to such effect
      in
      writing. Promptly upon receipt of such written notice, the Escrow Agent shall
      return to the Pledgor the Transfer Documents and the certificates representing
      the Pledged Shares (collectively the “Pledged
      Materials”),
      whereupon any and all rights of Pledgee in the Pledged Materials shall be
      terminated. Notwithstanding anything to the contrary contained herein, upon
      the
      full payment of all amounts due to the Pledgee under the Convertible Debentures,
      by repayment or conversion in accordance with the terms of the Convertible
      Debentures, this Agreement and Pledgee’s security interest and rights in and to
      the Pledged Shares shall terminate.

     

    5.  Event
      of Default.
      An
“Event
      of Default”
shall
      be deemed to have occurred under this Agreement upon an Event of Default under
      the Convertible Debentures.

     

    6.  Remedies.
      

     

    a.  Upon
      and
      anytime after the occurrence of an Event of Default, the Pledgee shall have
      the
      right to provide written notice of such Event of Default (the “Default
      Notice”)
      to the Escrow Agent, with a copy to the Pledgor. As soon as practicable after
      receipt of the Default Notice, the Escrow Agent shall deliver to Pledgee the
      Pledged Materials held by the Escrow Agent hereunder. Upon receipt of the
      Pledged Materials, the Pledgee shall have the right to (i) sell the Pledged
      Shares and to apply the proceeds of such sales, net of any selling commissions,
      to the Obligations owed to the Pledgor by the Company under the Transaction
      Documents, including, without limitation, outstanding principal, interest,
      legal
      fees, and any other amounts owed to the Pledgee, and exercise all other rights
      and (ii) any and all remedies of a secured party with respect to such property
      as may be available under the Uniform Commercial Code as in effect in the State
      of New Jersey. To the extent that the net proceeds received by the Pledgee
      are
      insufficient to satisfy the Obligations in full, the Pledgee shall be entitled
      to a deficiency judgment against the Company but not the Pledgor for such
      amount. The Pledgee shall have the absolute right to sell or dispose of the
      Pledged Shares in any manner it sees fit and shall have no liability to the
      Pledgor, the Company or any other party for selling or disposing of such Pledged
      Shares even if other methods of sales or dispositions would or allegedly would
      result in greater proceeds than the method actually used. The Escrow Agent
      shall
      have the absolute right to disburse the Pledged Shares to the Pledgee in batches
      not to exceed 9.9% of the outstanding capital of the Company (which limit may
      be
      waived by the Pledgee providing not less than 65 days’ prior written notice to
      the Escrow Agent). The Pledgee shall return any Pledged Shares released to
      it
      and remaining after the Pledgee has applied the net proceeds to all amounts
      owed
      to the Pledgee. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    b.  Each
      right, power and remedy of the Pledgee provided for in this Agreement or any
      other Transaction Document shall be cumulative and concurrent and shall be
      in
      addition to every other such right, power or remedy. The
      exercise or beginning of the exercise by the Pledgee of any one or more of
      the
      rights, powers or remedies provided for in this Agreement or any
      other
      Transaction Document or
      now or
      hereafter existing at law or in equity or by statute or otherwise shall not
      preclude the simultaneous or later exercise by the
      Pledgee of all such other rights, powers or remedies, and no failure or delay
      on
      the part of the Pledgee to exercise any such right, power or remedy shall
      operate as a waiver thereof. No notice to or demand on the Pledgor in any case
      shall entitle it to any other or further notice or demand in similar or other
      circumstances or constitute a waiver of any of the rights of the Pledgee to
      any
      other further action in any circumstances without demand or notice. The Pledgee
      shall have the full power to enforce or to assign or contract is rights under
      this Agreement to a third party. 

     

    7.  Representations,
      Warranties and Covenants.
      

     

    a.  The
      Pledgor represents, warrants and covenants that:

     

    (i)  Pledgor
      is, and at the time when pledged hereunder will be, the legal, beneficial and
      record owner of, and has (and will have)
      good and
      valid title to, all Pledged Shares pledged hereunder, subject to no pledge,
      lien, mortgage, hypothecation, security interest, charge, option or other
      encumbrance whatsoever;

     

    (ii)  Pledgor
      has full power, authority and legal right to pledge all the Pledged Shares
      pledged pursuant to this Agreement; and

     

    (iii)  all
      the
      Pledged Shares have been duly and validly issued, are fully paid and
      non-assessable and are subject to no options to purchase or similar
      rights.

     

    b.  The
      Pledgor covenants and agrees to take all reasonable steps to defend the
      Pledgee’s right, title and security interest in and to the Pledged Shares and
      the proceeds thereof against the claims and demands of all persons whomsoever
      (other than the Pledgee and the Escrow Agent); and the Pledgor covenants and
      agrees that it will have like title to
      and
      right to pledge any other property at any time hereafter pledged to the Pledgee
      as Collateral hereunder and will likewise take all reasonable steps to defend
      the right thereto and security interest therein of the Pledgee.

     

    c.  The
      Pledgor covenants and agrees to take no action which would violate or be
      inconsistent with any of the terms of any Transaction Document, or which would
      have the effect of impairing the position or interests of the Pledgee under
      any
      Transaction Document.

     

    d.  This
      Agreement is made without recourse. Upon an Event of Default, the Pledgee shall
      be deemed to have acquired the Pledged Shares on the date they were acquired
      by
      the Pledgor. The Pledgor is an “affiliate” of the Company, as such term is
      defined in Rule 144(a) promulgated under the Securities Act of 1933, as
      amended.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    8.  Concerning
      the Escrow Agent.

     

    a.  The
      Escrow Agent undertakes to perform only such duties as are expressly set forth
      herein and no implied duties or obligations shall be read into this Agreement
      against the Escrow Agent.

     

    b.  The
      Escrow Agent may act in reliance upon any writing or instrument or signature
      which it, in good faith, believes to be genuine, may assume the validity and
      accuracy of any statement or assertion contained in such a writing or
      instrument, and may assume that any person purporting to give any writing,
      notice, advice or instructions in connection with the provisions hereof has
      been
      duly authorized to do so. The Escrow Agent shall not be liable in any manner
      for
      the sufficiency or correctness as to form, manner, and execution, or validity
      of
      any instrument deposited in this escrow, nor as to the identity, authority,
      or
      right of any person executing the same; and its duties hereunder shall be
      limited to the safekeeping of such certificates, monies, instruments, or other
      document received by it as such escrow holder, and for the disposition of the
      same in accordance with the written instruments accepted by it in the
      escrow.

     

    c.  Pledgee
      and the Pledgor hereby agree, to defend and indemnify the Escrow Agent and
      hold
      it harmless from any and all claims, liabilities, losses, actions, suits, or
      proceedings at law or in equity, or any other expenses, fees, or charges of
      any
      character or nature which it may incur or with which it may be threatened by
      reason of its acting as Escrow Agent under this Agreement; and in connection
      therewith, to indemnify the Escrow Agent against any and all expenses, including
      attorneys’ fees and costs of defending any action, suit, or proceeding or
      resisting any claim (and any costs incurred by the Escrow Agent pursuant to
      Sections 6.4 or 6.5 hereof). The Escrow Agent shall be vested with a lien on
      all
      property deposited hereunder, for indemnification of attorneys’ fees and court
      costs regarding any suit, proceeding or otherwise, or any other expenses, fees,
      or charges of any character or nature, which may be incurred by the Escrow
      Agent
      by reason of disputes arising between the makers of this escrow as to the
      correct interpretation of this Agreement and instructions given to the Escrow
      Agent hereunder, or otherwise, with the right of the Escrow Agent, regardless
      of
      the instructions aforesaid, to hold said property until and unless said
      additional expenses, fees, and charges shall be fully paid. Any fees and costs
      charged by the Escrow Agent for serving hereunder shall be paid by the
      Pledgor.

     

    d.  If
      any of
      the parties shall be in disagreement about the interpretation of this Agreement,
      or about the rights and obligations, or the propriety of any action contemplated
      by the Escrow Agent hereunder, the Escrow Agent may, at its sole discretion
      deposit the Pledged Materials with the Clerk of the United States District
      Court
      of New Jersey, sitting in Newark, New Jersey, and, upon notifying all parties
      concerned of such action, all liability on the part of the Escrow Agent shall
      fully cease and terminate. The Escrow Agent shall be indemnified by the Pledgor,
      the Company and Pledgee for all costs, including reasonable attorneys’ fees in
      connection with the aforesaid proceeding, and shall be fully protected in
      suspending all or a part of its activities under this Agreement until a final
      decision or other settlement in the proceeding is received.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    e.  The
      Escrow Agent may consult with counsel of its own choice (and the costs of such
      counsel shall be paid by the Pledgor and Pledgee) and shall have full and
      complete authorization and protection for any action taken or suffered by it
      hereunder in good faith and in accordance with the opinion of such counsel.
      The
      Escrow Agent shall not be liable for any mistakes of fact or error of judgment,
      or for any actions or omissions of any kind, unless caused by its willful
      misconduct or gross negligence.

     

    f.  The
      Escrow Agent may resign upon ten (10) days’ written notice to the parties in
      this Agreement. If a successor Escrow Agent is not appointed within this ten
      (10) day period, the Escrow Agent may petition a court of competent jurisdiction
      to name a successor.

     

    9.  Conflict
      Waiver.
      The
      Pledgor hereby acknowledges that the Escrow Agent is general counsel to the
      Pledgee, a partner in the general partner of the Pledgee, and counsel to the
      Pledgee in connection with the transactions contemplated and referred herein.
      The Pledgor agrees that in the event of any dispute arising in connection with
      this Agreement or otherwise in connection with any transaction or agreement
      contemplated and referred herein, the Escrow Agent shall be permitted to
      continue to represent the Pledgee and the Pledgor will not seek to disqualify
      such counsel and waives any objection Pledgor might have with respect to the
      Escrow Agent acting as the Escrow Agent pursuant to this Agreement.

     

    10.  Notices.
      Unless
      otherwise provided herein, all demands, notices, consents, service of process,
      requests and other communications hereunder shall be in writing and shall be
      delivered in person or by overnight courier service, or mailed by certified
      mail, return receipt requested, addressed:

     

    
      	
              If
                to the Company, to:

            	
              SAVI
                CORP.

            
	 	
              9852
                W. Katella Avenue - #363

            
	 	
              Anaheim,
                CA 92804

            
	 	
              Attention:
                Mario
                Procopio, CEO

            
	 	
              Telephone: (714)
                740-0601

            
	 	
              Facsimile: (714)
                740-0300

            
	 	 
	
              With
                a copy to:

            	
              Sichenzia
                Ross Friedman Ference LLP

            
	 	
              1065
                Avenue of the Americas - 21st
                Floor

            
	 	
              New
                York, NY 10018

            
	 	
              Attention: Gregory
                Sichenzia, Esq.

            
	 	
              Telephone: (212)
                930-9700

            
	 	
              Facsimile: (212)
                930-9725

            
	 	 
	
              If
                to the Pledgee:

            	
              Cornell
                Capital Partners LP

            
	 	
              101
                Hudson Street, Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Attention:
                 Mark
                A. Angelo

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile:
                 (201)
                985-8744

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              With
                copy to:

            	
              Cornell
                Capital Partners, LP

            
	 	
              101
                Hudson Street, Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Attention:
                 David
                Gonzalez, Esq.

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-1964

            
	 	 
	
              If
                to the Pledgor, to:

            	
              New
                Creation Outreach

            
	 	
              9852
                W. Katella Avenue - #363

            
	 	
              Anaheim,
                CA 92804

            
	 	
              Attention: Mario
                Procopio, CEO

            
	 	
              Telephone: (714)
                740-0601

            
	 	
              Facsimile: (714)
                740-0300

            

    

    

    Any
      such
      notice shall be effective (a) when delivered, if delivered by hand delivery
      or overnight courier service, or (b) five (5) days after deposit in the
      United States mail, as applicable.

     

    11.  Binding
      Effect.
      All of
      the covenants and obligations contained herein shall be binding upon and shall
      inure to the benefit of the respective parties, their successors and
      assigns.

     

    12.  Governing
      Law; Venue; Service of Process.
      The
      validity, interpretation and performance of this Agreement shall be determined
      in accordance with the laws of the State of New Jersey applicable to contracts
      made and to be performed wholly within that state except to the extent that
      Federal law applies. The parties hereto agree that any disputes, claims,
      disagreements, lawsuits, actions or controversies of any type or nature
      whatsoever that, directly or indirectly, arise from or relate to this Agreement,
      including, without limitation, claims relating to the inducement, construction,
      performance or termination of this Agreement, shall be brought in the state
      superior courts located in Hudson County, New Jersey or Federal district courts
      located in Newark, New Jersey, and the parties hereto agree not to challenge
      the
      selection of that venue in any such proceeding for any reason, including,
      without limitation, on the grounds that such venue is an inconvenient forum.
      The
      parties hereto specifically agree that service of process may be made, and
      such
      service of process shall be effective if made, pursuant to Section 8
      hereto.

     

    13.  Enforcement
      Costs.
      If any
      legal action or other proceeding is brought for the enforcement of this
      Agreement, or because of an alleged dispute, breach, default or
      misrepresentation in connection with any provisions of this Agreement, the
      successful or prevailing party or parties shall be entitled to recover
      reasonable attorneys’ fees, court costs and all expenses even if not taxable as
      court costs (including, without limitation, all such fees, costs and expenses
      incident to appeals), incurred in that action or proceeding, in addition to
      any
      other relief to which such party or parties may be entitled.

     

    14.  Remedies
      Cumulative.
      No
      remedy herein conferred upon any party is intended to be exclusive of any other
      remedy, and each and every such remedy shall be cumulative and shall be in
      addition to every other remedy given hereunder or now or hereafter existing
      at
      law, in equity, by statute, or otherwise. No single or partial exercise by
      any
      party of any right, power or remedy hereunder shall preclude any other or
      further exercise thereof. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

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

     

    16.  No
      Penalties.
      No
      provision of this Agreement is to be interpreted as a penalty upon any party
      to
      this Agreement.

     

    17.  JURY
      TRIAL.
      EACH OF
      THE PLEDGEE AND THE PLEDGOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
      WAIVES THE RIGHT WHICH IT MAY HAVE TO A TRIAL BY JURY OF ANY CLAIM, DEMAND,
      ACTION OR CAUSE OF ACTION BASED HEREON, OR ARISING OUT OF, UNDER OR IN ANY
      WAY
      CONNECTED WITH THE DEALINGS BETWEEN PLEDGEE AND PLEDGOR, THIS PLEDGE AND ESCROW
      AGREEMENT OR ANY DOCUMENT EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF
      CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS
      OF
      ANY PARTY HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
      ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. 

     

    [REMAINDER
      OF PAGE INTENTIALLY LEFT BLANK]

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have duly executed this Pledge and Escrow Agreement as of the
      date first above written. 

     

    
      	 	 	 
	 	CORNELL
              CAPITAL
              PARTNERS,
              LP
	 
 	 
 	 
 
	 	By:  	Yorkville
              Advisors, LLC
	 	Its:	 General
              Partner

    

     

    
      	 	 	 
	 	By:  	/s/ MARK
              ANGELO
	 	
              
                

              

              Name: Mark
                Angelo

              Title: Portfolio
                Manager

            

    

    

      
        	 	 	 
	 	
                NEW
                  CREATION
                  OUTREACH

              
	 
 	 
 	 
 
	 	By:  	/s/ KATHY
                PROCOPIO
	 	
                
Name:
                New Creation Outreach

      

       

      
        	 	 	 
	 	SAVI
                CORP.
	 
 	 
 	 
 
	 	By:  	/s/ MARIO
                PROCOPIO
	 	
                

                Name: Mario
                  Procopio

              
	 	
                Title: CEO

              

      

       

      
        	 	 	 
	 	ESCROW
                AGENT
	 
 	 
 	 
 
	 	By:  	/s/ DAVID
                GONZALEZ
	 	
                
Name: David
                Gonzalez, Esq. 

      

    

    

    FOR
      VALUE RECEIVED,
      the
      Pledgor hereby unconditionally and absolutely guarantees the Company’s
      Obligations (as defined above) solely to the extent of the Pledged Shares.
      This
      Agreement is made without any recourse to the Pledgor.

     

    
      	 	 	 	 
	By:
/s/
              KATHY PROCOPIO	 	 	 
	
              
Name:
              New Creation Outreach	 	 	
            

    
      
        
        

      

      
        8Exhibit
      10.1

    

    NEWTEK
      BUSINESS SERVICES, INC.

    

    
      
        

      

    

    

    Employment
      Agreement with

    

    Barry
      Sloane

    

    
      

    

     

    PREAMBLE.
      This
      Agreement entered into this 30th day of June 2006, by and between Newtek
      Business Services, Inc. (the “Company”) and Barry Sloane (the “Executive”),
      effective immediately.

    

    WHEREAS,
      the
      Executive is to be employed by the Company as an executive officer;
      and

    

    WHEREAS,
      the
      parties desire by this writing to set forth the employment relationship of
      the
      Company and the Executive.

     

    NOW,
      THEREFORE,
      it is
AGREED
      as
      follows:

    

    1. Defined
      Terms

    

    When
      used
      anywhere in the Agreement, the following terms shall have the meaning set forth
      herein.

    

    (a) “Board”
      shall
      mean the Board of Directors of the Company.

    

    

    (b) “Change
      in Control”
      shall
      mean any one of the following events: (i) the acquisition of ownership, holding
      or power to vote 50% or more of the Company’s voting stock, (ii) the acquisition
      of the ability to control the election of a majority of the Company’s directors,
      (iii) the acquisition of a controlling influence over the management or policies
      of the Company by any person or by persons acting as a “group” (within the
      meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv) during
      any period of two consecutive years, individuals (the “Continuing Directors”)
      who at the beginning of such period constitute the Board of Directors of the
      Company (the “Existing Board”) cease for any reason to constitute at least one
      half thereof, provided that any individual whose election or nomination for
      election as a member of the Existing Board was approved by a vote of at least
      two-thirds of the Continuing Directors then in office shall be considered a
      Continuing Director. For purposes of this paragraph only, the term “person”
refers to an individual or a corporation, partnership, trust, association,
      joint
      venture, pool, syndicate, sole proprietorship, unincorporated organization
      or
      any other form of entity not specifically listed herein.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c) “Code”
      shall
      mean the Internal Revenue Code of 1986, as amended from time to time, and as
      interpreted through applicable rulings and regulations in effect from time
      to
      time.

    

    (d) “Code
      §280G Maximum”
      shall
      mean the product of 2.99 and the Executive’s “base amount” as defined in Code
§280G(b)(3).

    

    (e) “Company”
shall
      mean Newtek Business Services, Inc., and any successor to its
      interest.

    

    (f) “Common
      Stock”
      shall
      mean common stock of the Company.

    

    (g) “Effective
      Date”
      shall
      mean the date of execution referenced in the Preamble of this
      Agreement.

    

    (h) “Executive”
      shall
      mean Barry Sloane.

    

    (i) “Good
      Reason”
      shall
      mean any of the following events, which has not been consented to in advance
      by
      the Executive in writing: (i) the requirement that the Executive move his
      personal residence, or perform his principal executive functions, more than
      fifty (50) miles from his primary office as of the Effective Date; (ii) a
      material reduction in the Executive’s base compensation as the same may be
      increased from time to time; (iii) the failure by the Company to continue to
      provide the Executive with compensation and benefits provided for on the
      Effective Date, as the same may be increased from time to time, or with benefits
      substantially similar to those provided to him under any of the Executive
      benefit plans in which the Executive now or hereafter becomes a participant,
      or
      the taking of any action by the Company which would directly or indirectly
      reduce any of such benefits or deprive the Executive of any material fringe
      benefit enjoyed by him; (iv) the assignment to the Executive of duties and
      responsibilities materially different from those associated with his position
      on
      the Effective Date; (v) a failure to elect or reelect the Executive to the
      Board
      of Directors of the Company; (vi) a material diminution or reduction in the
      Executive’s responsibilities or authority (including reporting responsibilities)
      in connection with his employment with the Company.

    

    (j) “Just
      Cause”
      shall
      mean the Executive’s willful misconduct, breach of fiduciary duty involving
      personal profit, intentional failure to perform stated duties, conviction for
      a
      felony, or material breach of any provision of this Agreement. No act, or
      failure to act, on the Executive’s part shall be considered “willful” unless he
      has acted, or failed to act, with an absence of good faith and without a
      reasonable belief that his action or failure to act was in the best interests
      of
      the Company.

    

    (k) “Protected
      Period”
      shall
      mean the period that begins on the date six months before a Change in Control
      and ends on the earlier of six months following the Change in Control or the
      expiration date of this Agreement. 

    

    (l) “Trigger
      Event”
      shall
      mean (i) the Executive’s voluntary termination of employment either for any
      reason within the 30-day period beginning on the date of a Change in Control,
      or
      within 90 days of an event that both occurs during the Protected Period and
      constitutes Good Reason, or (ii) the termination by the Company or its
      successor(s) in interest, of the Executive’s employment for any reason other
      than Just Cause during the Protected Period. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2. Employment.
      The
      Executive is employed as Chief Executive Officer of the Company. The Executive
      shall render such administrative and management services for the Company and
      its
      subsidiaries as set forth in the attached Position Description and as requested
      by the Board, as are currently rendered and as are customarily performed by
      persons situated in a similar executive capacity and consistent with the duties
      of the Chief Executive Officer as set forth in the bylaws of the Company. The
      Executive shall also promote, by entertainment or otherwise, as and to the
      extent permitted by law, the business of the Company and its subsidiaries.
      The
      Executive’s other duties shall be such as the Board may from time to time
      reasonably direct, including normal duties as an officer of the
      Company.

    

    3. Base
      Compensation.
      The
      Company agrees to pay the Executive during the term of this Agreement a salary
      at the rate of $350,000 per annum, payable in cash not less frequently than
      monthly. Additionally, the Board shall review, not less often than annually,
      the
      rate of the Executive’s salary and may decide to further increase his
      salary.

    

    4. Cash
      Bonuses; Incentive Compensation.
      

    

    (a) The
      Board
      shall determine the Executive’s right to receive incentive compensation in the
      form of cash bonuses and other awards. No other compensation provided for in
      this Agreement shall be deemed a substitute for such incentive compensation.
      Cash bonuses shall be awarded pursuant to the terms of the Company’s Annual Cash
      Bonus Plan, if one has been adopted by the Board and if not, then by action
      of
      the Board.

    

    (b) Incentive
      bonus: in addition to all other compensation payable hereunder, the Executive
      shall be entitled to participate in consideration for a cash bonus out of a
      pool
      to be established for this purpose by the Board. The amount of the Executive’s
      bonus participation shall be fixed by the Compensation Committee of the Board
      if
      it finds the Executive’s performance to have been a major contributing factor to
      the success of the Company.

    

    5. Other
      Benefits.

    

    (a) Participation
      in Retirement, Medical and Other Plans.
      The
      Executive shall participate in any plan that the Company maintains for the
      benefit of its employees if the plan relates to (i) pension, profit-sharing,
      or
      other retirement benefits, (ii) medical insurance or the reimbursement of
      medical or dependent care expenses, or (iii) other group benefits, including
      disability and life insurance plans. 

    

    (b) Executive
      Benefits; Expenses.
      The
      Executive shall participate in any fringe benefits which are or may become
      available to the Company’s senior management Executives, including for example
      incentive compensation plans, club memberships, and any other benefits which
      are
      commensurate with the responsibilities and functions to be performed by the
      Executive under this Agreement. The Executive shall be reimbursed for all
      reasonable out-of-pocket business expenses which he shall incur in connection
      with his services under this Agreement upon substantiation of such expenses
      in
      accordance with the policies of the Company.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c) Split-Dollar
      Life Insurance.
      The
      Company shall provide the Executive with split-dollar life insurance coverage.
      The coverage shall be provided under a separate Split-Dollar Life Insurance
      Agreement (the "Split-Dollar Agreement") entered into between the Executive
      and
      the Company, the terms of which shall include the following:

    

    (i) Amount
      of Insurance.
      The
      Company shall obtain an insurance policy (the "Policy") in the face amount
      of $2
      million on the life of the Executive.

    

    (ii) Ownership.
      The
      Company shall be the sole owner of the Policy.

    

    (iii) Payment
      of Premiums.
      The
      Company shall pay all premiums for each Policy year.

    

    (iv) Death
      Benefits.
      Upon
      the death of the Executive, the death benefit payable under the Policy shall
      be
      paid to the Company in an amount equal to the lesser of (i) the aggregate
      premiums paid by the Company and (ii) the cash surrender value of the Policy.
      The balance shall be paid to the Executive's designated beneficiary or, if
      none
      is validly designated, his estate.

    

    (v) Dividends.
      All
      dividends on the Policy shall be used to purchase additions to insurance issued
      by the insurer.

    

    (vi) Termination
      of Employment.
      Upon
      termination of Executive’s employment for any reason, the Executive may elect,
      by written notice to the Company within 30 days of such termination, to purchase
      the Policy and assume all premium obligations there under from the Company
      by
      paying the lesser of (i) the total premiums paid by the Company or (ii) the
      cash
      surrender value of the Policy.

    

    6. Term.
      The
      Company hereby employs the Executive, and the Executive hereby accepts such
      employment under this Agreement, for the period commencing on the Effective
      Date
      and ending on December 31, 2007 or such earlier date as is determined in
      accordance with Section 11 (the “Term”).

     

    7. Loyalty;
      Noncompetition.

    

    (a) During
      the period of his employment hereunder and except for illnesses, reasonable
      vacation periods, and reasonable leaves of absence, the Executive shall devote
      substantially all his full business time, attention, skill, and efforts to
      the
      faithful performance of his duties hereunder; provided, however, from time
      to
      time, Executive may serve on the boards of directors of, and hold any other
      offices or positions in, companies or organizations, at the request of the
      Company or which will not present, in the opinion of the Board, any conflict
      of
      interest with the Company or any of its subsidiaries or affiliates, nor
      unfavorably affect the performance of Executive’s duties pursuant to this
      Agreement, nor violate any applicable statute or regulation. “Full business
      time” is hereby defined as that amount of time usually devoted to like companies
      by similarly situated executive officers. During the Term of his employment
      under this Agreement, the Executive shall not engage in any business or activity
      contrary to the business affairs or interests of the Company.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Nothing
      contained in this Paragraph 7 shall be deemed to prevent or limit the
      Executive’s right to invest in the capital stock or other securities of any
      business dissimilar from that of the Company or, solely as a passive or minority
      investor, in any business.

    

    8. Standards.
      The
      Executive shall perform his duties under this Agreement in accordance with
      such
      reasonable standards as the Board may establish from time to time. The Company
      will provide Executive with the working facilities and staff customary for
      similar executives and necessary for him to perform his duties. 

    

    9. Vacation
      and Sick Leave.
      At such
      reasonable times as the Board shall in its discretion permit, the Executive
      shall be entitled, without loss of pay, to absent himself voluntarily from
      the
      performance of his employment under this Agreement, all such voluntary absences
      to count as vacation time; provided that:

    

    (a) The
      Executive shall be entitled to an annual vacation in accordance with the
      policies that the Board periodically establishes for senior management
      Executives of the Company.

    

    (b) The
      Executive shall not receive any additional compensation from the Company on
      account of his failure to take a vacation, and the Executive shall not
      accumulate unused vacation from one fiscal year to the next, except in either
      case to the extent authorized by the Board.

    

    (c) In
      addition to the aforesaid paid vacations, the Executive shall be entitled
      without loss of pay, to absent himself voluntarily from the performance of
      his
      employment with the Company for such additional periods of time and for such
      valid and legitimate reasons as the Board may in its discretion determine.
      Further, the Board may grant to the Executive a leave or leaves of absence,
      with
      or without pay, at such time or times and upon such terms and conditions as
      such
      Board in its discretion may determine.

    

    (d) In
      addition, the Executive shall be entitled to an annual sick leave benefit as
      established by the Board.

    

    10. Indemnification.
      The
      Company shall indemnify and hold harmless Executive from any and all loss,
      expense, or liability that he may incur due to his services for the Company
      as
      an officer and or a director (including any liability he may ever incur under
      Code § 4999, or a successor, as the result of severance benefits he
      collects pursuant to Sections 11 or 13), during the full Term of this
      Agreement and shall at all times maintain adequate insurance for such
      purposes.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11. Termination
      and Termination Pay.
      Subject
      to Section 13 hereof, the Executive’s employment hereunder may be terminated
      under the following circumstances:

    

    (a) Just
      Cause.
      The
      Board may, based on a good faith determination and only after giving the
      Executive written notice and a reasonable opportunity to cure, immediately
      terminate the Executive’s employment at any time, for Just Cause. The Executive
      shall have no right to receive compensation or other benefits for any period
      after termination for Just Cause.

    

    (b) Without
      Just Cause.
      The
      Board may, by written notice to the Executive, immediately terminate his
      employment for a reason other than Just Cause, in which case the Executive
      shall
      be paid an amount equal to the balance of the compensation provided for by
      Sections 3 and 4 hereof for the balance of the Term.

    

    (c) Resignation
      by Executive with Good Reason.
      The
      Executive may at any time immediately terminate employment for Good Reason,
      in
      which case the Executive shall be entitled to receive the following compensation
      and benefits: (i) the salary and cash bonus provided pursuant to Sections 3
      and
      4 hereof, up to the expiration date (the “Expiration Date”) of the Term,
      including any renewal term, of this Agreement, and (ii) the cost to the
      Executive of obtaining all health, life, disability and other benefits which
      the
      Executive would have been eligible to participate in through the Expiration
      Date
      based upon the benefit levels substantially equal to those that the Company
      provided for the Executive at the date of termination of employment. Said
      payment shall be made in a lump sum payment within 10 days after his termination
      of employment.

    

    (d) Resignation
      by Executive without Good Reason.
      The
      Executive may voluntarily terminate employment with the Company during the
      term
      of this Agreement, upon at least 60 days’ prior written notice to the Board of
      Directors, in which case the Executive shall receive only his compensation,
      vested rights, and Executive benefits up to the date of his termination of
      employment.

    

    (e) Retirement,
      Death, or Disability.
      If the
      Executive’s employment terminates during the Term of this Agreement due to his
      death, a disability that results in his collection of any long-term disability
      benefits, or retirement at or after age 62, the Executive (or the beneficiaries
      of his estate) shall be entitled to receive the compensation and benefits that
      the Executive would otherwise have become entitled to receive pursuant to
      subsection (d) hereof upon a resignation without Good Reason.

    

    (f) Termination
      or Non-Renewal Payment. If
      the
      Executive’s employment hereunder is terminated pursuant to subsections (b),
      without Just Cause, or (c), with Good Reason, or if the Term of this Agreement
      is not extended for at least one additional year, the Executive shall be
      entitled to compensation and benefits equal to six (6) months compensation
      and
      benefits under Sections 3 and 4 hereof, provided, however, that the Company
      shall have the option of paying such compensation over a twelve (12) month
      period.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12. No
      Mitigation.
      The
      Executive shall not be required to mitigate the amount of any payment provided
      for in this Agreement by seeking other employment or otherwise, and no such
      payment shall be offset or reduced by the amount of any compensation or benefits
      provided to the Executive in any subsequent employment.

     

    13. Change
      in Control.
      Notwithstanding any provision herein to the contrary, if a Trigger Event occurs
      during the Protected Period, the Executive shall be paid an amount equal to
      the
      Code § 280G Maximum. Said sum shall be paid in one lump sum within ten (10)
      days of such termination.

    

    14. Reimbursement
      for Litigation Expenses.

    

    In
      the
      event
      that any dispute arises between the Executive and the Company as to the terms
      or
      interpretation of this Agreement, whether instituted by formal legal proceedings
      or otherwise, including any action that the Executive takes to enforce the
      terms
      of this Agreement or to defend against any action taken by the Company, the
      Executive shall be reimbursed for all costs and expenses, including reasonable
      attorneys’ fees, arising from such dispute, proceedings or actions, provided
      that the Executive shall obtain a final judgment by a court of competent
      jurisdiction in favor of the Executive. Such reimbursement shall be paid within
      ten (10) days of Executive’s furnishing to the Company written evidence, which
      may be in the form, among other things, of a cancelled check or receipt, of
      any
      costs or expenses incurred by the Executive. 

     

    15. Successors
      and Assigns.

    

    (a) This
      Agreement shall inure to the benefit of and be binding upon any corporate or
      other successor of the Company which shall acquire, directly or indirectly,
      by
      merger, consolidation, purchase or otherwise, all or substantially all of the
      assets or stock of the Company.

    

    (b) Since
      the
      Company is contracting for the unique and personal skills of the Executive,
      the
      Executive shall be precluded from assigning or delegating his rights or duties
      hereunder without first obtaining the written consent of the
      Company.

    

    16. Corporate
      Authority.
      Company
      represents and warrants that the execution and delivery of this Agreement by
      it
      has been duly and properly authorized by the Board and that when so executed
      and
      delivered this Agreement shall constitute the lawful and binding obligation
      of
      the Company.

    

    17. Amendments.
      No
      amendments or additions to this Agreement shall be binding unless made in
      writing and signed by all of the parties, except as herein otherwise
      specifically provided.

    

    18. Applicable
      Law.
      Except
      to the extent preempted by Federal law, the laws of the State of New York shall
      govern this Agreement in all respects, whether as to its validity, construction,
      capacity, performance or otherwise. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    19. Severability.
      The
      provisions of this Agreement shall be deemed severable and the invalidity or
      unenforceability of any provision shall not affect the validity or
      enforceability of the other provisions hereof.

    

    20. Entire
      Agreement.
      This
      Agreement, together with any understanding or modifications thereof as agreed
      to
      in writing by the parties, shall constitute the entire agreement between the
      parties hereto with respect to the matters addressed and shall supersede all
      previous agreements with respect to such matters.

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement on the day and year
      first hereinabove written.

     

    
      	
              Witnessed
                by:

            	
              NEWTEK
                BUSINESS SERVICES, INC.

            
	 	 
	
              /s/
                Myria
                Morris                        
                

            	
              By:
                /s/ Jeffrey G.
                Rubin                     
                

            
	
               

            	
              Its
                President

            
	
              Witnessed
                by:

            	 
	
              /s/
                Myria
                Morris                         
                

            	
              By:
                /s/ Barry
                Sloane                          
                

            
	
               

            	
              Barry
                Sloane

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